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In response to the alarming degradation of ecosystems, the Development Bank of Southern Africa (DBSA) is creating its first fund dedicated to biodiversity, with seed capital of 50 million South African rand, or 2.7 million dollars.
The Development Bank of Southern Africa (DBSA) is taking a major step towards preserving the environment by creating its very first fund dedicated to biodiversity. Backed by seed capital of 50 million South African rand (approximately $2.7 million) from the DBSA Green Fund, the fund aims to attract additional investment to protect the region’s fragile ecosystems.
The DBSA Green Fund, endowed with 1.1 billion rand by the South African government’s Department of the Environment, will be the first source of funding for this new biodiversity fund. This initiative marks a significant commitment on the part of the DBSA to fill the funding gap in the area of biodiversity conservation, which is often overshadowed by climate funds focused on the fight against global warming.
An ambitious financing strategy
To strengthen the fund’s financial capacity, the DBSA plans to approach the Global Environment Facility (GEF) and other private investors. The GEF, with its 186 member countries, has already allocated 8.6 billion dollars over the last 18 years to projects aimed at combating biodiversity loss and land degradation. By attracting additional funding from this fund and other investors, the DBSA hopes to create a sustainable and significant momentum for biodiversity conservation in southern Africa.
To facilitate investor engagement in this new initiative, the DBSA published a white paper this month. This strategic document provides guidance on integrating biodiversity concerns into investment decisions. Michael Hillary, Head of Funding Operations at the DBSA believes that “the fund is one of the first really big steps in taking these things forward. By the end of this year, we’ll start to get a bit more traction. Wealth funds are recognising how essential biodiversity funds are.”
A response to environmental challenges
The creation of this fund comes at a time when investment in biodiversity conservation has been relatively slow to take off compared with climate funds. In southern Africa, deforestation, loss of natural habitats and land degradation threaten many species and ecosystems. The DBSA Biodiversity Fund represents a proactive response to these challenges, aiming to mobilise significant resources for conservation projects on the ground. |
