African Underdevelopment and the Multinationals – A Political Commentary

Abstract

The paper examined the general operational mode of the multi-national/trans-national corporations in Africa with a view to addressing African underdevelopment. The methodology adopted was content analysis, where relevant records were critically reviewed and analyzed. The major findings revealed among others that trans-national corporations have not helped host nations; rather they have contributed to their underdevelopment. Profits maximized by multinationals are repatriated to the home countries instead of using it to develop the host nations. The so called technology they claim they transfer to host nations is obsolete. Essentially the paper recommends that all African nations where MNCs operate should insist that the indigenes have to occupy sensitive and policy making positions in the MNCs. Legislative incentives should be used to direct foreign investment to manufacturing sub-sector, instead of commercial and communication sub-sectors where the multi-nationals currently dominate. The paper concludes that the aspirations of the host nations to welcome the multi-nationals with the hope of drawing technology from them have become illusive.