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African Development Bank chief calls for ‘green-rich’ continent to also be ‘cash-rich’

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BAKU, Azerbaijan — A top African policymaker at COP29, the ongoing global climate summit in Baku, Azerbaijan has called for a better evaluation of Africa’s vast natural capital to reflect the true wealth of the continent. “It is time for Africa’s green environmental assets to be properly priced, allowing the continent to convert its massive green assets into wealth through their inclusion in the GDP,” said Akinwumi Adesina, president of the African Development Bank (AfDB) and former agriculture minister of Nigeria. Africa is to home to some of the largest sources of natural capital in the world, including tremendous clean energy potential, abundant natural resources, uncultivated arable land, world-renowned biodiversity, and the world’s second-largest tropical rainforest area. However, despite this abundance, Africa continues to experience high levels of poverty and economic stagnation. “Its vast natural capital has continued to be significantly undervalued,” Adesina said. “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, which was assessed at that time to be $6 trillion,” he added. Economists say the failure to accurately account for Africa’s resources and contributions, significantly undermines the continent’s true value, resulting in a paradox where the continent is abundantly rich in natural resources yet struggling financially — often referred to as the resource curse. Thus, Africa finds itself in a situation described as “green-endowed but cash-poor,” highlighting the stark contrast between its rich potential and its economic reality. “Once Africa’s vast forests,…This article was originally published on Mongabay

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