
African leaders are gearing up for a renewed push at international summits this year to have their countries’ economic strength measured more accurately.
The initiative, spearheaded by the African Development Bank (AfDB), aims to include the vast natural wealth of African nations in GDP calculations.
The AfDB argues that current GDP figures significantly undervalue African economies, failing to account for the immense value of their natural resources, such as forests, mineral reserves, and biodiversity.
By incorporating these assets, the bank believes that debt metrics would improve, potentially leading to lower borrowing costs and increased access to finance.
However, this initiative faces significant scepticism. Critics argue that accurately valuing and monetizing natural capital remains a complex challenge.
Concerns have also been raised about the potential for increased exploitation of natural resources and the limited impact that recalculation may have on actual debt relief.