The World Wildlife Fund (WWF) has proposed that Zambia take on a debt-for-nature swap’ as part of its debt relief structure.
A ‘debt-for-nature swap‘ is when creditors provide debt relief to low-income countries ‘in return for government commitment to protect’ fragile ecosystems.
Essentially, Zambia has been offered a loan to settle its public debt in exchange for protecting its national parks, wildlife, and natural wonder (Victoria Falls), as reported by Reuters.
The G20 is ‘The Group of 20,’ an international forum made up of 19 countries and the European Union that assist in international economic issues.’ As part of restructuring the ‘Common Framework’ of how they assist countries with debt relief, they are using Zambia as a test case.
The restructured ‘Common Framework‘ creates a Creditor Committee for each country that requests debt treatment. This committee works alongside the International Monetary Fund (IMF) and World Bank to create a debt treatment plan that also looks at assisting the country in not falling back into unsustainable debt.
The WWF provided the Zambian government with a blueprint ‘on how conservation pledges could be part of the deal.’ This approach has worked for both Belize and Seychelles which received debt relief in exchange for committing funds to ocean protection.
Although the IMF has not yet factored in this proposal, they might consider it, especially if ‘creditors made it clear that they might back’ the idea.
Zambia will consider all debt restructuring options. However, with such a plethora of wildlife that lives and moves through their national parks, as well as the threat of climate change and deforestation on their natural habitats, WWF’s proposal seems like an ideal choice.
Should the proposal go through, WWF’s Zambia country head, Nachilala Nkombo, says that the government would likely pledge between $750 million and $1 billion to green projects in the country.
Nkombo believes that if Zambia loses its natural habitats, wonders, and wildlife ‘the impact goes far beyond Zambia, it would be a loss globally.’
Pictures: Unsplash
