In the modern global economy, transnational corporations have become important sources of technology, market access and capital – all of which states seek in propelling economic growth. States themselves provide territory, and establish the ‘rules of the game’ by which corporations may operate within that territory. However, with the commodification and commercialisation of indigenous cultural and intellectual property, states are bypassed and negotiations emerge between corporations and sub-state actors who claim to represent population segments. May the bypassing of the state further weaken national or state identity among indigenous groups? Such is the case that may be emerging in Africa with groups who claim profits derived from the development and marketing of indigenous cultural and intellectual property. This paper explores the possibility that profit-sharing agreements between transnational corporations and sub-state groups may contribute to the widening of ethnic cleavages in African states by promoting inequalities between groups.