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Online Reporter
African Development Bank (AfDB) president Dr Akinwumi Adesina has called for a major shift in how Africa’s vast natural resources are valued, urging the inclusion of “Green Gross Domestic Product” (Green GDP) in the continent’s economic calculations.
Speaking at COP 29 Dr Adesina said Africa was home to some of the world’s most valuable natural resources, from vast forests and carbon sinks in the Congo Basin to critical minerals used in green energy technologies.
Despite these assets, Africa remains “green endowed but cash poor”, with its GDP significantly undervalued at US$2,5 trillion in 2018 compared to US$6,2 trillion estimated value of its natural capital.
“Properly valuing Africa’s natural resources will boost the continent’s wealth and access to finance,” Dr Adesina said.
He cited preliminary AfDB estimates showing that in 2022, Africa’s GDP could have risen by US$66,1 billion if carbon sequestration alone was factored in.
“This would be more than the combined GDP of 42 African nations,” Dr Adesina said.
He also warned against the practice of carbon credits, which often result in Africa being underpaid for its carbon sinks.
“The carbon price in Africa can be as low as $3 to $10 per tonne, while in Europe, it can reach US$200 per tonne,” Dr Adesina said calling the trend a “carbon grab” that deprived African nations of their full financial potential.
Highlighting the importance of natural capital, Dr Adesina said, “It is time for Africa’s green wealth to be properly measured. By incorporating natural capital into GDP, Africa can turn its green assets into wealth and secure a sustainable economic future.”
Africa’s green wealth is a key to its economic growth and debt sustainability, and it is time to act before the resources are further undervalued.
Online Reporter