The Sustainable Markets Initiative (SMI) Africa Council (SMIAC) has unveiled the ‘Natural Capital on African Governments’ Balance Sheets’ initiative at COP16 in Colombia. This groundbreaking project aims to align natural capital with national economic frameworks, opening up investment opportunities and advancing the African Union’s Nairobi Declaration on Climate Change and Green Growth.
This ambitious endeavor was first introduced during the Commonwealth Heads of Government Meeting in Samoa and is designed to position Africa’s natural resources as a strategic asset that drives sustainable economic growth and global climate solutions. Aligned with the Nairobi Declaration, which was launched by African Heads of State at the inaugural Africa Climate Summit in Nairobi in September 2023, the initiative focuses on revaluing Africa’s GDP by integrating ecosystem services into national accounts.
Recognizing Nature as Wealth
The Nairobi Declaration emphasized the need to revalue Africa’s GDP by fully incorporating the continent’s forests, wetlands, and biodiversity into economic models. The new SMI initiative aims to achieve this by integrating natural resource accounting into national balance sheets, thereby elevating nature to the status of an investable asset class.
Dr. Hubert Danso, Co-Chair of the SMI Africa Council, highlighted the importance of Africa’s natural capital, stating that it forms the backbone of economies and supports global industries. Through investor-public partnerships with governments, sustainable returns can be unlocked to benefit people, the planet, and nature, while also delivering value to investors.
Overcoming Barriers and Closing the Investment Gap
Africa’s ecosystems, often referred to as the “Global Commons,” are crucial for global sustainability. However, many African countries struggle to balance economic development with environmental conservation. Current investments in nature-based solutions fall short by $800 billion annually, with institutional investors facing challenges such as the lack of standardized valuation frameworks for natural capital and limited market mechanisms to align returns with ecosystem preservation.
The SMI initiative aims to bridge this gap by leveraging new technologies, frameworks, and institutional investor-public partnerships. These collaborations will drive private sector investments at scale, enhance sovereign credit ratings, and reduce the cost of capital for African nations.
Strategic Support for Africa’s Natural Capital
H.E. Josefa Leonel Correia Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment at the African Union Commission, welcomed the initiative, emphasizing that by integrating nature into the balance sheet, Africa’s natural wealth becomes a strategic asset for the continent and the world. The Terra Carta, the guiding framework of the SMI, reinforces the idea that nature is the engine of a sustainable economy. His Majesty King Charles III, founder of the SMI, stressed the importance of mainstreaming sustainability across all sectors of the economy.
Key Areas of Focus
The ‘Natural Capital on African Governments’ Balance Sheets’ initiative will concentrate on developing high-quality natural capital projects across African landscapes using advanced technology and innovative investment frameworks. It will also support African governments in attracting private investments into natural capital initiatives and collaborate with the international community to create market mechanisms that scale natural capital asset classes globally. This initiative aims to make Africa’s natural wealth a core component of national economic planning, assisting governments in unlocking investments while safeguarding critical ecosystems.
A Global Coalition for Action
The SMI is assembling a global coalition of investors, philanthropists, private sector leaders, NGOs, and project developers to co-create solutions for Africa’s natural capital. The initiative will engage partners at the 2025 Africa Climate Summit to announce concrete commitments for regenerating African landscapes, ensuring that conservation, economic growth, and portfolio resilience are aligned.
Join the Movement
Supported by leading organizations such as the African Union Commission (AUC), Africa Investor (Ai) Group, The Great Green Wall Foundation, AUDA-NEPAD, The Landbanking Group, and Mishcon de Reya LLP, this initiative offers Africa a transformative opportunity to become a central player in the global green investment economy.
For more information or to support this initiative, contact: 📧 africa@sustainable-markets.org
About the Sustainable Markets Initiative (SMI)
Established by His Majesty King Charles III, the Sustainable Markets Initiative (SMI) is a CEO-led organization that promotes private sector leadership in the transition to a sustainable global economy. Learn more at www.sustainable-markets.org
About the SMI Africa Council
Founded in November 2023 in Nairobi, Kenya, the SMI Africa Council (SMIAC) fosters collaboration among business leaders, governments, and investors to align sustainable development goals with Africa’s economic frameworks. The Council works closely with African leaders to implement the Nairobi Declaration and scale solutions that benefit people, the planet, and nature.
