Natural capital, an option for African governments to finance Sustainable Development Goals

Natural capital, an option for African governments to finance Sustainable Development Goals

Africa must use all its comparative advantages to mobilize the resources it needs to finance its sustainable development ambitions. Since 2010, official development assistance has declined, falling to its lowest level of $34 billion in 2022, according to Organisation for Economic Co-operation and Development (OECD) estimates. Access to international capital markets remains constrained and costly due to investors' perceptions of high risk.

But the continent is not short of options. For example, it could draw on its immense potential in terms of natural capital, including fresh water, forests and extensive mineral deposits to attract investment and accelerate economic growth. This is what the Annual Meetings of the African Development Bank Group (https://apo-opa.info/3Ap2TC9), scheduled to take place from 22 to 26 May 2023 in Sharm El Sheikh, Egypt, intend to demonstrate.

For example, around 30% of global mineral reserves are in Africa, including 60% of world cobalt reserves and 90% of platinum-group metals. The continent contributes substantially to the world's annual production of six key minerals: 80% of platinum, 77% of cobalt, 51% of manganese, 46% of diamonds, 39% of chromium and 22% of gold.

Africa also holds 7% of the world's natural gas and oil reserves. The continent also has more than 60%