In a landmark move, 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 coral-rich regions of the Indian Ocean. Debt-for-nature swaps—where a portion of a country’s foreign debt is forgiven in exchange for investments in environmental conservation—are gaining traction among biodiversity-rich but indebted nations as a means to reduce external debt while funding sustainability projects.
Backed by a global coalition of nature conservation organizations, including the International Union for Conservation of Nature (IUCN), this initiative plans to combine $500 million in concessional financing with $1.5 billion from bond exchanges. A finalized blueprint of the deal is expected by June 2025. Negotiations are underway with major multilateral development banks in the region to provide credit guarantees and insurance for the swap. Key details, such as the distribution of funds, the proportion of debt involved, and mechanisms for monitoring conservation efforts, remain under discussion.
In 2023, Gabon became the first African nation to launch such a swap, securing up to $450 million, following similar successes in countries like Seychelles, Belize, Ecuador, and Barbados. This new African initiative, however, would be the first to involve multiple nations collectively addressing a shared ecosystem.
While the specific countries in this joint effort remain unnamed, several African coastal and island nations—such as Kenya, Madagascar, Mauritius, Mozambique, Seychelles, Somalia, South Africa, Tanzania, and the Comoros—are already participating in the “Great Blue Wall” project, launched in 2021 to restore 2 million hectares of ocean ecosystems by 2030. If the proposed joint “debt-for-nature” swap is successful, this could redefine regional collaboration for debt relief and environmental conservation in Africa.
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