African Development Bank funds natural‑capital project in 13 countries as Malawi faces $3.3 bn financing gap

The African Development Fund, the concessional window of the African Development Bank Group, approved a $4.23 million grant to launch the second phase of a natural‑capital integration project. The initiative will run from October 2026 to September 2029 and covers thirteen African nations – Burundi, Cameroon, the Central African Republic, the Democratic Republic of the Congo, Ghana, Côte d’Ivoire, Kenya, Mozambique, Rwanda, Tanzania, Togo, Zambia and Zimbabwe. Partner organisations such as the World Wildlife Fund, Germany’s GIZ, the African Union Development Agency‑NEPAD, the Economic Commission for Africa and UNEP will support policy development, statistical capacity, institutional frameworks and knowledge generation. “This project is intended to contribute to development that is resilient to the effects of climate change, nature‑friendly and inclusive,” said Innocent Onah, Chief Natural Resources Officer of the African Development Bank Group.

Separately, the African Development Bank’s Southern Africa Economic Outlook 2026 warns that Malawi needs an additional $3.3 billion (about K5.8 trillion) each year to close its development‑financing gap by 2030. The shortfall represents roughly 58 % of the 2026/27 national budget and 29.4 % of Malawi’s 2024 GDP, reflecting low domestic savings, limited fiscal space, under‑developed capital markets and reduced concessional aid. Public debt has risen to K23.9 trillion, about 90 % of GDP. Economists stress that bridging the gap will require blended‑finance mechanisms, private‑sector investment, improved tax administration and sustained political will.