The importance of valuing Africa’s natural riches - SAIIA

This briefing by the South African Institute of International Affairs argues that traditional natural resource management has failed and that African nations should adopt Payment for Ecosystem Services (PES) schemes and economic valuation to protect their natural assets, which are critical for poverty reduction and livelihoods.

• Standard economic measures, such as GDP, fail to account for the depletion of natural resources and ecosystem degradation, as these assets are not traditionally valued as capital. Consequently, resource use is recorded as a positive economic indicator even when it results in a decline of wealth and future economic prosperity.
• Payment for Ecosystem Services (PES) schemes use market-based mechanisms to provide financial incentives for the conservation of biodiversity and watersheds. These schemes aim to encourage behavioral change by offering supplementary income and employment, potentially making the sustainable management of ecosystems more economically valuable than converting them for logging or farming.
• Ecosystem degradation disproportionately affects the poor in Africa, where a majority of the population relies directly on these services for primary income. In sub-Saharan Africa, the management of these services is a primary factor in the ability to reduce poverty.
• African countries have not yet fully utilized ecosystem markets due to governance failures, lack of technical knowledge, and insufficient awareness. Successful implementation of PES schemes requires addressing institutional capacity, transparency, land tenure, and resource ownership disputes.

APA

South African Institute of International Affairs (2012). The importance of valuing Africa’s natural riches - SAIIA. https://saiia.org.za/research/the-importance-of-valuing-africa-s-natural-riches/

Chicago

South African Institute of International Affairs. The importance of valuing Africa’s natural riches - SAIIA. 2012. https://saiia.org.za/research/the-importance-of-valuing-africa-s-natural-riches/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=The importance of valuing Africa’s natural riches - SAIIA |date=10 October 2012 |url=https://saiia.org.za/research/the-importance-of-valuing-africa-s-natural-riches/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2012importance, author = {{South African Institute of International Affairs}}, title = {{The importance of valuing Africa’s natural riches - SAIIA}}, institution = {South African Institute of International Affairs}, year = {2012}, month = oct, url = {https://saiia.org.za/research/the-importance-of-valuing-africa-s-natural-riches/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }