Africa is losing billions every year due to the deepening climate crisis, with the figure projected to skyrocket if global inaction persists. Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), raised this concern during a keynote address at the 14th Convocation Lecture of the National Open University of Nigeria (NOUN) in Abuja.
In his lecture titled “Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics,” Adesina stated that the continent is currently losing between $7 to $15 billion annually due to climate-related impacts, with losses expected to rise to a staggering $50 billion by 2050 if left unchecked.
But beyond the financial toll, he spotlighted a more subtle, long-term threat: the massive acquisition of African lands under the guise of carbon offsetting. “Africa is experiencing what could be termed the biggest ‘carbon grab’ in history,” he said, warning that foreign interests are securing large tracts of land and carbon sinks for pennies on the dollar.
According to Adesina, African countries—desperate for financing—are entering into deals that strip them of control over their environmental assets. “In Europe, a ton of carbon sells for over $200. In many parts of Africa, it’s going for as little as $3 to $5. The disparity is shocking, and the implications are profound,” he warned.
The AfDB president noted that these arrangements not only undervalue Africa’s carbon assets but also diminish countries’ ability to include those resources in their national climate pledges or economic calculations. “This is a loss of both economic opportunity and national sovereignty,” he said.
He further argued that despite Africa’s immense contributions to global environmental stability, it receives just 3% of global climate finance—a figure he described as unacceptable given that nine of the world’s ten most climate-vulnerable nations are on the continent.
Adesina emphasized the urgent need to reassess how Africa’s wealth—particularly its natural capital—is valued. He pointed out that Africa’s 2018 GDP was estimated at $2.5 trillion, yet the continent’s ecosystem services and other natural assets were valued at over $6.2 trillion, signaling massive untapped financial potential.
To correct this imbalance, the AfDB is spearheading a fresh approach to GDP assessment, one that incorporates environmental wealth into the broader economic picture. “A proper valuation of Africa’s green assets will enhance our debt-to-GDP ratios, strengthen credit ratings, and expand access to finance,” Adesina explained.
As part of its strategy, the Bank is also rolling out large-scale climate response initiatives. This includes the $25 billion African Adaptation Acceleration Programme, in collaboration with the Global Centre on Adaptation—currently the continent’s largest climate adaptation initiative.
Additionally, the AfDB is providing insurance tools like the Africa Disaster Risk Insurance Facility, which helps countries hedge against extreme weather risks and supports early response mechanisms.
Closing his remarks, Adesina stressed that Africa must rethink its approach to its own resources and resist selling short. “We must stop being nature-rich but cash-poor. The time has come to place real value on what we have and use it to drive our future.”
