The Democratic Republic of Congo (DRC), a country rich in natural resources, is exploring launching a debt-for-nature swap to finance sustainable development projects while easing its public debt burden.
This comes against the backdrop of a groundbreaking technical study, themed, Public Debt Swap Mechanism to Finance Climate Action in the DRC which was discussed at a technical workshop organised by the United Nations Economic Commission for Africa (ECA) and the Ministry of Finance of the Democratic Republic of Congo.
The workshop brought together over 20 participants from the Ministry of Finance, the General Directorate of Public Debt, the Central Bank of Congo and representatives of technical and financial partners to explore how debt-for-nature swaps could fund climate action in the DRC.
The study, Public Debt Swap Mechanism to Finance Climate Action in the DRC, conducted with the support of the French Development Agency, examined the country’s debt portfolio and identified potential projects for a debt-for-nature swap program. These include forest conservation, agriculture, battery and electric vehicle projects.
“The DRC is positioning itself as a solution country in the face of climate change,” said Doudou Fwamba Likunde Li-Botayi, Minister of Finance of the DRC. “The Debt Swap represents an innovative opportunity to convert part of our debt into strategic investments in key sectors such as education, health, agriculture and infrastructure.”
