Wildlife Conservation Bond
Two Eastern Cape nature reserves which house the critically endangered black rhinos will receive $10 million to aid the fight against poaching and to improve the conditions of the animals.
The Addo Elephant Park and the Great Fish Nature Reserve are the only South African beneficiaries of the newly established five-year Wildlife Conservation Bond by the World Bank Group.
The three other pilot sites are in Kenya.
The World Bank Group issued the new Rhino Impact Investment Bond in New York on Wednesday night.
It is the first-of-its-kind, outcome-based, financial instrument that channels investments to achieve conservation outcomes, measured in this case by an increase in black rhino populations.
The Bond will be sold at 94.84% of face value providing investors with a guaranteed minimum return once it matures.
The pilot project will entail the World Bank issuing a $150 million bond on the 31st of March.
Eastern Cape Park and Tourism Agency CEO Vuyisani Dayimani said the funding would support increased staffing and training, improved national and regional coordination, plus investments in equipment, infrastructure, and technology.
Acting South African National Parks CEO Dumisani Dlamini said the bond will support important conservation efforts at Addo Elephant National Park and help fill funding gaps due to a reduction in tourism due to the COVID-19 pandemic.
"This project is an example of our continued efforts to foster innovation, best practices, and unlock new revenue streams to promote a system of sustainable national parks that contribute to the South African biodiversity economy," he said.
The Minister of Forestry, Fisheries, and the Environment, Barbara Creecy, says they're excited to be at the forefront of an innovative new financial instrument aimed at boosting our efforts to protect the world's largest rhino population.
"South Africa is committed to securing nature's contribution to people through well-managed and expanding Conservation Areas that contribute to inclusive rural economic growth in thriving Biodiversity Economy Nodes," she said.
According to the World Bank, the Parks will receive about half of the funds in the first year.
