Partnering for Progress: IFAD and Rabo Partnerships Launch Initiative to Support Primary Producers
Utrecht, September 2025 - Rabo Partnerships has teamed up with the International Fund for Agricultural Development (IFAD) to launch a transformative initiative aimed at closing the financing gap for primary producers in Asia and Latin America. The program, titled Inclusive Financial Ecosystem for Food Systems Transformation (IFE-FST), is set to run for two years and focuses on empowering National Development Banks (NDBs) to lead inclusive rural finance efforts.

Building on a Strong Foundation
This collaboration builds on previous joint efforts between Rabo Partnerships and IFAD, including the Agri-Business Capital Fund (ABC Fund), where Rabo Partnerships worked with IFAD through partner Agriterra. In that project, Rabo Partnerships provided technical assistance and conducted ESG due diligence for microfinance institutions (MFIs) under consideration for funding. ABC Fund’s goal is to improve access to capital and business development opportunities in underserved agricultural value chains by providing financing and technical assistance to smallholder farmers, rural SMEs and farmer organisations. ABC Fund aims to improve rural livelihoods by supporting job-generating projects for women and youth, as well as agricultural initiatives that incorporate climate adaptation practices
A Strategic, Phased Approach
The IFE-FST initiative is structured into four phases: Inception, Solution Design, Execution, and Dissemination. The recently completed Inception phase, conducted by Rabo Partnerships, culminated into a comprehensive report based on desk research, stakeholder consultations and regional roundtables with NDBs in Bolivia, Colombia, Ecuador, Mexico, Bangladesh, India, Pakistan, Philippines and Vietnam.

The Unique Role of National Development Banks
The IFAD report underscores the unique role NDBs play in agricultural finance. Unlike commercial banks and MFIs, NDBs are national public banks that are not driven by profit and can prioritize underserved sectors in a country, for example small and mid-sized farmers. Their ability to offer long-term, affordable financing and guarantee structures for other banks, makes them essential players in strengthening rural economies. The analysis spans nine countries, highlighting diverse models and financial products tailored to rural transformation.
What's Next: Co-Creating Local Solutions
In the upcoming Solution Design phase, Rabo Partnerships will work with NDBs in Bolivia, Ecuador, Mexico, Pakistan, Philippines, Vietnam to co-create a playbook of best practices. These playbooks will feature innovative financial instruments such as risk-sharing arrangements, guarantee mechanisms, blended finance models and digital financial services, and also include best practices about effective implementation of these instruments. Each playbook will be adapted to the local context of the six selected countries, ensuring it meets the specific needs of smallholder farmers - the initiative’s primary beneficiaries. Additionally, the program includes a knowledge dissemination component to share lessons learned with NDBs beyond the project scope. In this context, Rabo Partnerships will host various opportunities for actors of the Inclusive Financial Ecosystem to participate in.
