Solar cold storage for fruits and vegetables

Image Credits

Solar cold storage for fruits and vegetables

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in GPM)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Climate Action (SDG 13) No Poverty (SDG 1)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Affordable and Clean Energy (SDG 7) Decent Work and Economic Growth (SDG 8)

Business Model Description

Build and operate small size and modular cold storage units for fruits and vegetable offering space rental services as well as market-related services to farmers, cooperatives or Economic Interest Groups based on a daily, weekly or monthly fees and pay-as-you-go modality. The cold storage infrastructure is powered by solar energy and features technology (IoT) to manage the temperature and storage in real time.

Expected Impact

Build and operate solar cold storage facilities reduces post-harvest losses, increases food producers' incomes and sustainably, improves food security in rural communities and decreases GHG emissions.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.

The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

Read More

Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Senegal: Dakar
  • Senegal: Nord
  • Senegal: Centre
  • Senegal: Sud
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Senegal faces low food sovereignty and imported 70% of its food products in 2024. It also faces low food security with 21% of the population being food insecure, in 2023. The sector is also characterized by a low productivity, contributing 15.5% GDP in 2024. Finally, the sector is a significant contributor to GHG emissions but is vulnerable to climate change (1, 2, 3, 4).

Policy priority
The Strategie Nationale de Developpement 2025-2029 aims at increasing the agricultural productivity and fostering its modernization. The Stratégie Nationale de Sécurité Alimentaire et de Résilience 2015-2035 highlights the need for increased and diversified agricultural production as well as the importance of food processing and conservation to enhance food security (5, 6).

Gender inequalities and marginalization issues
Women represent more than half of the country’s labor force in the rural sector and significantly contribute to agricultural production, being highly active in processing and marketing of agricultural, livestock and fishery products. Yet, only 6% of them own agricultural land. For the others, their access to land largely depends on men relatives, who owns the land, affecting their land tenure security. Coastal agricultural communities in Senegal also face heightened climate risks due to sea level rise, flooding, and erosion, adding to broader national vulnerabilities linked to erratic rainfall, rising temperatures, and desertification. Finally, climate change reinforces food insecurity particularly for the poorest households (7, 8, 9, 17).

Investment opportunities introduction
Senegal agricultural sector contributed 15.5% of GDP in 2024. To increase the sector productivity, investments in means and tools of production is key. It is particularly the case in agricultural mechanization, adapted storage and water management for agricultural production (5, 10).

Key bottlenecks introduction
Senegal’s agri-food industry faces climate vulnerability, low processing, poor infrastructure, and low mechanization, as well as weak market access, price volatility and weak regulations. The low access to finance and insurance reinforced farmers vulnerability. Strong dependence on imports and competition also are structural challenges for the sector (11, 12, 13)

Sub Sector

Food and Agriculture

Development need
Senegal’s agricultural sector faces low productivity with 30% post-harvest losses and low processing capacity, resulting in productivity 30% below the national average and low added value. Post-harvest loss cost USD 167 million annually. Climate change will affect traditional cash crop production such as ground nuts with decrease in yields between 5-25% (11, 14, 15, 22).

Policy priority
The Strategie Nationale de Souverainete Alimentaire (2024–2028) aims at reducing food imports and ensure self-sufficiency in key food products, such as cereals, key vegetables, eggs and milk production. The Stratégie Nationale d'Industrialisation encourages increased agricultural product processing through the development of infrastructures (12, 16).

Gender inequalities and marginalization issues
Poverty is highly concentrated in rural groundnut production basins—especially Diourbel, Kaolack, and Thiès—which together host about one-third of Senegal’s poor, compounding climate vulnerability for smallholders, including many women. In addition to climate vulnerability (floods, drought and storms), women in the agricultural sector also face significant challenges related to their land tenure rights and their limited access to financing mechanisms, production inputs, and extension services, as well as restricted market access. Finally, climate shocks particularly affects the livelihoods of rural households relying on livestock and agriculture for subsistence (14, 17, 18, 21).

Investment opportunities introduction
Senegal’s Climate Smart Agriculture Plan prioritizes investments in solar irrigation, climate-resilient seeds, storage, and climate services to boost the sector's modernization and resilience. Processing and high-value agricultural and fish products are also key to increasing the sector value added (9, 19, 20).

Key bottlenecks introduction
Limited irrigation, degraded soils, low mechanization, and weak rural infrastructure are major challenges to the agricultural sector productivity, as well as difficulties in feeding and watering livestock, problems related to animal health, access to quality seeds and intrants and the high climate vulnerability, particularly threatening rural livelihoods (12, 13).

Industry

Agricultural Products

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Solar cold storage for fruits and vegetables

Business Model

Build and operate small size and modular cold storage units for fruits and vegetable offering space rental services as well as market-related services to farmers, cooperatives or Economic Interest Groups based on a daily, weekly or monthly fees and pay-as-you-go modality. The cold storage infrastructure is powered by solar energy and features technology (IoT) to manage the temperature and storage in real time.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

5% - 10%

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

The National Agency for Market Regulation (ARM) is looking to expend the cold storage capacity for horticulture products, including onion, by 100,000 tons (31).

Overall, the agricultural sector loses USD 171 millions of income yearly due to high post-harvest loss. Among these, fruits and vegetable represent more than half the loss (30).

In Senegal the cold chain market is estimated at USD 120 million in 2025 (36).

The African cold chain logistics market was estimated at USD 10.88 billion in 2024. The estimated CAGR for the African cold chain logistics market is 8.28% until 2029 (29).

Indicative Return

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

> 25%

According to stakeholder experience, Gross Profit Margin can exceed 50% profitability, as it rents small modular cold storage units to producers, cooperatives, or economic groups, combined with a market access support platform (36).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Based on an analysis conducted for the investment in a 30m3 cold storage facility owned and managed by a cooperative, it is expected that the loan will be repaid in 5 years, giving indication on a potential return on investment on the medium term for an investor (28).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 500,000 - USD 1 million

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

To ensure the financial viability of the cold storage project, a certain quantity of product must be stored year-round. However, the seasonality of the production in Senegal might affect the profitability of the investment (32).

The producers are not always aware of the benefits they can receive if they store their product in adapted storage conditions and might not want to pay the price for the service, which therefore, limits the client pool or the supply (33).

Capital - Requires Subsidy

A certain level of subsidies for the purchase of the equipment would ensure the business model viability (32).

Community management is often cited as a cause of mismanagement of cold storage infrastructure and must be integrated from the start of the project (34).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

In Senegal, post-harvest loses affect between 12 and 40% of GDP and amount to about USD 167 million every year, with losses in key productions such as cereals, fruits and vegetables. These losses are partially caused by the lack of cold storage infrastructure and their high costs (11, 34, 35).

In the horticulture sector for instance, post-harvest loss on farm reach 30% in average for vegetables. These represent a loss of income for the farmers and affect the food security of the population (11).

In 2022, the latest available data, rural areas host three fourth of the poor population and in rural areas 53.3% of the population lives in monetary poverty. This rate is even higher for farmers, as it reaches 67.5% among farmer households (37).

Gender & Marginalisation

In 2022, post-harvest losses in Podor (Saint Louis region) exceeded USD 10 million, affecting crops like tomatoes, onions and bananas due to inadequate cold or adapted storage. Out of the 14 storage facilities identified, 8 were not operational (34).

In the agricultural sector, women represent 70% of the workforce, but face more challenges than men in access to land, finance and production means. In addition, they play a key role in marketing of vegetables and perishable products on local markets, and therefore are more impacted by the difficult access to adapted storage. The absence of storage facilities or their high costs forces women to sell immediately after harvest, when prices are the lowest, reducing their revenues and increasing their economic vulnerability (38, 39).

Expected Development Outcome

Solar cold storage contributes to reducing post-harvest losses by addressing one of the most pressing agricultural inefficiencies in Senegal. Reducing post-harvest loss in vegetable production could increase supply by 45% per year, for a value of USD 72 million, and reduce annual vegetable imports by 22% (11).

Solar cold storage improves preservation which enables farmers to sell products at higher prices and year-round, increasing household revenues and supporting food security. In Senegal, a cold storage project with three 20 tons capacity units will enable producers to generate up to EUR 18,000 in additional income annually, an increase of 30% (35).

Solar cold storage ensures a better valorization of agricultural products which helps stabilize markets against seasonal fluctuations, improves local food security and decreases the sector's GHG emissions. For example, in Senegal, onion prices surge by 20% outside the production season. By addressing the issue, a cold storage project with a total capacity of 60 tonnes will enhance food security for 3,000 people and save 1,200 tonnes of CO2 emissions (35).

Gender & Marginalisation

Better access to reliable cold storage facilities can empower women producers and traders to delay sales, obtain better prices, thus, to secure more stable income. Therefore, cold storage supports women economic activities and empowerment (35, 40).

Increasing the cold storage capacity of the region, including through PPP projects, will reduce post-harvest loss and increase revenues from the agricultural sector (34).

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

Current Value

In 2023, severe food security affected 4% of the population, and moderate food insecurity 29.4% in Senegal (41).

Climate Action (SDG 13)
13 - Climate Action

13.2.2 Total greenhouse gas emissions per year

Current Value

Carbone dioxide emissions excluding LULUCF were of 0.7 tons per capita in 2023 (10).

Target Value

Senegal aims at refusing GHG emissions of 7% unconditionally and 29% conditionally by 2030 (4).

No Poverty (SDG 1)
1 - No Poverty

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

Current Value

In 2021, the poverty ration with less than USD 3 per day was of 17.9%, with 17.6% for women and 18.2 for men (41).

Secondary SDGs addressed

Gender Equality (SDG 5)
5 - Gender Equality
Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy
Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

Directly impacted stakeholders

People

Famers and smallholder farmers are able to preserve perishable produce and sell out of production period at better prices. Artisanal and semi industrial food processors have access to better quality product and a more stable supply in raw material.

Gender inequality and/or marginalization

Women producers and traders in onion and vegetable markets benefit from reduced pressure to sell immediately post-harvest.

Planet

Reduction of food waste limits methane emissions from decomposing organic matter.

Corporates

Local SMEs and service providers supplying cold storage units and solar solutions. Companies processing food benefit from an improved supply of and better quality raw food produce.

Public sector

Agricultural agencies and ministries benefit from improved food security.

Indirectly impacted stakeholders

People

Consumers gain access to fresher, more nutritious food for longer periods.

Gender inequality and/or marginalization

Women in rural households benefit from improved household income stability.

Planet

Lower pressure on land and water resources as fewer crops are wasted and need replanting or the expansion of cultivated areas.

Corporates

Distributors, wholesalers and transport companies benefit from extended value chains with higher-quality products.

Public sector

Local governments and development partners benefit from stronger rural economies and reduced poverty rates.

Outcome Risks

High upfront costs may limit adoption by smallholders, increasing inequality if only wealthier producers access cold storage.

Poor maintenance of cold units and solar panels could reduce efficiency, shorten lifespan and limit food preservation benefits.

Dependence on unreliable electricity sources (if not fully solar-powered) could undermine system performance and increase costs.

Oversupply of preserved products at certain times may reduce prices, limiting income gains.

Gender inequality and/or marginalization risk: Without targeted measures, women traders may still face barriers to access cold storage.

Impact Risks

Climate change (heat waves, droughts) may increase cooling demand, raising costs and straining energy systems where solar systems are not enough to meet the demand of the facility.

Limited access to finance and credit can prevent scaling of cold storage in poorer or remote regions.

Weak transport and market infrastructure could reduce the use of cold storage and potential benefits of stored products.

Risk of unequal distribution of units (favoring commercial farms, big agro-industry companies and intermediaries over smallholders) exacerbates inequalities.

Gender inequality and/or marginalization risk: If cold storage ownership remains male-dominated, women producers may benefit less from improved price stability.

Impact Classification

C—Contribute to Solutions

What

Improved post-harvest preservation reducing food loss, increased farmer income, enhanced food security, and lower GHG emissions from organic waste.

Who

Directly benefits farmers, including smallholder, especially women traders in fresh produce value chains; indirectly benefits consumers and rural communities.

Risk

Adoption barriers, maintenance gaps, or unequal access may reduce expected benefits; women may be excluded if not specifically targeted.

Contribution

Brings an innovative, solar-powered storage model addressing food loss, rural poverty, and gender gaps in market access.

How Much

Vegetable supply could increase by 40%, reducing annual vegetable imports by 22%, farmers' incomes can improve by 30%, and GHG emissions ca be reduced by 1,000 tones per project (11, 35).

Impact Thesis

Build and operate solar cold storage facilities reduces post-harvest losses, increases food producers' incomes and sustainably, improves food security in rural communities and decreases GHG emissions.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Strategie Nationale de Developpement 2025-2029: identified a cold storage project as part of the strategic interventions in the Priority Action Plan, in support to the agricultural sector (5).

Strategie Nationale de Souverainete Alimentaire 2024-2028: positions as a priority action the reinforcement of structuring marketing infrastructures such as cold storage (12).

Stratégie nationale de sécurité alimentaire et de résilience 2015-2035: highlights infrastructure as a component of food security, as they enable the stability of supply. It also emphasis on cold storage as a resilience asset (6).

Plan d'Investissement pour une Agriculture Climato-Intelligente: identifies as one of its strategic pillars the improvement of production, conservation and marketing of agricultural products. In that regards, it highlights the adoption of modern and Eco energetic storage as key (19).

Financial Environment

Financial incentives: Cold storage projects can be financed through impact investors such as Teranga capital, or the financing facility to support smart agriculture in face of climate change from La Banque Agricole, financed by the GCF (53, 54).

Financial incentives: La Banque Agricole du Senegal with the support of the European Investment Bank and AFD, opened a new credit line to reinforce the development of sustainable agricultural value chains. It will provide financing to climate projects (43).

Fiscal incentives: The new Investment Code grants VAT suspension and refund (12–24 months), plus tariff exemptions for 3 years in Dakar/Thies and 5 years elsewhere for SME investments over USD 26,600. Strategic agricultural projects may receive additional government-negotiated benefits (44).

Fiscal incentives: Companies established in a Special Economic Zone benefit from duties and tax exemptions on production equipment, VAT suspension on goods and services for production, tax credit of 40% on investments (up to 70% out of Dakar) and tax exemption on agricultural equipment (46).

Regulatory Environment

Loi n° 2004-16 portant loi d’orientation agro-sylvo-pastorale: allows farmers to gather in professional organization, grants famers social protection and states that the Government and local authorities should build infrastructure and provide necessary services in rural areas (45).

Loi n°2021-31 portant Code de l’électricité: authorizes self-production of electricity from renewable resources for industrial purposes (48).

Loi 66/48 du 27 mai 1966, relative au contrôle des produits alimentaires et la répression des fraudes: sets the obligation of control for human consumption products, which can be performed in the storage space for non processed products (49).

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

Keblink, Agricool, Ifria, SwamAgri, INTERMAQ, NRJsolaire, Sensfrais, Valorem.

Government

National Agency for Market Regulation (ARM), Autonomous Port of Dakar, National Interest Market, Ministry of Agriculture, Food Sovereignty and Livestock, Departmental Service of Commerce, National Agency for Renewable Energies.

Multilaterals

Subnational Climate Fund, AfDB, EIB

Non-Profit

Economic Interest Group, farmers cooperatives

Public-Private Partnership

The Spanish company INTERMAQ 2012 SL is building 20 cold storage in the scope of a PPP.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map

Senegal: Dakar

Senegal: Nord

semi-urban

Senegal: Centre

The Government has an agro-industry processing zone project (Agropole-Centre) covering the regions of Kaolack, Diourbel and Fatick. This project includes the construction of storage infrastructure under PPP agreement (47).
semi-urban

Senegal: Sud

The Government has a agro-industry processing zone project (Agropole-Sud) covering the regions of Ziguinchor, Kolda and Sedhiou. This project includes the construction of storage infrastructure under PPP agreement (47).

References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.