AfDB Approves $4.23 Million for Africa’s Natural Capital Project

The new phase focuses on helping participating countries create stronger policy frameworks, improve statistical systems, strengthen institutions, and expand knowledge related to natural capital.

The African Development Fund, the concessional financing arm of the African Development Bank Group (AfDB), has approved a $4.23 million grant to support the second phase of a project designed to help African countries include natural capital in development planning and financial decision-making. The initiative will strengthen the way governments value forests, rivers, biodiversity, and other natural resources while using that information to guide economic policies and attract sustainable investment.

The project will run from October 2026 to September 2029 and will cover 13 African 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.

The new phase focuses on helping participating countries create stronger policy frameworks, improve statistical systems, strengthen institutions, and expand knowledge related to natural capital. By improving the way governments measure and manage natural resources, the project seeks to make environmental assets an important part of national development strategies instead of treating them as separate environmental concerns.

The African Development Bank believes better information about natural wealth will allow governments to make more informed decisions on public spending, long-term economic planning, and investment priorities while supporting stronger dialogue on development financing.

Partnership Brings Global Expertise Together

The initiative brings together several international and regional organizations that will contribute technical expertise and in-kind support. These include 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, creating a collaborative approach that combines international experience with local knowledge.

The project includes policy support, technical assistance, biodiversity financing tools, statistical readiness assessments, pilot programs to measure green wealth, training programs, and peer-learning activities that allow countries to share practical experiences and successful approaches.

Supporting Green Growth and Climate Resilience

According to the African Development Bank, stronger natural capital management can help countries become more resilient to climate change while encouraging development that protects ecosystems and supports communities. Better data on forests, water resources, biodiversity, and other environmental assets can strengthen the evidence used in government planning and improve confidence among investors looking to finance sustainable projects.

The initiative also seeks to increase the ability of governments to attract green investment by providing reliable information that demonstrates the value of conserving and managing natural resources responsibly.

Long-Term Economic Benefits

Innocent Onah, Chief Natural Resources Officer at the African Development Bank Group, said the project is designed to help African countries better identify, measure, and manage their natural wealth while strengthening the evidence needed for development financing and policy discussions.

He explained that stronger natural capital systems could produce lasting economic benefits, including higher GDP growth, increased foreign direct investment, greater economic competitiveness, lower poverty levels, improved employment opportunities, and stronger financial and economic risk ratings. By placing nature at the center of development planning, the project seeks to create economic growth that supports both people and the environment across participating African countries.