Denmark allocates Sh41 billion to boost African trade amid global tensions
Minister for Foreign Affairs of Denmark Lars Løkke Rasmussen, delivers a speech during the political party, the Moderates annual national meeting at the Bella Center in Copenhagen on March 22, 2025. PHOTO | GETTY IMAGES
What you need to know:
- The initiative aims to strengthen African countries’ capacity to withstand economic pressures arising from global trade disruptions.
Copenhagen. On Monday, June 2, 2025, Denmark’s Minister for Foreign Affairs, Lars Løkke Rasmussen, announced that the Danish government will allocate DKK 100 million (approximately Sh41 billion) to help mitigate the effects of the ongoing global trade war on African economies.
Of the total sum, DKK 40 million (about Sh16 billion) will be specifically directed to support regional economic resilience in East Africa.
The initiative aims to strengthen African countries’ capacity to withstand economic pressures arising from global trade disruptions.
Denmark’s support focuses on combating harmful trade practices such as the dumping of imported goods that could otherwise be produced locally, thereby encouraging self-reliance and industrial development.
The funding is expected to lay the foundation for increased exports and job creation across the continent. It will also promote deeper trade integration between Africa and the European Union, fostering more mutually beneficial economic partnerships.
This move is part of Denmark’s broader strategy to align development, foreign, and trade policies, and is a key pillar of its forthcoming development policy framework. It underscores Denmark’s commitment to more cohesive and strategic international engagement.
The initiative also supports goals outlined in Denmark’s 2024 Strategy for strengthened cooperation with African countries, responding to specific demands from African partners and reaffirming Denmark’s role as a credible, long-term ally.
