Paper short abstract:

We interrogate and compare Huawei’s impacts in Ghana and Kenya using International Trade theory on the role of MNEs in development as an analytical framework. We find positive contributions towards socioeconomic and digital infrastructure development but adverse impacts on the politics.

Paper long abstract:

The digital economy has fundamentally changed the global economy, the way firms produce and market goods and services across borders thereby providing digital multinationals (MNEs) an unprecedented opportunity to enter foreign markets easily. This has also made it more difficult to regulate and track the impact of digital MNEs on their host countries. China’s digital MNEs have taken advantage of this opportunity establishing a new and fast-growing digital influence on economies, societies, infrastructure and politics of the global South. Ghana and Kenya are 2 countries on the African continent that continue to host some of China’s digital MNEs. Specifically, these two countries have fostered economic relations with Chinese global tech company, Huawei, for about 2 decades now. Arguably, it is expected that these relationships would accelerate Africa’s effective participation in the world digital economy. Yet, limited scholarship has investigated the socioeconomic impact of the Chinese tech MNEs on their host countries. Leveraging on the ongoing debate about the implications of Chinese MNEs in the global south, this study interrogates the following question: What has been the impacts of Huawei on the socioeconomic development, competition, infrastructure, and politics in Africa? Using a case study research design as well as International Trade theory on the role of MNEs in development as an analytical framework to comparatively investigate the impacts of Huawei’s operations in Ghana and Kenya for the last 2 decades, the study finds that in both countries Huawei positively contributes to socioeconomic and digital infrastructure development but negatively impacts the politics.