KEY POINTS
- Five African nations are preparing a $2 billion debt-for-nature swap to conserve marine ecosystems.
- The initiative is part of the “Great Blue Wall” conservation plan, targeting 2 million hectares of protected ocean by 2030.
- Extensive negotiations are ongoing, with a potential deal expected by June 2025.
At least five African nations are preparing to launch the world’s first joint “debt-for-nature” swap, aiming to raise at least $2 billion to conserve the coral-rich ecosystems of the Western Indian Ocean. The deal, spearheaded by a global conservation group, would see the participating countries convert debt into funding for environmental protection.
Debt-for-nature swaps allow poorer nations to repackage and reduce their debt obligations, using the savings for conservation efforts. While countries like Ecuador, Belize, Seychelles, and Gabon have completed similar deals individually, this initiative would be the first of its kind to involve multiple nations working together on a shared ecosystem.
Regional conservation efforts
Thomas Sberna, the International Union for Conservation of Nature’s (IUCN) regional head for coastal and ocean resilience, said the African countries involved are supporting the “Great Blue Wall” conservation initiative, which aims to restore 2 million hectares of ocean ecosystems by 2030.
The initiative could potentially include Kenya, Madagascar, Mauritius, Mozambique, Seychelles, Tanzania, South Africa, and the Comoros.
Sberna emphasized the importance of scaling up conservation efforts to achieve the ambitious target of protecting 30 percent of the world’s seas and lands by the decade’s end.
“There is no way we could really achieve [that] using the same business-as-usual model,” Sberna said.
Complex negotiations ahead
Though discussions are still in early stages, Sberna expressed hope that a deal blueprint could be ready by the U.N. Oceans Conference next June. Several critical details, such as how much of each country’s debt will be restructured and how conservation funds will be managed and monitored, still require extensive negotiations.
According to Reuters, the IUCN is exploring the establishment of a specialized fund, expected to be worth at least $2 billion, to support the initiative. The fund would comprise $500 million in concessional funding and $1.5 billion in bond swap money.
Additionally, regional multilateral development banks are in talks to provide credit guarantees and insurance policies to help lower the interest rates on the new “blue” bonds that will replace the existing, more expensive debt.
African countries face environmental and economic challenges
The countries involved have experienced significant environmental degradation in recent decades. Kenya, Tanzania, and Mozambique have seen substantial losses of mangrove shorelines, coral reefs, and fish stocks, impacting livelihoods, food security, and tourism revenues.
At the same time, countries in the region are heavily indebted, with many spending up to 20 percent of their GDP on climate resilience efforts. Madagascar, home to some of the world’s largest coral reef systems, confirmed it is in talks for the swap deal, but its Minister of Finance, Rindra Hasimbelo Rabarinirinarison, said the negotiations are still in the appraisal stage.
Whether the African group becomes the first to issue such a joint debt-for-nature swap remains uncertain, as similar plans are being explored by some Caribbean nations for their reefs.
