The BIOFIN Initiative in Zambia started in September 2015 with project staff having been recruited in September 2016. Todate, the PIR, FNA and BER have attained 100%, 90% and 90% completion rates respectively. The FNA and BER, both currently at 90% completion, are expected to be finalized by June 2019.

The Biodiversity Finance Plan (BFP) has so far attained 90% completion with a projected finalization date of 30th July 2019. Of the 7 finance solutions that are contained within the BFP, two have so far been earmarked for implementation under Phase 2. These relate to the development of the green bond market in Zambia as well as pro biodiversity fiscal and non-fiscal incentives.



Progress Reports

Policy and Institutional Review (PIR)

The PIR has been completed and ready for publishing. The process included a review of the policies, legal instruments and institutional set ups for biodiversity financing. Through the PIR, Zambia did identify a number of potential solutions some of which found their way into the BFP.

Expenditure Review (BER)

Data collection for years 2014-2018 has since been collected and analyzed. The full report is expected to be finalized within the second quarter of 2019. Preliminary key findings include low budgetary allocation towards biodiversity which is below 1%, low budget releases ranging from 5-40% and larger allocation of the annual budgets towards human resources in comparison to other biodiversity categories. Full results will be shared once the report has been finalised.

Needs Assessment (FNA)

The FNA is currently at 90% completion. The total finance needs that were derived from the FNA are $242m for a period ranging from 2018-2030. Among the five strategic Goals of Zambia's NBSAP, Strategic Goal A which is focussed on addressing the underlying causes of biodiversity loss has the largest finance needs at 51% followed by Goal B which is focussed on reducing the direct pressures on biodiversity at 23%. Goal E which is focussed on enhancement of implementation through participatory planning, knowledge management, and capacity building has the least finance needs at 2%.

Finance Plan (BFP)

Zambia's Biodiversity Finance Plan (BFP) is currently at 90% completion. The BFP is composed of seven (7) finance solutions. The validated report is expected to be finalized within the third quarter of 2019 with a possibility of two more finance solutions emerging from the validation process which will bring the total number of solutions to nine (9). 

Two finance solutions have so far been prioritized for implementation under BIOFIN phase 2. These are as follows;

(i) Development of the Green bond market in Zambia focussing on the development of green bond guidelines and listing rules with the Securities and Exchange Commission of Zambia as well as the Lusaka Securities Exchange (LuSE) respectively. The target result is to raise green finance that has co-benefits between climate change and biodiversity conservation.

(ii) Development of a Biodiversity Fiscal and Non-Fiscal Incentives Framework earmarked at encouraging private sector investments in biodiversity conservation.

Finance Solutions

Below is the progress on the two priority finance solutions:

(i) Development of the Green bond market in Zambia. The development of the green bond guidelines and listing rules with the Securities and Exchange Commission of Zambia, as well as the Lusaka Securities Exchange (LuSE), is currently underway. BIOFIN Zambia is currently seeking support for the provision of technical assistance support to would be issuers of green bonds. 

(ii) Development of a Biodiversity Fiscal and Non-Fiscal Incentives Framework earmarked at encouraging private sector investments in biodiversity conservation: This solution is being implemented in conjunction with the Zambia Development Agency. Currently, stakeholder input on the proposed incentives is underway. Once finalized, the input will be analysed which will lead to the development of an incentives framework for biodiversity in Zambia. The framework will be the output that will be used as a basis for lobbying to Government for the inclusion of some of the proposed incentives into legislation for onward implementation

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