Africa pushes to put its $7.6 trillion natural wealth at the heart of economic policy

Natural capital accounting measures resources such as forests, water, land, minerals and biodiversity, including the benefits they provide to people and economies.

Africa's forests, rivers, land and biodiversity sustain livelihoods and businesses, but much of their economic contribution remains poorly reflected in government budgets and investment decisions. Policymakers and financial experts meeting in Addis Ababa have called for wider use of natural capital accounting to bring that wealth into decisions about development, public spending and finance.

The call emerged from the third Africa Policy Forum on Natural Capital, held on 6–7 October 2026 at the Ethiopian Skylight Hotel in collaboration with Ethiopia's Ministry of Economic Planning and Development and the World Bank Group. Participants pressed for countries to move beyond collecting figures and use the evidence to guide investment and improve livelihoods.

Making nature visible in economic decisions

Natural capital accounting measures resources such as forests, water, land, minerals and biodiversity, including the benefits they provide to people and economies. It gives governments information beyond Gross Domestic Product (GDP), helping them assess how development choices affect the natural assets on which future prosperity depends.

Forum participants noted that natural resources and ecosystem services contribute approximately 60% of Africa's GDP, with nature-based sectors accounting for nearly two-thirds of employment in many African countries. The African Development Bank Group estimated the continent's natural capital at $7.6 trillion in 2020.

Paolo Augusto, Principal Economist at Landscape Alliance, described the failure of conventional indicators to capture this wealth as the "Africa paradox". Hannah Abebe, Chief of Staff at Ethiopia's Ministry of Economic Planning and Development, warned that overlooking nature's contribution in economic assessments, budgets and investment choices risks exchanging lasting prosperity for short-term gains.

The forum's theme, "From Accounts to Policy: Positioning Natural Capital Accounting for Africa's Policy, Finance and Investment Transformation", brought together government officials, statistics offices, development partners, businesses, civil society and academics. Discussions covered country experience and the potential of artificial intelligence and geospatial tools to improve accounting.

Country experience shows how the evidence can be used

Mahlodi Tau, Chief Director at the South African National Biodiversity Institute and Chair of the Africa Natural Capital Accounting Community of Practice, stressed that producing accounts is only useful if the findings influence planning, policy, budgets and financing.

Representatives from Kenya, Ghana, South Africa and Nigeria shared their experiences. James Thuo, a Geographic Information System Specialist at the Kenya National Bureau of Statistics, described a 14-year effort that produced a Physical Energy Flow Account, now integrated into national accounting. It helps Kenya assess economic activity alongside natural resource use.

South Africa's National Natural Capital Accounting Strategy, launched in June 2021, has supported greater inclusion of nature and biodiversity in economic and environmental decisions.

An example from Australia illustrated the implications for investors. Rayne van den Berg of Capitals Coalition described an assessment of a forestry estate in Tasmania that identified wider environmental and social benefits nearly ten times greater than the value recorded on its traditional financial balance sheet. Presenting those findings helped draw attention from investors and company leaders.

The discussion raised concerns about who sets the rules for measuring value. Eugene Itua of the African Green Economy and Sustainability Institute warned that Africa could be assessed against standards it had not shaped, using data it did not own and facing costs it could not control. He urged African institutions to participate actively in international sustainability reporting and valuation frameworks.

Turning better accounts into investment and local benefits

Participants called for stronger coordination between institutions, greater technical capacity and closer links between natural capital data and national development strategies. They agreed on an action matrix for follow-up within countries.

Bekele Shiferaw, Program Manager for the World Bank's Global Program on Sustainability, said the priority should be applying evidence to real policy decisions. Communities protecting natural resources must benefit from their sustainable management, he stressed.

Closing the forum, Innocent Onah, Chief Natural Resources Officer at the African Development Bank Group, identified four priorities: translating accounts into investment decisions, strengthening institutional ownership and coordination, building the expertise needed to produce credible evidence that attracts finance, and involving the private sector.

He highlighted continued training through platforms such as the Africa Natural Capital Academy, supporting the forum's commitment to making natural wealth a measurable contributor to economic transformation, sustainable investment and better livelihoods.