Suspension of FCPA: Step back for global anti-corruption efforts

The recent Executive Order by the United States  (US) President, Donald Trump, to pause the Foreign Corrupt Practices Act (FCPA) has sparked global concern. His justification— “It is going to mean a lot more business for America”—raises serious ethical and economic questions. 

While some may argue that relaxing anti-bribery laws encourages investment, the reality is far more damaging, particularly for Africa, Ghana and global business integrity.

FCPA: Pillar, ethical business

Since its enactment in 1977, the FCPA has been a cornerstone in the fight against corporate corruption, prohibiting US companies from bribing foreign officials to gain business advantages.

Over the decades, this law has helped level the playing field, promoting transparency, fair competition and ethical business practices worldwide. Its suspension is not just a regulatory change—it is a direct attack on global anti-corruption efforts.

Impact Africa, Ghana.

For Africa, and Ghana in particular, the suspension of the FCPA presents serious risks:

• Weakening good governance and transparency.

African nations have made significant progress in strengthening anti-corruption laws and governance frameworks.

By removing a key external check on bribery, the US effectively undermines these efforts, emboldening corrupt actors and weakening the fight against illicit financial flows.

• Economic instability and public sector corruption.

Corruption drains public resources meant for education, health care and infrastructure.

If foreign businesses can now engage in unregulated bribery, African governments risk losing billions in revenue through fraudulent contracts and unfair deals, deepening economic inequality and instability.

•Undermining ESG and ethical investment.

The global push for Environmental, Social, and Governance (ESG) standards is critical for Africa’s sustainable development. Removing anti-bribery protections incentivizes corrupt, exploitative investments, harming local communities, the environment and long-term economic growth.

• Creating an unequal business environment.

Businesses that comply with ethical standards will struggle to compete against those willing to engage in bribery. This will discourage responsible investment and reward unethical business practices, further damaging Africa’s economic prospects.

Global reversal of progress

The suspension of the FCPA does not only impact Africa—it has global consequences:

• Weakening international anti-corruption frameworks, encouraging other nations to relax enforcement.

• Damaging US credibility, as American companies may now be viewed as enablers of corruption.

• Increasing political and economic instability, as corruption fuels social unrest and weakens state institutions.

Need, ethical leadership.

Trump’s decision to suspend the FCPA is a dangerous precedent that prioritises short-term business interests over long-term ethical governance.

If the US truly seeks to lead in global trade, it must do so through transparency, integrity and responsible business practices—not corruption.

Now, more than ever, African leaders, global institutions and ethical businesses must stand firm in defending anti-corruption laws.

The global economy does not need more bribery—it needs more accountability, fairness and sustainable development.

The writer is a policy analyst focused on global governance, economic development, and business ethics.