European Investment Bank Funds State-of-the-Art Cold Storage Facility in Kenya

November 30, 2023 0


The ARCH Cold Chain Solutions Fund, with significant backing from the European Investment Bank (EIB), has introduced Africa’s first cutting-edge cold storage facility. Nestled within the Tatu City Special Economic Zone in Nairobi, Kenya, this facility, boasting a total investment of US$81 million, including a substantial US$15 million infusion from the EIB, promises to transform the food distribution landscape in East Africa. The main goal is to combat food waste and elevate safety standards in the region.

Spanning an expansive 17,700 square meters, the flagship facility is a marvel of design, offering unparalleled flexibility to accommodate a diverse array of products while operating seamlessly across various temperature ranges. With a storage capacity of up to 18,000 pallets—equivalent to a staggering 18,000 tons of perishable goods and pharmaceuticals at full tilt—the facility is envisioned to make a substantial impact on the region’s supply chain dynamics.

Setting itself apart, the facility is committed to adhering to the Leadership in Energy and Environmental Design (LEED) Standard, with aspirations for a coveted LEED Gold Certification. The European Investment Bank noted in a press release that, if achieved, this would mark a historic moment as the first facility in Africa to attain such recognition, signifying a significant stride in sustainable infrastructure development across the African continent.

According to IEB, the facility is committed to sourcing up to 30% of its energy needs from off-grid renewable power production, primarily leveraging solar photovoltaic technology to minimize its climate impact. The primary objective of the cold storage facility is to contribute to the reduction of food waste in East Africa.

According to data from the Food and Agriculture Organization of the UN (FAO), an alarming 37% of food produced in Sub-Saharan Africa is lost along the value chain. The ARCH Cold Chain Solutions Fund, through its state-of-the-art facility, aims to address this challenge by providing efficient cold storage and temperature-controlled solutions.

According to the Managing Director and Co-Head of ARCH Cold Chain Solutions East Africa Fund, the facility’s strategic expansion plan includes Mombasa, Kigali, Dar es Salaam, Addis Ababa, and Kampala, with an overall vision to reach a combined capacity of 100,000 tons in cold storage space.

The Head of the EIB Regional Hub for Eastern Africa expressed pride in supporting the ARCH Cold Chain Fund, highlighting the unique quality and flexibility offered by the facility for cold storage and acknowledging its role in reducing waste and setting global food safety standards in the region. The ARCH Cold Chain Solutions Fund is dedicated to developing and operating large-scale, energy-efficient cold chain solutions with a comprehensive logistics and distribution network across Eastern and Central Africa.

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