Sweden and TradeMark Africa Sign $2.7 Million Agreement to Enhance Trade in Kenya

Nairobi: Sweden has signed a USD 2.7 million agreement with TradeMark Africa to boost sustainable and inclusive trade in Kenya. The two-year Kenya Enhanced Trade Environment and Inclusion (KETEI) programme will support Kenya in meeting its national am...

Nairobi: Sweden has signed a USD 2.7 million agreement with TradeMark Africa to boost sustainable and inclusive trade in Kenya. The two-year Kenya Enhanced Trade Environment and Inclusion (KETEI) programme will support Kenya in meeting its national ambition within the various signed trade agreement frameworks, such as the African Continental Free Trade Area (AfCFTA).

According to Kenya News Agency, the programme will achieve its goals by promoting port efficiency, improving the green trade infrastructure and policy landscape in Kenya, and enhancing the resilience of women- and youth-owned SMEs participating in trade. The KETEI programme aligns with TradeMark Africa’s broader strategy of supporting sustainable and resilient trade.

Through the programme, it is anticipated that supported MSMEs (60% women-led, 40% youth-led) will realize a USD 3 million increase in export value, alongside tailored support on climate-linked export regulations and standards. Further, at least USD 5 million in private investment is expected to be leveraged towards green logistics infrastructure.

Speaking at the signing ceremony, Marie Ottosson, Sweden’s Head of the Kenya Development Cooperation Section, stated that globally, there is a growing demand from consumers for goods that are produced sustainably. She emphasized the importance of supporting Kenya’s smallholder producers in meeting the EU Deforestation Regulation (EUDR) requirements to secure continued access to global markets, especially in the European Union.

Ottosson also highlighted Sweden’s strong support for the AfCFTA, viewing it as a strategic step towards deepening cross-border trade across the continent. In 2023, Kenya exported coffee worth approximately USD 252.12 million, with the European Union accounting for 55 percent of this value. The EU Parliament’s EUDR mandates that certain commodities, including coffee linked to deforestation, must comply with the regulation to access the EU market from 2026.

Lillian Mwai-Ndegwa, TradeMark Africa’s Kenya Country Director, mentioned that Sweden’s support enables them to address structural inefficiencies in goods movement and SME support. She stressed the need for inclusive, climate-resilient, and future-proof growth while expanding and diversifying markets.

Mwai-Ndegwa noted, “By strengthening trade systems and placing women and young people at the centre of the process, we are not only fulfilling the promise of the AfCFTA but also safeguarding Kenya’s competitiveness in an increasingly dynamic global economy.”

In 2022, Kenya launched its AfCFTA strategy, aimed at expanding the country’s trade and investment within Africa, supporting structural transformation, and fostering economic growth and sustainable development. The strategy’s core objectives include enhancing secure and efficient export trade, promoting inclusivity in international trade, and contributing to environmental sustainability through green trade practices.

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