The Global Cold Chain Alliance (GCCA) is calling for urgent policy action to allow temperature-controlled logistics operators in Africa to boost food supply chain resilience in preparation for future energy blackouts and load-shedding.
The call comes as GCCA Africa publishes a new report which shows the adverse effects of blackouts and load-shedding on the temperature-controlled storage and transportation operations which are critical to food and pharmaceutical supply chains. The report, ‘Strengthening Cold Chain Resilience Amid Rolling Energy Blackouts aka Load-shedding’, was commissioned by the Advisory Committee of the Global Cold Chain Alliance Africa, and conducted by Tutwa Consulting Group.
The report shows that the resilience of the cold chain is threatened by energy challenges such as load-shedding and an overreliance on ageing coal-fired power plants, particularly in Botswana, Madagascar, Mauritius, Morocco, Namibia, Senegal, South Africa, Zambia and Zimbabwe. Frequent power outages during load-shedding strain refrigeration equipment, leading to increased maintenance and breakdowns in cold chain operations.
Global Cold Chain Alliance Director for Africa Paul Matthew says: “An effective cold chain is the foundation of a safe, affordable and resilient food supply chain for Africa, maximising the availability and shelf-life of food and very substantially reducing post-harvest loss and waste. Our industry is also vital to economic growth and trade across the continent. Reliable access to energy is a core requirement for keeping food refrigerated in storage and in transportation, and our new report shows the impacts on the cold chain over the past two years of the worsening energy crisis and increase in load-shedding.
“We have identified the actions that governments must take to allow cold chain operators to prepare for further energy disruptions, giving these crucial businesses greater scope to keep providing their vital services and to keep the food supply chain running in periods of blackouts and load-shedding. GCCA Africa is engaging with governments, development agencies and other policy makers to ask them to support and deliver these policy actions urgently.”
The policy actions that GCCA is recommending to governments are detailed in the new report. They include:
- Boosting renewable energy supply through measures including extending Renewable Energy Incentives, providing tax credits for cold chain businesses investing in renewable energy, and establishing a funding mechanism for energy-efficient technologies and storage solutions. The report also recommends suspending import duties and Value-Added Tax on batteries and solar components for one year.
- Minimising the risk of future blackouts by using the cold chain sector as an energy storage medium through demand-side management strategies.
- Reducing impacts on temperature-controlled logistics in the event of blackouts by implementing intelligent technology for real-time monitoring and data sharing in the cold chain, and optimizing trade facilitation to reduce wait times at border posts which will enhance resilience to power disruptions. The report also recommends investment into the training and development of cold chain technicians for repairs, maintenance and technical innovation.
The new report has been produced with input from 15 GCCA Africa members and African energy experts. It captures qualitative and quantitative data from a range of stakeholders, including business leaders, technical experts, and researchers. Find the full report at www.gcca.org/wp-content/uploads/2024/10/Final-Clean-copy-Strengthening-Cold-Chain-Resilience-Amid-Load-shedding-Policy-and-Stakeholder-solutions-Final.pdf
Paul Gibbons, CEO Commercial Cold Holdings (CCH), said: “The Strengthening Cold Chain Resilience Amid Rolling Energy Blackouts report highlights the important role the cold chain plays in food safety and security. The cold chain industry also plays a key role in reducing post-harvest loss, promoting trade, and creating employment. A reliable electrical supply is a key enabler for the cold chain in achieving these objectives. Commercial Cold Holdings (CCH) has had a focus on implementing renewable energy as we look to play a part in creating a reliable and renewable electrical supply on the continent.”
Digistics CEO Renier du Preez said: “Africa as a continent, needs to take urgent action to support temperature-controlled logistics operators to ensure food security and boost supply chain resilience, without this, stability in markets will be under pressure due to food shortages and unaffordability due to an escalation in food costs that also negatively impacts inflation.”
GCCA Africa published a Call to Action in August 2024, setting out how governments and the temperature-controlled logistics industry can work together to secure the major economic, social and environmental benefits of expanding the cold chain in Africa. The Call to Action highlights reliable access to energy as a key requirement for the African cold chain to increase its crucial role in strengthening Africa’s economy and food security, and in enabling the continent to access the potential benefits of the African Continental Free Trade Area (AfCFTA). Read the GCCA Africa Call to Action here – www.gcca.org/regions/africa/