We know that Danish business strengths are relevant for Africa. However, leveraging these strengths requires market understanding, in-depth knowledge of value chains, and support for the companies’ operational activities. This is particularly true for small and medium-sized Danish enterprises that have the ability to develop new and innovative solutions tailored to African markets and needs.
Business collaboration between companies on the African continent and Denmark is inherently equal and long-term, with great potential to benefit both Denmark, the African populations, and the green transition. This is also outlined in the new Africa plan and thereby presents positive prospects for Access2innovation’s members.
Yet, African markets are known to be challenging, and it requires special insight for companies to successfully navigate countries with very different market dynamics, regulatory frameworks, and business cultures. Danish companies are aware of this, which is why few have an appetite for these markets. For the SMEs that do wish to engage with these markets, an introduction to a potential local partner or securing capital is often not enough. There is a need for sustained support to the companies’ operational activities from organizations and practitioners who understand the markets.
We therefore appeal to the Ministry of Foreign Affairs to prioritize institutional support for organizations that comprehend the African markets and specific value chains in the implementation of the Africa plan. This could very well be within Danish core industry areas such as agriculture and food systems, water, energy, green transition, and climate adaptation. This is similar to what the Netherlands does, which has led to their businesses performing significantly better than Denmark in African markets.