Natural Capital: The Gateway to Sustainable Development in Africa
Nairobi, 25 May 2016 - Africa is rich in natural resources ranging from crude oil, natural gas, minerals, forests and wildlife. The continent holds a huge proportion of the world’s natural resources, both renewables and non-renewables. However, a significant share of these precious resources is lost through illegal activities.
For instance, Africa loses an estimated USD 195 billion annually of its natural capital through illicit financial flows, illegal logging, illegal trade in wildlife, unregulated fishing, illegal mining, environmental degradation and loss. These activities continue happening in the continent, despite the efforts taken to address them. Indeed, numerous consultations and discussions have been held in the past, bringing together various stakeholders ranging from governments, UN agencies, international organizations and non-governmental organizations to explore the issue in a bid to find lasting solutions.
African states, through the African Ministerial Conference on the Environment (AMCEN) sessions, acknowledge that Africa’s natural capital underpins the continent’s economy and is a gateway that has immense potential to transform the continent through sustainable investments. Africa’s resources, if well harnessed and utilized, can be invested in implementing the 2030 Agenda, Agenda 2063 and the Paris Agreement; these agendas outline specific challenges facing the continent and note priority areas of interventions for the continent in addressing these challenges.
During the Sixth Special Session of AMCEN held in Cairo, Egypt last month, African governments reached a common position on natural capital and agreed to table a resolution on the same at the second meeting of the United Nations Environment Assembly (UNEA-2) in Nairobi.
On the sidelines of the UNEA-2, UNEP hosted a media roundtable titled ‘Natural Capital: The Gateway to Sustainable Development in Africa’. The event sought to sensitize the media as well as other stakeholders and delegates attending UNEA about the criticality of natural resources and its implications on the continent’s economy and development. Panelists in the round table included H.E. Ephraim Kamuntu, Minister of Environment of Uganda; Jimmy Opelo, Deputy Permanent Secretary, Ministry of Environment, Wildlife and Tourism of Botswana; Hussein Abaza, Senior Advisor to the Minister of Environment of Egypt; H.E. Madame Haddijatou Jallow, Executive Chair for the Environment Protection Agency of Sierra Leone and Dr. Juliette Biao Koudenoukpo, Regional Director at the Regional Office for Africa, UNEP.
The panelists shared their views and experiences on what Africa can do to benefit the most from its natural capital. They all noted that prudent use of Africa’s natural capital has the potential to improve livelihoods, enhance healthy lives and to create green jobs especially for the millions of youth in the continent. Minister Kamuntu said, “African governments must first take stock of their natural capital and place some value to it, then devise appropriate mechanisms and structures to manage these resources sustainably”.
Dr. Koudenoukpo explained the linkage between natural capital and the SDGs, and the potential impact of an outcome resolution on natural capital from the UNEA-2 discussions. She said that it would be a victory for Africa and would renew the momentum for more concrete actions by governments to implement policies on natural capital towards realizing the SDGs. She also reiterated that harnessing natural capital is an opportunity to spur green economies in Africa.
Madame Jallow said that addressing corruption is key for Africa to realize its aspirations. She noted that at least half of African countries are members of the Extractive Industries Transparency Initiative (EITI), a global transparency standard for improving governance of natural resources. This is an encouraging trend but more states need to join EITI and show more commitment in complying with the organization’s principles. She urged governments to also appreciate the link between natural resources and gender, especially as it affects women.
Mr. Hussein Abaza sighted the potential of public private partnerships in tapping into natural resources and stressed on the need for strategic collaboration and sustainable thinking in utilizing and preserving Africa’s natural resources.
