• Deal would cut debt, fund Congo Basin forest conservation
• Talks ongoing with European partners; timeline not yet set
  

After raising $670 million through its first Eurobond in nearly two decades, the Republic of Congo is preparing a “debt-for-nature swap” that would convert part of its debt into financing for environmental protection projects.

Finance Minister Christian Yoka confirmed on Wednesday, November 5, 2025, in Belém, Brazil, while attending the COP30 climate summit, that talks are underway with several European partners to design the deal. The Finance Minister told Reuters that they were in discussions with partners who could provide credit enhancements, but the potential size of the swap had not yet been determined.

Congo’s external debt, estimated at $5 billion at the end of 2024, remains high but has fallen after years of restructuring. According to the IMF, public debt is considered sustainable but still classified as being in distress, with arrears to several bilateral and commercial creditors.

Bilateral creditors, mainly China and members of the Paris Club, hold more than three-quarters of the debt, while the private sector accounts for about 16%.

Authorities hope the operation will ease the burden of debt service and demonstrate fiscal discipline to international investors.

Under the plan, Brazzaville would renegotiate or repurchase part of its debt at a discount, with support from international partners, in exchange for measurable commitments to protect the Congo Basin forests. The transaction would lower the debt load while channeling savings into conservation and climate-mitigation projects, similar to Gabon’s $500 million “Blue Bond” issued in 2023.

The initiative aligns with the government’s strategy to make public debt more sustainable while mobilizing climate-finance instruments for national priorities.

The Congo Basin, the world’s second-largest tropical rainforest after the Amazon, is one of the country’s greatest natural assets. It shelters exceptional biodiversity and stores about 8% of global carbon, positioning Congo as a key player in the fight against global warming.

By pursuing a debt-for-nature swap, Brazzaville aims to attract sustainable-finance investors and capitalize on its ecological wealth. Funds generated through the conversion would support reforestation, forest monitoring, sustainable resource management, and green-job creation in rural areas.

“A debt-for-nature exchange resonates particularly with our country, given the strategic role of the Congo Basin,” Minister Yoka said.

Similar deals have already been carried out in Seychelles, Belize, and Gabon, which managed to reduce external debt while securing long-term environmental funding.

No timeline has been announced yet, but discussions are expected to continue in the coming weeks as more African nations explore ways to turn natural assets into financial leverage.

Fiacre E. Kakpo