Gabon sealed an historic debt-for-nature deal
In some welcome good news from west Africa, Gabon has sealed a ‘debt-for-nature’ swap worth hundreds of millions of dollars, pledging around $75m (£59m) for marine conservation over the next 15 years.
Debt-for-nature is a form of debt relief for developing countries. It can involve reducing interest rates or even writing off debt entirely. Nations commit to investing the savings in local environmental measures, which can provide an economic boost.
The Gabonese government bought back almost $500m (£392) of foreign debt using a loan from the Bank of America. “It’s like borrowing from Peter to pay Paul – but Peter’s giving a better interest rate,” explained Paul Steele, chief economist at the UK’s International Institute for Environment and Development.
Gabon has the largest expanse of marine reserves in Africa. Stretching over 53,000 sq km (20,460 sq miles) they are home to the world’s biggest nesting population of leatherback turtles.
Although debt-for-nature swaps have already been done in other countries, including Belize and Ecuador, the Gabon deal is a significant moment, Steele told Positive News.
“It’s the first big deal in Africa, and the first time a big American bank has got involved,” he said. “It’s not some little, niche product anymore – it’s going mainstream. We have an environment and nature crisis, and we have a debt crisis – we can resolve both with one tool.”
Image: Ralph Messi
Source link : https://www.positive.news/society/good-news-stories-from-week-32-of-2023/
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Publish date : 2023-08-10 07:00:00
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