The sustainable finance coalition: pioneering sustainable growth and development in Africa. Image: OYLA Magazine.
(The Post News)- Global wildlife populations have faced an unsettling two-thirds decline in the last 50 years, but the efforts to counter biodiversity loss still remain underfunded. Based on the Paulson Institute, it has been estimated that at least US$700 billion is needed yearly in order to achieve meaningful conservation outcomes, which has exposed a stark funding shortfall.
Being founded in 2019, South Africa’s Sustainable Finance Coalition (SFC) has stepped in to bridge the gap by developing funding solutions for nature conservation and socio-economic upliftment across the African continent. The co-founders of the Sustainable Finance Coalition, WWF South Africa, and Wilderness Foundation Africa are using tailored financial models to bring much-needed funds into conservation.
Candice Stevens, the Coalition’s co-founder and CEO, has stated that the finance sector has the resources to promote nature, but effective financial structures are lacking. In a press release, Stevens said the financial sector has the money to achieve this, but what was needed was to find tailor-made financial solutions for nature. The Coalition is backed by the WWF Nedbank Green Trust, which provides the initial “catalytic funding” that scales conservation-focused financial initiatives across the continent. The SFC has developed 11 solutions in 15 nations since the beginning of 2024, with replication projects in 33 environments.
According to Justin Smith of WWF South Africa, the Coalition distinguishes itself by transforming high-potential concepts into operational projects that provide long-term solutions for nature-based activities. The Coalition launched Africa’s first inventory of funding solutions for conservation in conjunction with the African Leadership University. This is an online platform that was launched in September 2024, allowing conservationists and funders across Africa to access tested finance models and resources.
Stevens noted that the Coalition’s efforts have channeled an estimate of US$30 million into pilot projects with ambitions to scale the amount to US$100 million. Another new approach is the Coalition’s development of a biodiversity credit system, which has the potential to allow firms to purchase biodiversity credits in exchange for nature-related financial reporting, similar to carbon credits. In November 2023, a buyers’ round table was held in Sandton, which sparked notable interest from banks, asset management firms, and other stakeholders, which has suggested a growing market for nature-linked credits.
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