Cold-chain companies are establishing new avenues for surplus extraction from African smallholder farmers by providing pay-per-use solar cold storage services, which farmers cannot afford to own.
The Food and Agriculture Organisation estimates that up to 40% of food produced in Africa is lost between harvest and market, primarily due to inadequate storage, transport, and processing infrastructure.
Kenyan farmer Yvonne Anyonyi Mumiah, whose crops are destined for European supermarkets, stated that she once worried that transport delays or extreme heat could spoil much of her harvest. Mumiah said that without proper storage, farmers lose both product and income, adding, "We are no longer forced to sell immediately because we fear the produce will spoil. We can wait for collection and still maintain quality."
Smallholder farmers, like Mumiah, cannot afford the roughly $30,000 upfront cost of a solar-powered cold storage unit of their own.
The Cost of Precarity
Companies like SoKo Fresh offer a pay-per-use model, charging farmers based on kilograms stored, integrating them into a new system of service dependency. This model is part of a broader trend across Kenya, Nigeria, Ethiopia, Rwanda, and South Africa.
SoKo Fresh reports cutting spoilage rates for its customers from up to 50% to under 2%, while simultaneously helping farmers earn up to 50% more per kilogram. This increased earning potential for farmers is mediated through the company's service, which extracts a fee for the storage.
Emmanuel Aziebor, regional director for Africa at CLASP, a nonprofit supporting energy-efficient technologies, stated that cold storage remains "one of the missing links in Africa’s agricultural value chains." Aziebor added that when farmers can store produce for longer, they gain access to "better markets, reduce waste and increase incomes."
Capital's New Frontier
This new infrastructure facilitates the flow of produce to global markets, including European supermarkets, and supports horticultural exports in Ethiopia, one of the country's fastest-growing agricultural sectors. In Nigeria, companies like ColdHubs have installed solar-powered walk-in cold rooms in major agricultural markets, allowing farmers and traders to rent space daily.
Traditional cold storage systems often rely on diesel generators, particularly in areas with unreliable electricity, making solar-powered alternatives attractive for reducing fuel consumption and operating costs. The article noted that the most important benefit may be economic rather than environmental.
For decades, development efforts have focused on expanding electricity access across Africa, yet less attention has been paid to ensuring that electricity can be used to generate income. Aziebor stated, "We have neglected the conversation around how people can turn electricity into opportunity," and added, "We keep extending electricity infrastructure, but unless people can use that power productively, the economic benefits never fully materialize."
Investment Prioritizes Profit
Carol Koech, vice president for Africa at the Global Energy Alliance for People and Planet, stated that the challenge for scaling these systems is not demonstrating their functionality, but "building enough bankable projects that can attract larger pools of investment and scale across countries." This highlights the priority of capital accumulation over direct producer empowerment.
Denis Karema, CEO of SoKo Fresh, stated that investors view these emerging technologies as "high risk" due to a lack of "proven business models with reliable returns," making funding for such projects "expensive." This reflects capital's demand for guaranteed profits.
Grants, low-interest loans, and donor support can help cover upfront costs, but attracting sufficient commercial investment remains difficult because many agricultural markets are fragmented and dominated by small-scale producers. This fragmentation makes it harder for large capital to consolidate control, yet the push for "bankable projects" aims to overcome this.
Solar-powered irrigation systems are enabling year-round farming, and solar milling machines and processing equipment are helping rural communities add value to agricultural products closer to where they are grown, further integrating them into market-driven value chains.