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By Steve Umidha
Warehouse and logistics specialist, Cold Solutions Kenya Limited has announced plans to invest Sh7.5billion to set up state-of-the-art, temperature-controlled cold storage warehouses in Nairobi and Mombasa.
The firm will construct Cold Solution’s flagship facility in Tatu City Special Economic Zone in Nairobi, with the cold storage complex sitting on a six acres piece of land expected to the country’s largest, most advanced and efficient in the region.
Cold Solutions Kenya Limited is a portfolio company of ARCH Cold Chain Solutions East Africa Fund, a private equity fund advised by ARCH Emerging Markets Partners Limited (ARCH).
ARCH is a specialist emerging markets investment advisor with deep experience of emerging markets, private equity, asset management and legal and governance matters over many decades. ARCH focuses on delivering added value to investments, based on a risk-adjusted approach.
ARCH has an existing and planned network of operational offices in emerging markets, giving it an extensive global reach. ARCH’s decision-makers are on the ground when it counts, and this helps to ensure investment and execution recommendations and decisions are made using robust, timely and relevant information.
ARCH has successfully launched and is advising two emerging markets focused themes (Renewable Energy and Cold Chain Solutions platforms).
By establishing the Cold Chain Solutions East Africa Fund, ARCH Emerging Markets Partners Limited intends to spearhead the development and operation of large scale energy efficient cold chain solutions facilities and end to end logistics throughout five countries in East Africa covering Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.
The fund plans to build up to 10 state-of-the-art temperature-controlled cold storage warehouses in the region. The warehouses will be built to international standards to enable food and product safety. The investment into East Africa will be at least Sh 21.4 billion (US$200m).
Reacting to the investment announcement in Kenya, Jared Irving, Managing Director, ARCH Emerging Markets Partners Limited says, “We are proud to announce the inaugural Cold Solutions facility in Kenya, the first of a network of industrial scale, cold chain solutions throughout East Africa.
Cold Solutions’ one-stop-shops are designed to allow businesses to keep track of products in real-time and facilitate transportation across East Africa through temperature-controlled trucks, either within inner city or to long-haul destinations. Our storage facilities, together with our transportation and management services, will mean dependability and reliability.”
Chris Barron, Kenya Country Head for Rendeavour, Tatu City’s owner and developer, adds, “We are delighted to welcome Cold Solutions’ transformational cold storage complex to Tatu Industrial Park, which is home to more than 50 Kenyan, East African and multi-national businesses building best-in-class facilities in Kenya’s first operational Special Economic Zone. By providing power, water, waste management, roads and ICT, Tatu City has created an ideal operating environment for businesses entering or expanding in East Africa.”