Africa is losing up to £3.2 billion a year in inflated interest payments on its sovereign debt due to persistent negative stereotypes that dominate international media coverage of the continent, according to a new report.
A study by consultant Africa Practice and its advocacy nonprofit Africa No Filter found that media portrayals, especially during election periods when global coverage is heightened, are all about conflict, corruption, poverty, disease and poor leadership. The focus is on disproportionality, suggesting that the gap between perceived and actual risks is widening. Investing in the continent and creating a monolithic view of Africa.
“We’ve always known there was a price to pay for persistently stereotypical media coverage of Africa. Now we can put real numbers to the table,” said Africa No Filter Executive Director. Moky Makura said. “The scale of these numbers highlights the urgent need to challenge negative stereotypes about Africa and promote a more balanced narrative.”
Reporting has improved over the past few decades due to Africa’s growing involvement in international affairs, globalization, the increasing local presence of international news organizations on the continent, and campaigns against stereotypes, but it remains inadequate. That’s enough.
The ‘Costs of Media Stereotyping of Africa’ study looked at global media coverage of elections in four countries – Kenya, Nigeria, South Africa and Egypt – with similar socio-economic and political circumstances or ‘risk profiles’. The report is compared with that of non-African countries. Malaysia (Kenya and Nigeria), Denmark (South Africa) and Thailand (Egypt). This suggests that there are biases and disparities in how news outlets and journalists cover Africa, including reports of violent election events, corruption, and misleading headlines.
South African voters wait in line during the May 2024 elections. The authors note that election coverage tends to focus on violence and corruption. Photo: Manash Das/ZUMA Press Wire/REX/Shutterstock
“Typically, election coverage focuses narrowly on the horse race between the incumbent and the main opposition party. Rumors of electoral violence and corruption are common in Africa,” Makula said. “An obsession with election drama over issues at stake can be driven by a desire for headline-grabbing stories: stories about dirty politicians and violent conflict rather than delving into health care reform or job-creating policies. It’s easier to sell.”
According to data scientists and economists who supported the study, increased risk perception portrayed in the media has led lenders to apply “unreasonably” high borrowing costs even in African countries with decent credit ratings, leading to unreasonable lending costs. It is said that the conditions are now “covered.”
“This risk premium obscures the real commercial opportunities from overseas investors,” said Africa Practice chief executive Marcus Courage, adding that the £3.2bn estimate includes sovereign debt. It added that it only includes the impact of negative media coverage and does not include actual commercial opportunities. Consider the impact on other development drivers such as tourism, foreign direct investment and aid.
The organizations involved in the report say this figure, based on research suggesting media sentiment influences the cost of capital by 10%, means that more than 12 million children will be educated and more than 73 million immunized. It states that it is a “bias premium” that can be funded. , “Providing clean drinking water for two-thirds of Nigeria’s population” or helping a continent facing the worst effects of climate change.
In recent years, African leaders have called for reforms to the global financial structure at global and regional summits, including a reassessment of the high cost of lending to Africa.
“There is a recognition that global financial architecture needs reform, and we are committed to ensuring that the Bretton Woods institutions (IMF and World Bank) and others make development finance more accessible to the Global South, especially the Global South. I hope you will come to Africa,” Courage said. “There are now signs of real dissatisfaction on the part of African countries that progress on this agenda is too slow.”
The African Union will provide a region-based analysis of sovereign risks, moving away from what critics of the current rating system call “pessimistic assumptions” made by “international rating agencies with limited local presence” It plans to establish an African credit rating agency. The agency is scheduled to begin operations next year.
Earlier this month, African No Filter launched an election coverage guide that it hopes will help news organizations address bias.
“For every negative story that reinforces traditional tropes, there are 100 that don’t,” Macra said. “The question is not which one to cover; it should be both, not one or the other.”
