Netherlands Government grants $27.5 million for Mombasa port

The Kenya Ports Authority’s container terminal. The Netherlands Government has announced a $27.5 million grant to TradeMark East Africa. Photo/FILE 

By Christabel Ligami, Special Correspondent

In Summary

• The Netherlands Government has announced a $27.5 million grant to TradeMark East Africa (TMEA) to help boost regional economic growth through smoother and cheaper trade
• Part of the investment will go towards upgrading of berths at the Mombasa Port, which will in turn help improve the Ports productivity.

The Netherlands Government has announced a $27.5 million grant to TradeMark East Africa (TMEA) to help boost regional economic growth through smoother and cheaper trade.

Part of the investment will go towards upgrading of berths at the Mombasa Port, which will in turn help improve the Ports productivity.
 



Mombasa Port currently handles approximately 20 million tons of cargo with volumes expected to rise by 400 per cent by 2030.

“Netherlands will renew its contribution to TradeMark East Africa. This additional core investment underlines the Netherlands’ commitment to East African integration,” said Lilianne Ploumen, the Netherlands Minister for Foreign Trade and Development Cooperation.

The investment will also go towards improving access to markets.

TMEA is also supporting the Government of South Sudan to construct a one stop border post at Nimule on the border between Uganda and South Sudan and implement streamlined customs procedures between the two countries.

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).

Speaking at the signing ceremony, TradeMark CEO Frank Matsaert noted that 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 per cent higher than costs in the United States and Europe, and for the landlocked countries, transport costs can be as high as 45 per cent of the value of exports.

“The Netherlands government continues to be a key partner in promoting regional and economic integration in East Africa with focus on increasing trade and prosperity in East Africa, primarily through investing where there will be the biggest impact for East Africa’s people and the private sector,” said Mr Matsaert.

“Facilitating regional trade is an effective means to alleviate poverty and create welfare. This investment in supporting these projects is the catalyst needed to bring about prosperity to the region,” he said.