Climate Financing Debt-To-Nature and Debt-For-Climate Swaps

Sub-Saharan Africa has a significant debt profile, owed mostly to international lenders, including sovereign States, multi-lateral agencies and multi-nationals. For instance, with a projected external debt of $88.7 billion in 2025, African countries are currently experiencing the highest levels of debt in over a decade. This has culminated in Sub Saharan African governments reportedly allocating approximately 40-50% of their domestic revenue to debt servicing. This publication considers climate financing as a means to address debt obligations while also taking corrective actions to mitigate and build a resilient environment against climate change.