Cold Link Africa March April 2025 | Page 29

INCORPORATING COLD CHAIN

BUSINESS AND TRAINING

GCCA Africa sustainable energy report By Eamonn Ryan Strengthening Cold Chain Resilience Amid Energy Blackouts , aka Load-shedding report :

FINDINGS FROM GCCA AFRICA ’ S REPORT

The GCCA Africa ' s report draws on qualitative and quantitative data gathered from 15 GCCA members and consultations with energy experts , business leaders and industry stakeholders . The findings highlight several key issues :

• Equipment and operational challenges : Load shedding strains refrigeration equipment , leading to increased wear and tear and maintenance requirements . Frequent power outages undermine the operational efficiency of cold chain businesses , leading to higher costs and more frequent equipment failures .

• Economic impact : The cold chain sector ’ s vulnerability to load shedding has farreaching economic consequences , from increased operational costs to potential revenue losses due to spoilage and delays in transporting temperature-sensitive goods .

• Business continuity concerns : The intermittent power outages disrupt the continuous refrigeration process required to preserve perishable goods . This jeopardises the viability of cold chain businesses and threatens food security , public health and economic stability .

• Technological and infrastructure gaps : Many cold chain operations are still reliant on outdated infrastructure and lack the smart technologies needed for real-time monitoring and effective temperature control during power outages . key findings and recommendations

The report overviews that the cold chain sector is a vital component of Africa ' s economy , enabling the transportation and storage of perishable goods and temperature-sensitive products , including pharmaceuticals , food and vaccines . However , energy challenges such as load shedding and reliance on ageing coal-fired power plants are increasingly threatening the stability and growth of this essential sector .

IMPACT OF ENERGY BLACKOUTS ON THE COLD CHAIN SECTOR

In several African nations , including South Africa , Botswana , Madagascar , Mauritius , Morocco , Namibia , Senegal , Zambia and Zimbabwe , blackouts have become a significant challenge . Power outages , intended to prevent grid failures due to electricity supply and demand imbalances , result in intermittent disruptions to critical cold chain operations . These disruptions jeopardise the safety and quality of perishable goods , causing spoilage and economic losses , especially for businesses involved in time-sensitive deliveries .

The cold chain sector is particularly vulnerable , as refrigeration systems rely on a consistent and reliable power supply to maintain product integrity . During power outages , refrigeration systems often fail , causing breakdowns and requiring costly repairs . For businesses , the immediate impact is not only the loss of valuable goods but also decreased competitiveness and operational inefficiencies .

URGENT NEEDS AND PROPOSED SOLUTIONS

In response to aforementioned challenges , the report calls for immediate actions to strengthen the sector ' s resilience . Among the key recommendations are : 1 . Extend renewable energy incentives and investment Action : Governments should provide tax credits for cold chain businesses investing in renewable energy solutions such as solar power . A dedicated funding mechanism for energy-efficient technologies and storage solutions should be established to reduce reliance on unreliable coal-based electricity . Goal : Transitioning to renewable energy sources will not only ensure more reliable power but also reduce the carbon footprint of cold chain operations , aligning with environmental and financial goals .

2 . Tax relief for solar components Action : To encourage the adoption of renewable energy systems , governments should suspend import duties and VAT on solar panels , batteries and other energy storage components for at least one year . Goal : This measure would reduce the cost of renewable energy infrastructure , making it more accessible for cold chain operators , particularly small and mediumsized enterprises .

3 . Intelligent technology and real-time monitoring Action : The cold chain sector should adopt intelligent technologies that enable real-time monitoring and data sharing , helping businesses better manage temperature control during power outages . Goal : These technologies can mitigate spoilage risks and improve operational efficiency , enabling better response to power disruptions .

4 . Optimise trade facilitation Action : Governments should optimise trade processes to reduce wait times at border posts , which can exacerbate disruptions during power outages . Goal : Streamlining customs procedures will reduce delays in the transport of temperature-sensitive goods , enhancing the resilience of the cold chain .

5 . Energy storage solutions and demandside management Action : The cold chain sector should be used as an energy storage medium through demand-side management strategies , where businesses are incentivised to store energy during offpeak hours . Goal : This approach would reduce the pressure on the grid during peak times and allow cold chain businesses to have a reliable backup power source during load shedding .

6 . Investment in cold chain technician training Action : Governments and industry stakeholders should invest in the training and development of cold chain technicians , focusing on not only repairs and maintenance but also on innovative technologies like digital temperature management . Goal : A well-trained workforce is essential to the long-term success of the cold chain sector , as it will ensure that businesses can quickly adapt to technological advancements and overcome challenges related to power disruptions . CLA

COLD LINK AFRICA • March / April 2025 www . coldlinkafrica . co . za 29