How debt-for-nature swaps are resuscitating climate action investments in Africa | Business

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Portugal recently struck a deal to swap Cape Verde's debts for environmental investments in a fund established by the West African country. | News24_Business

to Portugal and over €400 million to Portuguese banks, is suffering from rising sea levels and biodiversity loss due to increasing ocean acidity.

The newfound common ground between Cape Verde and Portugal comes at a time when the island nation is accelerating its fight against climate change. According to the report, such plans"can allow a country greater flexibility in its future budgetary decisions, increasing its capacity to address environmental needs without the burden of additional debt restructurings". proposal from the World Wide Fund for Nature . If it goes through, it could help the country unhook, at least partially, from a $13 billion debt, currently under re-evaluation.

On a United States state visit, Yemi Osinbajo, Nigeria's vice president, indicated"debt-for-climate swaps would guarantee a just and equitable energy transition for its population and Africans".

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