The Nature Conservancy, a global environmental NGO based in the United States, is in talks with three African countries to conclude debt-for-nature swap agreements worth a total of $500 million, aimed at securing funding to protect key ecosystems, according to the organization’s Africa director.
Debt-for-nature swaps help poorer countries reduce their debt repayments in exchange for commitments to environmental conservation.
Countries such as Seychelles and Gabon have used such agreements over the past decade. However, momentum stalled following Donald Trump’s return to the White House last year, which led to a reduction in critical US support.
Nevertheless, organizations that pioneered these initiatives, including The Nature Conservancy, are now working with multilateral development banks, private insurers, and investment funds to revive them.
Ademola Ajagbe, Africa regional director at The Nature Conservancy, said: “We have projects under consideration that we are working on with three different countries… and we are targeting total financing exceeding $500 million.”
He added that one deal is likely to be concluded this year, with two more expected in 2027. He did not disclose the countries involved or the multilateral lenders and international banks, citing confidentiality agreements.
Ajagbe did not elaborate on the impact of the US withdrawal of support on the organization’s operations in Africa, but stressed that demand for environmental project financing continues to grow.
“There are many factors limiting Africa’s ability to allocate funds to protect its natural resources. Part of the problem lies in the high cost of capital, which puts us at a significant disadvantage,” he said.
The outbreak of war involving Iran has sharply increased global borrowing costs, potentially restricting access to markets for heavily indebted African countries. At the same time, it has made debt swaps more attractive, as falling bond prices make debt buybacks cheaper.
Government officials note that Africa—despite facing landslides, floods, and droughts since last year—receives only about 1% of global annual climate finance.
Countries such as Kenya and Zambia, where The Nature Conservancy runs long-term programmes, have seen key sectors including tourism, food production, and hydropower generation affected by climate change.
Ajagbe also pointed out that broader geopolitical tensions are impacting the flow of climate finance from Western donors to Africa, with development aid increasingly diverted from conservation and development towards defence-related priorities.
He added that Gabon, which experienced a military coup just weeks after signing a debt swap agreement in 2023, remains committed to its obligations under the deal despite political upheaval. Ongoing discussions on additional financing are expected to go beyond ocean conservation, which was the focus of the 2023 agreement.
“The current government, at this moment, is honouring the commitment made by the previous administration. We are looking at oceans, forests, and freshwater systems. So this is about a broader scope and a more comprehensive vision,” Ajagbe said.