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Africa Loses 3% of its GDP to Nature Loss

New research shows that 3 percent of Africa’s GDP is lost annually due to deforestation, pollution, and water abstraction. Around 62 percent of African GDP relies on the services nature provides, with 70 percent of communities in sub-Saharan Africa depending on forests and woodlands for their livelihoods.

Ongoing biodiversity loss will adversely affect the ability of ecosystems to support the economy in the future. Fortunately, it is not all doom and gloom. The report by FSD Africa and McKinsey Sustainability claims that “a nature-positive transition will bring a wide range of environmental and economic benefits to the world, first and foremost in protecting the health of natural ecosystems and wildlife.” Businesses that generate nature-positive impacts can benefit from new revenue streams, and nature restoration could lead to significant productivity gains for the economy. Increased pollinator populations improve agricultural yields, cleaner water reduces treatment costs for water utilities, and stronger natural flood defenses reduce damage to real estate.

We at Akili Green are eager to promote a nature-positive business transition in Africa, specifically in Kenya. If you are an impact investor, entrepreneur, or business manager who wants to be part of this transition, contact us!

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Picture of Jos Reinhoudt
Jos Reinhoudt