Prominent business and political figures from across the continent have stressed the urgency of reevaluating Africa's Gross Domestic Product (GDP) by conducting a comprehensive assessment of its natural capital and ecosystem services. This includes the continent's vast forests, which play a critical role in carbon absorption and contribute significantly to Africa's overall wealth.

This call for revaluation is rooted in the belief that by accurately accounting for Africa's abundant natural resources, the continent can provide a more precise representation of its production levels. This, in turn, will enhance Africa's appeal as an investment destination and address existing economic disparities.

During the inaugural Africa Climate Summit (ACS) held in Nairobi, Kenya, from September 4 to 6, 2023, where the Nairobi Declaration on Climate Change and Call to Action was adopted, these leaders argued that "Africa possesses immense natural wealth, from its lush forests to its diverse ecosystems, and we must recognize their value. By incorporating natural resource accounting and establishing national accounting standards, we can better assess our true economic potential."

One key issue discussed at the summit was the significant discrepancy in borrowing costs faced by developing African countries compared to wealthier nations, commonly referred to as the 'great financial divide.' Leaders underscored that this financial gap has been a major contributor to recurrent debt crises in the region, hindering investment in development and climate-related initiatives.

In response, they emphasized the need for responsible sovereign lending practices, enhanced accountability, comprehensive credit rating systems, risk analysis, and debt sustainability assessment frameworks. The leaders called on financial markets to eliminate this disparity by 2025.

In addition to addressing the financial divide, leaders discussed the importance of establishing global and regional trade mechanisms that allow African products to compete fairly in international markets. They stressed the importance of building resilience to climate-related shocks and leveraging Special Drawing Rights (SDRs) to bolster climate adaptation efforts, suggesting the reallocation of at least US$100 billion of SDRs to Africa.

The summit also proposed considering a new issuance of SDRs dedicated to responding to the climate crisis, similar in magnitude to the COVID-19 response. Leaders emphasized the need to better utilize the balance sheets of multilateral development banks (MDBs) to scale up concessional finance and enhance debt management.

Regarding international tax cooperation, leaders urged action to reduce Africa's annual loss of US$27 billion in corporate tax revenue due to profit-shifting. They called for measures to attract private capital, such as blended finance instruments, purchase commitments, and foreign exchange guarantees, while also advocating for the redesign of MDBs' governance for greater inclusivity.

Energy

In the realm of energy, leaders have set ambitious objectives to boost Africa's renewable generation capacity from 56 GW in 2022 to a minimum of 300 GW by 2030. They underscored the significance of relocating energy-intensive primary processing activities back to Africa, aligning with renewable energy development objectives and contributing to global emissions reduction. Furthermore, leaders emphasized the critical need for accessing and disseminating environmentally-friendly technologies to foster green industrialization across the continent.

The summit also reaffirmed the global shift toward a low-carbon economy, calling for annual investments ranging from at least US$4 trillion to US$6 trillion. They urged world leaders to contemplate the establishment of a global carbon taxation framework, which includes a carbon tax on fossil fuel trade, maritime transport, and aviation, along with a global financial transaction tax (FTT) to finance climate-positive investments.

Leaders welcomed pledges and commitments totaling US$26 billion from development partners to bolster Africa's renewable energy initiatives and adaptation endeavors. They view this as a significant stride towards realizing a sustainable and equitable future for the continent.