Growth Gateway: Investing in green sectors in Africa, cold chain logistics investment case (summary)
Published 17 September 2025
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Cold chain logistics includes temperature-controlled storage and transportation at a range of temperatures (deep frozen, frozen, chilled and ambient) to preserve produce across the supply chain.
Cold chain logistics are critical to addressing Africa’s food insecurity, where 650 million people lack sufficient food and 23% of food produced is lost – primarily during handling and storage. Cold chain systems can reduce post-harvest losses by up to 80% and extend shelf life tenfold.
The market spans first mile (on-farm storage), aggregated logistics (transport and intermediate storage), and last mile (retail and export), serving farmers, food processors, and distributors. Despite its potential, the sector faces challenges such as high costs, unreliable infrastructure, and limited policy support.
The cold chain market in sub-Saharan Africa is currently worth around £360 million and is projected to grow at a 15% CAGR to £720 million by 2027, with a full potential of £4 billion. Growth is driven by urbanisation, rising food demand, increasing outsourcing of logistics, and a shift toward higher-value agricultural products.
However, affordability remains a major barrier, especially for smallholders. Cost-benefit analyses show that cold chain services are only commercially viable for higher-value crops and proteins, while low-margin produce like sugarcane and carrots often exceed cost thresholds. Development organisations and governments are stepping in with grants, subsidies, and policy reforms to support infrastructure and affordability.
For UK investors, opportunities lie in financing scalable cold chain solutions, especially in high-potential markets like Nigeria, Kenya, Tanzania, and Egypt. Success depends on building diverse customer bases to manage seasonality, ensuring high utilisation and throughput, and offering value-added services.
Strategic partnerships, blended finance models, and localised approaches are essential to overcoming operational and market challenges. Recent investments by firms like InspiraFarms and SureChill highlight growing interest, though commercial capital remains cautious without concessional support.