Market Trends of Africa Cold Chain Logistics Industry
Demand for Packaged and Frozen Food is Rising
In Africa, the demand for packaged, cold-stored foods is increasing. Urbanization, changes in lifestyles, and the growth of a higher class are some of the factors that contribute to this development. The growth in demand for these products is being driven by several factors, including economic development, the proliferation of modern retail outlets, and improvements to cold chain infrastructure.
In February 2024, the strengthened logistics corridor between the Ligurian port of La Spezia in Italy and North Africa was unveiled at the end of Fruit Logistica 2024 in Berlin. The collaboration involves the Harbour System Authority and the Tarros Group, with a focus on enhancing the transportation of agricultural goods between the ports of Marina di Carrara and La Spezia in Italy and several African coastal destinations. The initiative aims to bolster logistical ties, particularly in the agri-food sector.
The African Union prioritizes food security in the region and promotes policy, funding, and multistakeholder interventions in the agricultural value chain. To increase food security and agricultural efficiency, the intervention focuses on direct farm action and support systems facilitating the movement of food from one place to another.
Egyptian Export of Seafood is on the Rise
Egypt's fishing industry is experiencing growth, with a significant connection to cold chain logistics. The sector is expanding as advancements in cold chain technology and logistics contribute to its development. Efficient cold chain systems ensure the preservation of fresh seafood from catch to market. This enhancement in logistics plays a crucial role in extending the shelf life of products, reducing waste, and meeting international quality standards. The integration of cold chain logistics in Egypt's fishing industry is a key factor driving its upward trajectory.
The Ministry of Agriculture and Land Reclamation in Egypt reported that Egyptian fish production hit 2 million tons, marking a rate of 85% self-sufficiency, in July 2023. According to the report, Egypt has the highest fish production in Africa, sixth in the world, and third in tilapia production, and is expected to increase export rates with national projects operating at full capacity.
The Ministry also founded the Lake Protection and Fish Wealth Development Authority to regulate and facilitate the fishing industry to support the fishing sector. For EGP 30,000 (USD 970) per vessel, the government is also equipping fishing vessels with tracking devices. Therefore, with massive production, there is an opportunity for cold chain logistics in the area.
