Funds managed by BIOFUND

The Foundation for the Conservation of Biodiversity (BIOFUND) has, over the years, consolidated its position as one of the main sustainable financing mechanisms for biodiversity conservation in Mozambique.

BIOFUND mobilizes and manages three distinct types of funds, namely: Endowment Funds, Pass-through Funds, and Direct Project Management Funds.

• Endowment Funds – long-term invested funds, where only the investment returns may be utilized, while the capital itself remains intact;
• Pass-through Funds – third-party funds allocated to BIOFUND for specific projects, with the Foundation serving as the disbursement mechanism and financial manager;
• Direct Project Management Funds – funds related to projects that are directly managed and implemented by BIOFUND.

The fundraising effort for the investment fund began even before the formal establishment of BIOFUND, during the period of the Founders’ Committee. However, it was only after the Foundation’s structuring that the necessary conditions were created to initiate negotiations with partners. This process required BIOFUND to establish operating routines aligned with the standards demanded by the regulations of major donors.

The positive evaluation of BIOFUND’s consolidation process in 2014 was instrumental in the decision of several partners to contribute to the creation of our Endowment, which by the end of 2024 had reached USD 60.58 million. This amount includes contributions from German Cooperation through KfW (38%), the World Bank/GEF (22%), AFD (3%), and Conservation International (2%), as well as reinvested earnings (23%) and earnings already utilized (12%).

Through the returns generated by the Endowment, BIOFUND partially finances the operational costs of 13 Conservation Areas (CAs) through four projects, namely: ASA (since 2019 – permanent), CI/APAIPS (since 2019 – permanent), Post-Abelha (since 2021 – permanent), and Post-MozBio 2, in addition to covering some of the Foundation’s operating expenses.

With BIOFUND’s growing reputation as an independent and well-managed institution, the Foundation has also been successful in mobilizing pass-through funds to support conservation beneficiaries.

Pass-through funds received from third parties for onward transfer to beneficiaries come mainly from the World Bank, the U.S. Government (through the implementation of the Millennium Challenge Corporation’s Compact II – MCC, which will finance the Climate Resilience and Livelihoods Project in the Zambezia region – CLCR), the Government of Sweden, AFD/FFEM, and the European Union. This mechanism was operationalized in 2017, when BIOFUND began operating as a pass-through channel for third-party funds, without responsibilities for project design. However, since 2022, the Foundation has expanded its role to also include project design and fiduciary management for initiatives financed by these partners.

By the end of 2024, more than USD 138 million had been raised (approximately USD 50.1 million in 2024 alone), of which around USD 44 million had already been disbursed cumulatively since 2016 (including USD 4.91 million from Endowment returns). In 2024 alone, approximately USD 17 million were disbursed (over USD 1.01 million from Endowment returns).

These projects are designed, managed, and implemented directly by BIOFUND, ensuring a technical and operational approach that is fully aligned with national priorities and compliant with the standards required by cooperation partners.

The portfolio of direct project management amounts to approximately USD 9.7 million, raised to support the management of the following programs:

• Innovative Financing – Highlighting the Biodiversity Offsets Program, which aims to create a favorable legal, technical, and financial environment to enable the implementation of the mitigation hierarchy in Mozambique.
• Mozambique Conservation Leadership Program – Aims to build and/or strengthen technical capacity and foster a supportive environment within the National System of Conservation Areas (SNAC) through three main pillars: (i) enhancing the technical skills and capabilities of SNAC professionals; (ii) attracting and motivating qualified youth to join the conservation system; and (iii) raising awareness and engaging the general public, with a special focus on youth within the conservation community network.
• Blue Future – A program focused on the conservation of marine and coastal biodiversity, as well as the mitigation of climate change impacts along the Mozambican coastline. BIOFUND’s management component includes the annual Marine Biodiversity Conference (CBM), a platform for reflection and the sharing of scientific knowledge on the country’s marine ecosystems.
• Ranger Support Fund – An initiative aimed at recognizing and valuing the courage and dedication of rangers in the protection and conservation of Mozambique’s marine and terrestrial biodiversity.