Uganda: Cygnum Capital signs $18m debt facility with cold-storage operator
The Africa Go Green Fund, managed by Cygnum Capital, has signed a $18 million senior debt facility with Cold Solutions Kazi.
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The Africa Go Green Fund (AGG), managed by Cygnum Capital, has signed a $18 million senior debt facility with Cold Solutions Kazi (CS Kazi). The facility will be used to finance the overall project cost – including construction costs and working capital – for a greenfield, 8,000 pallet, cold-storage facility in Namanve Industrial Park, Kampala, Uganda. CS Kazi is being developed by ARCH Cold Chain Solutions Fund as part of its regional network of modern, energy-efficient cold storage facilities across East Africa.
Agriculture remains the backbone of Uganda’s economy, yet growth in the sector is consistently held back by inadequate post-harvest handling and the absence of temperature-controlled storage infrastructure. CS Kazi aims to address this gap by developing a state-of-the-art, green building-certified facility that will provide temperature-controlled packhouse and logistics services across multiple sectors.
Suki Muia, CS Kazi director and ARCH investment director said: “It has been an honour to work with the AGG team on this milestone transaction for our Uganda portfolio company, Cold Solutions Kazi Limited. This financing supports the rollout of a state-of-the-art cold storage facility and an integrated logistics network, a key step in our broader ARCH Cold Chain Solutions East Africa Fund strategy to create a seamless, end-to-end cold chain infrastructure. Our ultimate goal is to reduce food loss, enhance food security, and improve the efficacy of pharmaceuticals throughout the region. With this transaction, we move one step closer to achieving that vision.”
Laurène Aigrain, managing director of AGG commented: “We’re proud to support CS Kazi and the ARCH Cold Chain Fund in building a more sustainable future through world-class cold storage solutions and becoming Uganda’s leading cold-chain provider. Strengthening cold-chain infrastructure is key to reducing food waste, ensuring year-round access to essential goods, and supporting resilient agricultural, horticultural, and pharmaceutical value chains. CS Kazi’s impact will extend beyond trade – enhancing food security, cutting post-harvest losses, and fostering a greener, more competitive economy for Uganda and the East African Community.”
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