Africa-Press – Mozambique. The Belgian and Mozambican governments have officially approved the proposal to swap debt for actions to prevent and combat climate change. This was confirmed on Friday (December 8) at the Council of Ministers in Belgium. Part of Mozambique’s debt to the Belgian state will be cancelled in exchange for investments in the fight against the climate crisis.
The Minister for Development Cooperation, Caroline Gennez, had already officially presented the proposal to Mozambique’s Minister for Foreign Affairs and Cooperation, Verónica Macamo, during her mission to Mozambique earlier this year.
Mozambique’s sovereign debt to Belgium, which would accumulate over the next five years, will be cancelled. The condition is that the money released is used to help the Mozambican people better prepare for the effects of climate change.
Belgium and Mozambique approve ‘debt-for-climate-swap’
Belgium cancels part of Mozambican debt to our country.
A year ago, Belgium and Mozambique signed a new five-year cooperation programme (2023-2028) entirely dedicated to the fight against the climate crisis. This programme also includes an important loss and damage component. At the time, Belgium was the second country in the world to decide to invest in projects that help prevent future damage and losses related to climate disasters. Specifically in Mozambique, this involves setting up early warning systems for cyclones, protecting and reinforcing critical infrastructures to make them more resistant to extreme weather conditions and building community shelters.
The debt swap amounts to around 2.4 million euros, almost half the total amount of the debt between Belgium and Mozambique (5.6 million euros). This amount also doubles the original loss and damage component of the cooperation programme (2.5 million euros).
“If we want to support the countries of the Global South in their transition to a sustainable and climate-friendly economy, we have to dare to look beyond traditional financial support. A debt conversion in favour of the climate is an innovative and creative way of making solidarity between the Global North and South concrete and viable. I am therefore pleased that Belgium is one of the pioneers in this field,” says Belgian Minister Caroline Gennez.
Mozambique is extremely vulnerable to the effects of climate change. Storms and floods intensify every year, causing a lot of damage and casualties. That is why Mozambique is calling for projects that focus on green energy and help them adapt to climate change.
“We can only tackle the climate crisis together with African countries. But we also have to face reality. At the moment, Africa is responsible for only 4 per cent of global CO2 emissions, but it is the continent that suffers most from the effects of the climate crisis, such as exceptional floods and droughts. This costs them billions of euros a year. At the same time, we are asking the countries of the Global South to stop using fossil fuels and switch immediately to ecological alternatives, which requires additional investments. The climate crisis is therefore the challenge par excellence where international solidarity is indispensable,” said Gennez.
The Belgian development agency Enabel will manage the funds released and implement and supervise the various projects, in coordination with Mozambique’s National Institute for Disaster Risk Management and Reduction (INGD).
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