Integral value chain solutions in Ethiopia-Djibouti and South Africa
Who is our client?
PDF provides multi annual funding to Flying Swans Foundation to develop integral agro-logistical corridors in emerging markets.
Currently, Flying Swans is actively developing projects in two corridors: Ethiopia/Djibouti and South Africa.
In Ethiopia and Djibouti, Flying Swans will coordinate the development of a National Cool Logistics Network. The road, rail and port infrastructure in Ethiopia and Djibouti is undergoing rapid developments. Flying Swans will add value to these developments with a cool logistics overlay of cold stores, value chain facilities and a reefer train solution to support Ethiopia in setting up a perishable export industry in fruits and vegetables. The first focus is on the Addis Ababa-Djibouti corridor, as this is where trains are already running. Modjo Dry Port is one of the key logistical hubs in this corridor, situated at the intersection of main roads and rail connections and being relatively close to Addis Ababa. The initial geographical focus of Flying Swans' supporting agricultural activities is on the hinterland between Addis Ababa and Arba Minch, one of the country’s most fertile corridors with good infrastructural links to Modjo.
In South Africa, the project development efforts will fundamentally change the supply chain of fruit. Ultimately, the goal is to maximise the modal shift from road to rail. The current model of truck-borne transport of fruit and vegetables comes with high CO2 emissions; a shift to rail transport will reduce the supply chain’s emissions by 60-75% depending on transport to and from the rail terminals. A range of infrastructures will ensure that local emerging farmers can also participate in the new supply chains, one of which being a dedicated consolidation, packing, grading, and trading facility holistically integrated into Limpopo Consolidation Centre. This will allow these farmers to access valuable export markets, increasing their incomes.
Why we fund this project?
In Ethiopia, Flying Swans will add considerable value to the economy by unlocking the potential of the country's fruit and vegetable export industry. Expected impact of the projects will be on stimulating job creation, prevention of food waste, and establishing a sustainable supply chain.
In South Africa, Flying Swans will create development impact through the increased earnings that export market access brings to smallholder farmers. Furthermore, switching inland transport from truck to rail has the potential to reduce CO2 emissions of hinterland transport with 65%.
In South Africa the main impact will be on reducing CO2 emissions in the transport of fruit and vegetables and stimulating access to international markets for smallholder farmers.
PDF investment | EUR 7,700,000 (2018-2022)
Instrument | Development Contribution
Country | Ethiopia and South Africa
SDG | 2, 5, 8, 9, 13 and 17