The African Natural Capital Alliance (ANCA) and FSD Africa has researched on how business profits could be impacted by different nature-positive transition scenarios.
They released a report giving details on the findings of the nature stress test conducted on the banking systems of five African countries, including Rwanda and Zambia.
The report was conducted in partnership with McKinsey. The report is titled “Nature Stress Test: Assessing Exposure of Five African Banking Systems”,
This is the first report on assessing the implications for African economies of the Kunming-Montreal Global Biodiversity Framework (GBF) which was agreed in December 2022 and sets out goals and targets to halt and reverse nature loss by 2030.
ANCA was established in 2022 by FSD Africa which acts as the vehicle to drive coordinated advocacy and action across the continent.
“Understanding the profound impact of nature on our economies is crucial. This stress test highlights the urgent need for nature-positive transitions, revealing that 62% of Africa’s GDP is deeply linked with natural services. By embedding nature protection within our regulatory frameworks, we can not only mitigate financial risks but also drive sustainable economic growth.” Dorothy Maseke, Head of the ANCA secretariat and Lead, Nature Finance & TNFD, FSD Africa commented.
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