Richie Mensah has argued that difficulties in trading across African borders are limiting the growth of businesses on the continent.
Speaking on his new podcast, the creative director said many African entrepreneurs do not see neighbouring countries as their first expansion markets because of the challenges involved in doing business across borders.
“One of the reasons why African companies don’t become global companies is that expansion in your area does not even occur to you,” Richie said.
He explained that businesses in other regions often think about expanding from their home countries into nearby markets before going global, but African companies face a different reality.
“When somebody is starting a product in Europe, their thought is that, okay, first I conquer my country, then I conquer the neighbouring countries in Europe, then I go to the US, then Asia, then I’m global,” he said.
According to Richie, the situation is different for many African businesses.
“But in Africa, it’s so difficult to trade within Africa,” he added.
Using Ghana as an example, he said the language and trade differences with neighbouring countries often make regional expansion difficult.
“If you take a country like Ghana, which is surrounded by French-speaking countries, the thought of even trading in Togo and Ivory Coast and Benin, it makes it difficult to comprehend,” he said.
Richie added that many businesses on the continent are more focused on reaching former colonial markets than building stronger links with neighbouring African countries.
“Somebody is starting a business in Ghana and they’re thinking, how do I get to the UK? How do I get to the US? Nobody’s thinking, how do I get to Togo and Benin and Ivory Coast and Nigeria and get all over here?” he said
