Ghanaian business leader Sir Sam Jonah disclosed that Nigerian state agencies subjected his real estate investment to “sustained harassment.” This significant investment in Nigeria also saw Ghanaian workers at the site enduring treatment similar to xenophobic attacks.
Sir Sam Jonah made these revelations during his keynote address at the Global Business Forum – Ghana Edition. He shared his personal experience to highlight broader challenges confronting African investors operating in other African countries. The reported harassment underscores the difficulties even prominent figures face when investing across African borders.
This incident fits into a larger narrative of concerns regarding intra-African trade and investment, despite initiatives like the African Continental Free Trade Area (AfCFTA). The AfCFTA aims to boost economic integration by removing trade barriers. However, experiences like Sir Sam Jonah's suggest that non-tariff barriers, including regulatory hurdles and protectionism, remain significant obstacles. Such challenges can deter crucial capital flows within the continent, impacting economic growth and job creation.
“I have made a significant investment in a real estate development in Nigeria,” Sir Sam Jonah stated, adding, “That investment has been subjected to sustained harassment by state agencies.” He further noted that Ghanaian workers on the site “have endured treatment not dissimilar to the scenes we deplore in South Africa.” These direct statements from a respected business figure lend significant weight to the concerns about investor protection.
This disclosure will likely prompt renewed calls for African governments to ensure a more predictable and secure investment climate for continental investors. Decision-makers and regional bodies like the African Union will need to address these issues to foster greater economic integration. The experience also serves as a cautionary tale for other African entrepreneurs considering cross-border expansion, potentially influencing future investment decisions and capital allocation.
Sir Sam Jonah questioned the prospects for smaller businesses, asking, “If this is the experience of an investor with my resources, my networks and my grey hairs, what hope has the young entrepreneur with none of these?” He warned that such treatment could undermine efforts to deepen intra-African investment. He urged governments to protect African investors and workers as zealously as they court foreign ones. This protection is vital for the success of initiatives like the AfCFTA, which relies on robust cross-border investment. The incident highlights the need for stronger legal frameworks and enforcement mechanisms to safeguard investments and ensure fair treatment for all workers within the continent. Without these protections, African capital may continue to seek safer havens outside the continent, hindering regional development.