Home Economy Morocco, World Bank to Create Green Growth Infrastructure Facility for Africa

Morocco, World Bank to Create Green Growth Infrastructure Facility for Africa

Morocco, World Bank to Create Green Growth Infrastructure Facility for Africa
Photo by Swathi Sridharan

Marrakech  – The World Bank Group and Ithmar Capital, a Moroccan Sovereign Investment Fund, signed on Wednesday in Marrakech a memorandum of understanding relating to the establishment of a Green Growth Infrastructure Facility for Africa (GGIF Africa), the first pan-African fund dedicated to green investment in the continent.

GGIF will be structured as private capital fund and its objective is to attract private investors with interest in Morocco or Africa who are looking for responsible and green investment opportunities.

It aims at working as a catalyst for the transition of Africa into a green economy by supporting low carbon infrastructure such as clean energy, low carbon transportation and the efficient utilization of water resources.

GGIF will be sponsored by the World Bank and Ithmar Capital. This dual-sponsoring will allow the fund to benefit from the strengths of these two organisations; the World Bank with its expertise in fund establishment and policy work, and Ithmar Capital through its network of partners and experience in co-investment structuring. The announcement was made at the Finance Summit of COP22 in Marrakesh.

GGIF will also include a Public Private Partnership (PPP) unit that will focus on the origination of viable projects in collaboration with Government agencies. This will result in a consolidation of PPPs in the targeted countries.

The World Bank and Ithmar Capital will work in close partnership with a broad range of public and private investors, including Regional Development Banks, Sovereign Wealth Funds, and global and regional institutional investors, to increase private capital participation in green infrastructure investments across the continent. As well as leveraging private capital flows for investment in environmentally sustainable infrastructure, the GGIF will focus on reducing the risk of marginally non-bankable projects in order to render them viable. Tools will include innovative mechanisms for project preparation and capital structures.

The move has already received a letter of support from the IFSWF Chair (International Forum of Sovereign Wealth Funds), which has just launched its first working group dedicated to climate change.

SHARE
Previous articleFikri’s Death: Trade Unions Declare Three Days of Strike 
Next articleCOP22: Moroccan Project Wins UN Momentum for Changes Award