Uganda Highlights Climate-Smart Economy at Makerere Symposium

Uganda recently hosted the First African Symposium on Natural Capital Accounting (NCA) and Climate-Sensitive Macroeconomic Modelling at Makerere University, positioning the nation as a leader in climate-sensitive economic planning across Africa. The two-day symposium, held February 12–13, centered on the theme “Climate-Sensitive Macroeconomics: Rethinking Growth in Africa’s Natural Resource Base.”

Opening Remarks and Continental Significance

Minister of State for Finance (General Duties), Hon. Henry Musasizi, addressed the symposium, acknowledging the challenges African finance ministers face in balancing immediate fiscal needs with long-term resilience planning. He emphasized the interconnected nature of challenges including climate change, debt vulnerabilities, fiscal constraints, and the need for inclusive growth. Musasizi highlighted the symposium as a milestone demonstrating growing African unity on climate action, building on the formation of a continental climate financing platform in 2025. He called for collaboration among countries, institutions, and partners to share experiences and enhance collective capacity.

Traditional Models and Natural Capital Accounting

Musasizi stated that traditional macroeconomic models are inadequate in addressing extreme climate shocks. He advocated for Natural Capital Accounting and climate-sensitive macroeconomic modelling as essential tools for policymakers, enabling governments to quantify natural resource values, assess environmental costs, and integrate climate considerations into planning and investment decisions. Uganda is already implementing reforms to align economic policy with climate objectives, including strengthening climate-responsive public investment management and integrating climate change into national development plans.

Africa’s Natural Capital Under Threat

Minister of State for Environment, Hon. Beatrice Atim Anywar, warned of the depletion of Africa’s natural assets. She noted that climate-related shocks, such as floods, droughts, land degradation, and water stress, are undermining productivity and macroeconomic stability. Anywar highlighted a partnership between Uganda’s ministries, Makerere University, and GIZ, which developed a natural capital policy assessment tool to evaluate natural resources for climate adaptation and energy transition. She emphasized that investments in water security, forest conservation, and ecosystem restoration are crucial for long-term stability and prosperity.

Africa’s Wealth and the Cost of Inaction

Paul Jonathan Martin, Manager of Environment Operations Department at the World Bank, warned that Africa’s overall wealth is declining due to the depletion of renewable natural capital. While produced and human capital have grown, renewable capital has fallen by 30% over the past three decades. Martin cited examples of progress in Ethiopia and Kenya, where natural capital tools are informing public investment decisions. He projected that resilience investments could positively impact Uganda’s GDP, while inaction on climate change could lead to significant economic deviations.

Climate Change as an Economic Challenge

Ambassador Jan Sadek, Head of the European Union Delegation to Uganda, stated that climate change is a core economic challenge, not solely an environmental concern. He praised Makerere University’s role in developing practical solutions. The symposium aims to modernize how African nations measure wealth by integrating climate risks, biodiversity loss, and ecosystem depletion into macroeconomic models.

Symposium Goals and Support

Hosted by Makerere University through the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling, the symposium seeks to establish a continental knowledge platform to guide climate-informed economic planning. The event was supported by partners including GGGI, UN PAGE, and the European Union.