Ignorance and the perception of negative risk has Africa paying a high premium
Bias, and possibly discrimination, is clear in the harsh repayment terms slapped on African countries compared to the rest of the world
Abuja — Macky Sall had a bone to pick with creditors. Sitting before the head of the International Monetary Fund (IMF), investors and diplomats during a conference on African debt in December, the Senegalese president complained that Western prejudice keeps borrowing costs unfairly high on his continent.
“This negative-risk perception is not in tune with the reality of our continent,” Sall told the gathering that included the IMF’s Kristalina Georgieva. “People think that this is a problematic continent and demand a rate of return that is unparalleled elsewhere in the world.”..