The Sustainable Markets Initiative (SMI) Africa Council (SMIAC) has launched the ‘Pure Capital on African Governments’ Steadiness Sheets’ initiative at COP16 in Colombia. This groundbreaking initiative seeks to align pure capital with nationwide financial frameworks, unlocking funding alternatives and accelerating the African Union’s Nairobi Declaration on Local weather Change and Inexperienced Progress.
This formidable effort, first introduced in the course of the Commonwealth Heads of Authorities Assembly in Samoa, goals to place Africa’s pure sources as a strategic asset, driving each sustainable financial progress and international local weather options. The initiative aligns with the Nairobi Declaration—launched by African Heads of State on the inaugural Africa Local weather Summit in Nairobi in September 2023—and focuses on revaluing Africa’s GDP by integrating ecosystem companies into nationwide accounts.
Recognizing Nature as Wealth
The Nairobi Declaration referred to as for international stakeholders to revalue Africa’s GDP by absolutely accounting for the continent’s forests, wetlands, and biodiversity—pure sources important for decarbonization however underrepresented in conventional financial fashions. The brand new SMI initiative seeks to unlock this worth by embedding pure useful resource accounting into nationwide stability sheets, making nature an investable asset class.
“Africa’s pure capital types the spine of our economies and underpins international industries, but its worth stays underappreciated,” stated Dr. Hubert Danso, Co-Chair of the SMI Africa Council. “By investor-public partnerships with governments, we will unlock sustainable returns that profit folks, planet, and nature whereas delivering worth to buyers. What’s good for Africa also can drive sustainable worth for the world.”
Overcoming Obstacles and Closing the Funding Hole
Africa’s ecosystems, also known as the “International Commons,” play a significant position in international sustainability, but many African nations wrestle to stability financial improvement with environmental conservation. Present investments in nature-based options fall quick by $800 billion yearly. Institutional buyers face obstacles equivalent to the dearth of standardized valuation frameworks for pure capital and restricted market mechanisms to align returns with ecosystem preservation.
The SMI initiative goals to shut this hole by leveraging new applied sciences, frameworks, and institutional investor-public partnerships. These partnerships will catalyze personal sector investments at scale, enhance sovereign credit score scores, and cut back the price of capital for African nations.
Strategic Assist for Africa’s Pure Capital
H.E. Josefa Leonel Correia Sacko, Commissioner for Agriculture, Rural Growth, Blue Financial system, and Sustainable Surroundings on the African Union Fee, welcomed the initiative:
“By inserting nature on the stability sheet, we sign that Africa’s pure wealth is a strategic asset—not only for the continent however for the world. This initiative protects biodiversity whereas fostering sustainable financial progress and resilience.”
The Terra Carta, the guiding framework of the SMI, echoes these sentiments, underscoring that nature is the engine of a sustainable economic system. His Majesty King Charles III, founding father of the SMI, emphasised the significance of mainstreaming sustainability:
“We should speed up sustainability throughout each sector of the economic system. Mobilizing sources and incentives is important to realize this transformation.”
Key Areas of Focus
The Pure Capital on African Governments’ Steadiness Sheets initiative will deal with:
- Growing high-quality pure capital initiatives throughout African landscapes utilizing superior know-how and progressive funding frameworks.
- Supporting African governments in attracting personal investments into pure capital initiatives.
- Collaborating with the worldwide group to create market mechanisms that scale pure capital asset lessons globally.
This initiative goals to remodel Africa’s pure wealth right into a core element of nationwide financial planning, serving to governments unlock investments whereas defending crucial ecosystems.
A International Coalition for Motion
The SMI is constructing a international coalition of buyers, philanthropists, personal sector leaders, NGOs, and mission builders to co-create options for Africa’s pure capital. The initiative will additional have interaction companions on the 2025 Africa Local weather Summit to announce concrete commitments for regenerating African landscapes, guaranteeing that conservation, financial progress, and portfolio resilience align.
Be a part of the Motion
This initiative, supported by main organizations such because the African Union Fee (AUC), Africa Investor (Ai) Group, The Nice Inexperienced Wall Basis, AUDA-NEPAD, The Landbanking Group, and Mishcon de Reya LLP, gives a transformational alternative for Africa to turn into a central participant within the international inexperienced funding economic system.
For extra info or to assist this initiative, contact: 📧 africa@sustainable-markets.org
Concerning the Sustainable Markets Initiative (SMI)
Established by His Majesty King Charles III, the Sustainable Markets Initiative (SMI) is a CEO-led group selling personal sector management within the transition to a sustainable international economic system. Study extra at www.sustainable-markets.org.
Concerning the SMI Africa Council
Based in November 2023 in Nairobi, Kenya, the SMI Africa Council (SMIAC) champions collaboration amongst enterprise leaders, governments, and buyers to align sustainable improvement objectives with Africa’s financial frameworks. The Council works carefully with African leaders to implement the Nairobi Declaration and scale options that profit folks, planet, and nature.