President of African Development Bank (AfDB), Dr Akinwumi Adesina, has raised alarm over the huge economic losses Africa is facing due to climate change. He said the continent is currently losing between $7 billion to $15 billion every year. If nothing is done, the figure could rise to a massive $50 billion by the year 2050.
Dr Adesina made this known on Friday, April 26, 2025, while delivering the convocation lecture at the 14th graduation ceremony of the National Open University of Nigeria (NOUN) in Abuja. The theme of the lecture was “Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics.”
He said one of the biggest issues facing Africa today is what he described as the “largest carbon grab in history.” According to him, some African countries are giving away their lands and rich carbon sinks like forests and wetlands in exchange for quick financial support from foreign countries and companies. He said this trend is costing Africa more than it is gaining.
Dr Adesina, who is also a former Minister of Agriculture in Nigeria, explained that while a ton of carbon is sold for over $200 in Europe, it is being bought for just $3 to $5 in many African countries. He said this wide gap in pricing shows how Africa is being short-changed. “Africa is selling carbon at giveaway prices. This is not acceptable. We are losing money and also losing control of our resources,” he said.
He said climate change is already affecting the continent severely. “Nine out of the ten most climate-vulnerable countries in the world are in Africa,” he said, adding that the continent receives only 3% of global climate finance, even though it contributes significantly to protecting the global environment.
Dr Adesina also pointed out that Africa’s natural wealth is not being properly valued. He said while Africa’s Gross Domestic Product (GDP) was estimated at $2.5 trillion in 2018, the actual value of its natural capital — which includes forests, minerals, rivers, and biodiversity — was around $6.2 trillion. He said this undervaluation keeps Africa poor despite its abundant resources.
He warned that when African countries give away land for carbon credit deals, they lose the right to count the stored carbon towards their national climate targets or to use it to boost their economies. “This means we cannot use those resources to revalue our GDP or to improve our credit ratings. It is a lose-lose situation,” he stated.
He called on African governments to stop selling their resources cheaply. “Africa is nature-rich but cash-poor. We must stop underpricing our wealth,” he said. Dr Adesina revealed that the African Development Bank is already working on a new framework that will help African countries re-estimate their GDP based on the real value of their natural capital. He said this move will help lower debt-to-GDP ratios and allow countries to borrow more for development.
Speaking further, Dr Adesina announced that the AfDB is currently implementing the African Adaptation Acceleration Programme in partnership with the Global Centre on Adaptation. The programme, worth $25 billion, is the largest climate adaptation initiative in the world and is designed to help African countries prepare for and respond to climate change.
The AfDB is also supporting countries through the Africa Disaster Risk Insurance Facility, which helps governments pay for insurance premiums to protect against extreme weather events and climate-related disasters.
