Following the development of the legislative and regulatory framework for issuing green bonds, it was also necessary to create incentives that enhance their attractiveness for both issuers and investors. With BIOFIN’s advocacy and in close collaboration with the Working Group, two key incentives were established.  

First, investors benefit from a 15% exemption in withholding tax on green bonds listed on a Zambian exchange with a maturity of at least three years. This measure encourages investment in projects with positive environmental outcomes and accelerates resource mobilization. It also motivates potential issuers, who can expect stronger investor demand and, consequently, higher returns on their bonds.  

Second, the SEC introduced a 50% reduction in green bond registration fees in Zambia. By lowering issuance costs, this measure further strengthens the attractiveness of the market for issuers.  

Since 2018, UNDP BIOFIN has organized various capacity building workshops and provided support towards the development of the green bonds market in Zambia, engaging with key financial sector regulators. These activities have been instrumental in the formulation of the Green Bonds Guidelines and Listing Rules, and have also included targeted trainings for the SEC on the review and approval of green bond applications. 

As an example, a series of capacity-building sessions to scale up the market for green bond issuances in Zambia was delivered to members of the Working Group and other key stakeholders (e.g., investment brokers, transaction advisors, institutional investors, etc) in July 2025. The sessions covered topics such as the fundamentals of green bonds, the structuring process, and eligibility requirements.  

BIOFIN has also provided technical assistance to high-potential green bonds issuers in Zambia. In 2024, a global call was launched to offer tailored guidance for five companies or other prospective issuers. This support includes drafting green bond frameworks, identifying eligible project pipelines, liaising with investment banks, and engaging second-party opinion providers for certification. It also provides advisory services on aligning bonds with international standards, impact reporting, and market positioning.

The development of a green bonds market in Zambia is anchored in the activities of the Green Finance Mainstream Working Group, which brings together financial regulators, standard-setting bodies, development partners, and other key institutions with the objective of mainstreaming green finance into Zambia’s financial landscape. Members include the Bank of Zambia, the SEC, and the Pensions and Insurance Authority (PIA). In addition, the Working Group includes strategic participation from the Ministry of Green Economy and Environment, the Ministry of Finance and National Planning, the Zambian Institute of Chartered Accountants, and the Worldwide Fund for Nature (WWF) Zambia.  

The establishment of the Working Group provided a regular platform for collaboration among regulatory bodies, government agencies, and experts, fostering an enabling environment for the development and effective implementation of green finance solutions. Many of these solutions are multidisciplinary in nature, from legal requirements to technical expertise, and potentially could not have been developed without this collaborative effort. 

The development of legislation and regulations was the foundation for establishing a green bond market in Zambia. The 2019 Green Bonds Guidelines are the main outcome of this process and serve as the enabling regulatory framework for green bonds issuances in the country. They were officially gazetted and developed in line with the International Capital Market Association’s (ICMA) Green Bond Principles, a voluntary protocol for the issuance of green bonds.  

The Guidelines comprehensively cover the requirements for issuing green bonds, including the engagement of an independent external reviewer and the submission of a detailed, green bond framework to the Securities and Exchange Commission (SEC). This framework must explain the project selection criteria to be used, how funds will be utilized, the management of proceeds (the funds raised from selling the bonds), and how environmental objectives will be achieved. Together, these elements promote transparency, accountability, and investor confidence. 

To complement the Guideline, the Green Bonds Listing Rules were also developed, providing a detailed pathway for issuers to list green bonds on the Lusaka Securities Exchange (LuSE). They also establish procedures for evaluating the environmental credentials of green bonds and reporting impacts, contributing to an orderly market.   

Training on mangrove restoration process including development on mangrove nurseries in project sites, and on ecosystem governance equipped CBOs leaders with the skills and confidence to manage resources inclusively and effectively. This enhanced their decision-making, strengthened community participation, and contributed to the successful development of mangrove nurseries and implementation of conservation and governance solutions.

Formally registering CBOs and setting up structured local governance systems — a network of VNRCs or CoFMAs provided communities with legal recognition and a clear mandate. This process enabled collaboration between VNRCs or CoFMAs in archiving mangrove conservation and management objectives, enforce local by-laws, and manage natural resources sustainably. It also enhanced transparency, accountability, and access to government and donor support, empowering communities to take ownership of conservation efforts.

The development of mangrove management plans for Villages and Shehias in the Bengo project sites was essential in translating national laws into effective local action for mangrove conservation and sustainable use in Tanzania. The plans provided a structured, site-specific framework that guided restoration, protection, and the wise use of mangrove ecosystems, aligning legal mandates with practical, context-specific interventions. The participatory and inclusive approach was a key toward archiving well-developed mangrove management plans actively involving local communities, including women and youth, in the development processes. The plans facilitated zoning for conservation, sustainable use, and restoration, based on both scientific and traditional knowledge. Furthermore, these plans enable systematic monitoring, enforcement, and adaptive management. Anchoring conservation efforts in locally tailored and community-supported plans, ensured that mangrove laws were not only written on paper but were meaningfully implemented on the ground, delivering long-term ecological, social, and economic benefits from mangroves

The national forest policy, forest acts, and guidelines, as well as the Local Government Act, provide avenue for community involvement in the management and conservation of forest resources, including mangroves, through the establishment of Village Natural Resource Committees (VNRCs) and Collaborative Forest Management Agreements (CoFMAs). In collaboration with village leaders, Shehia leaders, and forestry officers, supported by the State Attorney’s Office, efforts were made to establish VNRCs or CoFMAs in areas where initiatives were already present and to renew those that had become inactive. Democratic elections were conducted to select the leaders of the newly established or renewed VNRCs and CoFMAs. This transformation process enabled communities to elect leaders of their choice and legally empowered them with the mandate to protect mangroves.

Different educational approaches were used by both the school and us to engage students in a transformative learning experience and strengthen their connection to nature: experiential methods (school garden lessons and interactive biodiversity lessons) to foster hands-on learning; arts-based methods (participatory theatre, photovoice, photo exhibition, sociodrama practices) to bring emotions to the surface; and reflexive methods (open group discussions using mood cards and games) to help process thoughts and feelings, and to encourage both acceptance and critical, creative thinking.

A passionate teacher takes the initiative and dedicates a huge part of her time coordinating the project, collaborating with researchers, and engaging students along with her colleagues. The democratic school community and the teacher(s)’ intrinsic motivation lead to a certain creative freedom to pursue their own ideas and pedagogical innovations, while creating a trusting, open atmosphere for experiential learning in the school garden and through arts-based practices.