Moroccan fund Ithmar Capital has announced in a statement published on November 16 it has signed a memorandum of understanding (MoU) with the World Bank to launch the first pan-African green investment fund, the Green Growth Infrastructure Facility for Africa (GGIF for Africa). The MoU was signed at the Finance Summit held on the sideline the COP22 in Marrakech.

Designed to support projects in Africa, GGF for Africa aims to attract private investors seeking green and responsible investment opportunities.

Unlike most climate change fund presently in place whose main goal is to provide subsidies or concessional financing, GGIF for Africa is structured like a private equity fund. .

“The goal of GGIF for Africa is leveraging capital flows for investment in environmentally sustainable infrastructure. It will also include a Public Private Partnership (PPP) unit that will focus on the origination of viable projects in collaboration with Government agencies,” Ithmar Capital said.

The initiative has received the support of the International Forum of Sovereign Wealth Funds (IFSWF). Truly, sovereign funds favor long-term investments like infrastructure projects. They wish to invest more in such projects in Africa since they are not much present on the continent.