Africa loses up to £3.2bn yearly in inflated interest payments on sovereign debt due to persistent negative stereotypes that dominate international media coverage of the continent, according to a new report.
Research by consultants Africa Practice and the advocacy non-profit Africa No Filter suggests that media portrayals, especially during elections when global coverage is heightened, focus disproportionately on conflict, corruption, poverty, disease and poor leadership, widening disparities between perceived and actual risks of investing in the continent, and creating a monolithic view of Africa.
“We’ve always known that there’s a cost to the persistent stereotypical media narratives about Africa. Now we’re able to put an actual figure to it,” said Moky Makura, executive director of Africa No Filter. “The scale of these figures underscores the urgent need to challenge [these] negative stereotypes about Africa and promote a more balanced narrative.”
While coverage has improved over past decades, spurred on by greater African involvement in international affairs, globalization, increased local presence of international media outlets on the continent, and advocacy against stereotyping it remains wanting.
The Cost of Media Stereotypes to Africa study compares global media coverage of elections in four countries – Kenya,
Nigeria,
South
Africa
and Egypt –
to
the reporting on non-African countries with similar socioeconomic and political conditions or “risk profiles” such as Malaysia (Kenya and Nigeria), Denmark (South Africa) and Thailand (Egypt). It suggests bias and disparities in how newsrooms
and journalists cover
Africa including
in coverage
of violent election events or corruption
and misleading headlines.
“Typically,
election coverage is narrowly focused on the horse race between the incumbent
and main opposition party or parties.
In
Africa,
it is often peppered with stories of election violence
and rumours
of corruption,” said Makura.
“The fixation on election drama rather than the issues at stake is sometimes driven by desire for headline-grabbing stories.
It’s easier to sell stories about tainted politicians
and violent clashes than it is dig into healthcare reform or job creation policies.”
Heightened perceptions of risk portrayed by the media causes lenders apply “unjustifiably” high borrowing costs even for African countries with decent credit ratings “provide cover” for unfair loan terms according data scientists economists behind study.
“The real commercial opportunity obscured from international investors because this risk premium,” said Marcus Courage chief executive officer of Africa Practice adding that £3.2bn estimate only included impact negative media reporting sovereign debt did not account impacts other drivers development such as tourism foreign direct investment aid.
The organizations involved report say figure based studies suggesting media sentiment influences 10% cost capital “prejudice premium” could fund education more than 12 million children immunizations more than 73 million clean drinking water two-thirds Nigeria’s population help continent faces some worst climate change impacts.
In recent years African leaders have made calls at global regional summits reforms global financial architecture including reassessment high cost loans to Africa
“There recognition needs reform global financial architecture we hope Bretton Woods institutions IMF World Bank others will be working towards making development capital accessible global south specifically to Africa,” said Courage.
“There signs real frustration now part African countries this agenda moving too slowly.”
The African Union plans set up an Africa Credit Rating Agency provide regional-based analysis sovereign risk shifts away what critics current rating systems say are pessimistic assumptions by international rating agencies limited local presence”. The agency expected begin operating next year
Earlier this month
No Filter launched an election reporting guide hopes will help newsrooms address bias
“For every negative story reinforces traditional tropes there hundred don’t,” said Makura.
“The question not which one do we cover It’s not either should be both.”