Africa is not poor, its wealth is not being measured

By Richard Ndebele

Africa is not poor. It is poorly measured.

For decades, the continent’s wealth has been assessed through narrow economic lenses that overlook two of its greatest assets, its vast natural resources and its youthful population. The result is a persistent narrative of scarcity that does not fully reflect reality.

This may soon begin to change.

The IFRS Foundation, through the International Sustainability Standards Board (ISSB), is expanding sustainability reporting beyond climate to include biodiversity, ecosystems and natural capital.

This reflects a growing recognition that nature underpins economic activity and that what is not measured is often undervalued.

Africa stands to be significantly affected by this shift.

The continent holds approximately 30% of the world’s mineral reserves, over 60% of uncultivated arable land and vast ecosystems such as the Congo Basin.

Yet these assets are largely absent from national balance sheets and fiscal narratives.

Consider Zimbabwe.

The Zambezi River, shared with Zambia, supports hydropower generation, agriculture, tourism and livelihoods. Yet its full economic value is not captured in national accounts. Similarly, wildlife such as elephants in Hwange -which move across borders – represents significant ecological and economic value but is rarely reflected in financial reporting.

In effect, African countries are managing assets they do not fully measure – and therefore do not fully value.

But Africa’s wealth is not only natural – it is also human.

The continent has the youngest population in the world, with a median age of around 19 years and is projected to reach 2.5 billion people by 2050. This demographic profile presents a unique opportunity.

If effectively harnessed, Africa’s youth could drive innovation, productivity and economic transformation. More importantly, it provides the human capacity required to manage and unlock the value of natural capital.

The real opportunity lies in the intersection of natural and human capital.

A young workforce can support sectors such as sustainable agriculture, renewable energy, eco-tourism and environmental services.

It can also drive emerging areas like biodiversity monitoring, environmental data systems and sustainability reporting, which are becoming increasingly important in the global economy.

However, this advantage is not automatic.

Africa must create millions of jobs annually to absorb new entrants into the labour market. Without investment in education, skills development and employment, population growth can place additional pressure on already constrained public systems – including health, education and infrastructure.

This is where sustainability reporting becomes particularly relevant.

Just as biodiversity reporting seeks to make natural capital visible and measurable, there is a growing need to better understand and account for human capital in economic and policy frameworks.

The two are deeply interconnected. Natural assets require human capability to manage them effectively, while human development depends on the sustainable use of natural resources.

Emerging biodiversity frameworks could help Africa tell a more complete story about its wealth – but only if the continent actively participates in shaping them.

At present, Africa’s voice in global standard-setting remains limited. There is a real risk that these frameworks will be designed without fully reflecting African realities, resulting in compliance without commensurate benefit.

There is also a broader concern: Africa could become a supplier of environmental data, while the financial value derived from that data accrues elsewhere.

Active participation is therefore essential.

African policymakers, regulators, accountants and sustainability practitioners must engage with the IFRS Foundation and related initiatives – contributing to consultations and ensuring that African perspectives are embedded in these frameworks.

This is particularly important given the practical challenges.

How do we account for elephants that roam between Zimbabwe and Zambia? Which country recognises the asset and how is its value measured? Similarly, how do we assign value to shared resources such as the Zambezi or Limpopo rivers, which support multiple economies across borders?

These are not theoretical questions – they are central to how natural capital reporting will work in practice.

There are also capacity constraints. Many African countries lack the technical expertise, data systems and institutional coordination required to implement such frameworks effectively. Valuing natural assets requires new methodologies that go beyond traditional accounting.

Yet the direction is clear.

The global economy is moving towards integrating nature into financial and sustainability decision-making. The key question is whether Africa will shape this transition – or simply respond to it.

There is a strategic opportunity.

If approached proactively, biodiversity and natural asset reporting could enable African countries to redefine how their wealth is measured and communicated, shifting the narrative from scarcity to recognised value.

But this will require deliberate action.

Africa must invest in capacity, strengthen institutional coordination and actively engage in global standard-setting processes. More importantly, it must recognise that its development prospects depend not only on managing natural resources, but also on harnessing its human capital advantage.

Because in the end, what is not measured is not managed – and what is not reported is often undervalued.

For Africa, continuing to undervalue its natural and human wealth is no longer an option.

Richard Ndebele is Manager: Technical, Research and Quality Assurance at the Chartered Governance and Accountancy Institute in Zimbabwe (CGI Zimbabwe) and serves as Country Champion for the PAFA Sustainability Centre of Excellence. He writes on governance, sustainability and public financial management, with a focus on strengthening decision-making and institutional performance in African economies.
Contact: rndebele@cgizim.org