10/28/2024 | News release | Distributed by Public on 10/28/2024 05:10
Even when unintentional, media bias can do measurable economic harm to entire nations, new research indicates. The economies of African countries are negatively impacted by media bias to the tune of 4.2 billion U.S. dollars in inflated interest payments annually, according to The Cost of Media Stereotypes to Africa. The study by Africa No Filter and Africa Practice reveals that by reinforcing negative stereotypes, ignoring positive stories, and misrepresenting African issues through ethnocentrism, media bias could be costing Africa billions per year in high borrowing costs.
In the financial world, negative media coverage heightens perceived risk, which impacts investor sentiment and sovereign bond yields. The research findings indicate that news coverage of African elections focuses disproportionately on negative issues such as violence and election fraud when compared to non-African countries with similar risk profiles. For example, the term "violence" was found to be highly associated with Africa in media headlines - especially in election coverage - even when the content of the article didn't warrant it. Western media also tends to perpetuate misunderstandings and oversimplifications, such as referring to Africa as a monolith, neglecting to convey the complexities of individual African countries and events.
The study included a comparison of news coverage from seven global media giants: Al Jazeera, the BBC, CNN, Bloomberg, Financial Time, Reuters, and The Economist, all of which are commonly used by foreign investors to keep abreast of international economic and political news. The material covering African countries was compared to that of non-African countries with similar risk profiles.
Negative sentiment in global media reports was found to be more prevalent in articles about African countries during elections when contrasted with comparable Asian countries during elections, even among countries with similar political risk scores.
Overall negative bias was still present but reduced when a greater variety of media outlets were added to the equation, highlighting the importance of a diverse media landscape.
Media headlines pertaining to African elections were often found to contain negative words, even when the text of the article didn't align with the negativity of the headline, clearly demonstrating an Africa bias. The word "violence" or "violent" appeared much more often in headlines about Kenyan elections (5.8%), and Nigerian elections (4.4%) than in coverage of elections in Malaysia (.1%), Thailand (0%) and Denmark (0%).
The report found a significant increase in negative bias when covering elections in African countries, compared to elections in non-African countries with similar political risk profiles. For example:
News around election periods was analyzed because that content is most likely to be covered by global media outlets.
Media representation impacts investor sentiment and perceptions of risk, influencing investment decisions and borrower interest rates. Comparing differences in bond yields and media representation between countries with similar political risk profiles reveals the disadvantage that negative media slant confers upon African countries. For example, while both Egypt and Thailand are considered high-risk, Egypt's bond yields tend to be around 15% compared with Thailand's 2.5%. The difference translates into significantly higher repayment costs.
Bond yields were disproportionately high even for low-risk African countries compared to their non-African counterparts. For example, South Africa and Denmark both rank as low in political risk, yet South Africa's average quarterly bond yields range between 8.3% and 8.5% while Denmark's range from 0.5% to negative 0.2%. Report authors calculate that if the difference in negative media sentiment was adjusted, South African bond yields would decrease by 0.05 %, resulting in big savings on interest repayments for the country.
The New Global Media Index for Africa, produced by Africa No Filter, The Africa Center, and University of Cape Town, investigated a thousand news articles from twenty leading global media outlets. The researchers found that many of shortcomings noted in the report can be mitigated by acting on the following goals:
Due to heightened news bias around elections, Africa No Filter released How to Write About an African Election: A Guide. The guide encourages media organizations to engage in more complex and nuanced coverage around elections by exploring unique angles, including stories of human interest and grassroots mobilization. Key take-aways:
The good news is that coverage of African countries has improved over the past 20 years, according to The Cost of Media Stereotypes to Africa, trending towards more positive tone and content. However, global media still tend to emphasize articles about poverty, problematic leadership, disease, corruption, and conflicts when reporting on events in African countries.
Considering the new data, it's critical for media leaders to raise awareness of the tendency toward negative bias when it comes to coverage of African countries. In addition to the impact on bond yields, it is likely that negative press also has an impact on African tourism, development funding, foreign direct investment, and other potential revenue.