African Financial Institutions Unprepared For Nature-Related Risk – Report

A new report from Vivid Economics by McKinsey and the UK-funded financial sector development agency FSD Africa underlines the importance for financial institutions to unlock the potential benefits of investing in businesses that protect and grow nature. Applying first-of-its-kind analysis to three private banks and the financial systems of Zambia, Egypt, Ghana, Mauritius, Kenya, and South Africa, the report shows that for the most exposed lending portfolios, for example, in Zambia and Ghana, nature-related risks in agriculture and extractives could almost double expected losses by 2030, wiping $millions off the value of their loan books. These nature-related risks are comparable…