AfDB Approves $4.23 Million Grant for Natural Capital Project in Africa

The African Development Fund, the concessional financing arm of the African Development Bank (AfDB) Group, has approved a $4.23 million grant to support the second phase of a programme that will help African countries integrate natural capital into development financing and policymaking.

The initiative will be implemented in 13 countries—Burundi, Cameroon, the Central African Republic, the Democratic Republic of the Congo, Ghana, Côte d'Ivoire, Kenya, Mozambique, Rwanda, Tanzania, Togo, Zambia and Zimbabwe. Running from October 2026 to September 2029, the project is designed to help governments better value natural resources when making economic and investment decisions.

Partnership brings together global and regional institutions

The programme will be delivered with in-kind support from several international and regional organisations, including the World Wildlife Fund (WWF), Germany's development agency GIZ, the African Union Development Agency–NEPAD, the United Nations Economic Commission for Africa and the United Nations Environment Programme (UNEP). Participating countries will also contribute to the project.

The collaboration seeks to create stronger policy and financial frameworks that encourage sustainable use of forests, biodiversity, water resources and other forms of natural capital while supporting long-term economic growth.

Focus on stronger policies and better data

The project will help participating countries improve policy frameworks, strengthen statistical systems, enhance institutional capacity and expand knowledge on natural capital accounting. These measures are expected to provide governments with better tools to assess the value of natural resources and incorporate that information into national development planning.

Activities will include policy support, technical assistance, assessments of statistical readiness, biodiversity financing tools, pilot projects to measure green wealth, capacity-building programmes and peer learning among participating countries.

The African Development Bank also expects the initiative to improve the evidence available for development financing, sovereign policy dialogue and efforts to attract green investment.

Natural capital seen as a driver of economic growth

According to Innocent Onah, Chief Natural Resources Officer at the African Development Bank Group, the project will support climate-resilient, nature-friendly and inclusive development by helping countries identify, measure and manage their natural wealth more effectively.

He said stronger natural capital management could deliver long-term economic benefits, including higher GDP growth, increased foreign direct investment, improved employment opportunities, greater economic competitiveness, lower poverty levels and stronger financial and economic risk ratings.

The programme reflects the growing recognition that protecting and valuing natural resources can play a central role in sustainable development while strengthening the resilience of African economies against climate and environmental challenges.