Denmark commits Sh41 billion to boost East Africa’s resilience amid global trade turmoil
East Africa will benefit significantly from Denmark's latest commitment to bolster regional economic resilience amid global trade tensions, after the European nation announced that it will allocate DKK100 million (Sh41 billion) to help African economies weather ongoing global trade wars.
The trade wars, characterised by escalating tariffs and trade barriers among major economies, have disrupted international markets and supply chains, impacting countries worldwide, including those in Africa.
They have also led to increased costs for imports, reduced access to foreign markets and hindered economic growth, particularly in developing regions.
The Citizen reports that Denmark's Minister for Foreign Affairs, Lars Løkke Rasmussen, announced this on Monday, noting that DKK 40 million (approximately Sh16 billion) is earmarked specifically for East Africa.
The initiative aims to strengthen the region's capacity to withstand economic shocks and promote sustainable growth despite the challenges posed by international trade disruptions.
Denmark is prioritising the fight against unfair trade practices, such as flooding African markets with imported goods that could be produced locally, to encourage economic independence and industrial growth.
Drive growth of exports
This investment is also designed to drive the growth of exports and job creation continentally, while also strengthening trade relations between Africa and the European Union for more balanced economic collaboration.
The initiative reflects Denmark's integrated approach to development, foreign affairs and trade policies, forming a central element of its new development agenda.
It also supports Denmark's 2024 Strategy to deepen partnerships with African countries, addressing their priorities and reinforcing Denmark's commitment as a reliable, long-term ally.
In August 2024, Løkke announced plans to renew Denmark's engagement with Africa, aligning the move with Europe's broader objective to become the continent's preferred partner amid shifting global alliances.
"We have a vested interest in African nations turning towards us in Europe as they map out their future," he said then.
"We must showcase an appealing alternative to the growing Chinese and Russian influence on the continent."
The trade wars, characterised by escalating tariffs and trade barriers among major economies, have disrupted international markets and supply chains, impacting countries worldwide, including those in Africa.
They have also led to increased costs for imports, reduced access to foreign markets and hindered economic growth, particularly in developing regions.
The Citizen reports that Denmark's Minister for Foreign Affairs, Lars Løkke Rasmussen, announced this on Monday, noting that DKK 40 million (approximately Sh16 billion) is earmarked specifically for East Africa.
The initiative aims to strengthen the region's capacity to withstand economic shocks and promote sustainable growth despite the challenges posed by international trade disruptions.
Denmark is prioritising the fight against unfair trade practices, such as flooding African markets with imported goods that could be produced locally, to encourage economic independence and industrial growth.
Drive growth of exports
This investment is also designed to drive the growth of exports and job creation continentally, while also strengthening trade relations between Africa and the European Union for more balanced economic collaboration.
The initiative reflects Denmark's integrated approach to development, foreign affairs and trade policies, forming a central element of its new development agenda.
It also supports Denmark's 2024 Strategy to deepen partnerships with African countries, addressing their priorities and reinforcing Denmark's commitment as a reliable, long-term ally.
In August 2024, Løkke announced plans to renew Denmark's engagement with Africa, aligning the move with Europe's broader objective to become the continent's preferred partner amid shifting global alliances.
"We have a vested interest in African nations turning towards us in Europe as they map out their future," he said then.
"We must showcase an appealing alternative to the growing Chinese and Russian influence on the continent."
east africa
Denmark
african economies
china africa diplomacy
trade tarrifs
China Africa
Let’s Connect
We’re here to listen, support, and engage with you.
Whether it’s feedback, a request, or collaboration — Hon. Yusuf Hassan’s team welcomes your message.
Office Address
Kamukunji Constituency Office, Nairobi
Call
+254 737 500200, +254 716 667733
“Leadership is not about position — it’s about purpose, people, and progress.”