Zambia to benefit from $4.23 million African development bank initiative to mainstream natural capital in development finance
Zambia is participating in a $4.23 million African Development Bank project to integrate natural capital, such as forests and water, into national economic planning. The initiative seeks to improve investment decisions and economic resilience by valuing environmental assets.
Why it matters
Recognizing the economic value of natural resources is critical for sustainable development and accurate GDP measurement in resource-dependent economies.
Zambia is among 13 African countries set to benefit from a $4.23 million African Development Bank initiative aimed at integrating the economic value of forests, water, land, biodiversity and other natural assets into development finance and national economic planning. The Mainstreaming Natural Capital in Africa Development Finance Project, Phase II (NC4-ADF II), approved in 2026 and scheduled to run through 2029, is intended to help participating countries strengthen natural capital accounting, improve investment decisions and build greater climate and economic resilience.
The programme comes as African governments face the increasingly difficult task of financing development while protecting the natural systems that underpin agriculture, water security, energy, tourism and livelihoods. For countries such as Zambia, where economic activity remains closely linked to mineral, agricultural and environmental resources, bringing the value of those assets into mainstream financial and policy decisions could provide a broader basis for assessing development opportunities and risks.
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