Africa Go Green Fund (AGG), managed by Cygnum Capital, has reached financial close of a Senior Debt Facility of up to USD 18 million with Cold Solutions Rwanda Limited. The facility will finance construction costs and working capital for a new cold-storage facility in the Kigali Prime Economic Zone, with an initial capacity of 4,000 pallets and the potential to expand to up to 8,000 pallets.

Rwanda’s growing agriculture and food processing sectors are driving demand for modern cold-chain infrastructure. Existing cold-storage and refrigerated transport capacity remains limited, contributing to post-harvest losses and reducing the shelf life and marketability of perishable goods.

CS Rwanda will combine cold storage with packhouse, handling and refrigerated logistics services, providing an integrated solution from handling through to distribution. The development also includes a planned 440 kW rooftop solar installation and will target an internationally recognised green-building certification.

AGG’s investment will support CS Rwanda’s efforts to reduce post-harvest losses, improve access to reliable cold-chain services and provide dedicated storage for pharmaceuticals requiring strict temperature conditions. Lower food losses are also expected to reduce the greenhouse-gas emissions associated with food waste.

AGG was advised by Hunton Andrews Kurth LLP on legal, Fichtner on technical matters, and Ibis Consulting on ESG. Their work formed part of a comprehensive due diligence process assessing the project’s technical and suitability alignment with international environmental and social standards, and legal framework.

Suki Muia, Investment Director, ARCH said:

Reaching financial close with AGG is a key moment for Cold Solutions Rwanda and a historic milestone for cold-chain infrastructure in the country. CSRL's temperature-controlled packhouse in the Kigali Prime Economic Zone is already operational, and its avocado processing line is helping our Rwanda-based growers meet the quality and shelf-life standards of export markets. Our new, modern greenfield facility will complement the packhouse, giving farmers, processors and exporters the cold-chain capacity to move produce reliably from the farm gate to its final destination. Our flagship facility in Tatu City, Kenya, has validated the cold-chain model. We are proud to partner with AGG in enabling Rwanda's horticulture and food sectors to reduce losses, add value and compete in regional and international markets.

Laurène Aigrain, Managing Director, AGG commented:

"This investment reflects AGG’s commitment to backing infrastructure that addresses real economic bottlenecks while delivering measurable climate benefits. Rwanda has established itself as a regional leader in agricultural transformation and value-added food processing, yet the availability of modern cold-chain infrastructure has not kept pace with growing demand. Cold Solutions Rwanda is helping close that gap by creating the storage and logistics backbone needed for businesses to expand, reduce product losses, and improve supply-chain efficiency. We are particularly pleased that the project combines strong development impact with sustainability ambitions, demonstrating how climate-focused investments can support private sector growth, strengthen food systems, and contribute to a more resilient economy."

About Cold Solutions Rwanda Limited

Cold Solutions Rwanda Limited is the Rwanda operating platform of the ARCH Cold Chain Solutions East Africa Fund. CS Rwanda has already laid the foundation for its broader plans in Rwanda through the opening of its first temperature-controlled packhouse in Kigali and the launch of cold-chain logistics services.

About Africa Go Green

AGG is designed to support activities that mitigate GHG emissions in Africa. The fund provides debt financing to businesses and projects across the spaces of industrial energy efficiency, green buildings, clean transport, and green appliances. AGG was established by KfW and has received funding commitments from the German Federal Ministry for Economic Cooperation and Development (“BMZ”) through KfW, in addition to funding commitments from the African Development Bank (and in its own capacity as the implementing entity for SEFA and the Clean Technology Fund (“CTF”)), the International Finance Corporation (“IFC”), Nordic Development Fund (“NDF”), British International Investment (“BII”), Calvert Impact Capital, Monday Charitable Trust (“MCT”), Swedfund and DEG (“Deutsche Investitions - und Entwicklungsgesellschaft”). The fund's current committed capital is at USD 232 million.

About Cygnum Capital

Cygnum Capital Group is an investment bank and asset manager operating across frontier and emerging markets. Founded in 2008, Cygnum Capital is a global provider of tailored and innovative financial solutions to meet its clients’ diverse needs.

Cygnum Capital uses long-term relationships, networks and local market understanding to deliver a best-in-class service. With offices in London, Nairobi, Lagos, Dubai, and Amsterdam, Cygnum Capital’s dynamic team of 70 finance professionals provide deep sectoral expertise, a broad product offering, an asset management platform and the ability to leverage synergies between our corporate finance, asset management and advisory activities.

Cygnum Capital Asset Management manages seven pioneering funds: six debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (“OGEF”) which supports companies in off grid energy such as SHS and small-medium mini-grids, (iii) Facility for Energy Inclusion (“FEI”) which supports companies that provide a range of renewable energy solutions such as medium-large mini-grids, C&I and IPP with a maximum capacity of 25 MW, (iv) AfricaGoGreen (“AGG”) Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies that increase energy efficiency, (v) the Universal Green Energy Access Programme (“UGEAP”), which provides co-investment debt for renewable energy projects in Africa, (vi) the Africa Agriculture and Trade Investment Fund (“AATIF”) which invests in projects that enhance efficiency across the agricultural value chain; and a VC private equity fund (vii) E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & applications and low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 1.44 billion of assets under management with investments in 38 African countries.

About ARCH Cold Chain Solutions East Africa Fund

ARCH Emerging Markets Partners Limited was founded in 2018 as a specialist investment adviser for emerging markets. Authorised and regulated by the UK Financial Conduct Authority, ARCH focuses on supporting the transition to low-carbon, climate-resilient and sustainable economies across Africa through investment strategies spanning Renewable Energy, Cold Chain Solutions and Sustainable Natural Resources.

As an award-winning platform (SuperReturn Africa 2022 & 2024), ARCH operates within a strong governance framework, with a focus on value creation and growth through a risk-adjusted approach. ESG principles are embedded across its investment strategies, aligning with the United Nations’ Sustainable Development Goals (SDGs) and the Paris Agreement to drive meaningful global impact.

The ARCH Cold Chain Solutions East Africa Fund (“CCSEAF” or “Fund”) primarily aims to reduce food waste, increase food security, and promote economic development across Africa. According to The Food and Agriculture Organization estimates, post-harvest losses in Sub-Saharan Africa range from 40-60%, largely due to inadequate storage and transportation, with 37% of losses occurring during handling and storage. The Fund is focused on creating state-of-the-art, temperature-controlled storage facilities throughout East Africa, complemented by a fleet of refrigerated trucks to ensure end-to-end cold chain management for both local and long-distance routes. The Fund reached final closure in May 2022, and its flagship project, the Tatu City Facility, was completed in July 2023. CCSEAF is actively expanding into other East African countries, including Rwanda, Uganda, and Tanzania, with plans to establish similar facilities to bolster regional trade and exports.