CoolMove - Investment opportunities in Food Loss & Waste reduction through financing cold storage

A Mentimeter warm-up exercise revealed that most of the 40 participants in the side session are representatives of private financial service suppliers, followed by non-financial private sector actors. When asked about their first thoughts on Food Loss and Waste, 'food security', 'spoilage' and 'value lost' were prominent initial responses. The majority of participants believe the most critical part of the food value chain for investment is 'cold storage and processing', with as strong runner up 'aggregation & transport' when it comes to FLW reduction. 40% of the participants feel that financial institutions, when it comes to FLW reduction, should focus on 'Providing capital to clients with FLW reduction targets'. Followed by 30% voting for 'engaging companies across the supply chain to encourage waste reduction'. While 17% indicated that Financial Institutions should take on the two mentioned roles completed with 'Developing due diligence processes to assess FLW data', and 'redirecting funding away from companies neglecting FLW issues'. Finally, when asked how they would invest $10 million, the overwhelming majority would invest in cold storage facilities suitable for all relevant levels of the value chain; aggregator, processor as well as small holder famer, cooperative level. Another interesting suggestion was the establishment of an FLW fund to catalyze cold storage investment.

Subsequently Dr. Eveline Jansen of Enviu, partner in Coolmove, took a deep dive into the urgency of food loss and waste reduction as well as the business opportunities it presents. Globally, 30% of food is lost or wasted, resulting in a $1 trillion economic loss and contributing significantly to greenhouse gas emissions. In East Africa, this figure is 40-50% across the supply chain.

Enviu’s Dr. Eveline Jansen highlighted the triple win opportunity of reducing FLW: climate, food security, and sustainability. By investing in cold chain infrastructure, spoilage is reduced, food quality is preserved, market access expands, and farmer incomes improve. FLW is caused by inefficiencies like inadequate storage and poor logistics, making investments in these areas highly impactful.

Business opportunities in FLW prevention include increased agricultural returns, cold chain investments, food processing, digital innovations, and waste recycling. Every dollar invested in FLW reduction can yield a $14 financial benefit. Cold chain development is crucial for preserving perishables, ensuring food safety, and unlocking investment.

Challenges include high capital investment needs and financing barriers for SMEs. However, initiatives like the CoolMove Bid Book, featuring 23 promising East African businesses with Dutch links, are driving momentum. The goal is to direct more financing to FLW reduction and create environmental, social, and economic impact.

Mr. Godfrey Mambo of Rabobank, partner in Cool Move, shared a banking perspective on FLW strategies. He emphasized that the lack of cold chains is a key determinant of food losses of perishable foods, but can also create a triple win: it lowers the environmental footprint, it has social impact as it improves food availability and nutrition and it saves money and increase incomes of small holder farmers. Rabobank and other partners in cool move promote the development of sustainable cold chain in rural areas, based on bankable and scalable business models via financial solutions, backed by market linkages and data. The Cool Move Coalition is led by a consortium of leading institutions: WRI - Champions 12.3, Rabobank, Enviu, World Bank, Wageningen University, Global Food Cold Chain Council, UNEP and WWF. Local entrepreneurs and business involved are a/o Secure Fisheries, SokoFresh, Flying Swans, Farm to Feed and DCA.

A panel of public, private and impact investing experts discussed the challenges and opportunities of investing in Food Loss and Waste Reduction, moderated by Mr. Godfrey Mambo of Rabobank. The panel of experts consisted of: 

• Mr. John Ndungu, Kenya Development Cooperation (KDC)
• Mr. Bernard Ogala, horticulture specialist, Equity Bank Kenya Ltd
• Ms. Ulla Balle, Senior Advisor on Blended Finance, Dan Church Aid (DCA)
• Mr. Peter Owaga, Managing Director, Truvalu Kenya

Below some highlights mentioned as biggest misconception and challenges when it comes to financing food loss and waste reduction, as well as the key take aways from the panel discussion.

Join the Kenya CoP Food System Finance and exploring the Bid Book for collaboration and investment opportunities in Reduction of Food Loss & Waste through Cold Storage in East Africa !