Mombasa – December 17, 2015 – The Danish Foreign Minister, Kristian Jensen, today announced that the Danish Government will work closely with TMA to support green growth initiatives, trade and employment creation in Kenya through supporting Mombasa Port and other projects. Speaking during his tour of the Mombasa port, Danish Foreign Affairs Minister Kristian Jensen said: “Mombasa is a lifeline port for Kenya and its landlocked neighbours, handling about 20 million tonnes of cargo currently. This is expected to rise 400% by 2030. The modernisation of the port is not just timely but vital towards unlocking the economic potential of the region”
“Today I am delighted to announce that DANIDA will support TradeMark Africa’s Green Growth development program that will contribute to employment, jobs and incomes to the people.
This includes regulatory, systems and health and safety reforms to reduce greenhouse emissions, development of Road Side Stations to streamline transit along Northern Corridor, reducing Non-Tariff Barriers to Trade and improving business competitiveness”
David Stanton Director General at TradeMark Africa added:
“This support represents the strong partnership between Denmark and Kenya. It will deliver fundamental improvements to efficiency in the port and have an overall goal of achieving greater prosperity for the people of Kenya and fulfilling President Kenyatta’s vision of double digit growth.”
The capacity and efficiency of Trade infrastructure is critical to East Africa’s prosperity, and in creating the much needed jobs in the region.
Currently East Africa’s trade corridors are characterised by long transit times and high costs. Freight costs per kilometre are more than 50% higher than costs in the United States and Europe, and for the landlocked countries, transport costs can be as high as 45% of the value of exports. Growth in regional trade is forecast to dramatically increase demand for services at Mombasa port in the next decade, according to projections by Kenya Ports Authority (KPA). If further developed and operated efficiently, the port can unlock the economic potential of the region. But if undeveloped and operated poorly – as is currently the case – it can constrain the region’s growth, transport economists say.
TMA estimates that without gains in efficiency, Mombasa Port will by 2017 need 40% more ship-to-shore equipment, 230% more quay space, and as much as 400% more yard space. It is estimated that TMA’s total programme of activities will reduce the average time for cargo to transit the port by approximately two days. The net benefit of this time reduction (accounting for increased operations and maintenance costs as well as profits on increased trade) is estimated to be at least US$ 1.3 billion.
Source: TradeMark Africa (TMA)
TradeMark Africa (TMA) is an aid-for-trade organisation that was established with the aim of growing prosperity in East Africa through increased trade. TradeMark Africa (TMA) operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, the Netherlands, UK, and USA. TradeMark Africa (TMA) works closely with East African Community (EAC) institutions, national governments, the private sector and civil society organisations.
