The German government has committed over Sh105 million (€750,000) to support trade facilitation measures along the Northern Corridor.
This follows the signing of a MoU between Deutsche Gesellschaft für Internationale Zusammenarbeit and the Northern Corridor Transit and Transport Coordination Authority.
During the ceremony in Mombasa on Wednesday, NCTTCA executive director John Deng described the MoU as a step towards enhancing trade facilitation and socio-economic development within the corridor.
A key focus of the GIZ-NCTTCA partnership is the implementation of the Northern Corridor Green Trade Strategy.
“This initiative aims to promote sustainable freight transport by incorporating eco-friendly solutions such as e-mobility and green freight programmes,” he said.
An electrification readiness study is in the pipeline, he added, aimed at supporting green freight initiatives and reducing the carbon footprint of the corridor’s transport network.
“We are making progress towards greening the corridor in both trade and transport, as well as sustainable climate, resilient infrastructure development. This is an emerging area that is still being scoped and we hope to be able to have definitive interventions that will make a specific difference in our environmental protection,” Deng said.
Other trade facilitation measures under the partnership will include simplifying cross-border trade procedures, supporting small-scale traders and addressing non-tariff barriers.
These interventions are expected to promote inclusivity, empowering businesses along the corridor and enhancing economic opportunities for communities within the region.
The partnership aims to achieve several key outcomes, including increased advisory capacity for transport infrastructure development, greater private capital mobilisation for infrastructure investment and progress towards climate-resilient infrastructure.
Additionally, enhanced facilitation will support inter-regional trade under frameworks such as the African Continental Free Trade Area, explained Deng.
The initial Sh105 million (€750,000) commitment from GIZ would serve as seed funding for larger-scale investments in the future. NCTTCA will ensure adherence to transparency and accountability in resource utilisation, so that every euro invested delivers tangible benefits to member states.
The funds from GIZ will also be channeled towards capacity building for private sector investment in sustainable infrastructure, particularly by enhancing PPP capacities within member states.
NCTTCA will also collaborate with stakeholders to develop a pipeline of bankable projects for investment, ensuring that priority projects align with regional development goals.
