Zambia, like many developing nations, faces a significant financing gap in addressing urgent biodiversity and environmental challenges. As the country grapples with deteriorating natural resources, finding innovative financing solutions has become essential to achieving the goals outlined in its National Biodiversity Strategy and Action Plans (NBSAPs). The global call to action—particularly through the Kunming-Montreal Global Biodiversity Framework’s (GBF) Targets 19b (to substantially increase financial resources for biodiversity conservation) and 19c (to mobilize and align all relevant financial flows and develop effective financial instruments)—has heightened the need for strategic interventions to develop sustainable financing instruments and accelerate resource mobilization for biodiversity. In response, BIOFIN Zambia has positioned the country as a prime candidate for green financing, harnessing innovative solutions such as the emerging green bond market to drive sustainable investments.
Where it all began
BIOFIN Zambia’s journey began with a clear vision—to secure financial resources for biodiversity conservation through innovative financing mechanisms. Recognizing the growing global interest in green bonds as a tool for sustainable finance, BIOFIN Zambia initiated efforts to develop a green bond market that would unlock new streams of financing for conservation efforts. By forming strategic partnerships with the Green Finance Mainstreaming Working Group, which brings together key financial sector regulators, government ministries, and other stakeholders, BIOFIN Zambia has been instrumental in shaping the country’s green financial landscape.
UNDP Zambia and SEC Zambia sign an MoU to strengthen collaboration on sustainable finance and biodiversity conservation. Photo credit – UNDP Zambia
Milestones achieved
Since 2018, BIOFIN Zambia has provided critical technical support to the Securities and Exchange Commission (SEC) Zambia, laying the groundwork for a thriving green bond market. The first major achievement came in 2019 with the efficient development of Zambia’s Green Bonds Guidelines, achieved in record time of within a year. This established a comprehensive framework for green bond issuances. In the following years, several key incentives were secured, including:
- The exemption of a 15% withholding tax on green bond investments listed on a Zambian exchange with a tenor of more than five years.
- A 50% reduction in green bond registration fees with SEC Zambia.