Africa Improved Foods (AIF) Rwanda Limited is public private partnership (PPP), established in 2016 to launch a unique project with the mission to help people in Rwanda and the wider region achieve their full potential through improved access to nutritious, locally sourced foods.
When we spoke to Ramesh Moochikal, Chief Executive Officer, last year, he explained the background to the organisation, its impressive journey to become a leading manufacturer in Africa of high-quality fortified blended foods, primarily for pregnant women and babies, as well as its impact across the whole value chain.
AIF has implemented a model to source raw materials locally where possible, helping local farmers and minimising waste and the carbon footprint. Its products – Super Cereal Plus, a highly specialized cereal made from pre-cooked grains blended with skimmed milk powder, sugar, soy oil and micronutrients, as well as the Shisha Kibondo range, a nutritious complementary porridge distributed free-of-charge to Rwandan mothers and infants – are true game changers for combatting malnutrition. The company also makes a commercial portfolio of fortified cereals, the Nootri range for infants, kids and families.
With the support of its major customer as well as international organisations, the company had ambitious goals to expand its admirable efforts across the African continent. However, not all has gone as planned, says Moochikal.
Unhindered by challenge
Summarising the developments of the last year, he admits that AIF encountered unforeseen hurdles as its largest customer, the World Food Program (WFP), faced severe budget cuts and drastically reduced its business with AIF.
“This surprising decision, which came all of a sudden in January, meant that we had to fend for ourselves without the support of our primary customer. However, I’m happy to say that although unprepared, we found solutions, we found alternate routes, we developed some new customers and remain an EBITDA positive business by the end of the year.”
He points out that another setback came from European development banks, as they paused their investment due to concerns about the WFP’s reduced involvement. “This hesitance created a funding gap for our planned expansion efforts. However, we refused to abandon our plans. Instead, we actively sought alternative funding sources, engaging with Middle Eastern sovereign funds interested in impactful investments,” says Moochikal.
“We were also shortlisted to present our proposals at the prestigious Africa Investment Forum in Rabat. This platform, supported by the African Development Bank and attended by over 2,000 investors, provides Africa Improved Foods with an opportunity to showcase our vision and attract diverse funding.”
“In summary, AIF has made a shift in its approach, as we have sought independent investors not reliant on traditional Western funding streams, and found alternate routes. We have drawn up a new plan, and are back on track to pursue growth.”
He affirms that Africa Improved Foods, as a social impact organisation does not pursue growth for profit but for impact. “Our founder’s dream of having a footprint across Africa to battle malnutrition remains intact. We are still determined to make a difference.”
Adapted strategy
Last year, Ramesh Moochikal outlined a roadmap to expand AIF’s operations to several African countries, with the goal of impacting 10 million lives & livelihoods daily by 2029. Due to the changes, this timeline has moved to 2030 and the sequence of countries has also changed.
“With their current political instability, Nigeria and Ethiopia will not be the most viable for new businesses to set up. As such, we have moved Ghana up the list, to be followed later by Zambia, with Ethiopia and Nigeria remaining on the longer-term agenda.”
He further explains the AIF’s portfolio for Rwanda has not changed, and feasibility studies in Ghana and Zambia are underway to identify food formats that align with local preferences and eating habits to ensure nationwide appeal and acceptance. The emphasis on creating products that people enjoy – rather than merely accept – is important in addressing the needs of communities at the “bottom of the pyramid.”
Financial constraints have unfortunately affected the company’s human resource policy. Moochikal admits the company had to part ways with some top management personnel to streamline costs. Still, Africa Improved Foods upheld its commitments to farming communities, honouring all contracts for maize and soy purchases, and its training and accreditation programmes have continued uninterrupted.
“Although we had to slim down our business, we made sure that our workers and our farming communities did not suffer – we have maintained our commitment to our farming communities, and not a single worker has lost their job because of our current challenges.”
Raising profile on the global stage
Despite the year’s challenges, Africa Improved Foods is successfully enhancing its profile internationally, says Moochikal. “Participation in high-profile events such as the United Nations General Assembly and the Africa Debate enabled us to highlight AIF’s commitment to addressing malnutrition and industrializing food production for social impact. It was important to introduce our company at these platforms attended by prominent stakeholders, including the African Development Bank.”
“We have blue-chip share-holders. We have a very solid impact story, and we have proven a track record and execution, making a serious impact at the bottom of the pyramid in Africa. That may prove to be a very attractive opportunity to attract African, as well as international, capital,” he says.
Despite delays in its original timeline, Africa Improved Foods remains committed to its goal of impacting 10 million lives & livelihoods a day, albeit using a revised strategy. “We are agile, adapt swiftly to changes in the challenging African conditions and assess our options realistically while maintaining our aspirations,” Moochikal affirms.
“I honestly believe that these trying times have actually given us a lot more self-confidence and belief, and have also taught us that there are solutions to all kinds of problems. We have attracted new customers, we have generated brand-new relationships, and we have raised our profile above anything that we have known in the past nine years. A lot of doors were being shut in our face but we have found other doors that will open.”
