A sufficiently resourced biodiversity sector is crucial to managing biodiversity for all. Resource constraints compromise the ability to understand, track and address the impacts of biodiversity loss and degradation on people and nature. To protect the country’s natural heritage for future generations, South Africa must move beyond business-as-usual and mobilise private sector investment and innovative finance solutions to fund biodiversity.
Despite gradual increases in nominal public sector spending, South Africa’s Biodiversity Expenditure Review highlights a concerning trend that real expenditure (adjusted for inflation) is declining, eroding the purchasing power of existing resources. This fiscal pressure, compounded by South Africa’s constrained macroeconomic environment, poses serious challenges to achieving the country’s biodiversity targets under the National Biodiversity Strategy and Action Plan (NBSAP).
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To address this, the Biodiversity Expenditure Review strongly advocates for diversifying finance flows, including expanding private sector engagement, unlocking green finance instruments such as biodiversity bonds, and fostering public-private partnerships. Private sector partners, particularly financial institutions, have a key role to play in mobilising resources and innovative finance solutions to support more positive outcomes for biodiversity. Funding mechanisms such as the Green Climate Fund offer opportunities to scale up efforts for biodiversity and climate, and complement traditional funding mechanisms such as the Global Environment Facility and others.
The move towards a more collaborative, whole-of-government and whole-of-society approach is key to building an effective resource base for the biodiversity sector and to support positive biodiversity outcomes. This is underpinned by building strong partnerships, exploring new opportunities, strengthening institutions, and building capacity and skills. The Biodiversity Finance Plan for the third NBSAP will provide a clear, evidence-based roadmap to mobilise and align financial resources. Importantly, the country needs to standardise biodiversity tagging across all sectors to improve the tracking and reporting of biodiversity-related expenditures. This is the foundation of a sustainable biodiversity finance framework for South Africa, one that safeguards the country’s exceptional natural heritage, supports socio-economic development, and ensures long-term investment.