Adam Smith’s concept of the invisible hand suggests that free markets regulate themselves through competition and self-interest. Football, the world’s most popular sport, operates under remarkably similar principles. Despite being fast-paced and complex, the game largely regulates itself through competition, teamwork, and measured intervention. This parallel offers valuable insights for economic policymaking, particularly in rapidly developing regions like Africa.

What if policymakers approached economies with the same balanced perspective that successful football leagues apply to governance? The evidence suggests this approach could unlock tremendous potential.

Spontaneous Order and the Free Flow of Play

Football thrives when play flows freely with minimal interruptions. The beauty of the game lies in how players adapt in real-time, making split-second decisions that captivate fans. While referees enforce the rules, they aim to stay invisible, intervening only when necessary. This mirrors how markets perform best – when entrepreneurs and businesses can operate with limited barriers, responding quickly to opportunities and customer needs without excessive government intervention slowing them down.

This is evidenced in African economies, such as Rwanda, following the country’s reduction of bureaucratic hurdles to starting a business. Since simplifying its business registration process in 2008, Rwanda has consistently ranked among the most business-friendly environments in Africa, with GDP growth averaging 7.5% annually before the pandemic.

There is also the thriving mobile money upsurge in Kenya. The M-Pesa money remittance system has enrolled millions of Kenyans, making financial and business transactions seamless. The government allowed M-Pesa to develop with light oversight, and the platform flourished, bringing financial services to millions of previously unbanked Kenyans.

Competition and Incentives Drive Excellence

Football, like most sports in general, thrives on competition. Competition brings out the best in teams, players, and coaches alike. Tactical manoeuvres that transformed the game like Total Football, Tiki-Taka, and Gegenpressing, emerged through competitive demand for teams to be at their very best or risk falling off. This is an essential feature for any market to thrive. It needs innovators to be at their very best or risk being pushed out of the market.

We can see this in the telecom industry across the continent. Sectors that were opened to competition reached 100% penetration faster than in more restricted countries. Similarly, Morocco’s relatively open approach to aviation has helped establish Royal Air Maroc as one of Africa’s leading carriers, while more restrictive policies have hampered airline development elsewhere on the continent.

The private education sector provides another example. Low-cost private schools in Ghana, Kenya, and Nigeria have emerged to meet demand where public options are insufficient, driving improvements through competition.

The Right Balance: Smart Guidelines vs. Overcontrol

Football has its rules and regulations, ensuring fair play for all participants, especially in top European leagues. Common rules like the offside rule and yellow cards prevent dangerous play. Similarly, markets need certain guidelines to ensure fair competition.

Ethiopia’s experience with telecommunications provides an instructive case. Until recently, the state maintained Ethio Telecom’s monopoly, keeping prices high and service quality low. When the government finally introduced competition by auctioning a license to Kenya’s Safaricom in 2021, mobile internet prices dropped by 40% within a year, while coverage expanded dramatically.

The Playing Field Matters

Beyond the players and referees, football requires well-trained officials, state-of-the-art pitches, and governing bodies with legitimacy. Likewise, for markets, there is a need for strong institutions.

Botswana’s economic success relative to many resource-rich neighbours stems directly from its strong institutions. The country’s independent judiciary, transparent governance systems, and consistent rule enforcement have created an environment where businesses can operate with confidence and certainty. Unlike some neighbouring countries blessed with similar natural resources but plagued by institutional weaknesses, Botswana established reliable frameworks that protect property rights and encourage long-term investment.

Tunisia’s stock market reforms show how strengthening market infrastructure can yield benefits. By improving transparency requirements and modernizing trading systems, the Tunis Stock Exchange has attracted more investment while maintaining necessary investor protections.

Adapting to Local Contexts

Just as the beautiful game adapts to different environments from the technical precision of Spain’s La Liga to the physical intensity of the English Premier League. Economic policies must respect local conditions. Rwanda’s business reforms worked partly because they were tailored to the country’s specific needs rather than imported wholesale from elsewhere.

The Lesson

Football and free markets share a fundamental truth: both function best with the right balance of freedom and structure. Excessive control whether in sports or economic policy can stifle creativity, breed inefficiencies, and lead to unintended consequences. Yet a complete absence of rules invites exploitation and ultimately undermines the system.

African policymakers have an opportunity to strike this balance. By establishing clear, consistent rules while reducing unnecessary barriers, they can create environments where businesses compete vigorously but fairly much like the most entertaining and effective football leagues.

The evidence from across the continent demonstrates that when governments focus on establishing fundamental protections while allowing markets room to innovate, economies flourish. Just as football reaches its highest expression when referees facilitate rather than dominate the game, economies achieve their greatest potential when policymakers create conditions for success without micromanaging the outcome. 

For African economies, the lesson is clear. Governments must act like the best football referees: enforcing fair play without overshadowing the game. By reducing unnecessary bureaucratic hurdles, fostering competition, and investing in institutional infrastructure, policymakers can create an environment where businesses compete vigorously, innovate freely, and drive prosperity—just as football teams do on the pitch.

The question remains: Will policymakers step back and let the game flourish, or keep blowing the whistle at every turn?

This piece solely expresses the opinion of the author and not necessarily the magazine as a whole. SpeakFreely is committed to facilitating a broad dialogue for liberty, representing a variety of opinions. Support freedom and independent journalism by donating today.