Cold chain emerges as new investment frontier in Tanzania

Dar es Salaam. Tanzania’s expanding production of perishable goods is creating a new investment opportunity in cold-chain infrastructure, with demand growing across horticulture, livestock, fisheries, poultry, food processing and logistics.

The opportunity comes as inadequate cold-storage capacity continues to constrain Tanzania’s ability to preserve products, reduce post-harvest losses and meet quality requirements for domestic and export markets.

A Bank of Tanzania working paper published in 2025 identified inadequate cold-chain and storage infrastructure as a key constraint to horticultural exports, citing limited cold-room capacity, poor insulation and a shortage of temperature-controlled offloading facilities.

A 2022 investment analysis estimated Tanzania’s cold-infrastructure market at $50 million, with annual growth of about five percent. Imports of cold-storage facilities averaged $25.9 million annually between 2016 and 2020, highlighting the scale of the infrastructure gap.

Tanzania Investment and Special Economic Zones Authority (TISEZA) director general Gilead Teri said rising production of perishable commodities and growing demand for efficient logistics and value addition were creating opportunities for investors to establish cold-chain facilities across the country.

“Cold storage is emerging as a growing investment opportunity in Tanzania,” he said.

The demand is particularly evident in avocado-producing regions such as Mbeya and Njombe, where increasing production and exports require facilities to preserve produce and maintain quality along the supply chain.

Mr Teri said the opportunity was no longer limited to horticulture, with investors increasingly looking at meat, poultry, fisheries, food processing and logistics.

The expansion is also visible in aviation, where large cold-storage facilities operate at Julius Nyerere International Airport, including those operated by Swissport and Alliance Cargo.

TISEZA has also engaged investors assessing opportunities for additional facilities. Among them is Adani Airport Holdings Limited, which has been exploring the possibility of establishing cold-storage infrastructure at the port.

In Bagamoyo, Pwani Region, an investor has committed €10 million to a cold-storage facility for meat, according to Mr Teri. The project is expected to strengthen the livestock value chain and create capacity to serve both domestic and export markets.

He said some investors were also considering integrated livestock operations, including plans by farmers from Iringa involved in animal-feed production to establish feed-processing and slaughtering facilities.

Such investments could create a more integrated value chain, linking feed production, livestock processing, slaughtering, cold storage and distribution.

Beyond agriculture

Investor interest is also spreading to other value chains.

Mr Teri said a Belgian investor had expressed interest in acquiring a facility in Bagamoyo, while interest was also emerging in pineapple processing and poultry production.

Poultry companies such as Yamyam are investing in chicken production and cold-storage facilities, while Kenyan investors are exploring food-processing opportunities, including ice-cream production.

“These developments demonstrate that cold storage is becoming a cross-cutting investment opportunity rather than infrastructure primarily associated with horticultural exports,” Mr Teri said.TISEZA records show that 15 approved cold-storage and cold-room projects represent planned investments of about $16.14 million and are expected to create 635 jobs.

The projects are spread across Dar es Salaam, Pwani, Mwanza and Kigoma, covering cold rooms, warehouses, storage facilities for lease and sale, milk chillers and cold-chain facilities supporting fisheries.

Infrastructure gap

Despite growing investment, industry players say Tanzania needs significantly more cold-chain infrastructure as production expands.

Deputy Permanent Secretary in the Ministry of Livestock and Fisheries responsible for fisheries, Prof Mohammed Sheikh, said rising fish production was increasing demand for storage facilities.

The Government is investing in port infrastructure and storage facilities, while the Tanzania Fisheries Corporation (TAFICO) operates cold-storage facilities in Kigamboni.

“As fish production increases, the need for cold-storage facilities also grows. The Government is investing in port infrastructure and storage facilities, while TAFICO has its own storage facilities in Kigamboni,” he said.

Tanzania Horticultural Association (TAHA) Trade, Market and Investment Manager Dr Steven Tumaini said more cold-chain infrastructure was needed as horticulture expanded.

He said facilities were available at some airports, including Mwanza and Dar es Salaam, while the Port of Dar es Salaam had plugs for refrigerated containers. Private facilities also operate in Njombe, Mbeya, Arusha and Kilimanjaro, with three more planned in Kagera.

“As horticulture grows, demand will increase towards 2030 and 2050. We need facilities at production areas, railway stations, ports and airports, supported by reliable electricity, refrigerated transport and technical teams,” Dr Tumaini said.

For Tanzania, expanding cold-chain infrastructure could help reduce post-harvest losses, improve product quality, support domestic processing and enable producers to access higher-value regional and international markets.

The opportunity therefore extends beyond building cold rooms. It includes refrigerated transport, temperature-controlled warehouses, specialised handling equipment, reliable power supply and technical services—creating a broader investment ecosystem around Tanzania’s growing perishable-goods economy.