African Leaders Call for Natural Capital to Be Included in Africa’s GDP Calculations

Baku, Azerbaijan, November 14, 2024 — African leaders at the COP29 summit are urging for the continent’s vast natural capital, valued in the trillions, to be included in the calculation of Gross Domestic Product (GDP) as a means to rectify Africa’s paradox of abundant environmental resources but limited financial gain. In a communique issued during the World Leaders’ Summit, they argued that Africa’s contribution to global ecological stability, through carbon sequestration, pollution control, and water retention, should be recognized as part of each nation’s economic measure.

Hosted under the theme “Measuring the Green Wealth of Africa,” the high-level meeting was co-convened by Republic of Congo President Denis Sassou Nguesso, Kenyan President Dr. William Ruto—represented by Prime Cabinet Secretary Musalia Mudavadi—and African Development Bank President Dr. Akinwumi Adesina. The summit gathered heads of state, including Presidents Paul Kagame of Rwanda and Emmerson Mnangagwa of Zimbabwe, to advance the agenda of natural capital accounting.

“Africa’s ecosystem services, like carbon sequestration and pollution control, are global public goods. By valuing our green wealth appropriately, we can unlock financial flows to boost economies and potentially improve credit ratings,” said President Ruto. Emphasizing Africa’s crucial role in combating climate change, President Kagame added, “We are not asking for handouts but for the world to pay for something that has tremendous value for all of us.”

The leaders’ message echoed concerns that Africa’s natural assets have been severely undervalued, resulting in what Dr. Adesina termed as “green rich but cash poor” nations. According to an African Development Bank report on “Measuring the Green Wealth of Nations,” Africa’s 2018 GDP was estimated at $2.5 trillion, significantly lower than the value of its natural capital, which is valued at $6.2 trillion. With an updated GDP measure, Dr. Adesina noted that even conservative estimates suggest Africa’s nominal GDP in 2022 could have increased by $66.1 billion when accounting solely for carbon sequestration. “This amount is more than the combined GDP of 42 African countries,” he pointed out.

Africa’s leaders are also concerned about what they see as a “carbon grab” affecting the continent. Dr. Adesina highlighted the disparity in global carbon pricing, which ranges as high as $200 per ton in Europe while remaining as low as $3 to $10 per ton in Africa. He argued that this undervaluation is economically disadvantageous and limits Africa’s sovereignty, as land used for carbon credits can no longer contribute to a country’s nationally determined contributions (NDCs) toward emissions targets.

“Africa is essentially being underpaid for its role in absorbing carbon, and it’s losing control over its lands in the process,” said Adesina. “The ongoing carbon grab in Africa is a lose-lose proposition.”

The leaders praised the African Development Bank’s efforts to lead this initiative, which has established mechanisms to mobilize financial and technical resources needed to support green GDP accounting across Africa. They agreed to work alongside developing regions in Latin America, the Caribbean, and Asia to advocate for global recognition of natural capital in GDP metrics.

A comprehensive report on the outcomes of this high-level meeting will be presented to the African Union at its 2025 summit, where heads of state are expected to review and adopt the proposal.