KIGALI, Oct 2 2026 (IPS) - Post-harvest losses, particularly in rural areas, threaten the gains Africa is making in agricultural production and export capacity.

In Sub-Saharan Africa, up to 40% of farm produce is lost because of a lack of cold storage, according to industry players.

Highly perishable farm produce, like fruits and vegetables, can go as high as 70%.

With agriculture accounting for one-third of the Gross Domestic Product and employing over 60%, such a loss threatens jobs and the livelihoods of millions of people.

Farmers in Africa grapple with a lack of reliable refrigeration, an underdeveloped cold chain and unreliable power storage, leaving harvests to heat and spoilage.

Poor road networks and limited refrigerated transport options also worsen the situation. Farmers transport fruits long distances to processing centres under non-ideal conditions, resulting in losses.

Renewable Energy Offers an Opportunity

At the Africa Food Systems Forum in Kigali, Rwanda, experts are exploring how renewable energy can ease the burden on farmers who often turn to diesel generators to cool their farms’ fresh produce.

Olamide Niyi-Afuye, Chief Executive Officer at Africa Minigrid Developers Association (AMDA), an industry association working to improve the operating environment for mini-grids, said the biggest gap is not awareness but aggregation and intentional market design.

“We already see individual examples of mini-grids powering agro-processing, cold storage and other productive activities,” he said.

“The challenge is that these are still too often treated as individual projects rather than part of a scalable commercial model.”

Mugwe Manga, a Climate Finance Lead at Financial Sector Deepening Kenya (FSD Kenya), an independent trust supporting micro and small enterprises, said energy presents a tremendous opportunity for smallholder farmers to capture more value from what they produce.

“Solar, increasingly combined with battery energy storage, is particularly important because it is modular, increasingly affordable and can be deployed relatively quickly in rural areas,” he said.

“Solar-powered irrigation, cold storage, drying, milling, cooling and agro-processing can reduce post-harvest losses, increase productivity, improve product quality and allow farmers to sell into higher-value markets.”

Manga said energy can become an important enabler of both climate resilience and higher farmer incomes.

“The productive use of energy for cold storage, solar-pumped irrigation, and agro-processing is critical to value capture, climate resilience, and adaptation that will strengthen smallholder farmers,” he said.

Nigeria, one of Africa’s largest economies, lost between $2.3bn and $3.3bn to post-harvest inefficiencies in 2025, according to industry players.

The food wasted due to poor storage and transport networks amounted to up to 40 million metric tonnes.

South Africa loses an estimated 10.3 million tonnes of food annually, about 19% of its fresh produce, according to a 2021 report titled Waste Research Development and Innovation Roadmap Research.

Funding Cooperatives Is a Better Funding Model

Renewable energy offers reliable and accessible solutions to cold storage and processing problems in Africa, but funding remains a major challenge.

Though prices of solar panels and batteries shipped from China have been declining in recent years, current prices remain high for many farmers, particularly smallholders in rural areas.

With low capital amid limited access to grants and loans, many cannot afford solar-powered agro-processing and cold storage facilities.

Experts said that clean energy is the cheapest technology to deploy when farmers work together.

“Due to the capital expenditure of some of these, it is important for farmers to organise themselves and come together as a collective in order to take advantage of economies of scale and the power of aggregation that can use energy for all, as opposed to rolling out these solutions to individual smallholders that may not be cost-effective,” said Manga.

Niyi-Afuye said there is a need to bring energy developers and agribusinesses together much earlier, aggregate demand across agricultural value chains, and structure projects around credible productive loads from the outset.

“The opportunity is to stop treating energy and food systems as two separate investment cases and start building bankable opportunities at the intersection of both,” he said.

Manga said one of the key lessons from distributed energy is that the economics are often stronger when players move away from financing individual assets for individual farmers and instead aggregate demand.

“Farmers can organise through cooperatives, producer organisations, aggregators or rural enterprises and invest in shared infrastructure that serves many producers,” he said.

“This creates economies of scale, improves asset utilisation and creates a stronger and more predictable revenue base.”

Manga said aggregation also makes these projects more attractive to financiers by reducing transaction costs and perceived risk.

“Rather than lending against hundreds of individual smallholders, investors can finance a productive asset with an identifiable operator, clear cash flows and an aggregated customer base,” he said.

Niyi-Afuye said the better model is to aggregate projects into investable portfolios, combine commercial capital with appropriate credit enhancement and risk-sharing mechanisms, and increase access to patient, local-currency financing.

“Financing infrastructure in dollars while the underlying customers earn in Nigerian Naira or Kenyan shillings creates a structural mismatch,” he said.

Pratik Patel, Bureau Chief for East and Southern Africa at AfriCatalyist, a global development advisory firm headquartered in Senegal, said a public-private-producer partnership is the model that can make renewables affordable.

“Instead of a cold storage facility or cold chain operator trying to stand alone as a single commercial enterprise, it’s embedded in a collective plan that covers the full journey from farm to table, production, aggregation through farmer cooperatives, storage, processing, and market access, with clear roles and coordination at each stage,” he said.

He said the approach matters for financing because it gives investors what a standalone facility cannot, such as a defined use case, identified long-term clients, and a credible route to market.

“When responsibility for each link in the chain is assigned to the actor best suited to manage it, the plan becomes legible and de-risked, which is what ultimately builds investor confidence,” he said.

IPS UN Bureau Report