President John Dramani Mahama has urged African governments to rethink their approach to business regulation, warning that excessive state control is choking innovation, discouraging investment, and undermining the continent’s economic growth.
Speaking on Thursday at a high-level private-public business dialogue during the ongoing 9th Tokyo International Conference on African Development (TICAD IX), Mahama stressed that the private sector must be treated as a genuine partner in development rather than an adversary.
“The public sector must see the private sector as partners and not an irritant,” Mahama cautioned. “For too long, governments have paid lip service to the idea that the private sector is the engine of growth, but in reality, they deny businesses the very conditions they need to thrive.”
Using a metaphor to illustrate his point, Mahama argued that governments cannot expect the private sector to deliver growth without ensuring profitability.
“Everybody says the private sector is the engine of growth. But how does an engine operate if you don’t provide the right fuel and oil for it to run? The private sector is not Father Christmas. It will go where there is a good return on investment. It is the government’s duty to create that enabling environment.”
Mahama underscored that restrictive regulations, bureaucracy, and outdated policies have become barriers to entrepreneurship, stifling Africa’s young innovators and discouraging investors who could otherwise drive growth.
Drawing on his experience as Ghana’s former Minister of Communications, Mahama highlighted how burdensome licensing rules once suffocated Ghana’s emerging tech industry.
“In the early days of ICT in Ghana, anyone who wanted to open an internet café faced endless regulatory hurdles. The process was so complex and discouraging that most couldn’t even start. When I became minister, I asked, why regulate internet cafés at all? When we removed the licensing barrier, cafés exploded across the country, driving connectivity and opportunity. They didn’t cause instability; they created progress.”
He added that similar fears once clouded telecom liberalisation. “They said telecom was too sensitive to open to the private sector, claiming it would jeopardise national security. Today, look at the telecom industry—it’s one of Africa’s strongest contributors to GDP growth.”
Mahama also pointed to the struggles of Africa’s youth-led fintech industry, recalling discussions during his recent campaign.
“I met FinTech entrepreneurs last year and asked them about their biggest challenge. Their response was simple: over-regulation. If governments ease these restrictions, these young people can invest, innovate, and create jobs. If we suffocate them, we lose their talent and potential.”
Mahama concluded with a strong call for governments across Africa to adopt policies that foster rather than hinder innovation.
“What we need to do is to create the right environment for young people to thrive. We should not over-regulate. Our policies must unlock creativity, not suppress it. Only then can Africa’s private sector truly power our sustainable growth.”
Click the link Puretvonline.com | WhatsApp Channel to join the WhatsApp channel
GOT A STORY?
Contact/WhatsApp: +233243201960 or manuelnkansah33@gmail.com