Akinwumi Adesina, President of the African Development Bank (AfDB), has raised concerns about the exploitation of Africa’s carbon credits, claiming that foreign companies are undervaluing the continent’s natural resources.

“We used to have land grabs. Now we are having carbon grabs,” Adesina said, referring to what he described as low prices paid for African carbon credits.

He pointed out that while carbon permits in Europe can cost up to €200 per tonne, African countries are often paid as little as $3 per tonne for their carbon credits.

The AfDB president criticized this practice, emphasizing the loss of valuable land and forests in the process, which he believes is damaging to Africa’s potential for economic growth.

Although Adesina did not name any specific companies, several companies have been involved in trading carbon credits linked to forest preservation and other environmental efforts.

These companies are often engaged in projects that aim to reduce carbon emissions, like cookstove initiatives that help people cook without burning firewood.

However, some of these schemes have been scrutinized for their effectiveness, leading to a decrease in the value of carbon credits.

Rudolph Merab, head of Liberia’s Forestry Development Authority, echoed Adesina’s concerns.

He shared that Liberia has not received any substantial payment for the carbon being stored in its forests, with some offers as low as $1 per tonne of CO₂ stored.

“We have not seen one cent from the carbon we are absorbing from the forests,” Merab said.

Adesina’s remarks come as part of a broader conversation about how Africa should better leverage its resources to stimulate economic growth.

He emphasized that Africa, with its vast natural capital, “cannot be sitting on massive resources and [remain] poor.” Adesina also addressed the challenges Africa faces in a world of growing trade friction and diminishing aid, particularly from the US and Europe.

He expressed that Africa must adapt to these changes by becoming more efficient with its finance and not relying on external aid.

“You don’t control what happens, but you must certainly control your response,” he said. “It’s just like a pilot [who] runs into turbulence. You don’t fly into the turbulence, you’ve got to navigate around it.”

In addition to these issues, Adesina emphasized the need for Africa to fully utilize its hydrocarbon resources and avoid being overly ideological about renewable energy.

“Africa cannot be sitting on massive resources and [remain] poor,” he stated, advocating for a pragmatic approach to energy development, focusing on both renewable sources and fossil fuels.

The AfDB president also pointed out the challenges of Africa’s mounting debt.

He said the continent must focus on trade and investment to achieve development, rather than relying on aid.

He agreed with former UK Prime Minister Tony Blair, who recently advised shifting the focus of Western aid towards long-term development projects rather than short-term assistance.

Blair emphasized that addressing structural issues in African economies is crucial for lasting change.

Adesina also discussed the AfDB’s efforts to address Africa’s debt crisis.

The bank is supporting the creation of an African Financing Stability Mechanism, which aims to assist African governments facing debt distress.

The bank has also sought to extend its capital by working with private investors to reduce the risk on its balance sheet.

The Abidjan-based bank has access to authorized capital of more than $300bn, which is available to be disbursed to infrastructure, power, agriculture, and other projects.

Looking ahead, Adesina called for structural changes in the international financial system, which he believes tends to overestimate the risk associated with Africa.

He supported the idea of an African rating agency that could provide a more accurate assessment of Africa’s economic situation, countering the existing rating agencies like Moody’s, S&P Global Ratings, and Fitch, which he believes “don’t have the right methodologies [or] the right assessment of Africa’s risk profiles.”

Elections for a new AfDB president will take place in May at the bank’s annual meeting in Abidjan.

Adesina, who is set to step down after 10 years at the helm, leaves behind a legacy of pushing for Africa’s financial independence and sustainable development.