The Foundation for Clean Energy and Energy Inclusion for Africa (CEI Africa) has announced a significant investment of up to EUR 1 million in InspiraFarms Cooling, reinforcing its commitment to advancing sustainable cold storage solutions across the African continent. The investment, facilitated through a convertible note, is in collaboration with existing investors KawiSafi and Factor[e].
This development follows InspiraFarms Cooling’s successful Series-B round in 2020 and a strategic investment agreement with InfraCo Africa in 2023 to pioneer its innovative ‘Cooling-as-a-Service’ model.
InspiraFarms Cooling specializes in designing, developing, and installing efficient precooling and cold chain technology tailored for fresh produce, flowers, and animal protein supply chains in Africa and other emerging markets. The aim is to address the critical challenge of limited cold storage accessibility, with only 5% of African fresh produce entering the cold chain compared to Europe’s 94%.
The company’s cooling solutions play a pivotal role in reducing energy costs, minimizing food losses, extending shelf life, and ensuring compliance with stringent global export standards. InspiraFarms Cooling offers both tailor-made and standardized solutions adaptable to various energy sources, including 100% off-grid options.
The scarcity of cold storage infrastructure in Africa contributes to the alarming loss of 30–50% of fresh produce, making food loss the second-largest emitter of greenhouse gases on the continent. InspiraFarms Cooling’s sustainable approach not only addresses these environmental concerns but also generates high-quality rural jobs through the deployment of cold storage solutions.
Julian Mitchell, CEO of InspiraFarms, expressed his delight at welcoming CEI Africa as an investor, emphasizing the shared commitment to sustainable impact within the fresh produce industry. He stated, “Access to quality cooling is fundamental for clients to reduce post-harvest losses, and sell more, at better prices, with lower costs, bringing both economic and climate benefits.”
CEI Africa’s investment is not just a financial commitment but a strategic move to support InspiraFarms Cooling’s off-grid energy cold storage projects across the continent. Moreover, it is linked to catalyzing additional capital through crowdfunding for energy-efficient cold chain infrastructure.
Steven Evers, Member of the Executive Board of CEI Africa, highlighted the broader impact of the investment. “Our investment in InspiraFarms Cooling will not only support the growth of the off-grid energy cold-storage sector in sub-Saharan Africa but will also catalyze private retail investment into the sector through crowdfunding,” he stated.
InspiraFarms Cooling has already deployed hundreds of units across 15 countries, offering agribusinesses, exporters, third-party logistics, and food distributors the necessary cooling solutions for their perishable products. The company’s ongoing mission is to make cooling solutions more accessible, efficient, and sustainable for businesses of all sizes.
CEI Africa, established by the German development finance institution KfW, manages funds on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The Foundation focuses on improving access to energy for rural and peri-urban households and enterprises in sub-Saharan Africa. This investment aligns with CEI Africa’s mission to support off-grid energy companies and mini-grid project developers.
As the partnership between CEI Africa and InspiraFarms Cooling unfolds, it promises not only to enhance cold storage capabilities but also to contribute significantly to reducing food losses and advancing sustainable practices in the agribusiness sector across Africa.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.