African Governments Must Support Local Multinationals Says Dr Yamson
MTN Ghana Board Chairman highlights regulatory hurdles and government preference for foreign firms.
Kwame Kusi | StatsGH |
2 min read3 min listen
Yamson highlighted the significant challenges faced by African businesses due to a lack of harmonised regulations across countries. He noted that companies operating in multiple markets must navigate different legal and regulatory systems. MTN, for example, operates in 19 countries, dealing with 19 distinct regulatory environments, which he described as "tough."
This regulatory fragmentation hinders the objectives of the African Continental Free Trade Area (AfCFTA), a key initiative for boosting intra-African trade. The AfCFTA aims to create a single market for goods and services across 54 African countries, potentially increasing Africa's income by GHS 450 billion by 2035. Harmonising laws would significantly ease cross-border operations, allowing businesses to expand more efficiently and contribute more effectively to the continent's economic growth.
Speaking on "The Y'ello Chair – Episode 8," MTN's vodcast platform, Dr. Yamson observed that African governments often appear more comfortable engaging with foreign multinational companies. He described this as a mindset that needs to change. He suggested this preference stems from a perception that local businesses are less authoritative, stating, "Why should I be dictated to by my other Black brother?"
Dr. Yamson stressed that stronger African companies are essential for the continent to increase its influence in the global economy. He pointed out that Africa currently contributes only a small share of global innovation. The continent continues to import technologies and innovations developed elsewhere, limiting its economic leverage. He emphasised that operating as small countries with small companies will not make a meaningful global impact.
He further called for regular dialogue platforms between African governments and the private sector. These forums would address common challenges and develop policies that promote business growth and continental development. Yamson believes this collaboration has been a "missing link" in fostering a conducive business environment.
Stronger partnerships between governments and African multinationals would not only support business growth but also advance economic integration. This collaboration would also lead to job creation and sustainable development across the continent. Such initiatives are vital for Africa to realise its full economic potential and compete effectively on the global stage.