The pandemic downturn has heightened one of the gravest challenges facing Africa on its development path—the high costs of perception premiums—the overinflated risks perennially assigned to Africa, irrespective of its improving macroeconomic fundamentals, the global economic environment, and individual countries’ growth prospects. The global nature of the pandemic downturn offers an opportunity to scrutinize the extent to which perception premiums are shaping the distribution of sovereign risk across countries and regions; the disproportionately larger number of African nations affected by procyclical downgrades further supports the premium hypothesis.
Addressing the perception premium for sustainable development in Africa (brookings.edu)
