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Home » GCCA Africa last year published a report ‘Strengthening Cold Chain Resilience Amid Energy Blackouts, aka Loadshedding.

GCCA Africa last year published a report ‘Strengthening Cold Chain Resilience Amid Energy Blackouts, aka Loadshedding.

By Eamonn Ryan from the report

The cold chain sector is a vital component of Africa’s economy, enabling the transportation and storage of perishable goods and temperature-sensitive products, including pharmaceuticals, food and vaccines. This is Part 1 of a six-part series.

The report emphasises the importance of policy reform and technological upgrades.
The report emphasises the importance of policy reform and technological upgrades. Freepik

 

Energy challenges such as loadshedding and reliance on ageing coal-fired power plants are increasingly threatening the stability and growth of this essential sector.

This article discusses the key findings from the Global Cold Chain Alliance (GCCA) Africa’s 2024 report on the impact of energy blackouts, with a particular focus on South Africa, and offers recommendations to enhance the resilience of the cold chain in the face of these challenges.

 

Impact of energy blackouts on the cold chain sector

In several African nations, including South Africa, Botswana, Madagascar, Mauritius, Morocco, Namibia, Senegal, Zambia and Zimbabwe, blackouts have become a significant challenge. Power outages, intended to prevent grid failures due to electricity supply and demand imbalances, result in intermittent disruptions to critical cold chain operations. These disruptions jeopardise the safety and quality of perishable goods, causing spoilage and economic losses, especially for businesses involved in time-sensitive deliveries.

The cold chain sector is particularly vulnerable, as refrigeration systems rely on a consistent and reliable power supply to maintain product integrity. During power outages, refrigeration systems often fail, causing breakdowns and requiring costly repairs. For businesses, the immediate impact is not only the loss of valuable goods but also decreased competitiveness and operational inefficiencies.

In South Africa, until recently the situation had become even more dire. In 2023, prolonged power outages highlighted the vulnerabilities in the country’s cold chain infrastructure. Although load shedding was reduced in March 2024, the interruptions that occurred in the previous year underscored the urgent need to improve resilience across the sector. The report emphasises the importance of policy reform, technological upgrades, and investments in alternative energy sources to mitigate the negative effects of load shedding on the cold chain industry.

 

Findings from GCCA Africa’s report

The GCCA Africa’s report draws on qualitative and quantitative data gathered from 15 GCCA members and consultations with energy experts, business leaders and industry stakeholders. The findings highlight several key issues:

  • Equipment and operational challenges: Loadshedding strains refrigeration equipment, leading to increased wear and tear and maintenance requirements. Frequent power outages undermine the operational efficiency of cold chain businesses, leading to higher costs and more frequent equipment failures.
  • Economic impact: The cold chain sector’s vulnerability to load shedding has far-reaching economic consequences, from increased operational costs to potential revenue losses due to spoilage and delays in transporting temperature-sensitive goods.
  • Business continuity concerns: The intermittent power outages disrupt the continuous refrigeration process required to preserve perishable goods. This jeopardises the viability of cold chain businesses and threatens food security, public health and economic stability.
  • Technological and infrastructure gaps: Many cold chain operations are still reliant on outdated infrastructure and lack the smart technologies needed for real-time monitoring and effective temperature control during power outages.

Continued in Part 2…