Seychelles DFC

The Seychelles implemented a debt for climate (DFC) swap in 2017, where The Nature Conservancy acquired external debt at a discount and raised USD 5 million in donor funding to establish the Seychelles Conservation and Climate Adaptation Trust (SeyCCAT). This trust manages the conservation of 13 Marine Protected Areas covering over 85% of the country's coral reefs and shallow waters. Since 2017, SeyCCAT has provided over USD 1.5 million in grants for 33 projects, with significant funding directed toward women, youth, and small-scale artisanal fisheries. The document further details the structural requirements for DFC swaps, emphasizing the need for autonomous funds, high-level political leadership, and the suitability of Middle Income Countries (MICs) that are not part of the Debt Suspension Servicing Initiative (DSSI).

• In 2017, the Seychelles executed a debt for climate (DFC) swap involving The Nature Conservancy (TNC), which bought external debt at a discount and secured USD 5 million in private donor funding to support the Seychelles Conservation and Climate Adaptation Trust (SeyCCAT).
• The SeyCCAT trust focuses on the conservation of 13 Marine Protected Areas (MPAs), which encompass more than 85% of the shallow waters and coral reefs in the Seychelles.
• Since its inception in 2017, SeyCCAT has distributed more than USD 1.5 million in grants across 33 projects, benefiting sites such as Aldabra, Bird Island, Alphonse Island, Farquhar, and Curieuse Marine National Park, as well as conducting biodiversity assessments on Fregate island.
• Grant distribution by SeyCCAT has prioritized social equity, with over 50% of funds benefiting or led by women, one-third benefiting or led by youth, and 23 projects supporting small-scale artisanal fisheries.
• Effective DFC swaps require specific conditions: a separate autonomous trust to ensure transparency, high-level political support from the debtor government, and a debtor nation that is typically a Middle Income Country (MIC) with high external debt but no imminent liquidity crisis.
• Zimbabwe is identified as a potential candidate for a DFC swap due to its status as a non-DSSI middle-income country with USD 2.7 billion in bilateral public external debt (12.8% of GDP) and a stated political will to transition to a low-carbon economy.

APA

Climate Policy Initiative (2021). Seychelles DFC. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/seychelles-dfc-2/

Chicago

Climate Policy Initiative. Seychelles DFC. 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/seychelles-dfc-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Seychelles DFC |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/seychelles-dfc-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021seychelles, author = {{Climate Policy Initiative}}, title = {{Seychelles DFC}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/seychelles-dfc-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }