“We have great ambitions. Of stronger engagement. More partnership. A stronger role for the Global South in our common institutions. A stronger role for the African countries and for the African Union.”
These were the words of the Danish Prime Minister, Mette Frederiksen, in March 2024 when she kicked off the work on a new Africa strategy for the Danish government.
Over the coming months, the government will focus on how Denmark’s and the EU’s engagement with African partners can be strengthened. The government will develop a plan for Danish engagement in Africa, which will guide Denmark’s efforts and analyze how stronger integration and enhancement of Danish initiatives through the EU can be ensured. The plan is expected to be launched in August 2024. The goal is stronger and more equitable partnerships for a better common future.
Access2innovation is, of course, contributing to this work. We do it with the following input:
Better Support for Sustainable Danish Solutions in African Growth Markets – Access2innovation’s Input to the Government’s Africa Plan
As we have seen an increase in partnerships between companies and development organizations across Africa and Denmark in recent years, it has also become evident what a crucial role the market can play in addressing classical development issues and contributing to the green transition. At the same time, development organizations like Access2innovation have proven instrumental in bringing Danish companies and their products to African markets.
The Danish business strengths are relevant to Africa. However, it requires market understanding, in-depth knowledge of value chains, as well as long-term support for the companies’ strategic and operational activities in African markets to succeed.
There is therefore a need to secure funding for organizations like Access2innovation, which, as the only actor in Denmark, specifically supports Danish companies’ business development, export, and investments in Africa—in partnerships with NGOs, research institutions, investors, and business organizations.
Challenges
- Decreasing interest and risk appetite from Danish companies regarding African markets.
- Lack of knowledge and understanding of African markets, including market opportunities and market dynamics, risk management, regulatory frameworks, and business cultures.
- Support for companies and market-oriented partnerships focusing on developing countries, including Africa, is limited to individual project financing or large and difficult-to-access investment mechanisms for SMEs.
- There is a lack of strategic and long-term funds to drive commercial Africa-oriented networks and capacity building, to support more Danish companies and investors to enter and invest in these markets.
Solutions
- Capacity building of Danish companies to understand and operate in African markets, as well as capacity building of Danish NGOs to better engage in partnerships with companies.
- Support for market and value chain analyses, as well as the facilitation of partnerships between Danish and African companies.
- The need for long-term and institutional support for the development, adaptation, and scaling of Danish market-based solutions, which should be a combination of development and business promotion funds.
- Local presence as well as strong networks and partnerships with local actors that can support Danish companies’ operational activities in Africa.
- Long term, strategic financial support in the form of core funding to organizations like Access2innovation, to facilitate market understanding, undertake capacity building and support equal partnerships for the benefit of Danish and African companies and organizations focusing on market-based solutions.