The African Development Fund (ADF) has approved a $4.3 million grant to strengthen natural capital planning across 13 African countries, marking a significant step towards integrating environmental assets into national development strategies and public policy.
The project covers thirteen 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 funding is expected to help participating countries incorporate natural capital considerations into economic planning and decision-making, enabling governments to better manage forests, water resources, biodiversity, soils and other critical environmental assets that underpin sustainable development.
The initiative reflects growing recognition that Africa’s abundant natural resources are central to long-term economic growth, climate resilience and the livelihoods of millions of people. By placing greater value on ecosystems and natural assets, policymakers can make more informed decisions that balance economic development with environmental sustainability.
According to the African Development Fund, the programme will support participating countries in strengthening institutional capacity, improving data collection and developing policy frameworks that integrate natural capital into national planning processes.
The initiative is also expected to promote evidence-based decision-making by providing governments with tools and methodologies to assess the economic value of natural resources and ecosystem services.
Experts say integrating natural capital into development planning can help countries better understand the long-term costs of environmental degradation while identifying opportunities for sustainable investment in agriculture, forestry, fisheries, tourism and other nature-dependent sectors.
The programme will encourage collaboration among government agencies, research institutions, environmental experts and development partners to improve natural resource governance and promote sustainable land and water management.
Stakeholders believe the initiative will also contribute to climate adaptation and biodiversity conservation by encouraging policies that protect ecosystems while supporting economic development.
For many African countries, natural resources remain a cornerstone of national economies, providing employment, food security and income for millions of households. However, increasing pressure from deforestation, land degradation, pollution and climate change has highlighted the urgent need for more sustainable management of these resources.
The $4.3 million investment is expected to strengthen the ability of participating countries to incorporate environmental risks and opportunities into national budgeting, infrastructure planning and public investment decisions.
Development experts have welcomed the initiative, noting that stronger natural capital planning can improve resilience to climate shocks, attract sustainable investment and enhance the efficient use of public resources.
The programme also aligns with broader continental and global efforts to promote green growth, achieve the Sustainable Development Goals (SDGs) and support the African Union’s Agenda 2063, which emphasises sustainable development and responsible natural resource management.
By helping governments recognise the economic importance of natural ecosystems, the initiative is expected to encourage policies that safeguard biodiversity while creating new opportunities for sustainable livelihoods and inclusive growth.
As Africa continues to navigate the challenges of climate change, rapid urbanisation and increasing demand for natural resources, the African Development Fund’s investment underscores the importance of integrating environmental sustainability into economic planning.
The initiative is expected to empower participating countries with the knowledge, tools and institutional capacity needed to make informed decisions that protect natural capital while fostering resilient economies and sustainable development for future generations.
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