WEF Leader Series: Feike Sijbesma

Business Report asks Feike Sijbesma, the chief executive of Royal DSM, The Netherlands, some key questions ahead of the WEF Africa 2016 summit in Kigali...

Q: DSM is one of the largest life sciences/nutrition and materials sciences companies in the world: What parts of your business are most relevant to Africa?

A: We have had a long history of engagement with Africa, particularly through our nutrition business, active in several countries (ranging from Egypt to South Africa) and our partnership with the UN World Food Programme.

For example, in Rwanda, the government, in close collaboration with the Clinton Health Access Initiative, has invited us to co-invest – via the Africa Improved Foods partnership – in the manufacturing of affordable, nutritious and high-quality foods to improve the nutrition of people in the country.

The partnership is currently building a factory in Rwanda that will produce a highly nutritious micronutrient-rich porridge mix from soya beans and maize grown locally by farming co-operatives for children older than six months to complement breast-feeding.

It will create 230 direct jobs, while offering 9 000 local farmers a stable, sustainable income for a portion of their harvest. We are proud to be a partner in this multi-sector partnership and believe that by bringing together the strong commitment of the governments of Rwanda, and the specific know-how, skills and competencies of several recognised organisations, including the International Finance Corporation of the World Bank, CDC (the development finance institution of the UK government’s Department for International Development) and FMO (the Dutch development bank), we can help break the cycle of malnutrition and help ensure child survival and health. We hope to mirror this approach in other countries in the region, such as Ethiopia and others.

Q: It is well-known that improving nutrition improves local gross domestic product (GDP): Why is it proving so hard to address this challenge in Africa?

A: Indeed, we know that combating malnutrition is not only a humanitarian imperative: it also yields enormous economic returns, with better nutrition increasing a nation’s GDP by two to 3 percentage points. In fact, the Copenhagen consensus calculated that every US dollar invested in nutrition today would yield a return of $59 (R883.25). However, Africa finds itself at the nexus of a number of challenges that make it especially hard to improve nutrition levels for people across the continent in a consistent and sustainable manner.

For a start, the negative effects of climate change have hit the continent particularly hard, leading to one of the worst droughts in eastern Africa, depressing crop yields and causing millions of people to go hungry. And ironically enough, you can’t accuse Africa of causing climate change. But it goes deeper: issues with governmental policies and the way some governments function, uneven levels of education, and difficulties in sharing and scaling agricultural innovations have compounded these effects and sustain this negative cycle of malnutrition and poverty.

The good news is that we have the solutions to break the cycle: the Africa Improved Foods partnership is just one example. What is needed now is the will from both public and private partners to scale best practices and apply them rigorously wherever the need arises.

Q: What about sustainable animal protein production and the risk of increasing greenhouse gas emissions?

A: Sustainable animal protein production is indeed an important topic for Africa. With its further development Africa is expected to grow its meat and fish consumption as well. We believe there is an opportunity here to make a leapfrog step and scaling up with new green technologies, such as our clean cow and/or green ocean technologies, which scales up meat and fish production but in a very sustainable manner.

Q: Second-generation biofuels present an opportunity to rejuvenate Africa’s rural economies with its abundant resources of arable land: How close are we to realising this potential?

A: Let’s be clear: there’s a lot of work still left to do. Resources alone are not enough. We also need to address policy challenges, invest in the necessary infrastructure and – crucially – figure out how best to integrate second-generation advanced biofuel production into existing agricultural, economic and transportation systems in such a way that there is no competition between food, feed and fuel. But indeed, in case of second-generation biofuels we can use the agricultural residues, waste so to speak and instead of burning these residues or throwing it away, we can convert it into green, cheap and affordable energies available locally. But to overcome the challenges – we need extensive co-operation across the public and private sectors – all need to be addressed before an integrated biofuel industry can be created in Africa that has the capacity to not only help rejuvenate rural economies, but also to power further economic and social development across the continent.

Q: Thinking globally, what scientific breakthrough excites you most?

A: I believe that good quality nutrition is a human right, so I’m especially excited by innovations that help tackle the scourge of hunger and malnutrition wherever it exists. This is crucial. We know that macro- and micro-nutrient deficiencies have insidious effects on neurological development of children, with irreversible effects if these deficiencies occur in the first 1 000 days. In the long term, the persistently malign effects of under-nutrition in early life have significant economic consequences in adulthood, such as lower earning power and a higher risk of non-communicable diseases, including diabetes, heart disease and high blood pressure.

At DSM, we believe science can change the world. Every day our people work hard to discover, improve and integrate the most sustainable and commercially viable solutions to meet market needs. With innovations such as MixMe – a micronutrient powder that can be added to a meal or drink – we are demonstrating that we have what it takes to solve the malnutrition challenge, and for me that is incredibly inspiring. Let me add: I believe this generation should address global hunger and malnutrition and solve it; it should be a next step in civilisation of mankind to ban hunger completely. We have the technology, products, logistic power and financial means to do so, let’s not be stopped by a lack of will.

Q: If you could achieve one outcome at the World Economic Forum on Africa, what would it be?

A: Malnutrition is a solvable problem, but it’s one that’s too big to be solved completely by any one group: we need the private sector, civil society and government to work together. The WEF Africa meeting is the perfect forum for bringing together these potential partners and ensuring that, collectively, as said: we take the next step in our civilisation and eradicate hunger and malnutrition. I hope we seize the moment.

* Feike Sijbesma, the chief executive of Royal DSM, The Netherlands, will be participating at the World Economic Forum on Africa 2016 in Kigali, Rwanda, from May 11 to 13.

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