NAIVASHA - In a significant move to support sustainable trade practices in Africa, the Finnish government has committed €12 million to aid the implementation of the African Continental Free Trade Agreement (ACFTA) through a funding deal with TradeMark Africa (TMA). This initiative aims to transform the transportation of horticulture products from air to sea freight, reducing costs and carbon emissions.
According to Kenya News Agency, Tavio Ville, who spoke during the agreement signing at the Naivasha Inland Container Depot, this transition not only supports environmental sustainability but also enhances economic efficiency within the horticulture sector. The shift from air to sea freight is expected to decrease the high costs associated with air transport, addressing a longstanding concern among Kenyan farmers and aligning with European Union strategies to cut carbon emissions in business operations.
The funding will be channeled into various projects under TMA’s third strategic plan spanning from 2023 to 2030, which focuses on fostering inclusive, clean, and digital trade across the continent. TMA Chief Executive Officer David Beer stated that the support would also boost the Naivasha inland depot’s capabilities by developing a logistics master plan and enhancing its electrical infrastructure.
Furthermore, Beer highlighted that the Finnish contribution would play a crucial role in reducing trade barriers and lowering transaction costs for businesses, particularly in the post-COVID-19 recovery phase. This support aligns with Finland's ongoing commitment to promoting sustainable development and economic growth in Africa.
Over the past decade, Finland has invested over €26.9 million in core funding through TMA, facilitating significant improvements in trade infrastructure and efficiency. These investments have supported the digitization of port systems, construction of one-stop border posts, and empowerment of women in trade.
TMA, established in 2010 and initially focused on East Africa, has broadened its scope to support broader intra-African trade initiatives. It has been instrumental in implementing effective customs systems and enhancing digital trade platforms across the continent.
This strategic partnership between Finland and TradeMark Africa underscores a shared commitment to enhancing Africa's global trade participation while prioritizing environmental sustainability and economic inclusivity.