“Africa cannot be ecologically rich, but poor in financial resources; the carbon grab currently taking place in Africa is a losing proposition” – Akinwumi Adesina.“We are not asking for charity, but for the world to pay for something that has enormous value for all of us” – President Paul Kagame.
African heads of state and government are calling for the continent’s vast natural capital to be taken into account when measuring their countries’ gross domestic product (GDP).
In a press release adopted Wednesday, November 13 on the sidelines of the 29th Conference of the Parties (COP29) in Baku, they highlighted the unique contribution that African forests make to the world, particularly in terms of carbon sequestration, pollution control, water retention and soil fertility.
The high-level meeting, titled “Measuring Africa’s Green Wealth”, was jointly convened by the President of the Republic of Congo, Denis Sassou-N’Guesso, his Kenyan counterpart William Ruto, represented by the First Cabinet Secretary and Cabinet Secretary for Foreign Affairs and Diaspora, Musalia Mudavadi and the head of the African Development Bank Group, Akinwumi Adesina.
President Sassou-N’Guesso said the African continent must make the most of its natural capital, which is neglected or ignored in national accounts. This, he said, should be integrated into the wealth of a country.
“We are doing useful work for Africa and the rest of the world, contributing to the acceleration of the recognition of the environmental dividend,” he said.
The Kenyan president said that at the heart of the leaders’ conversation is the need to “ensure that Africa’s ecosystem services, such as carbon sequestration and pollution control, are valued as global public goods. »
He said that “by properly assessing our green wealth, countries can unlock financial flows for investments that will boost our economies and even improve our credit ratings. »
The Rwandan president stressed that Africa is a key player in the fight against climate change. “Unfortunately, Africa’s main obstacle remains access to climate finance. »
Kagame said he fully supported the bold agenda to measure the continent’s natural capital: ”We are not asking for charity, but for the world to pay for something that has enormous value for all of us,” he said. he pointed out.
The leaders commended the African Development Bank Group for its leadership and commitment to finding innovative mechanisms to mobilize the financial and technical support necessary for accounting for natural capital and measuring green gross domestic product (GDP) of African countries.
The Bank published a report entitled “Measuring the Green Wealth of Countries : natural capital and economic productivity in Africa».
Mr. Adesina said the report presents key measures to assess and integrate natural capital into measuring Africa’s GDP.
“Africa contributes significantly to the global public good to combat climate change with its vast natural capital resources, its vast natural capital has been undervalued,” he stressed.
This situation, he said, “makes Africa an ecologically rich, but financially poor region: “While Africa’s GDP was estimated at $2.5 trillion in 2018, this figure was 2. 5 times lower than the estimated value of its natural capital, estimated at $6.2 trillion, including in part a certain valuation of ecosystem services,” underlined Mr. Adesina.
He said that according to the Bank’s preliminary estimates and “based on very conservative assumptions… Africa’s nominal GDP in 2022 could have been increased by $66.1 billion if the figures had been adjusted taking into account only carbon sequestration. This is more than the combined GDP of 42 African countries! »
The head of the African Development Bank Group has expressed concern over what he called “carbon grabbing”, characterized by the fact that several African countries are giving away carbon credits from their vast tracts of land, while receiving very little in return.
“While the carbon price in Europe is high and could reach $200 per tonne due to the European Union’s (EU) strict emissions trading standards, the carbon price in Africa could be as low only 3 to 10 dollars per tonne,” underlined Mr. Adesina.
As a result, Africa is underpaid for carbon because its carbon sinks are undervalued, he lamented.
Furthermore, “carbon sequestered on land can no longer be used under the country’s nationally determined contributions,” he added. “This means that countries are losing sovereignty over their lands,” Mr. Adesina continued.
“The carbon grab currently taking place in Africa is a losing proposition,” he added.
In their statement, African leaders said they would work with other developing countries and regions around the world, including Latin America and the Caribbean, as well as Asia, to forge a strong global alliance to ensure that natural capital is taken into account in the GDP of States.
They will present a comprehensive report on the outcomes of the 2025 African Union Summit of Heads of State and Government for consideration and adoption.
Other leaders present at the meeting included the Vice President of Côte d’Ivoire, Tiémoko Meyliet Koné, the Vice President of the United Republic of Tanzania, Philip Isdor Mpango, the Prime Minister of the Democratic Republic of Congo, Judith Suminwa Tuluka, the Prime Minister of the Democratic Republic of Sao Tome and Principe, Patrice Trovoada as well as the Minister of Foreign Affairs and International Cooperation of the Republic of Guinea Equatorial Simeón Oyono Esono Angue and the Minister of Environment, Nature Protection and Sustainable Development of the Republic of Cameroon Pierre Hele and the Director General of the World Trade Organization Ngozi Okonjo-Iweala, the CEO of the Center world for adaptation Patrick V. Verkooijen.
The session was moderated by Victor Oladokun, Senior Advisor for Communication and Stakeholder Engagement to the President of the African Development Bank.
Source : Department of Communication and External Relations, [email protected]
– What are the main challenges African nations face in integrating natural capital into their GDP measurements?
Interview between Time.news Editor and Akinwumi Adesina, President of the African Development Bank Group
Time.news Editor: Thank you for joining us, Mr. Adesina. The recent discussions at COP29 highlighted the push to measure Africa’s natural capital. Could you elaborate on the significance of integrating natural capital into GDP measurements for African nations?
Akinwumi Adesina: Thank you for having me. Integrating natural capital into GDP measurements is crucial for a continent like Africa, which is ecologically rich yet financially struggling. Currently, Africa’s estimated GDP is around $2.5 trillion, but its natural capital stands at an astonishing $6.2 trillion. Recognizing and accounting for this natural wealth can help unlock investments, improve credit ratings, and ensure that African nations get their rightful valuation for the ecosystem services they provide globally, including carbon sequestration, water retention, and pollution control.
Time.news Editor: That’s a fascinating point. African leaders, including President Kagame, have emphasized that this is not about asking for charity; it’s about recognizing value. Can you share insights on how financial flows could be unlocked for these investments?
Akinwumi Adesina: Absolutely. By properly assessing our green wealth, countries can show the international community the financial potential of their ecosystems. For example, our preliminary estimates suggest that adjusting GDP calculations to include just carbon sequestration could increase Africa’s nominal GDP by $66.1 billion, a sum greater than the combined GDP of 42 African countries! Such evaluations can attract investments, as they present a compelling case for development financiers and investors.
Time.news Editor: One of the phrases used during the meeting was “carbon grabbing.” Can you explain what this term means and how it relates to Africa’s situation on the global stage?
Akinwumi Adesina: “Carbon grabbing” refers to the scenario where African nations are selling their carbon credits while receiving minimal compensation, due to a significant disparity in carbon pricing. While the carbon price in Europe may reach $200 per tonne, in Africa, it’s often just $3 to $10. This exploitation leaves African countries underpaid for their invaluable carbon sinks, adversely affecting their coastal communities and livelihoods. Moreover, it’s a loss of sovereignty because when carbon is sequestered, it cannot be counted again under national climate commitments.
Time.news Editor: It’s alarming to hear about the undervaluation of Africa’s carbon sinks. Moreover, President Sassou-N’Guesso mentioned leveraging natural capital to recognize the environmental dividend. How can this be practically achieved?
Akinwumi Adesina: It requires a systemic change. We need innovative mechanisms to account for natural capital effectively. Governments need to work alongside financial institutions and the private sector to create policies and frameworks that recognize and value these ecosystems. For instance, initiatives like “Payments for Ecosystem Services” can help directly compensate communities for preserving forests and managing natural resources. It’s about forging strategic partnerships and embracing sustainable practices to foster both economic growth and environmental stewardship.
Time.news Editor: As we look ahead, what role do you see African countries playing in the global fight against climate change, especially in light of these challenges?
Akinwumi Adesina: Africa stands at the forefront of the global fight against climate change due to its vast natural resources. Our forests are critical for carbon sequestration, and we have the potential to contribute significantly to global climate goals. However, to fully play this role, we must address the structural and financial challenges that hinder our progress. We are not asking for charity—we are advocating for fair compensation for the services that nature provides. It’s a collective responsibility that benefits everyone, and it’s high time the world recognizes Africa’s true value.
Time.news Editor: Thank you, Mr. Adesina, for shedding light on these pressing issues. It’s evident that the recognition and integration of Africa’s natural capital into the global economy is crucial for both the continent’s development and the health of our planet.
Akinwumi Adesina: Thank you for the opportunity to discuss this important topic. It’s time to act and to ensure that Africa receives the recognition it truly deserves.