The GCCA urges swift policy action to help Africa’s cold chain logistics bolster food supply resilience amid power outages and load-shedding challenges.
The Global Cold Chain Alliance (GCCA) has called 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 after GCCA Africa published a new report which shows the adverse effects of blackouts and load-shedding on temperature-controlled storage and transportation operations which are critical to food and pharmaceutical supply chains.
The report was commissioned by the Advisory Committee of the Global Cold Chain Alliance Africa, and conducted by Tutwa Consulting Group.
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.
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.
According to the report, frequent power outages during load-shedding strain refrigeration equipment lead to increased maintenance and breakdowns in cold chain operations.
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 optimising 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.
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).
The GCCA is an international association advocating on behalf of the temperature-controlled warehousing, transportation and logistics industry while promoting best practices through research, industry benchmarking, networking, and education.
Read the full report here: ‘Strengthening Cold Chain Resilience Amid Rolling Energy Blackouts aka Load-shedding’
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