• Three African countries are negotiating over $500 million in debt-for-nature swaps

• Deals aim to cut debt while financing environmental protection

• Rising climate risks and high borrowing costs are driving renewed interest

Three African countries are in talks with U.S.-based NGO The Nature Conservancy (TNC) to structure debt-for-nature swaps worth more than $500 million, aiming to ease debt burdens while funding environmental protection.

These arrangements, still relatively rare in Africa, allow countries to reduce part of their debt in exchange for concrete commitments to protect ecosystems. Seychelles and Gabon have already used similar mechanisms over the past decade.

According to TNC’s Africa director, Ademola Ajagbe, one deal could be finalized as early as 2026, with the other two expected by 2027. The countries involved have not been disclosed due to confidentiality agreements.

The renewed momentum comes in a shifting geopolitical context. The return of Donald Trump to the White House has led to reduced U.S. support for such initiatives, temporarily slowing their development. In response, organizations like TNC are working to revive these deals by relying more on multilateral banks, private insurers, and investors.

Rising Demand for Climate Financing

Across Africa, demand for climate financing continues to grow. Ajagbe said the cost of capital is high and puts Africa at a disadvantage. Higher interest rates and geopolitical tensions are making it harder for already indebted countries to access global markets.

At the same time, these pressures are making debt-for-nature swaps more attractive. Lower bond prices allow debt to be repurchased at a discount, easing the structuring of such deals.

Despite this, Africa remains largely sidelined in global climate finance, receiving only about 1% of total flows, according to public officials.

Yet the continent is among the most exposed to climate risks, facing recurring floods, droughts, and landslides. Key sectors such as tourism, agriculture, and hydropower are already under strain in countries including Nigeria, Kenya, and Zambia.

Fiacre E. Kakpo