The World Bank wants to hire financial markets to save the black rhinos in South Africa. With “nature bonds”, the organization plans to issue bonds with the simple principle: investors only make money if the black rhino in South Africa increases.
What happens if investors play a role in rescuing black rhinos? The idea came from a collaboration between the World Bank and the Rhino Impact Investment Project from the Zoological Society of London. The stated goal is clear: to set aside $ 45 million for two nature reserves in South Africa that are fighting to save the black rhinos, highly valued by smugglers for their horns. The latter, reduced to powder, is found by many buyers in Asia for its alleged aphrodisiac properties.
An increase in the rhino population by 4%
To save the rhinos and their horns, the World Bank therefore wants to issue bonds with a maturity of five years. Bonds that will have quite surprising properties because they will not offer an annual coupon. Investors will not receive any interest during the life of the bond. At the end of the five years, they will be able to recoup their invested capital, plus compensation, but only if the set goal is achieved. An annual increase of 4% of the rhino population on the affected reserves. This compensation will be paid by the Global Environment Facility, created during the Rio Earth Summit in 1992. The amount has not yet been announced by the World Bank.
An openness to the protection of other endangered species
This is not the first time that the organization has addressed the environmental issue through bonds. Since 2008, it has issued “green bonds” or more recently “blue bonds” to protect the oceans. This time it is the conservation of the rhinos that is at stake: the world’s population of black rhinos has grown from 70,000 fifty years ago to just over 5,500 today.
► Also read: inKenya, investigation into the death of 8 black rhinos transferred to Tsavo Park
If successful, this operation can be extended to protect other endangered species such as lions, tigers and orangutans in particular. The first issue of the rhino is expected to take place before the end of the quarter.
► Also read : in Kenya, for the first time since 1999, no rhinos were poached in 2020
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