African Leaders Urged to Address Environment for Growth

Makerere University hosted the First African Symposium on Natural Capital Accounting and Climate-Sensitive Macroeconomic Modelling on February 12-13. The symposium, themed “Climate-Sensitive Macroeconomics: Rethinking Growth in Africa’s Natural Resource Base,” brought together policymakers, researchers, and development partners.

Vice Chancellor’s Address

Makerere University Vice Chancellor Prof. Barnabas Nawangwe emphasized the need for African policymakers, researchers, and development partners to reconsider traditional economic models and adopt climate-sensitive planning approaches. He stated that the continent’s economic transformation cannot be separated from environmental realities, particularly as Africa faces escalating climate shocks and pressures on natural resources. Nawangwe described the symposium as timely, given the economic consequences of climate change, biodiversity loss, and environmental degradation.

Economic Dependence on Natural Resources

African economies heavily rely on natural resources for livelihoods, revenue generation, and structural transformation. However, these resources are experiencing unprecedented strain. Ignoring climate risks, Nawangwe warned, would jeopardize long-term economic stability.

Makerere University’s Role

Makerere University has positioned itself as a continental leader in climate-sensitive macroeconomic research and policy. The university aims to translate research into policy-relevant insights to support governments, regional institutions, and development partners. A collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED) serves as an example of academia-government partnership, underpinning the work of the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling (CEACM).

Capacity Building and Policy Tools

The symposium featured presentations from experts on the intersection of natural capital, climate risks, and macroeconomic policy. Prof. Edward Bbaale, Principal at Makerere’s College of Business and Management Sciences, highlighted CEACM’s capacity-building initiatives, including short-term courses and an MSc program designed to equip economists to integrate natural capital and climate risks into macroeconomic policy frameworks.

The MONCAP Model

Dr Peter Bagyenda, an Assistant Lecturer in the Department of Policy and Development Economics, presented the MONCAP Model (Model for Natural Capital Policy Assessment), developed collaboratively by Makerere University, the Ministry of Water and Environment, and other government agencies. MONCAP allows policymakers to estimate the economic cost of depleting natural assets and simulate policy options. It has informed Uganda’s clean energy transition, forest restoration policies, and broader climate adaptation strategies.

Symposium Goals and Support

The symposium, hosted by Makerere University through CEACM, aims to modernize how African nations measure wealth by incorporating climate risks, biodiversity loss, and ecosystem degradation into macroeconomic models. The event is supported by MoFPED, the Ministry of Water and Environment, GGGI, UN PAGE, and the Coalition of Finance Ministers for Climate Action. CEACM is positioned as a continental hub for research, training, and policy advisory, providing African governments with tools and technical guidance to integrate climate and natural capital into national economic planning.