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Dev-News News Desk| East Africa. Urge- DevWire

African Development Fund Backs Natural-Capital Decision-Making Across Africa

NAIROBI — 4 August 2026

The African Development Fund has approved a $4.3 million grant to help 13 African countries integrate the value of natural resources and ecosystems into economic and development decision-making

The initiative is designed to strengthen policy systems, institutional capacity, statistics and knowledge needed to incorporate natural capital into national planning and investment decisions.

The participating countries include several in East Africa, making the initiative particularly relevant to economies where agriculture, forests, water resources and biodiversity underpin livelihoods and economic activity. Natural-capital accounting seeks to make these assets more visible in economic planning. Conventional measures of national economic performance can overlook the contribution of ecosystems—and the economic costs associated with their degradation.

The three-year initiative will provide technical assistance, support assessments of statistical readiness and develop pilot activities around natural-capital accounting and financing. It will also promote knowledge exchange and capacity building among participating countries. For East Africa, the approach could become increasingly important as governments seek to reconcile economic growth with climate resilience and environmental sustainability. Land degradation, biodiversity loss and pressure on water resources can directly affect agricultural productivity, livelihoods and public finances.

The initiative also arrives at a time when African governments are seeking to broaden sources of development and climate finance. Better measurement of natural assets could strengthen the evidence base for green investment and financing instruments linked to environmental outcomes.

The significance therefore extends beyond environmental policy. By incorporating natural assets into economic decision-making, governments may be better placed to understand the long-term costs of environmental degradation—and the potential economic returns from protecting and restoring ecosystems.

Source: African Development Fund / African Development Bank

Dev-News Desk| East Africa. Urge- DevWire