Nature & risk management: Shaping sustainable finance in Africa

With 70 per cent of Sub-Saharan Africa's population depending on natural assets for their livelihoods, establishing nature as a key area of risk management is crucial. Today we speak with Dorothy Maseke, Head of Secretariat at the African Natural Capital Alliance, about how adopting nature-based financial frameworks will help nations build healthier economies. Maseke sheds light on the importance of nature-related financial disclosures (TNFD) and how they provide clarity to institutions on nature-related risks, opportunities, impacts, and dependencies, ultimately aiding them in making informed decisions. By aligning with global priorities, financial institutions can navigate nature-based credit risks effectively, thereby ensuring stability and resilience against environmental challenges. Additionally, the shift towards nature-positive entrepreneurship supported by governments will create opportunities for sustainable businesses to thrive, redirecting capital from nature-negative industries to nature-positive ventures. Africa's abundant natural wealth presents a significant opportunity for the continent, with 30% of the world's species and 25% of minerals located within its borders. As the world increasingly recognizes the value of nature-based solutions in addressing climate change and sustainability, there is a growing need for a shift in perspective towards Africa's natural assets to unlock its full economic potential.