Quantifying the prejudice premium

Greetings all 👋🏾 

African sovereigns have long faced an unfair penalty of higher interest rates due to entrenched perceptions that governments are risky borrowers – contrary to evidence that continental default rates are lower than those of other regions. Now we can place a figure on that “prejudice premium”. Sensationalist news headlines peddling African horror stories cost the continent USD 4.2 billion in annual debt interest payments. To take one example, during elections, African countries receive disproportionately higher media attention compared to non-African countries with similar political risk scores, thereby heightening negative perceptions of doing business on the continent. In the short-term, adverse media sentiment causes bond yields to spike, and over the long-term this translates into heightened borrowing costs. Skewed narratives distort investment inflows, to the detriment of recipient countries – and to investors, who miss out on opportunities on the continent. It’s high time to address these biases head-on, and unlock a more prosperous future for Africa.

Yours in reasonable reporting,

AP editorial team

🔍 The Cost of Media Stereotypes to Africa

This joint study by Africa Practice and Africa No Filter explores the economic consequences of skewed reporting on Africa. Examining the relationship between media bias in election coverage and its impact on financial flows, the data shows that USD 4.2 billion could be lost annually in interest payments on Eurobonds due to inflated risk perceptions. 

🎙️ Voices of Africa – Oulimata Sarr

In the latest Voices of Africa episode, Founder of Our Legacy Foundation, Oulimata Sarr, lays out her vision for an Africa where women and girls lead with equal access to opportunities. Through her “3 Rs” approach – rights, representation, and resources – Oulimata is helping women in agriculture secure land, capital, and leadership roles. Speaking with Africa Practice CEO Marcus Courage, Oulimata shares her journey in driving policy change and amplifying women’s voices across the continent. Listen to the episode here.

📈 115%

Zambia’s Energy Regulation Board has approved a three-month emergency tariff hike of up to 115% for consumers with large power demands, alongside a reduction for smaller users. This comes amidst Zambia’s worst drought in decades, which has constrained hydropower generation, resulting in a USD 15 million per month electricity import bill. 

🇸🇳 Senegal 2050

Dakar has unveiled "Senegal 2050", a 25-year economic roadmap intended to elevate the nation to middle-income status. The plan consists of three interconnected components: a series of five-year plans, ten-year master plans, and three overarching phases. The government is looking for USD 31 billion to fund the initial five-year plan, which runs from 2025-2029, straddling the Recovery and Momentum phases of the roadmap. These phases aim to stabilise key economic indicators, addressing a larger than anticipated fiscal deficit, which President Bassirou Diomaye Faye inherited from his predecessor Macky Sall, and to drive structural change and promote growth in the energy, logistics infrastructure, and digital technology sectors. This includes the development of eight interconnected economic hubs across the country. Prime Minister Ousmane Sonko’s office will be responsible for executing the plan, and with parliamentary elections scheduled for 17 November, the roadmap is expected to form a central component of the duo’s PASTEF party.

🇸🇴 🇪🇷 🇪🇹 Friends and foes

Somalia, Egypt, and Eritrea on 10 October entered a tripartite agreement designed to protect Mogadishu’s territorial integrity, signalling the emergence of a new strategic alliance in the Horn of Africa. The three nations agreed to enhance Somalia’s ability to  protect its land and sea borders, and strengthen its state institutions, citing the importance of sovereignty and independence. The summit in Asmara took place amid rising tensions stemming from Ethiopia’s controversial deal with Somaliland, granting the former access to the Red Sea in return for recognising the latter. The agreement also comes as Egypt plays an increasingly assertive role, strengthening military support to Somalia via arms shipments and offers to deploy peacekeeping troops in the region. The partnership contrasts sharply with the 2018 tripartite agreement between Ethiopia, Eritrea and Somalia, which aimed to foster regional integration and peace after decades of conflict; and provides Egypt, which has historically sparred with Ethiopia over the River Nile, with a new set of allies, seemingly intent on isolating Addis Ababa. 

🇿🇦 Sunken ships

South Africa’s deal with Turkish floating power plant provider Karpowership was confirmed to be “dead in the water” by Electricity Minister Kgosientsho Ramokgopa. Karpowership had been granted licences to operate at three South African ports in a 20-year deal worth over ZAR 200 billion (USD 11.3 billion) in May 2023, as the country grappled one of its worst bouts of rolling blackouts. However, progress stalled amid legal challenges and missed deadlines – as well as vocal opposition from environmental campaigners and procurement watchdogs. News of the now-defunct deal has been received with little fanfare ,as South Africa enjoys its longest period without load-shedding in years. This is far from the end of Karpowership’s ambitions on the continent, however. The Turkish firm already supplies electricity to several African countries, including Ghana, Senegal and Sierra Leone, and signed two new deals with Gabon in May 2024. 

🇨🇲 I’ll Biya back

The Cameroonian government has prohibited media speculation concerning the health and whereabouts of 91-year-old President Paul Biya, who has not been seen publicly since 8 September, when he attended the Forum on China–Africa Cooperation in Beijing. His absence from events, such as the United Nations General Assembly in New York and the International Organisation of La Francophonie summit in Paris, has fuelled domestic media commentary about the long-serving leader – who has been in power for 41 years. Despite this, the government asserts that President Biya is in “excellent health” and is enjoying a private stay in Geneva. To curb what it describes as a threat to national security, Interior Minister Paul Atanga Nji issued a ban on speculation about Biya’s health on 9 October, and instructed regional governors to establish monitoring units to enforce compliance. The government has assured that Biya will return to Cameroon in the coming days. 

🏅Record-breaking spirit

Kenya's Ruth Chepngetich made history by becoming the first woman to break the 2:10:00 barrier in marathon running, setting a new world record at the Chicago Marathon in 2:09:56. The blistering time was nearly two minutes faster than the previous record set by Ethiopia's Tigist Assefa in 2023 and marked the 30-year-old's third victory in Chicago. Chepngetich dedicated her world record to fellow Kenyan and marathon world-record holder Kelvin Kiptum, who tragically passed away earlier this year in a road accident. In his honour, event organisers held a moment of silence before the race. Kiptum's legacy was further celebrated as Kenya also triumphed in the men's race, with John Korir recording the second-fastest time ever in Chicago at 2:02:44, behind Kiptum's 2023 world record of 2:00:35.

🗓️ Film Africa

Film Africa, London's largest biennial festival celebrating African cinema returns for its 2024 edition from 25 October-3 November. The festival will open with Mati Diop’s award-winning documentary "Dahomey," a dramatised account of the return of 26 royal treasures from a French museum to their original home in Benin, exploring the complexities and emotional impact of cultural repatriation. The festival will close with "Black Tea" by Mauritian director Abderrahmane Sissako, which follows the journey of a young Ivorian woman on a transformative odyssey to China.

🔑 Colourful Cultures

The Tourism for Rural Development Small Grants Programme has opened grant applications for projects that seek to preserve and promote the rich traditions of African communities, with an emphasis on empowering artists, artisans, women, and youth. Up to EUR 20,000 (USD 22,000) per project is available, with a minimum 10% co-financing (financial or in-kind). Deadline is 2 December. 

📚 Ghost Season – Fatin Abbas

Set in a fictional border town between Sudan and South Sudan, Ghost Season connects five strangers living in an NGO compound, caught in the crosshairs of conflict. This debut novel from Sudanese author Fatin Abbas explores the porous and perilous nature of borders – whether they be national, ethnic, or religious – and the profound consequences for those who cross them.

🎹 Tito Mboweni – Cassper Nyovest

Not every central bank governor gets a song made after them, but the late Tito Mboweni was no ordinary figure. Released in 2017, Tito Mboweni by South African rapper Cassper Nyovest was a bold, brash anthem of self-confidence and success. Named after the first black governor of the South African Reserve Bank, the song uses his name as a symbol of power and prosperity, likening Nyovest's rise in the hip-hop game to the influence Mboweni had on the country’s financial system. The track undeniably became a cultural moment, capitalising on the meme-like catchiness of the chorus (“Tito Mboweni! Tito Mboweni!”). In the wake of his passing, this track takes on a nostalgic layer, serving as an odd yet fitting reminder of cultural crossover.

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