COP29: Side Event Remarks by Hanan Morsy, Measuring the Green Wealth of Nations: Natural Capital & Economic Productivity in Africa

AfDB SIDE EVENT ON THE MARGINS OF COP29

Theme:

Measuring the Green Wealth of Nations: Natural Capital & Economic Productivity in Africa

Statement

By

Ms. Hanan Morsy

Deputy Executive Secretary & Chief Economist, Economic Commission for Africa

On behalf of Mr. Claver Gatete, United Nations Under-Secretary-General

Africa Pavillion, Baku, Azerbaijan

13 November 2024

Your Excellency, Mr. William Ruto, President of the Republic of Kenya,

Your Excellency, Mr. Denis Sassou Nguesso, President of the Republic of the Congo,

Your Excellencies, Heads of State and Government,

Dr. Akinwumi Adesina, President, African Development Bank Group,

Distinguished Delegates,

Ladies and Gentlemen:

It is an honour to join you at this important event to discuss the topical matter of the green wealth of Africa.

I wish to begin by acknowledging Your Excellencies President William Ruto and President Denis Sassou Nguesso for your leadership and commitment to sustainable development across our continent.

I also extend my appreciation to the President of the AfDB for supporting this laudable event.

Excellencies,

Distinguished delegates,

Our ecosystems, forests and biodiversity represent an enormous source of economic potential.

Yet, these resources have often been undervalued in traditional economic measurements, leading us to overlook the true wealth that resides in Africa's natural capital.

However, through rigorous accounting and innovative partnerships with both local and global allies, we have the chance to correct this and make Africa's natural assets count for the invaluable drivers of sustainable prosperity that they truly are.

Excellencies

Distinguished Delegates,

In line with this commitment, the ECA has led efforts to champion these goals.

For example, in Gabon, we have piloted ecosystem services accounting and provided a framework that recognizes the immense value of nature in national economies.

Furthermore, across Cameroon, Senegal and Morocco, we are developing supply and use tables that integrate natural capital into economic data to understand the true cost and benefits of resource use.

With these systems in place, Africa can make economic decisions grounded not only in GDP, but in the green wealth that fuels our future.

And we must remember that our journey toward a fully integrated approach to natural capital accounting will be powered by partnerships and innovation.

I am particularly proud of our experimental AI-based trainer - a pioneering tool that promotes knowledge of the System of Environmental and Economic Accounting (SEEA) through a user-friendly interactive platform.

Further, as we prepare for the upcoming System of National Accounts (SNA) 2025, we are developing an innovative system that will count natural resource depletion as a production expense, recognize renewable energy assets, and enhance economic accuracy and fairness, amongst others.

Excellencies

Distinguished delegates,

Whether it is Botswana's use of water accounting for economic decision making, or Uganda's use of its natural capital to attract green investments, or the economic value addition of South Africa's tourism and wildlife sector, it is clear that Africa's natural capital can fuel a resilient, prosperous future.

Yet, realizing this future for all of Africa requires action on multiple fronts.

In this regard, I propose three recommendations to advance Africa's green wealth measurement and unlock its benefits.

First, we need to strengthen partnerships for green investment.

A commitment from public and private partners can help Africa move beyond raw resource exports to become a hub of renewable energy production, create jobs and capture more value across the supply chain.

Second, we must support African countries to sustainably harness green capital and natural resources such as critical minerals, both to fuel value addition and job creation, and also to plug the region's own energy gap.

Finally, the establishment of rigorous traceability mechanisms to track the origin of minerals and natural resources will be crucial to protect Africa's natural capital, and safeguard communities and environments.

This will also enhance Africa's credibility as a leader in ethical sourcing, and subsequently, draw more responsible investors to our shores.

Excellencies,

We have a clear duty to align our aspirations with concrete actions that will secure Africa's green wealth for all Africans and future generations.

As we integrate natural capital into our economic frameworks, valuing it appropriately, and implementing robust policies, we can drive a transformative agenda that places Africa at the forefront of sustainable global development.

I thank you for your kind attention.

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