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 four 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.
Special Economic Zones (SEZs) and logistics hubs in West African countries have become focal points for industries requiring cold chain logistics, such as food, pharmaceuticals and agro-processing. In Ghana, businesses operating in Free Zones benefit from a range of incentives, including full exemptions from duties, taxes and withholding taxes for a period of ten years. These exemptions create a favorable environment for international players in the cold chain sector. In Côte d’Ivoire, industrial zones known as ZICs were developed through public-private partnerships and offer businesses access to infrastructural services, fiscal support and opportunities to expand their customer base through agreements with key industry players and emerging markets.
Overall, the study revealed that the cold chain infrastructure in West Africa—especially in ports and SEZs—needs significant development to meet both current and future demand. While there are ongoing investments and projects aimed at improving the region’s cold chain capacity, much remains to be done to ensure that the infrastructure can support the growing volume of perishable goods, reduce food waste and improve food safety. As private sector investments continue and government initiatives evolve, the cold chain sector in West Africa has the potential for substantial growth in the next five to ten years.
It’s clear that the region offers a lot of potential for increased trade, particularly between West African countries. A major driver of this opportunity is the ongoing development of infrastructure, which reduces the burden on logistics businesses starting their projects in the area. Specifically, the completion of most civil works, road and rail networks, and access to ports, airports and land areas are providing a solid foundation for future growth.
In Senegal, the government took a major step in 2017 by passing legislation to create SEZs, which offer significant tax and customs incentives for businesses operating within these zones. Enterprises approved under the SEZ regime may benefit from up to 25 years of tax exemptions, including on duties and taxes for imported goods, raw materials, and equipment. Additionally, companies may receive reduced corporate tax rates and exemptions from other taxes like business and property taxes. To qualify for these benefits, businesses must make a minimum investment of 100 million West African francs (approximately USD165,000), create at least 150 jobs in their first year, and generate 60% of their revenue from exports.
In 2018, Senegal inaugurated its first SEZ in the Louga region and two additional zones have been launched. These developments present exciting opportunities for cold chain infrastructure, as they are positioned to drive industrial and logistical growth. Roudy Akiki, speaking to these developments, highlighted Louga as a rapidly growing development hub. With significant infrastructure investments, including ongoing upgrades to the Port of Dakar, the region is well-poised to increase trade, enhance logistical efficiency, and improve connectivity for transporting perishable goods. This is especially important for industries like agriculture, fisheries, and exports that rely on reliable cold chain logistics.