New Investments

Africa Go Green Fund and ARCH Invest $18 Million in Uganda Cold Storage Facility

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The Africa Go Green Fund (AGG), overseen by Cygnum Capital, has approved an $18 million senior debt facility for Cold Solutions Kazi Limited.

The funds will be used to construct an 8,000-pallet cold storage warehouse in Namanve Industrial Park, Kampala.

This new development will also support working capital needs as part of the broader rollout of cold chain infrastructure in East Africa.

Cold Solutions Kazi is a project of the ARCH Cold Chain Solutions Fund, which is focused on building modern and energy-efficient cold storage systems across the region.

Tackling Post-Harvest Loss and Food Waste

Agriculture is a vital part of Uganda’s economy, but inefficiencies in post-harvest handling and a lack of temperature-controlled storage continue to hamper the sector.

According to the Food and Agriculture Organization, global food waste contributes about 4.4 gigatonnes of carbon dioxide-equivalent emissions annually.

The planned facility aims to address these challenges by offering advanced, climate-friendly cold storage and logistics services.

It will cater to various sectors including agriculture, pharmaceuticals, and retail. 

The infrastructure is expected to support regional and international trade while maintaining strict temperature control standards, especially for perishable goods and sensitive medical supplies.

Climate and Supply Chain Benefits

With the backing of AGG, the project is expected to significantly improve Uganda’s food distribution systems and reduce post-harvest losses.

Moreover, the facility is projected to prevent around 320,000 tonnes of greenhouse gas emissions annually, contributing to Uganda’s climate resilience efforts.

The investment has been carefully reviewed by experts in technical, legal, and environmental matters—namely Fichtner, IBIS Consulting, and Hunton Andrews Kurth LLP—ensuring high standards of compliance and sustainable technology deployment.

Voices Behind the Project

Suki Muia, a Director at Cold Solutions Kazi and ARCH Investment, described the partnership as a major step forward for their East Africa strategy.

“This financing enables us to build a high-quality cold storage and logistics system that is vital for reducing food losses and improving access to effective pharmaceutical storage across the region,” Muia said.

Laurène Aigrain, Managing Director of AGG, expressed confidence in the project’s long-term impact.

“This facility strengthens cold-chain infrastructure and will help Uganda better manage food supplies and healthcare logistics year-round. It’s an important move toward building a sustainable, inclusive economy,” she said.

About the Key Players

Cold Solutions Kazi Limited is developing the facility as part of a regional expansion led by the ARCH Cold Chain Solutions East Africa Fund.

The company is affiliated with Kazi Foods Logistics in Uganda and Cold Solutions Kiambu SEZ in Kenya.

ARCH Cold Chain Solutions East Africa Fund, launched by investment advisory firm ARCH, is working to build a network of cold storage infrastructure in countries such as Kenya, Uganda, Rwanda, and Tanzania.

ARCH aims to promote low-carbon, climate-friendly economies in emerging markets, with a focus on reducing food waste and improving food security.

The Fund reached its final close in May 2022 and completed its first major facility in Kenya in 2023.

Its mission includes enabling efficient, end-to-end cold chain logistics supported by refrigerated transport.

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