The ARCH Cold Chain Solutions East Africa Fund focuses on developing, financing, constructing and operating new temperature-controlled storage and distribution facilities in East Africa, to reduce the high rates of food spoilage due to lack of refrigeration.42
The fund will focus on greenfield investments in cold chain solutions across the East African region, supported by active local operations partners involved in the logistics network. Target clients are expected to be active mainly in the agriculture/food (~90%) and vaccines/medicine (~10%) sectors.43
ARCH Emerging Markets Partners, the fund manager, is committed to sustainability and will aim to source energy needs via off-grid renewable power production and minimize waste and biodiversity impacts.
Currently, the European Investment Bank is considering a EUR 15 million (US$20 million) investment into the fund. In July 2020, the Fund has announced a $70 million investment to construct a temperature-controlled warehouse across Kenya, with its flagship warehouse (15,000 square metres) being planned in the Tatu City Special Economic Zone in Nairobi.44
42 African Development Bank. May 2020. Multinational - ARCH Cold Chain Solutions East Africa - Environmental and Social Management System Manual, https://www.afdb.org/en/documents/multinational-arch-cold-chain-solutions-east-africa-environmental-and-social-management-system-manual
43 African Development Bank. May 2020. Multinational - ARCH Cold Chain Solutions East Africa - Environmental and Social Management System Manual, https://www.afdb.org/en/documents/multinational-arch-cold-chain-solutions-east-africa-environmental-and-social-management-system-manual
44 CISION, July 2020, Cold Solutions Chooses Tatu City for Largest Cold Chain Facility in East Africa, https://www.prnewswire.com/ae/news-releases/cold-solutions-chooses-tatu-city-for-largest-cold-chain-facility-in-east-africa-853291723.html