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 4 of a six-part series.
The GCCA Africa’s long-form survey, conducted with large and small organisations in the logistics and food sectors, revealed the extent of the operational challenges posed by loadshedding. Three-quarters of respondents indicated that loadshedding occurred several times a week, with some businesses experiencing daily outages. A similar proportion of respondents (75%) stated that loadshedding severely affected their ability to maintain the required temperature levels in cold storage and transportation facilities.
The survey highlighted several key operational disruptions caused by power outages, including logistical challenges in coordinating with power disruptions, increased operational costs due to backup power solutions, and a reduction in workforce productivity. Additionally, many businesses reported quality breaches in perishable goods, which led to significant revenue losses, with some companies losing between R50 000 and R500 000 due to spoilage and damaged goods.
The disruptions have not only affected the reliability of cold storage and transport facilities but have also strained relationships with suppliers and customers. Delays, inconsistencies in temperature control, and logistical inefficiencies have compounded the operational challenges, leading to financial instability for cold chain operators.
Impact on equipment reliability
Loadshedding has taken a toll on the reliability of cold chain equipment, with power fluctuations causing significant damage to sensitive refrigeration units, compressors, and control systems. Many respondents in the survey indicated that power surges and spikes during loadshedding led to the failure of Programmable Logic Controllers (PLCs) and other critical equipment components. These issues have resulted in increased maintenance costs and reduced equipment lifespans, further escalating the financial burden on cold chain operators.
Two-thirds of respondents reported a lack of skilled technicians to promptly repair machinery, exacerbating the downtime and maintenance costs. The reliance on backup generators, while necessary, has also increased the frequency of breakdowns, placing additional strain on equipment and contributing to higher operational costs. Ageing infrastructure, combined with the unpredictable nature of power outages, has created a vicious cycle of escalating maintenance expenses and operational inefficiencies.
In response to these challenges, cold chain companies have adopted a range of mitigation strategies to ensure business continuity during energy blackouts. These strategies include the installation of diesel generators, solar power systems, and Uninterruptible Power Supply (UPS) units to provide backup power during outages. Many companies have also implemented energy optimisation measures, such as adjusting work hours to operate outside loadshedding periods or using harmonic filters to prevent power surges.
Despite these efforts, respondents indicated that the Enhanced Renewable Energy Incentive introduced in 2023 to encourage clean energy generation had little impact on their decision to adopt renewable energy solutions. This suggests that businesses are still struggling to fully integrate renewable energy into their operations due to the high upfront costs and other barriers to entry.
Collaboration within the cold chain industry has been key to improving resilience. Companies have worked together to share resources, optimise operations, and reduce food waste, thereby enhancing overall supply chain efficiency. These coordinated efforts have played a vital role in minimising the impact of loadshedding on the cold chain sector.