The government of Denmark has committed Sh1.9 billion ($17.5 million) to support Kenya’s green trade efforts and EAC’s fight against Covid-19.
Speaking during the signing of the two agreements on Tuesday, Danish Ambassador to Kenya Ole Thonke said his country is committed to supporting green trade and the war on Covid-19 pandemic in the region.
Green trading involves environmental financial trading, renewable energy credits and energy efficiency.
Ambassador Thonke said the funding would be channelled through TradeMark East Africa, an aid for trade organisation in the EAC, to reduce barriers to trade through automation and adoption of sustainable infrastructure such as One Stop Border Posts and ports, among others.
In the first agreement, $14.5 million (Sh1.6 billion) will support Kenya’s efforts to transition to green trade and creating sustainable jobs under the Denmark and Kenya Strategic Framework for 2021-25.
The second deal of $3 million (Sh330 million) will support Covid-19 response under TradeMark East Africa’s Safe Trade Emergency Facility (Safe Trade) Programme.
With the green trade funding of $14.5 million, TMEA will partner with the government and the private sector in adopting sustainable and efficient transport and infrastructure. This will seek to reduce barriers to trade, and enhance business competitiveness in Kenya.
The new funding will build up on results that have been achieved in previous programmes funded by Denmark, including support for non-motorised transport in the ongoing construction of Mbaraki Road in Mombasa.
“Under these intervention areas, activities will be implemented around trade facilitation, value chains, renewable and non-renewable energy, investment in natural capital, resource efficiency and cleaner technology,” Thonke said.
EAC and Regional Development PS Kevit Desai who witnessed the signing welcomed the partnership and support extended by Denmark.