Africa’s cold chain sector faces challenges, but growth opportunities abound: GCCA

AFRICA – Africa’s cold chain sector is grappling with numerous challenges that could hinder its growth, according to discussions at the recent Global Cold Chain Alliance (GCCA) African Conference.

The lack of reliable energy, shortages of skilled labor, trade barriers, and infrastructure gaps were identified as some of the major obstacles facing the industry.

These issues must be addressed for the sector to thrive and continue providing crucial jobs and services across the continent.

One of the main hurdles for Africa’s cold chain industry is the unreliable energy supply. Keeping temperature-sensitive products at the right temperature during transportation and storage is crucial, but the power grid in many regions is inconsistent.

This problem is exacerbated by underdeveloped infrastructure, making it difficult to maintain cold chain networks.

“The cold chain industry in Africa faces several significant challenges, including infrastructure gaps and inconsistent power supply,” said Anna-Maria Pinto, Director of Apak Packaging, a company known for developing temperature-control packaging solutions.

“Many regions have limited access to reliable refrigeration and transport networks, making it difficult to maintain the required temperature for perishable goods,” she added.

Africa’s vast geographical area and diverse climates add to these difficulties. Inconsistent refrigeration, especially across long distances, creates further problems in maintaining the freshness of products such as pharmaceuticals and fresh produce.

Without solutions to these problems, the sector’s growth could be stunted.

In addition to infrastructure and energy problems, there is a shortage of skilled labor in the cold chain sector.

The industry needs trained professionals who understand the complexities of temperature-controlled logistics. Currently, the demand for skilled workers outpaces supply, limiting the industry’s ability to expand effectively.

The GCCA Africa’s recent Call to Action urges policymakers across the continent to prioritize education and training programs that could help fill these gaps.

By investing in skills development, the cold chain sector can better manage logistics and storage challenges while creating jobs.

Cold chain logistics have a key role to play in the success of the African Continental Free Trade Area (AfCFTA). Efficient cold chains can boost trade and open up new economic opportunities, especially for sectors like agriculture and healthcare.

The cold chain market in Africa is projected to grow rapidly, reaching $14.85 billion by 2029, according to Mordor Intelligence.

There is optimism about the future, particularly as innovative packaging solutions are emerging to address some of the challenges.

These solutions include advanced insulated packaging, smart monitoring systems, and temperature-regulating materials, all of which are helping to maintain the quality of products during transport.

“The need for sophisticated cold chain solutions is becoming more evident, especially in areas with extreme temperatures,” said Pinto. “Packaging solutions are improving, and this will play a crucial role in the expansion of Africa’s cold chain sector.”

As the GCCA conference concluded, industry leaders and policymakers were urged to collaborate in finding solutions for the cold chain’s energy and infrastructure challenges.

By working together, they can ensure that the sector continues to grow, providing sustainable jobs and supporting the AfCFTA’s goals.