McKinsey co-founds effort to transform agriculture and food systems in Africa

February 2, 2023Africa is home to around 780 million smallholder farmers, 70% of whom depend on agriculture and livestock for part of their income. While African soil is rich, with endowments capable of producing bounty, most farmers struggle economically, consumers spend too much on food, and child malnutrition and stunting are widespread across the continent. , according to UNICEF.

“That doesn’t need to be our reality,” says Omid Kassiri, managing partner of McKinsey’s Nairobi office. “With the right policies, infrastructure, support and capacity, we have seen that agriculture in Africa can be transformed and make a massive and significant difference in people’s lives.”

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Change is underway, but will require a concerted, multi-stakeholder effort. To involve public, private and association partners in this work, the African Agricultural Transformation Initiative (AATI) was created.

Hosted by the International Fund for Agricultural Development (IFAD), an international financial institution and specialized agency of the United Nations dedicated to the eradication of poverty and hunger in developing countries, the AATI aims to support African countries in the development and implementation of transformations agricultural. McKinsey was an integral member of the founding coalition.

Co-founded by partners including the Alliance for a Green Revolution in Africathem Bill & Melinda Gates FoundationIFAD and McKinsey, AATI builds on McKinsey’s impact on agriculture and food systems across Africa, including work to increase food production that resulted in the reduction of 11 million people undernourished, 150,000 fewer deaths from hunger and 100,000 new jobs.

McKinsey provided factual and practical support on several issues during these engagements: increasing farmers’ technical knowledge: what to grow, how to grow, what fertilizers to use, what practices and techniques to deploy; increase their ability to invest in irrigation methods, fertilizers and crop protection; research and development of crops optimized for the African climate; and creating market linkages, to name a few.

The findings inspired McKinsey to find a way to build on that work, finding a way to help launch AATI through the Social Good Fund, a pro bono, multi-year business support program.

“McKinsey is our essential thought leader for tools and methodologies that accelerate agricultural transformation,” says Safia Boly, Executive Director of AATI. “McKinsey’s role here is knowing how to work with partners and having the ability to bring partners together, bring digital solutions, expertise in delivery, problem solving and implementation methodologies, all of which were essential to the creation of the AATI.”

AATI is launching its first wave of countries to accelerate effective and sustainable food system changes based on their needs, priorities and existing infrastructure.

“When AATI identifies strategies for economic growth and innovation through agriculture, it is essential that this is an opportunity for government and the private sector,” says Safia. “There should always be a balance between the two as the government will establish the environment for the private sector to thrive and drive economic growth.”

This perspective keeps inclusive growth at its core.

“Our goal is to increase the percentage of smallholder farmers who have become entrepreneurs. Because at the end of the day, we are trying to make agriculture a catalyst for economic growth,” says Safia.

By supporting AATI, McKinsey is not just supporting agricultural and food system transformations. It creates an institution that will be a lasting catalyst for change in Africa.

“We hope AATI will grow to become a pillar of transformation across the continent,” says Omid. “The goal is for him to be a constant driving force in transforming the lives of millions and millions of people, country after country.”