The Sustainable Markets Initiative (SMI) Africa Council (SMIAC) has launched the ‘Natural Capital on African Governments’ Balance Sheets’ initiative at COP16 in Colombia. This groundbreaking initiative seeks to align natural capital with national economic frameworks, unlocking investment opportunities and accelerating the African Union’s Nairobi Declaration on Climate Change and Green Growth.
This ambitious effort, first announced during the Commonwealth Heads of Government Meeting in Samoa, aims to position Africa’s natural resources as a strategic asset, driving both sustainable economic growth and global climate solutions. The initiative aligns with the Nairobi Declaration—introduced by African Heads of State at the inaugural Africa Climate Summit in Nairobi in September 2023—and focuses on revaluing Africa’s GDP by integrating ecosystem services into national accounts.
Recognizing Nature as Wealth
The Nairobi Declaration called for global stakeholders to revalue Africa’s GDP by fully accounting for the continent’s forests, wetlands, and biodiversity—natural resources essential for decarbonization but underrepresented in traditional economic models. The new SMI initiative seeks to unlock this value by embedding natural resource accounting into national balance sheets, making nature an investable asset class.
“Africa’s natural capital forms the backbone of our economies and underpins global industries, yet its value remains underappreciated,” said Dr. Hubert Danso, Co-Chair of the SMI Africa Council. “Through investor-public partnerships with governments, we can unlock sustainable returns that benefit people, planet, and nature while delivering value to investors. What’s good for Africa can also drive sustainable value for the world.”
Overcoming Barriers and Closing the Investment Gap
Africa’s ecosystems, often referred to as the “Global Commons,” play a vital role in global sustainability, yet many African countries struggle to balance economic development with environmental conservation. Current investments in nature-based solutions fall short by $800 billion annually. Institutional investors face barriers 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 close this gap by leveraging new technologies, frameworks, and institutional investor-public partnerships. These partnerships will catalyze private sector investments at scale, improve 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:
“By placing nature on the balance sheet, we signal that Africa’s natural wealth is a strategic asset—not just for the continent but for the world. This initiative protects biodiversity while fostering sustainable economic growth and resilience.”
The Terra Carta, the guiding framework of the SMI, echoes these sentiments, underscoring that nature is the engine of a sustainable economy. His Majesty King Charles III, founder of the SMI, emphasized the importance of mainstreaming sustainability:
“We must accelerate sustainability across every sector of the economy. Mobilizing resources and incentives is essential to achieve this transformation.”
Key Areas of Focus
The Natural Capital on African Governments’ Balance Sheets initiative will focus on:
- Developing high-quality natural capital projects across African landscapes using advanced technology and innovative investment frameworks.
- Supporting African governments in attracting private investments into natural capital initiatives.
- Collaborating with the international community to create market mechanisms that scale natural capital asset classes globally.
This initiative aims to transform Africa’s natural wealth into a core component of national economic planning, helping governments unlock investments while protecting critical ecosystems.
A Global Coalition for Action
The SMI is building 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 further engage partners at the 2025 Africa Climate Summit to announce concrete commitments for regenerating African landscapes, ensuring that conservation, economic growth, and portfolio resilience align.
Join the Movement
This initiative, 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, offers a transformational opportunity for Africa 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 promoting 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) champions 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, planet, and nature.