Physical Trade Infrastructure - Denmark

Physical Trade Infrastructure - Denmark

Information dated: 2017
Road Bridges - Ghana

The purpose of the project is to improve and strengthen transport infrastructure in northern Ghana, thereby contributing to economic growth and poverty reduction. This includes the construction of six bridges, as well as the construction and upgrading of approach roads and rehabilitation roads between major towns. The project will substantially lower transport costs, enhance access to markets, and connect the northern regions to neighboring countries and southern parts of Ghana. Furthermore, the project will significantly improve road safety and mitigate the effects of climate-change-related seasonal flooding.

Electrification - Mozambique

The purpose of the project is to reinforce and expand the Mozambican power grid, which is indispensable for private-sector development and continued pro-poor economic growth. It involves rural electrification, installation of high-voltage power lines and transformer stations, including two stations in southern Mozambique and four in the less developed central and northern parts of the country. Increasing access to the power grid forms part of Electricidade de Moçambique’s (EDM) master plan in support of the government’s efforts to stimulate growth and reduce poverty.

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.

U-Growth II Programme - Uganda

The U-Growth II Programme 2014-2019 (DKK 500 million) supports two organizations, the aBi Group (aBi=Agribusiness Initiative) and the Uganda office of Trade Mark East Africa (TMEA), and a project supporting economic revitalization in northern Uganda i.e. “Recovery and Development of Northern Uganda Component (RDNUC).” The focus of the later is on improved farm productivity and yields, and commercialization. Although not directly linked to trade and export, the support for northern Uganda comprises rural infrastructure including rural roads.

The Danish support for TMEA (DKK 45 million plus possibly an additional DKK 18 million from the unallocated funds under the programme) is focused on the implementation of the so-called ‘Electronic Single Window’ (ESW) aiming at reducing cross-border transit time and costs, increasing revenues, and improving transparency and security in cross-border trade/supply chains. Furthermore, increased alignment and harmonization of Ugandan laws and policies with those of EAC is expected together with the improved capacity of the private sector and civil society actors to influence regional integration policies and practices positively.

aBi supports private sector actors in six selected value chains (coffee, oilseeds, cereals, pulses, horticulture for export and dairy) aiming at making the value chains more competitive and profitable. Cost-sharing grants are provided to enhance production and productivity, including training farmers in good agricultural practices, use of agro-inputs, quality assurance and post-harvest handling. Interventions to establish value-addition facilities, support marketing, and addressing issues needed to meet end-market requirements adequately, including export markets) are also supported.

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 co-funded 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.

Most trade services rely on ineffective and slow manual or analogue platforms. TMEA has therefore supported the development of specific portals for key agencies in overseeing important trade processes. Denmark is funding a new TMEA project in Kenya that started in late 2016. It is helping to improve business processes at Agriculture and Food Authority (AFA) and Kenya Plant Health Inspection Services (KEPHIS) through an integrated management system. It will upgrade ICT infrastructure and roll out the system to internal and external users. Once completed, it will increase efficiency in the application, verification, and issuing of permits, licenses and certificates. It will eliminate delays caused by periods of inactivity under the previous manual processes, and remove transaction costs associated with physical movement of traders to agencies to seek services.

The project aims to enhance the efficiency of regulatory and statutory procedures for trading and marketing of crops, crop materials, and seeds. This seeks to lower the time and cost of marketing agricultural products and commodities; increase transparency and predictability in trading and marketing of crops, crop materials, and seeds; and enhance access to trade and market information by farmers to boost productivity.