Agri-revolution: Solar-powered cold storage and PAYGO financing unlocks untapped potential

Ghana's agricultural sector is set for a transformation. This change focuses on modular, solar-powered cold storage and pay-as-you-go (PAYGO) financing. It aims to unlock the potential of smallholder farmers.

For years, cold storage in Ghana has been limited to a few. High costs and energy inefficiency have left many farmers vulnerable. Smallholder farmers often face spoilage and fluctuating market prices. This situation favors foreign companies with better resources.

Eric Arthur grows miracle berries in the Eastern Region. He lost 60% of his harvest due to inadequate storage capacity. This resulted in lower-quality produce and reduced income. "I was losing a significant portion of my income," he said.

This issue affects more than just miracle berry growers. A 2019 McKinsey report states that Ghana loses over 45% of its fruits and vegetables before reaching consumers. This loss could feed an additional 12 million people.

An innovative solution is now addressing these challenges directly. Modular, solar-powered cold storage units are being offered with PAYGO financing. This approach democratizes access to cold chain technology for farmers.

So far, this model has connected 9,000 smallholder maize and chick farmers to local retailers. It has also revitalized Ghana's domestic broiler chicken industry. The initiative is now expanding to the wider agricultural sector.

"Our mission is to create a 'Horticulture Highway,'" says Solomon Kportuphey from FreezeLink. They aim to connect farmers to markets while reducing waste and boosting incomes.

FreezeLink provides end-to-end cold chain solutions, including storage and transport services. They help modernize African agriculture so farmers can maximize their harvests.

The impact of this initiative is immediate and transformative for farmers like Arthur. He saw a 103% improvement in berry quality, leading to increased income.

Patrick manages a chilli pepper and ginger cooperative in Asutifi. He praised FreezeLink's speed and professionalism in building their modular cold room.

Their efforts have connected over 1,500 smallholder farmers to markets using solar-enabled cold storage systems.

This modular approach allows farmers to expand their cold storage as needed without high upfront costs through PAYGO financing. It makes technology accessible for the 2.1 billion farmers in the Global South.

A study by the Global Cold Chain Alliance shows that every US$1 invested in cold chain infrastructure can yield US$14 in economic value through reduced food loss and improved market access for smallholders.

Solar-powered cold storage also helps combat climate change by reducing fossil fuel reliance and methane emissions from rotting produce.

As Africa's population grows, efficient food systems become essential. This solar-powered revolution offers solutions for Ghana and beyond by empowering farmers with affordable options through PAYGO financing.

This effort aims not only at preserving produce but also at transforming Ghana's agriculture sector entirely.

A visit to the Blue Skies factory in Nsawam highlights how reliable farm-to-market links can drive industrial growth.

Just as global companies like Arla evolved from cooperatives, Ghana’s agricultural sector can diversify its economy for lasting prosperity.

The writer is part of the Global Cold Chain Alliance (Food Safety & Compliance Committee).