The U.S.-based environmental organisation, The Nature Conservancy (TNC), is negotiating with three African nations to establish debt-for-nature swaps valued at a combined $500 million, aimed at financing the protection of critical ecosystems, according to Reuters.
Debt-for-nature arrangements, where a portion of a developing country’s external debt is forgiven in exchange for investments in environmental conservation, are increasingly being adopted by lower-income nations as a tool to support sustainability initiatives.
In 2023, Gabon became the first African nation to execute such a deal, securing up to $450 million. Similarly, Seychelles has successfully used comparable schemes over the past decade.
However, no new agreements have been finalised since last year, following a decline in U.S. support after Donald Trump returned to office.
TNC is now partnering with multilateral development banks, private insurers, and investment funds to revive these initiatives.
Ademola Ajagbe, TNC’s regional managing director for Africa, stated, “We have projects on the table with three countries… we are looking at upwards of $500 million in total.” He added that one deal could be finalised this year, with two additional agreements anticipated in 2027. Due to confidentiality, he did not disclose the countries, lenders, or banks involved.
Ajagbe highlighted that rising borrowing costs and limited access to capital restrict African nations’ ability to fund conservation efforts.
Despite experiencing floods, droughts, and landslides since last year, Africa receives only around 1% of global annual climate finance.
Nations such as Kenya and Zambia, where TNC maintains ongoing programs, have seen critical sectors like tourism, agriculture, and hydroelectric power impacted by climate change.
Geopolitical tensions have also redirected development aid from conservation projects toward defence priorities.
Even after a military coup in Gabon following its 2023 debt-for-nature agreement, the country continues to honour its commitments.
Future deals are expected to expand beyond marine conservation to include forests and freshwater ecosystems, reflecting a more comprehensive environmental strategy for the continent.