KENYA – The European Investment Bank (EIB) has joined forces with other financial institutions to bolster the launch of Africa’s pioneering cold storage facility in Kenya by supporting ARCH Cold Chain Solutions with a substantial USD 15 million.
This pioneering initiative marks a significant milestone as ARCH unveils its flagship storage unit at the heart of Kenya’s Tatu City Special Economic Zone (SEZ) in Nairobi.
This groundbreaking facility stands as the continent’s first of its kind, setting new benchmarks in flexibility, accommodating diverse product ranges, and operating within a wide spectrum of temperature needs.
Its strategic location and expansive services are poised to revolutionize the preservation and distribution of perishable food items and pharmaceuticals across East Africa.
The dire need for such infrastructure is evident in the statistics provided by the Food and Agriculture Organization of the UN (FAO), which estimates a staggering 37% loss of food in Sub-Saharan Africa due to various inefficiencies in the value chain.
The ARCH Cold Chain Solutions Fund, with a total raised funding of USD 81 million, stands as a testament to collaborative efforts between various financial institutions, prominently led by the European Investment Bank’s contribution.
Spanning an impressive 17,700 square meters, the facility can accommodate up to 18,000 pallets, totaling an astonishing 18,000 tons of goods at full capacity.
Notably, it adheres to the Leadership in Energy and Environmental Design (LEED) Standard, aiming for a prestigious LEED Gold Certification.
Additionally, the facility aims to meet a substantial portion of its energy needs through off-grid renewable power production, primarily leveraging solar photovoltaic systems, emphasizing its commitment to minimizing environmental impacts.
Fredd Kambo, Managing Director, and Co-Head of ARCH Cold Chain Solutions East Africa Fund highlighted the mission behind this endeavor during the EIB senior team’s visit for the facility’s opening.
He emphasized their dedication to enhancing food safety measures and curbing food loss, while also expressing gratitude to investors, especially acknowledging the pivotal role played by the EIB.
Echoing this sentiment, Edward Claessen, Head of EIB Regional Hub for Eastern Africa, emphasized the EIB’s pride in supporting ARCH Cold Chain Fund, emphasizing its role in addressing regional needs and setting high food safety standards in the face of economic downturns across the continent.
“We at the EIB are very proud to be a supporter of ARCH Cold Chain Fund,” he said. “The facility they have set up is unique in the quality and flexibility it offers for cold storage of produce.”
Looking ahead, ARCH Cold Chain Solutions sets its sights on an ambitious expansion plan across key African cities, aiming to increase its collective cold storage capacity to a remarkable 100,000 tons.
Their vision encompasses not just infrastructure expansion but a transformative shift in the logistics and supply chain landscape of Eastern and Central Africa.
In the broader context, the European Investment Bank’s commitment to supporting private equity funds like ARCH Cold Chain Solutions reflects a concerted effort to drive economic development, increase food security, and reduce food loss across the African continent.
Through strategic collaborations and innovative initiatives, this partnership paves the way for impactful change in vital sectors crucial for Africa’s growth and development.
For all the latest fresh produce industry news updates from Africa, the Middle East, and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.
