The Ethiopian government has signed an agreement with Invest International, which acts on behalf of the Minister for Foreign Trade and Development Cooperation of the Netherlands, to realize the first phase of a large cooling centre 70 kilometres from the capital Addis Ababa. The project, known as Cool Port Addis, is designed to facilitate the export of horticultural crops from Ethiopia in a cooled state to the port of Rotterdam and other market destinations in the ensuing years.
Cool Port Addis project
The initiative enhances the sustainability of the supply chain, providing Ethiopian farmers with the chance to broaden their market reach. Presently, exports heavily rely on trucks and aircraft, but the project aims to shift towards more eco-friendly modes such as rail and shipping. The goal is to diversify and enable fruit and vegetable-producing Ethiopian farmers to leverage the cooling facility, gaining access to a more extensive export market.
Investment of $27.5 million
The inaugural stage of the Cool Port Addis project necessitates an investment of around $27.5 million, with Invest International contributing $11.7 million, and the Ethiopian government covering the remaining amount. The requisite contracts for constructing and operationalizing the warehouse will be subject to a tendering process. Given the innovative and sustainable aspects of the Cool Port Addis initiative, Dutch companies specializing in refrigerated logistics and horticulture stand a promising chance of participating in the project’s realization.
“The signing is an important step in the further rollout of the consortium Flying Swans, we support with project development financing. The Cool Port Addis project will be contributing to greening the supply chain in the fruit and vegetable sector, creating jobs and opening up export-possibilities for Ethiopian farmers. A perfect example of Dutch Solutions for Global Challenges,” says Femke Bos, Director Business Development, Strategy & Impact at Invest International.
Public private partnership
Lara Muller, Director Public at Invest International: “The establishment of Cool Port Addis embodies a robust partnership between public and private entities from both Ethiopia and the Netherlands. Invest International, the Ministry of Foreign Affairs, and the Flying Swans consortium have played integral roles during the development phase, and we are gratified to witness the project transitioning into the implementation stage.”
“Dutch companies are one of the most important investors in Ethiopia’s horticultural industry and the port of Rotterdam is the largest in the world when it comes to the import and trade of horticultural crops. Through this collaboration we stimulate the development of sustainable and inclusive international trade. Smaller farmers in Ethiopia have more opportunities to export their goods. Thanks to the cooling centre, fewer products are lost and the quality and therefore the export price also increases. This gives these farmers more income. All this together is a good example of a win-win situation in which CO2 reduction, related to logistics, coincides with the creation of opportunities and economic value.”
Flying Swans
In collaboration with the Ethiopian Maritime Authority, Flying Swans has assumed a leading role in the project’s development.
Financed by Invest International, Flying Swans actively participates in establishing equitable and environmentally sustainable trade corridors, aligning with the Netherlands’ aspiration to take a leading role in this regard. Programme Director Jeroen Bos expresses, “The signing of this partnership signifies a pivotal moment in Flying Swans’ history in Ethiopia, ushering in a new phase of activities in the country.” He adds, “The Dutch fresh sector has eagerly anticipated this milestone, recognizing the pivotal role of efficient refrigerated logistics services in international fruit and vegetable procurement.
The realization of the Cool Port Addis project stands as a significant stride for Ethiopia to expand its access to export markets, particularly for horticultural producers. The cooling centre is poised to catalyze substantial growth and investments in Ethiopia’s horticultural sector in the foreseeable future.
