South Africa Cold Chain Facilities

The retail industry has large, formalized supermarket chains as well as street vendors. The township economy or the Informal economy is estimated at 17% of total employment. Although it doesn’t contribute directly to the fiscus it keeps many families above the poverty line.

It is estimated that 10 million tons of food go to waste every year. Of this fruits, vegetables, and cereals, account for 70%. 50% is lost during the post-harvest stage, 25% during processing and packaging, 20% during distribution and retail, and 5% at the consumer level.

South Africa currently houses the majority of the continent’s cold storage capacity with many positive (fresh fruit and vegetables) and negative (fish and meat) cold storage options. A logistics and supply management company has developed a 25,500 square meters warehouse at a cost of roughly USD$10million and is now one of the largest cold storage facilities in Africa. It can house 37,000 pallets and has flexible chambers for chilled, frozen, and super frozen products with similar companies developing cold storage solution warehousing in KwaZulu Natal and the Western Cape. 

South Africa is currently experiencing one of the worst bouts of load shedding (electricity blackouts), with extended periods disrupting the agricultural sector’s cold chains and impacting fresh produce. Some retailers are said to have rejected fresh produce due to delays in delivery and disruption in the cold chain which will only get worse in the warmer months. The global issue of container availability affects fresh produce exports. Many businesses rely on co-ops to provide storage and farmers are not willing to go against these for cheaper on-farm storage solutions. Refrigerants used are CO2 or ammonia which have safety and training requirements. 

Opportunities for U.S Companies:  

• Demand drives waste and SA has 10 million tons of food waste annually. However, the country committed to reducing this by 50% by 2030. Innovative technology and solutions will be key to lowering food waste. 
• Energy demands are increasing and reliance on the state to provide electricity is causing concern amongst businesses. Renewable electricity solutions for cold transport and storage could be key in the short to midterm. NERSA, the National Energy Regulator of South Africa, approved the first private power projects under the new license cap amendment, allowing capacity under 100 MW to be brought online without a generation license.

For more information please contact Kirsten Bell, Commercial Specialist, U.S. Consulate Durban, South Africa Office: +27-31-305-7600 x3291  Kirsten.Bell@trade.gov