Africa pursue world’s first joint ‘debt-for-nature’ swap

At least five African nations are collaborating on what could become the world’s first joint “debt-for-nature” swap, aiming to raise over US$2 billion to protect a coral-rich region of the Indian Ocean.

Five African nations are considering a joint ‘debt-for-nature’ swap to raise over US$2 billion for protecting the Indian Ocean’s coral-rich region.

Gabon was the first African nation to launch a debt-for-nature swap, securing up to US$450 million in 2023.

The initiative, supported by the US and British governments, aims to protect and restore 2 million hectares of ocean ecosystems benefiting 70 million people in coastal communities by 2030.

At least five African nations are collaborating on what could become the world’s first joint “debt-for-nature” swap, aiming to raise over $2 billion to protect a coral-rich region of the Indian Ocean, according to a global conservation organisation.

Debt-for-nature swaps, a type of financial transaction in which a portion of a developing nation’s foreign debt is forgiven in exchange for local investments in environmental conservation measures, are gaining popularity among lower-income countries as a means to finance conservation efforts.

In 2023, Gabon became the first African nation to launch a debt-for-nature swap, securing up to $450 million. Similar deals have been executed by countries like Seychelles, Belize, Ecuador, and Barbados, where debt was refinanced in exchange for commitments to protect their marine environments.

However, the latest African initiative would be the first to involve multiple countries sharing a distinct ecosystem.

Thomas Sberna, regional head for coastal and ocean resilience at the International Union for the Conservation of Nature (IUCN), did not name the five African nations considering the joint swap deal, Reuters reported. However, he said those backing the broader “Great Blue Wall” conservation plan include Kenya, Madagascar, Mauritius, Mozambique, Seychelles, Somalia, South Africa, Tanzania and the Comoros. -Business Insider Africa