Cold storage solutions for sustainable agriculture in Mozambique
Problem
Access to electricity remains limited in Mozambique, with only around 33% of the population connected to the grid. This creates a strong case for off-grid renewable energy solutions. Smallholder farmers and market traders often face significant post-harvest losses for perishable crops, such as fruits and vegetables, while also struggling with unstable market prices. At the same time, private agribusinesses rely on expensive electricity or fuel to power their operations. Although interest in solar-powered technologies is growing, technical support and after-care services for solar technologies remain scarce.
Solution
Resilience conducted a commercial feasibility study on 27–30 m³ solar-powered cold room units for horticulture smallholder farmers and private enterprises. The units were powered by a 12 kW off-grid system. The study identified potential client types, mapped technical and financial needs, and assessed ownership and service models. It included interviews with farmers, agribusinesses, processors, hospitality providers and experts. Additionally, it evaluated the viability of a pay-as-you-store model at market level and a model for cold storage near the field for smallholder horticulture production. A business case was developed and validated for each model.
Impact
The study provided concrete recommendations to increase the potential of solar-powered cold storage in Mozambique, along with a list of potential clients. It concluded that:
- Medium to large agribusinesses and hospitality providers, particularly in high-value horticulture (e.g. avocado), dairy and game, represent the most promising short-term market segment. Cold storage can reduce post-harvest losses, improve product quality, and lower energy costs when compared to diesel or grid-based alternatives.
- Smallholder farmers and cooperatives are less likely to be direct clients, as they remain limited in their financial capacity to invest and there is less urgency for cold storage within their current production systems. However, there is potential if a clear business model is established, such as one involving a guaranteed buyer and extension services to improve production quantity and quality.
- Cold storage at markets can reduce waste but is viable only for high-value crops due to fluctuating market prices, which smallholders rarely grow. Traders often lack the financial resources or organisation to use shared storage, and in urban areas, grid electricity makes solar systems less competitive.
The study showed that solar-powered cold storage in Mozambique is best suited to larger agribusinesses that grow high-value crops. Smallholder farmers lack the capacity to invest in the units – even when subsidised. Field-based units are only financially feasible if there is a clear business model in place, such as an aggregator managing the unit combined with extension services. Market-based units using a pay-as-you-store model are less feasible, as crop prices fluctuate too much to ensure consistent returns, and smallholder farmers rarely produce high-value crops.
Manica, Mozambique
Team members
Timeframe
2024
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