Scaling energy-efficient cold storage solutions across Africa
Nairobi, Kenya: InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), has announced the signing of an agreement with Enterprise Project Ventures (EPV), committing €5 million to scale the company’s InspiraFarms™ Cooling offering across Kenya, Zambia, Zimbabwe and Ghana. The investment will enable InspiraFarms Cooling to pilot its ‘Cooling-as-a-Service’ model which seeks to ensure that services are affordable for customers and will generate the data necessary to unlock future investment.
InfraCo Africa’s new Head of Business Development, Omar Jabri, said, “We are pleased to be making our first investment into ‘first-mile’ cold storage. Access to InspiraFarms Cooling’s energy-efficient packhouses will enable farmers to access vital pre-cooling and cold storage close to where their produce is grown, reducing the significant economic and environmental impact of post-harvest losses, can generate high-quality rural jobs along the chain, and bridge the gap in quality and standards missed by producers for entering export markets, maximising their incomes.”
InspiraFarms Cooling has built its reputation in the market on direct sales and traditional financing agreements. Having recognised the challenges faced by smaller agribusinesses and crop aggregators in meeting the high up-front costs of cold storage ownership, InspiraFarms Cooling, with support from PIDG company InfraCo Africa, is piloting a new Operating Asset Model. The new temperature-controlled packhouses will be owned by InspiraFarms Cooling with clients paying for ‘Cooling-as-a-Service.’ Fees will be based on tonnes of throughput required, a model that is commonly used near ports, but is currently lacking on or close to farms.
InspiraFarms Cooling CEO, Julian Mitchell said, “I am so pleased to welcome InfraCo Africa’s investment into InspiraFarms Cooling, as there is a complete alignment of mission. This investment symbolises more than financial support; it is a testament to our shared vision towards developing inclusive climate-smart infrastructure that helps with adaptation, minimising food loss, in an energy-efficient way. The investment and collaboration with InfraCo Africa will help build a financing product to bridge this gap, by making the investment in cold chain more affordable to improve access for agribusinesses across Africa. With InfraCo Africa’s backing, I am confident in our ability to install more cooling solutions, a critical part of the journey of Africa transitioning from being a net food importer.”
Food loss is, by an order of magnitude, the biggest contributor of GHG emissions from all the contributors within the post-harvest setting and needs to be addressed as a priority. Therefore, cooling needs to start as close as possible to the point of production, to minimise losses. This becomes even more relevant when you consider that across Africa, 30-50%i of produced food never reaches our tables, but is lost after harvest, positioning food systems as the second largest GHG contributor. Beyond the reduced emissions from mitigated food loss, InspiraFarms Cooling designs its on-farm and near-farm solutions with technology that allows up to 25%ii energy savings technology to lower energy consumption, all for the overall resiliency against physical climate risks. The energy-efficient cold rooms are powered by the grid or by hybrid solutions, with modular, lightweight, and expandable designs, delivered as turn-key solutions ready to be installed.
InfraCo Africa’s investment will finance a minimum of five InspiraFarms Cooling facilities operating using the ‘Cooling-as-a-Service’ model. It is anticipated that the pilot facilities will enable InspiraFarms Cooling to generate additional data to support the value of its new delivery model, enabling the business to scale and attract further finance for replication in other markets.
About The Private Infrastructure Development Group (PIDG) PIDG
The Private Infrastructure Development Group (PIDG) PIDG is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity, and impact. Since 2002, PIDG has supported 211 infrastructure projects to financial close which provided an estimated 222 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC www.pidg.org
About InfraCo Africa
InfraCo Africa is part of the Private Infrastructure Development Group (PIDG) and seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It does this by investing directly into early-stage projects and by providing development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO).
About InspiraFarms Cooling
InspiraFarms Cooling is a leading provider of advanced and sustainable cooling solutions, for high-value fresh produce across Africa, serving exporters, agribusinesses, third-party logistics service providers and food supply chains in emerging markets. Founded in 2012, InspiraFarms Cooling has served the flower, fruit, vegetable, and meat sectors, providing agribusiness in the developing world with tools, technology, data, and expertise to significantly reduce food losses, energy costs, and access higher-value markets. The company has designed its cooling solutions (cold rooms, packhouses, freezers, slaughterhouses, and pre-coolers) to minimise food loss, maximise shelf life, reduce OPEX and give access to cooling data.
For any media inquiries, please contact:
Sharon J Cheboi
Marketing and Communications Lead
scheboi@inspirafarms.com
