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In May 2009, the Africa Commission chaired by the Danish prime minister will present its final recommendations for future development cooperation with Africa. Correspondingly, this report includes a revision of the most imminent challenges facing business in Africa today, beside a number of recommendations for action.

The paper starts with trade facilitation, noting that there is a clear need for it. It quotes that the most critical trade issues facing African countries relate to transport and logistics. The paper indicates the substantial transport costs in Africa resulted from a combination of poorly maintained roads, and burdensome border and administrative procedures.

Furthermore, the paper highlights the importance of energy to economic growth. The lack of reliable electricity supplies results in high costs for local companies, and discourages foreign investment. The paper presents some suggestions in this context, such as focusing on alternative sources of energy, introducing stable energy tariff regimes, and promoting implementation of energy efficiency.

The paper deals with the problem of access to finance. It points out that in recent years, the development seems to be going in the wrong direction in several countries. The lack of access to bank financing often affects small and medium sized businesses most. The paper recommends ensuring increased use of credit reference bureaus, and establishing guarantee facilities and instruments that enable poor segments to access finance.

The paper finds that there is an increasing recognition of the importance of higher technical skills for enhancing competitiveness and producing better employment. However, technical skills development systems in Africa suffer from a shortage of qualified staff, obsolete equipment, and weak links with the private sector. Consequently, the paper highlights the important role of foreign investments in terms of projects with a high potential for technology and knowledge transfer.

The paper additionally tackles the issue of gender equality. It figures that women in Africa are often excluded from participating in formal economic activities, which has a number of adverse effects. Therefore, the paper encourages African governments to establish national and regional networks for female business leaders.

In like manner, in order to enhance international trade in Africa, the paper gives the following recommendations:

• swift and successful conclusion to the Doha Round
• establishment of capacity building programs for official trade negotiators
• establishment of political institutions with a view to promote African free trade areas
• establishment of regional capacity building programs for custom authorities
• establishment of permanent dialogue forums for all stakeholders
• alignment of customs procedures between African countries
• improving the physical conditions at points of entry

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