It is time to Rethink Conservation Business Models

As a long-time advocate for biodiversity projects and a specialist in conservation funding, it's refreshing to see Ray Dalio echoing sentiments (https://fortune.com/2023/12/07/bridgewater-ray-dalio-private-capital-climate-solutions-returns/) that resonate deeply with the challenges I've encountered on the ground. His recent remarks at the COP28 climate summit in Dubai emphasized a critical truth: for private capital to engage in financing climate solutions, the bottom line must make financial sense.

In the world of conservation, many projects have historically been founded on the noble premise that profit should not be the primary motive. The prevalent assumption was that benevolent philanthropists or miraculously falling funds would materialize to sustain these initiatives. However, the landscape has evolved, and the financial markets are ready to invest. The stumbling block isn't a lack of willing investors but rather the inability of these projects to present compelling investment propositions.

Dalio's assertion resonates deeply: "You have to make it profitable." This phrase encapsulates the challenge that many conservation projects face today. Investors are not averse to supporting these causes; they seek viable, sustainable business models that guarantee returns on their investments. The outdated mindset of relying solely on philanthropy has hindered the progression of these projects into investment-worthy entities.

From my experience, I've encountered numerous enthusiastic investors eager to contribute to meaningful conservation efforts. However, these projects often lack the essential elements crucial to attracting investment: a robust business plan and a clear path toward profitability. Struggling to prove their investment potential, many initiatives find themselves constrained by financial limitations, preventing them from investing in the necessary turnaround strategies or viable business models.

Moreover, the approach adopted by large organizations in Africa, while commendable for the positive impact they've brought, has often leaned heavily on donor funding. This reliance on external financial support, while essential in the short term, perpetuates a cycle where conservation projects are designed primarily to provide socio-economic and conservation solutions, sidelining the imperative of financial profitability.

The sentiment expressed by financial industry stalwarts at COP28 reverberates far beyond the conference halls. The clarion call for "bankable investments" and a focus on sustainability with profitability is a mantra that echoes from Wall Street to the savannahs of Africa, resonating with the endeavors across the global green economy.

While my perspective is rooted in the context of conservation projects in Sub-Saharan Africa, the resonance of the issue I address extends its tendrils across all sectors of the green economy worldwide. The imperative for conservation projects to present viable investment propositions isn't a regional concern but a global necessity in securing the future of our planet.