Kenya, France sign 8.4 mln euros agreement on radio, coffee development
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E-mail Xinhua, November 14, 2012
The Kenyan and the French governments on Tuesday signed an agreement of 8.4 million euros in support of the East African country's digital radio network and coffee development.
Visiting French Minister of Foreign Trade Nicole Bricq told journalists in the Kenyan capital Nairobi that the deal comprises a 7 million euros loan for the provision of a digital radio network for Kenya Wildlife Service and a grant of 1.4 million euros to support the improvement of value addition for local coffee producers.
"Kenya is the first country in sub-Saharan Africa to receive funding from the new French fund for developing countries and will receive 8.4 million euros to fund various projects," she said after the deal was signed here.
Bilateral cooperation entered a new phase when Kenyan Prime Minister Raila Odinga and his French counterpart Michel Rocard signed a political declaration in April 2011, after identifying areas of political partnership between the two nations.
French Ambassador to Kenya Etienne de Poncins has said his country's interest in East Africa and Kenya is increasing after years of passing over the region in favor of other parts of Africa.
Bricq said there is an interest rate of less that 1 percent annually under the loan agreeemtn and has a grace period of five years. The repayment period is 20 years. "However, 70 percent of the bids will be reserved for French companies," he said.
Minister of Finance Njeru Githae said the French government has been instrumental in complementing government efforts in environmental conservation.
"The French government has already funded the feasibility study on the northern Kenya Wildlife Conservation Project and thereafter provided a concessional loan amounting to 8 million euros for the project," he said.
According to the Ministry of Finance, cumulative Overseas Development Aid from France to Kenya has reached 1.17 billion euros to finance projects in water and sanitation, roads and transport, energy, finance education and agriculture.
"The cordial ties among the two countries are evident from the increased Overseas Development Aid (ODA) we have received from the French government through the France Development Agency (AFD) to finance various programs and projects in the country," he said.
Githae added that out of the 865 million U. S. dollars committed by bilateral partners for the 2012/2013 budget, France has committed 140 million dollars which represents 16.2 percent of the total.
"It is worth noting that the current funding in the budget from the French is almost double that of the previous financial year," he said.
Assistant Minister of Finance Oburu Oginga said that the agricultural and tourism sectors, which will receive French assistance, are the first and second largest sectors of Kenya' economy respectively.
"They have been identified as priority areas in the long term due to their multiplier effect on other sectors of the economy such as communication, transport and trade," he said. Endi
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