African governments are increasingly using debt swaps, multilateral guarantees, and concessional financing to reduce the cost of borrowing for energy and environmental projects. One example is Zambia’s $1.36 billion debt-for-development deal, which was designed to generate savings for power infrastructure, including a $275 million grid upgrade. Similarly, Côte d’Ivoire and Benin have used African Development Bank guarantees to secure cheaper, longer-term financing for sustainable investment, and Kenya’s debt-for-climate agreement directed over $60 million in German debt forgiveness toward geothermal power. These arrangements can reduce borrowing costs, attract ESG capital, and support development. However, some also raise concerns about transparency, hidden liabilities, and sudden collateral demands, as illustrated by Nigeria’s proposed $5 billion total return swap deal. According to the IMF, such opaque structures are difficult to assess and are potentially destabilizing during currency swings.