By Eamonn Ryan derived from the webinar.
The Global Cold Chain Foundation (GCCF) recently completed an important study on the cold chain sector in West Africa, specifically in Ghana, Côte d’Ivoire and Senegal. The webinar that accompanied the study highlighted the findings and recommendations from the assessment. This is part ten of a 14-part series covering a webinar on this topic.
The webinar featured a panel of experts, including Greg Laurin from Conestoga Cold Storage, Nicholas Pedneault from Congebec, Roudy Akiki from CT-Technologies, and GCCF Africa’s own Paul Matthew, Amanda Brondy and Madison Jaco.
Despite challenges, there is some hope on the horizon. Laurin highlighted the increasing potential for solar panel integration in the region’s cold storage infrastructure. As the cost of solar technology continues to decrease and its efficiency improves, there is a growing opportunity for solar power to supplement the electricity grid and reduce dependence on backup generators in areas with intermittent power supply.
Governments across West Africa face a unique challenge in incentivising cold chain infrastructure development. One issue that stands out is the lack of tax incentives for cold chain equipment, despite incentives available for agricultural equipment. As Pedneault, another expert in the field, explained, governments could help incentivise cold chain development by providing more structured support, such as financing options for inventory storage. This would help alleviate the common problem where producers are forced to sell perishable goods at a loss due to the lack of cold storage options.
Pedneault also suggested that governments could take a page from successful models in North America, where programmes exist to subsidise the cost of inventory financing. Such initiatives would help local businesses maintain inventories without facing financial strain, thus enabling them to create more stable cold chains and reduce food waste due to post-harvest losses.
From a private investment perspective, foreign companies are showing increasing interest in the region’s cold chain sector, often backed by specialised private equity funds. However, these investors must navigate significant bureaucratic hurdles, including complex import regulations and delays in construction permits. To ease the burden on foreign investors and stimulate further growth in the cold chain sector, Pedneault recommended that governments consider offering subsidies for foreign investments, particularly in the early stages of infrastructure development.
The role of AfCFTA
A potential game-changer for West Africa’s cold chain logistics industry is the African Continental Free Trade Area (AfCFTA), which aims to enhance intra-African trade by reducing tariffs and barriers to trade across the continent. Matthew, GCC Africa’s director, emphasised that AfCFTA could be an essential tool in addressing some of the region’s logistical challenges. While there are still issues related to tariffs and protectionism within individual countries, AfCFTA presents a unique opportunity to facilitate smoother trade flows, especially when combined with a more efficient cold chain infrastructure.
The goal for many West African countries is to achieve greater food autonomy by reducing their agricultural trade deficits. Cold chain infrastructure is critical to reaching this goal, as it helps reduce post-harvest losses and enables farmers to store and transport goods for longer periods. As the region’s agricultural sector modernizes, it will require cold chain solutions to manage the increasing volume and variety of goods that need to be preserved.