Africa’s cold chain gaps persist despite rising investments

Africa’s cold chain infrastructure is expanding steadily, but persistent gaps in power, transport, and rural connectivity continue to limit the efficient movement of temperature-sensitive cargo, according to multiple industry reports.

The sector, which supports perishables, pharmaceuticals, and exports, remains underdeveloped compared to global standards, leading to post-harvest losses of up to 40%, according to the Global Cold Chain Alliance (GCCA), an international trade association representing the temperature-controlled supply chain industry. The market was valued at around $10.88 billion in 2024 and is projected to reach $14.85 billion by 2029, growing at a compound annual growth rate (CAGR) of 8.28%, driven by urbanisation, trade, and pharmaceutical demand, GCCA said.

Separate estimates indicate that the market reached $14.45 billion in 2025 and will expand further to $18.29 billion by 2032, reflecting continued long-term growth in cold chain demand across the continent.

Regional disparities shape growth
Cold chain development across Africa remains uneven, with South Africa leading in both capacity and infrastructure.

South Africa accounts for the largest share of the continent’s cold storage capacity, at about 30.55%, and offers around 13 cubic metres per 1,000 residents, according to data from the International Trade Administration. The country’s cold chain network includes large-scale facilities of up to 37,000-pallet capacity and is supported by advanced infrastructure in major ports such as Durban, Cape Town, and Johannesburg, which handle significant volumes of fruit, meat, and seafood exports.

In contrast, East Africa is witnessing rapid expansion, driven by private sector investments and sustainability-focused projects. Kenya has emerged as a key hub, with Nairobi hosting modern cold storage facilities, including a 15,000-pallet LEED Gold-certified site. Additional facilities across Tanzania, Uganda, Rwanda, and Ethiopia, expected to come online between 2026 and 2027, will add capacities ranging from 8,000 to over 20,000 pallets.

These developments are expected to help reduce food losses in the region by 30 to 50%, while also strengthening storage and distribution capabilities for temperature-sensitive goods.

Meanwhile, West Africa continues to face significant infrastructure gaps, particularly in rural and inland areas. Despite this, investments are gaining momentum through public-private partnerships. In Senegal, a $307 million cold storage expansion project is underway to improve storage capacity and support agricultural and food supply chains. However, the region still requires further development of port-linked infrastructure and special economic zone-based cold storage networks.

Infrastructure and climate challenges persist
Despite increasing investments, structural challenges continue to constrain the growth of Africa’s cold chain sector.

Unreliable power supply remains a major issue, forcing operators to depend on alternative energy sources, which increases operating costs. Poor road infrastructure further limits connectivity between production areas and consumption centres, particularly in rural regions. In addition, high costs and a shortage of skilled labour continue to affect the efficiency and reliability of cold chain operations, according to Cold Link Africa.

Climate change is adding further pressure on the sector, with sub-Saharan Africa facing adaptation costs estimated at $30 to $50 billion annually. These costs are linked to the need for more resilient infrastructure and systems capable of maintaining temperature integrity under changing environmental conditions.

Trade, healthcare demand and technology drive expansion
Looking ahead, trade integration and healthcare demand are expected to play a key role in driving further cold chain development across Africa.

The African Continental Free Trade Area is projected to increase intra-African trade by 45% by 2045, which will require expanded cross-border cold chain logistics, particularly for perishable food and pharmaceutical products.

At the same time, investments in vaccine distribution and healthcare logistics are strengthening temperature-controlled supply chains across the continent, according to the Africa Centres for Disease Control and Prevention. These developments are contributing to improved cold storage capacity and distribution networks for pharmaceuticals.

Technological innovations are also supporting the sector’s growth. Solar-powered cold rooms, capable of reducing energy consumption by around 40%, are being deployed in parts of East Africa to address power challenges. In addition, IoT-based monitoring systems are being used to improve visibility, tracking, and compliance across cold chain operations, GCCA said.

India is also emerging as a partner in Africa’s cold chain development, with companies such as Danfoss providing energy-efficient and sustainable cooling solutions to support infrastructure expansion.

Opportunity amid structural gaps
While Africa’s cold chain sector is on a strong growth trajectory, the gap between demand and infrastructure remains significant.

Addressing these gaps will require continued investment in storage capacity, transport infrastructure, and integrated logistics systems to ensure the safe and efficient movement of temperature-sensitive goods across the continent.