Achmea & RP build solution to protect Smallholders' harvest in Africa

Utrecht, September 19, 2023.- When Rabo Partnerships (RP) with its partners launched the Agriculture Exchange program in Uganda in 2023, we formed a team to implement the solution. Agriculture Exchange is a digital marketplace platform where smallholder farmers can sell their produce, buy fertilizers and pesticides, or even apply for an Agri-production loan. Part of this solution is an automated credit assessment developed by Rabo Partnerships and implemented within a local financial institution that is going to provide loans to smallholder farmers. Typically such small farmers have difficulties in accessing loan from traditional banks. The program will leverage more data that can be used in credit application and in this way will make it easier to approve agri loans. The loans will initially be provided for buying agri inputs and will help farmers to improve their crops leading to larger incomes and ultimately to increasing the livelihoods of the smallholder farmers.

Rabo Partnerships leverages knowledge and experience from Rabobank employees to build such credit solutions. Rabobank colleagues from various disciplines, including Risk Management, Credit Modelling, Product Management, IT Architecture, provide technical assistance or partner support to our clients, local financial institutions, and other related organizations. Additionally, we engage with likeminded companies and tap into their knowledge and experience, as is the case with DLL (De Lage Landen). Collaboration with DLL was extended recently:Collaboration between DLL and Rabo Partnerships extended (sharepoint.com).

Providing credit to a smallholder farmer is important but also comes with responsibilities. Local banks perceive such loans as quite a risky business especially when we face severe consequences of climate change in many countries in Africa. Sometimes a drought or excessive rainfall can ruin the whole harvest, and a farming family will have no means to pay back a loan and prepare for the next season.

Therefore, we needed a solution to protect farmers from going into an adverse financial situation. Insurance was a no brainer here: we have thought about establishing an insurance product that can help farmers overcome severe losses and can help the banks to extend loans more willingly, however we were lacking the right expertise.

In this journey we connected to Achmea Foundation, established by Achmea.nl, the parent cooperative company behind insurance brands Centraal Beheer, Interpolis, and Zilveren Kruis. Achmea Foundation and Rabo Partnerships have a history of impactful collaborations in the past. And now it's time for a new partnership. Agnes van Daal, Director of Achmea Foundation, has supported us with finding the right consultant for Agriculture Exchange - Paul Schrijver- a Senior Specialist Loss Adjuster Horticulture and Agriculture. In Agnes’ words, the collaboration is valuable because “With the Achmea Foundation, we want to make the world a little bit more beautiful. I am proud that we work together with our colleagues from the Rabobank to achieve this.”

Paul has advised Rabo Partnerships on a range of options for crop protection by means of insurance. Together with him, we have selected an area-yield index-based insurance to focus on. This insurance requires an extensive development process that includes data analysis of historical losses and subsequent testing on the ground and sampling of farmers’ produce. This is where we will need Paul’s expertise even more. The initial work will be set up in Uganda, with other countries in Africa to follow such as. Kenya, Nigeria & Tanzania. Paul’s impression can be expressed in his words: “It is a very nice opportunity via Achmea Foundation to collaborate, with a team of engaged people, on a framework for a financial ecosystem to make farming in Africa more resilient and sustainable. To be able to contribute to a more steady farming future for smallholders in particular. I enjoy working within this collaboration and I experience a supportive atmosphere where we encourage and stimulate each other to create the best suitable solutions.”

We look forward to closely collaborating with Achmea Foundation in supporting smallholder farmers and our partners - local financial institutions.