Stephen Grootes speaks to Victor Kgomoeswana, Author of Africa Bounces Back & marketing and communication executive director at University of Limpopo, about why rising xenophobia, geopolitical tensions and growing anti-foreign sentiment in several African markets are becoming a major concern for multinational businesses, following MTN’s warning about these trends, and what these pressures could mean for investment, expansion and economic growth across the continent.
Listen to the interview in the audio player below.
Geopolitical tensions and rising anti-foreign sentiment are becoming business risks for companies operating across Africa, adding a new layer of uncertainty to investment and expansion plans.
The warning follows MTN Ghana’s latest results, where CEO Stephen Blewett cautioned that conflicts in the Middle East, supply chain disruptions and growing trade fragmentation could undermine economic gains despite improving domestic conditions in Ghana.
For multinational businesses, heightened xenophobia and political nationalism can increase regulatory risk, delay capital investment, disrupt supply chains and weaken consumer confidence, factors that ultimately raise the cost of doing business.
Investors are also likely to demand higher risk premiums in markets where policy uncertainty or social instability threatens long-term returns.
As African economies pursue regional integration under the African Continental Free Trade Area (AfCFTA), maintaining an open and predictable investment environment will be critical to sustaining economic growth and attracting foreign direct investment.
Speaking to Stephen Grootes on The Money Show, Victor Kgomoeswana, author of Africa Bounces Back and Marketing and Communication Executive Director at the University of Limpopo unpacks whether rising anti-foreign sentiment, tax disputes and geopolitical tensions are making it harder for businesses like MTN to operate across the continent.
“The March and March (movement), the anti-illegal immigration did have some backlash…there is going to be backlash, but you don’t take on an MTN and throw it out of the country because of that.”
– Victor Kgomoeswana, author – Africa Bounces Back
“I’m in marketing, I deal with perception and I know often perception matters more than fact. So we are going to have to do a lot of damage control on the basis of the anti illegal immigration.”
– Victor Kgomoeswana, author – Africa Bounces Back
Scroll to the top of the article to listen to the full interview.