SanParks’ biodiversity bank a win-win

SanParks’ biodiversity bank will offer biodiversity credits for project developers.

South African National Parks (SanParks) has come up with an innovative solution to expand South Africa’s protected areas while assisting large project developers to offset their environmental impact.

It remains a challenge for developers to avoid environmental impacts and biodiversity loss, which has often resulted in projects being stalled or put on ice.

At the same time, it is important for a country like South Africa to protect its rich biodiversity and expand its national parks and protected areas.

First-of-its-kind instrument

Last week SanParks launched the SANParks Biodiversity Offset Bank, a first-of-its-kind instrument that operates on a simple principle: development projects that impact biodiversity must compensate by investing in conservation activities elsewhere.

According to SanParks this approach ensures no net loss of biodiversity, and ideally, a net gain.

A vision for 2040   

The Biodiversity Offset Bank forms part of SanParks’  Vision 2040 concept. Vision 2040’s core pillar is the development of expansive mega-living landscapes (which includes development projects) where conservation catalyses social and economic development.

The Biodiversity Offset Bank is one of the important instruments that will support this direction of sustainable financing, protected area expansion, and inclusive growth.

By requiring developers to offset their environmental impact, the Biodiversity Offset Bank ensures that economic progress does not come at the expense of South Africa’s rich natural heritage.

Protect and expand

Biodiversity offsets are an innovative financing mechanism for the expansion and management of protected areas. It offers SANParks a unique opportunity to expand their protected area network, while at the same time unlocking economic development.

According to SanPaks the bank will only be purchasing land that makes sense for park expansion, either forming an important conservation corridor, strategic water source area or critical biodiversity area that is not protected currently.

SANParks together with government, business, civil society, and communities will ensure that the Biodiversity Offset Bank operates within the legal and regulatory framework of South Africa’s Environmental Impact Assessment regime.

An example for Africa

This initiative sets a precedent for other African nations, demonstrating the potential of innovative financial mechanisms to protect biodiversity while fostering a thriving economic sector.

Make sure to follow WhyAfrica during the 2025 WhyAfrica Road Trip and over the next few months as we delve deeper into SanParks’ extraordinary vision and how it affects development, communities and the environment.

WhyAfrica specialises in the sustainable use and responsible extraction of natural resources. We have a special focus on biodiversity and biodiversity credits, so if you have a question or would like to invest in Africa’s biodiversity, please contact us.

Image: Agricultural development in an area rich in biodiversity. Image credit: Spekboom.

SanParks’ biodiversity bank a win-win