The EMRC-Rabobank Foundation Project Incubator Award, launched in 2008, has become a major feature at the AgriBusiness Forum. The Project Incubator Award spotlights and supports innovative Agri-Food related projects within Africa.

With the next winner to be announced during the AgriBusiness Forum 2011 in Johannesburg South Africa, 16-19 October 2011, EMRC asks Pierre L. van Hedel, Managing Director of the Rabobank Foundation, a few questions:

EMRC: The Project Incubator Award offers people with innovative ideas and successful business plans in the Agri-Food a chance to receive a cash prize and international recognition. How vital is such an award for highlighting what is happening in Africa and why has the Rabobank Foundation partnered with EMRC International for this award?

Pierre van Hedel: RABOBANK believes there is a great untapped potential in the food value chains of Africa, especially where investment and expertise of global players, who are at the top of the chain, can be engaged. This is where knowledge, market linkages and investment capital can be mobilized for the cause of African agricultural development.   The major challenge we see is to link the top and the bottom of the agricultural production pyramid. EMRC has proven to be a wonderful partner in this field by giving the floor to all kinds of parties involved, including the private and public sectors, and bringing them together to share experiences.

EMRC: The AgriBusiness Forum 2011 focuses on developing Africa’s agricultural sector while fostering a greater role for the private sector. What role should financial institutions such as the Rabobank Foundation have today, and in the future, to ensure the sector’s development?

PvH: The Foundation aims to build the capacities of promising local initiatives, often involving farmer / producer cooperatives, financial cooperatives and microfinance institutions, to develop and strengthen commercially viable products in the rural areas.

EMRC: What differentiates Rabobank Foundation products from other financial institutions and how are your actions and products adapted to the African market?

PvH: Rabobank Foundation operates in the promising, but not yet commercially mature rural finance sector. Through donations, capacity building and training, micro finance, trade finance and guarantees it aims to bring these organisations to the point of commercial viability and financial creditworthiness, allowing them to continue on a self-reliant and economically viable basis.   Rabobank Foundation gives the "active poor" the opportunity to improve both their economic and social position. By supporting rural savings, credit cooperatives and co-operative producer organisations we strongly believe that we can establish a self responsible African economy.

EMRC: The international community has increased its interest towards Africa’s agricultural potential for a variety of reasons. What advice, predications and concerns would you give to those interested in investing in this sector?

PvH: Compared to other continents, Africa is confronted with daunting challenges: HIV, high population growth, rural poverty, and consequences of climate change in fragile ecological environments. However, the African economy, including agriculture, is experiencing promising economic growth and in the medium-term a brighter market outlook in international, regional and domestic markets.   To seize the upcoming opportunities, investors must be prepared as lead-actors in the value chain, to facilitate farmer education and organisation in collaboration with the public sector.

EMRC: What would you say to all those thinking of putting their project or business forward for this year’s Project Incubator Award for the AgriBusiness Forum 2011? What advice would you give to small farmers that wish to be successful in Africa?

PvH: Get organised!   Cooperatives and other forms of producer organisations are probably the single most crucial factor for success.