Xenophobia: Boycotting Pan-African Firms Threatens Jobs, Economic Integration – Mupita

As renewed xenophobic attacks against foreign nationals in South Africa continue to generate outrage across the continent, president and chief executive officer of MTN Group, Ralph Mupita, has cautioned against retaliatory actions targeting African businesses operating across borders, warning that such measures could undermine jobs, investment, digital transformation and regional economic integration.

He disclosed this amid growing social media campaigns in Nigeria and other African countries calling for sanctions against businesses perceived as being linked to South Africa following reports of attacks on immigrants, including Nigerians, in parts of the country.

Speaking in an interview with Bloomberg, the MTN Chief Executive said the telecommunications giant had not recorded any direct operational impact from the growing tensions but remained vigilant, particularly in key markets such as Nigeria and Ghana.

“We have not seen impacts specifically to our business, but we’re very sensitive in markets such as Nigeria and Ghana,” Mupita said.

The development has reignited debates over the appropriate response to recurring xenophobic incidents in South Africa. While some stakeholders have advocated economic retaliation against South African-owned businesses operating elsewhere on the continent, others have urged restraint, as such actions could harm African economies and workers more than the intended targets.

Mupita buttressed that pan-African companies play a critical role in advancing economic cooperation and the objectives of the African Continental Free Trade Area (AfCFTA), noting that many multinational firms have become deeply integrated into the economies where they operate.

According to him, businesses operating across African borders should not be judged solely by the nationality of their headquarters, as they create jobs, support local suppliers and contribute significantly to economic development in host countries.

The telco’s boss while highlighting MTN’s continental footprint, noted that the company derives most of its earnings from markets outside South Africa.

“MTN makes less than 20 per cent in South Africa and makes 80 per cent of our earnings elsewhere,” he stated.

He further argued that economic isolation and business boycotts would do little to address the root causes of migration pressures and unemployment, urging governments, businesses and citizens across Africa to pursue constructive engagement and cooperation instead.

However, the mobile network company’s boss comments underscore growing concerns that xenophobia-related tensions could threaten the continent’s integration agenda at a time when African leaders are seeking to boost intra-African trade, investment and digital connectivity through initiatives such as AfCFTA. Even as retaliatory actions against business operations within the continent could disrupt value chains, discourage investment and jeopardise employment opportunities for thousands of Africans.

The warning also comes against the backdrop of calls by some Nigerian political figures for stronger economic measures against South African companies in response to attacks on Nigerians living in South Africa.

However, advocates of regional integration have insisted that sustainable solutions lie in stronger diplomatic engagement, protection of migrants rights and deeper economic cooperation among African nations.