Working together for growth and sustainability
The Rabo Rural Fund has had a demonstrably positive impact on the development of agribusiness in the developing countries of Africa, Asia and Latin America. With the continued growth in population, there is also an increasing demand for food. That’s why it’s important to invest in all agricultural companies. The Rabo Rural Fund invests in agricultural businesses in the so-called ‘missing middle’.
How we work
Rabo Rural Fund’s principal focus is on financing export crops such as cocoa, fish and coffee, based on export contracts. In addition, we finance fixed assets such as the extension of production lines. We provide trade finance to member-based organizations of smallholders or SMEs. Trade financing gives producers organizations and SMEs access to affordable financing. This allows the organizations to better finance the purchase and processing of their products, which enables them to sell at better prices and under better conditions. Alongside short-term trade finance the Fund also provides guarantees. A guarantee helps a project partner to obtain a loan elsewhere, often with commercial banks. The Rural Fund shares the credit risk with a local bank, by granting a part of the loan itself or by (partially) acting as a guarantor for the loan of the bank.
In addition to providing finance, sharing expertise and networks is key. Our shareholder’s network is available to support our project partners in the field of (price) risk management, financial management and marketing, amongst others. We help our clients to improve their business on a national and international level. Furthermore we invest, through our partners and clients, in knowledge transfer to farmers. For instance, they learn new agricultural cultivation techniques and storage methods to improve the productivity and quality.
Only by working together can we grow a better world. That’s why we work with partners like ICCO and Rabobank Foundation.
Three example projects are outlined below.
Project - Colombia - CaravelaRead more
Vietnam – Blueyou Trading
Blueyou Trading was founded to close the gap between supply and demand in the market for sustainable fish.
Tanzania – Tembo Coffee Company
In Tanzania, coffee is traditionally traded through a centralised auction.