ARCH Opens First Cold Storage Facility in East Africa

ARCH Cold Chain Solutions Fund has inaugurated its flagship cold storage facility in the Tatu City Special Economic Zone (SEZ), marking a significant milestone as the pioneering establishment of its kind in East Africa.

This development serves as a crucial support mechanism for growers contending with post-harvest losses stemming from inadequate storage infrastructure.

The cutting-edge facility encompasses state-of-the-art, temperature-controlled amenities and a dedicated fleet of vehicles designed for the storage and transportation of perishable food products and pharmaceuticals.

Positioned as a catalyst for reducing food waste and elevating safety standards in food distribution across East Africa, the cold storage facility addresses a critical need in the region.

Data sourced from the Food and Agriculture Organisation of the UN (FAO) indicates that approximately 37 percent of food produced in Sub-Saharan Africa is lost along the value chain.

To facilitate this groundbreaking initiative, the ARCH Cold Chain Solutions Fund secured funding from various financial institutions, including the European Investment Bank (EIB), which contributed $15 million out of the total funding of $81 million.

The Kenyan flagship facility, spanning 17,700 square meters and capable of accommodating up to 18,000 pallets (equivalent to 18,000 tonnes of goods at maximum capacity), targets five core sectors: horticulture, meat, poultry, seafood, food manufacturing, supermarkets, quick-service restaurants/hotels, and pharmaceuticals.

Notably, the facility adheres to the Leadership in Energy and Environmental Design (LEED) Standard, aspiring to achieve LEED Gold Certification – a pioneering accomplishment in Africa.

Furthermore, the facility is designed to draw up to 30 percent of its energy needs from off-grid renewable power production, primarily utilising solar photovoltaic technology to mitigate climate impacts.

Operating with a strategic vision, it aims to serve both export and import markets in the Eastern African region for perishable goods, offering a sophisticated logistics system capable of monitoring and tracing products from origin to destination.

Fredd Kambo, the managing director and Co-Head of ARCH Cold Chain Solutions East Africa Fund, stressed the fund’s commitment to making a meaningful impact on food safety throughout the distribution process and mitigating food loss.

The strategic expansion plan envisions reaching key locations such as Mombasa, Kigali, Dar es Salaam, Addis Ababa, and Kampala.

Edward Claessen, Head of EIB Regional Hub for Eastern Africa, expressed pride in supporting ARCH Cold Chain Fund, highlighting the facility’s unique quality and flexibility in addressing the imperative to reduce wastage and establish global food safety standards in the region.

gandae@businessdayafrica.org