Compliance support infrastructure and services - Denmark

Compliance support infrastructure and services - Denmark

Information dated: 2017
Support to LDC-fund (Expired)

The Least Developed Countries Fund (LDCF) was established to support a work programme to assist Least Developed Country Parties (LDCs) carry out, among other things, the preparation and implementation of national adaptation programs of action (NAPAs). The LDCF focuses on reducing the vulnerability of those sectors and resources that are central to development and livelihoods. These sectors include: water; agriculture and food security; health; disaster risk management and prevention; infrastructure; and fragile ecosystems. In addition, NAPA implementation projects under LDCF are designed entirely in accordance with country priorities and executed by national stakeholders and involving active participation of vulnerable communities.

Most projects score satisfactory or above. Current funding to LDCF is expiring, and a new joint pledge was made in UNFCCC COP21 in Paris.

Burkina Faso

The Programme for Economic Growth in the Agricultural Sector 2013-2018 (likely to be extended to 2020 within the framework of the original budget of DKK 380 million), supports the development of five value chains with a growth potential: cowpeas, maize, beef, gum Arabic and shea nuts. All have an export potential or is already being exported to regional and/or the international market e.g. beef is the second largest export earner for Burkina Faso. The programme aims at improving the access of SME’s (operating within the five value chains) to advisory and financial services as well as improving the framework conditions for the development of the agricultural sector in general and the five selected value chains specifically. With respect to the framework conditions, the programme is supporting relevant legislation (including norms and standards, and traceability of products from the selected value chains) as well as financing of the infrastructure of a public goods nature the underpins the growth of the value chains (e.g. storage facilities, cattle markets, etc.).

Somalia Country Programme

Denmark's Somalia Country Programme 2015-2018 (DKK 450 million) supports infrastructure development (roads, communication, and energy). National planning encompassing all policy areas in both Somalia and Somaliland is supported. The livestock value chain is supported e.g. through capacity building of the Somaliland Quality Control Commission (SQCC) enhancing standardization and quality assurance boosting export of livestock. The pastoral livestock industry generates 80% of Somalia's foreign-exchange receipts and employs some 60% of the population.

Denmark’s Aid for Trade support to Trade facilitation through TradeMark East Africa

Danish Aid for Trade has supported several projects by TradeMark East Africa (TMEA) that promote cross-border and regional trade in East Africa. Development assistance from Denmark has cof-unded TMEA since 2011 both on a regional basis across the whole EAC, and also bilaterally to Kenya and Uganda.

Denmark’s trade facilitation support through TMEA is multi-faceted. It covers a variety of complementary activities to make trade easier, more efficient, and less costly. This work is consistent with international efforts led by the WTO to facilitate trade, and hence to increase economic growth, job creation and household incomes in developing countries.

The TMEA programmes and projects specifically concern Denmark’s support for women cross-border traders; harmonization of product standards; one-stop border posts; automation to modernize trade procedures; and a new Trade Logistics Information Pipeline initiative carried out in partnership with the Danish shipping company, Maersk.

If product standards are not harmonized, it can have negative economic effects, adding to the non-tariff barriers to trade. Therefore, in coordination with national stakeholders, TMEA has implemented The Standards Harmonization and Conformity Testing Programme, which supports the Bureau in achieving regional harmonization of EAC standards. It improves testing capacities to increase trade competitiveness across the region, by reducing the time and cost of testing, thereby contributing to fueling trade in the region. The programme has since 2011 provided capacity-building to the EAC Partner States to increase the quality and competitiveness of EAC-manufactured products. TMEA has further supported laboratories to increase the number of possible tests; created awareness about standards and quality to stakeholders, and harmonized priority standards to boost trade.

The programme directly increased the number of harmonized standards by 79 and improved the effectiveness of national bureaus by widening their testing scope by an average of 32 additional testing parameters. This resulted in a reduction in testing costs from an average of $500 down to $205, and the time to release testing certificates from an average of 38 days down to 10 days. An independent programme evaluation indicates that, as the number of harmonized standards increased, the number of products certified on regional standards also increased. The mutual recognition of certification marks across the EAC greatly reduced the average clearance time of import and export of products in the region. Thus improving the regional market access for producers which in turn further stimulates regional competition.