Mobilising private finance for natural capital in Africa

This briefing paper by FSD Africa examines the necessity and mechanisms for mobilising private finance to preserve and restore natural capital across Africa. It identifies a significant annual financing gap of over $100 billion and proposes a 'triple bottom line' investment approach focusing on landscape financing, restorative agriculture, and sustainable supply chains. The document outlines the roles of various stakeholders, including central banks, international development partners, and impact investors, in creating a 'natural capital aligned' investor base through green bonds, carbon credits, and specialist funds.

• Africa faces a substantial financing gap for the preservation of its natural capital, exceeding $100 billion annually. The most significant deficit is in the sustainable management of landscapes and seascapes, which requires more than $400 billion per year.
• Private finance can support natural capital through investments that achieve a 'triple bottom line', combining financial returns with biodiversity or climate impact and benefits for local communities. Three primary areas for such application are landscape financing, restorative agriculture, and sustainable supply-chains.
• Green bonds represent a significant opportunity for natural capital, though they are currently underutilised in Africa. While the global green bond market reaches US$2 trillion annually, only 0.5–1.0% of this capital has been allocated to natural capital, and Africa has received only 2.2% of global green bond proceeds.
• Carbon credits can transform African natural assets into tradable financial assets. Despite the existence of the Clean Development Mechanism (CDM) and various certification schemes, projects in Africa have remained small-scale due to the complexity of the certification and selling processes.
• Impact investors are increasingly shifting asset allocations toward climate-related investments, with agriculture and forestry reaching 9% and 10% of Assets Under Management (AUM) in 2021, respectively. Currently, 21% of all global impact investments are directed toward sub-Saharan Africa.
• African central banks and regulators are urged to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) guidelines and strengthen national green bond frameworks in countries like Kenya, Nigeria, and South Africa to prevent 'nature-washing'.

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} }