Sustainable progress by investing in the missing middle
Agricultural business can grow rural prosperity in Africa, Asia and Latin America. By investing in producer cooperatives, small and medium enterprises (SMEs) and microfinance institutes (MFIs) the Rabo Rural Fund contributes to improving the livelihoods of smallholder farmers, as well as enhancing sustainable economic development in a socially responsible manner.
Rabo Rural Fund: Working together for growth & sustainability
Over two billion people worldwide survive on less than $ 2 a day. Three quarters of them live in rural areas and are dependent on agriculture as their primary source of income. Without access to capital and reliable markets for their crops, these smallholder farmers cannot grow their business and gain a higher income. At the same time, population growth in low- and middle-income countries is driving increased demand for food. Strengthening producer cooperatives and agricultural organizations is therefore of great importance for the fight against poverty and feeding the growing population.
The challenge for many of these farming organizations is that they experience difficulties in securing commercial investment. They have outgrown grants, micro-credit and soft loans but do not qualify for a standard bank loan. They are trapped in the "missing middle".
Rabo Rural Fund covers the need of agricultural business that are too big for microfinance and too small or risky for commercial banks. By offering access to finance we enable them to finance the purchase, processing and sale of their products.
Find out more about how we contribute to sustainable progress.