Mobilising private finance for natural capital in Africa

The document argues that Africa faces an annual financing gap of over $100 billion to preserve its natural capital, which is critical for global climate and biodiversity goals. It proposes a 'triple bottom line' approach—combining financial returns, environmental impact, and community benefits—applied through landscape financing, restorative agriculture, and sustainable supply chains. The paper identifies green bonds, carbon credits, and impact investing as key financial mechanisms and calls for stronger regulatory frameworks, such as the adoption of Taskforce on Nature-related Financial Disclosures (TNFD) guidelines, to attract private capital and prevent 'nature-washing'.

• Africa has a significant annual financing gap of more than $100 billion to preserve its natural capital, with the largest deficit occurring in the sustainable management of landscapes and seascapes, which requires over $400 billion annually.
• Private finance can be effectively applied through three main areas that offer a 'triple bottom line' of financial returns, climate or biodiversity impact, and enhanced local communities: landscape financing, restorative agriculture, and sustainable supply-chains.
• Green bonds represent a major opportunity, though Africa has only received 2.2% of global proceeds. To date, 91% of green bonds issued in the region have been used for infrastructure rather than natural capital.
• Impact investors are well-positioned for natural capital assets, with 21% of all global impact investments currently in sub-Saharan Africa and 83% of managers seeking climate-aligned investments.
• African central banks and regulators are urged to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) guidelines and strengthen national green bond frameworks to avoid 'nature-washing'.
• International development partners should provide anchor capital, guarantees, and technical assistance to scale projects, specifically leveraging the Clean Development Mechanism (CDM) and blended finance.

APA

Tyson, J., Ampulire, J., Israel, J., Munjal, K., & Massingham, K. (2022). Mobilising private finance for natural capital in Africa. FSD Africa. https://fsdafrica.org/wp-content/uploads/2025/05/22-08-30-Natural-Capital-Report-Brief_Final.pdf

Chicago

Tyson, Judith, Janine Ampulire, Jonathan Israel, Kevin Munjal, and Kelvin Massingham. Mobilising private finance for natural capital in Africa. FSD Africa, 2022. https://fsdafrica.org/wp-content/uploads/2025/05/22-08-30-Natural-Capital-Report-Brief_Final.pdf.

Wikipedia

{{cite report |last1=Tyson |first1=Judith |last2=Ampulire |first2=Janine |last3=Israel |first3=Jonathan |last4=Munjal |first4=Kevin |last5=Massingham |first5=Kelvin |title=Mobilising private finance for natural capital in Africa |publisher=FSD Africa |date=September 2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/22-08-30-Natural-Capital-Report-Brief_Final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{tyson2022mobilising, author = {Tyson, Judith and Ampulire, Janine and Israel, Jonathan and Munjal, Kevin and Massingham, Kelvin}, title = {{Mobilising private finance for natural capital in Africa}}, institution = {FSD Africa}, year = {2022}, month = sep, url = {https://fsdafrica.org/wp-content/uploads/2025/05/22-08-30-Natural-Capital-Report-Brief_Final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }