Why Tanzania cold chain infrastructure is the missing link in our food and export strategy

Tuesday 2nd December 2025

by inAfrika Newsroom

Tanzania cold chain infrastructure now sits at the centre of a quiet contradiction. On one side, horticultural exports are surging. In 2023, Tanzania earned about US$417.7 million from horticultural products, a 43.9 percent jump from 2022, with vegetables leading the way. On the other side, studies show that 15–40 percent of crops in Tanzania are still lost after harvest, depending on the product, mainly because storage and handling remain weak.

Agriculture contributes close to 30 percent of Tanzania’s GDP and underpins most rural livelihoods. However, nearly 30 percent of fresh produce in the country never reaches consumers because it spoils before sale, often due to a lack of cold rooms and reliable power. As AfCFTA opens new regional markets and Vision 2050 pushes higher value exports, this leakage becomes more than a technical issue. It becomes a macro risk and a missed foreign-exchange opportunity.

The real size of the cold chain gap

Across Africa, up to 52 percent of fruits and vegetables go to waste each year, mostly during handling and storage when cooling is not available. Early cold chain access can cut post-harvest losses by 25–50 percent, according to international studies. In Tanzania, policy reviews have repeatedly flagged missing warehousing and cold chain infrastructure as key reasons why smallholders struggle to benefit from trade.

At the same time, the market is moving. Analysts estimate that the African cold chain logistics market was worth about US$14–20 billion in 2025 and could reach around US$18–30 billion by 2030–2031, depending on the forecast, with steady annual growth. This expansion reflects rising demand for fresh food, pharmaceuticals and temperature-sensitive goods. Therefore, Tanzania cold chain infrastructure is not a niche concern. It is part of a continental investment wave that will either pass us by or plant itself firmly in our ports, farms and industrial zones.

Current patterns show the risk. Many Tanzanian farmers still move tomatoes, leafy greens and fruits in open trucks without refrigeration. Urban markets, especially outside Dar es Salaam, often rely on ambient storage, which shortens shelf life and increases price volatility. Meanwhile, dairy and meat supply chains face similar challenges, with studies highlighting milk losses along the value chain and underused processing capacity.

Where Tanzania cold chain infrastructure can move fastest

The good news is that the most strategic cold chain nodes are already visible. Horticulture clusters around Arusha, Kilimanjaro, Iringa and Mbeya supply high-value vegetables, fruits and spices to Europe, India, the Middle East and new markets like China. Port upgrades have begun to add cooling capacity for horticultural exports at Dar es Salaam, allowing exporters to ship avocados, cut flowers and specialty crops more reliably.

Tanzania cold chain infrastructure can scale quickly in three zones. First, “first-mile” hubs near major producing areas, where solar-powered cold rooms and packhouses can stabilise quality before transport. Second, corridor-linked facilities along key routes to Dar es Salaam and other ports, where consolidation and pre-cooling cut losses in transit. Third, “last-mile” storage in urban markets and secondary cities, which reduces end-point waste and gives retailers more flexibility on pricing.

Innovators are already testing solutions. Solar-powered cold rooms have shown that they can extend shelf life and reduce fresh produce losses in Tanzania, even in off-grid areas. However, most pilots remain small, and financing is still scattered. Without a clear pipeline and blended finance, these projects struggle to move from demonstration scale to corridor-wide coverage.

What banks, government and partners should do next

For government, the first task is to treat Tanzania cold chain infrastructure as part of national food security and export strategy, not as a side issue. This means aligning incentives in agricultural programmes, investment promotion and energy policy. Tax relief on cold chain equipment, targeted support for renewable power at packhouses, and streamlined licensing for cold storage operators can all tilt the economics in the right direction.

Banks and investors also have a clear role. Cold chain assets are tangible, cash-generating and often backed by export contracts or supermarket off-take agreements. With good structuring, they can fit well into medium-term lending and leasing products. Moreover, banks can bundle finance for cooling with working capital for inputs and receivables finance for buyers, turning single assets into value-chain relationships.

Development partners and climate funds can help de-risk early investments by offering guarantees, first-loss capital or results-based grants tied to measured reductions in post-harvest losses. In addition, they can support data systems that track where losses occur, so that cold chain investments target the worst gaps rather than follow anecdote.

Ultimately, Tanzania cold chain infrastructure is not just about fridges and warehouses. It is about protecting national output, stabilising prices for consumers, and moving up the value ladder in regional and global markets. If Tanzania closes this gap, it can sell more high-value produce, cut food waste and support smallholders at the same time. If it moves slowly, others in the region will capture shelf space and reputation, while our farmers and exporters continue to watch value rot on the way to market.

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