"Africa could be losing up to $4.2 billion annually in interest payments on its
loans primarily due to stereotypical narratives that dominate global media
coverage of the continent. The media’s portrayal of Africa has long been dominated by persistent stereotypes. This report explores the economic consequences of such biased reporting by examining the relationship between media bias in election coverage and its impact on financial flows. Using a mixed methods approach, the study quantifies media bias by comparing African countries to their peers and assesses how this bias correlates with sovereign bond yields or interest rates, a key financial indicator. The research analyses this correlation both quantitatively across election periods and qualitatively through case studies, with the ultimate aim to measure the economic impact of misrepresented media coverage on Africa. Our findings show that African countries receive increased media attention during general elections, with a disproportionate focus on negative issues such as violence and election fraud. This emphasis is more pronounced compared to coverage of non-African countries with similar political risk conditions, resulting in higher negative sentiment and bias scores for African nations. Notably, the term “violence” is highly associated with Africa in media coverage, particularly in election-related headlines. Our analysis further established a clear connection between media sentiment and investor perception of risk, which is closely tied to sovereign credit risk. Negative media coverage increases a country's perceived risk, which leads to higher borrowing costs. Conversely, positive media sentiment is correlated with a lower risk profile and reduced bond yields. Yet, this study found that African countries are unjustifiably perceived as higher risk by international investors, leading to significantly higher credit costs compared to countries with similar political and socio-economic conditions. Building on this key finding, we analysed a group of African countries to quantify the estimated additional costs the continent incurs on loans due to biased media coverage." (Executive summary)