Moroccan sovereign wealth fund Ithmar Capital announced in a statement on 16 November that it has signed a Memorandum of Understanding with the World Bank to launch the Green Growth Infrastructure Facility for Africa (GGIF) The first green investment fund dedicated to the African continent. This Memorandum of Understanding was signed at the Finance Summit held in the margins of COP 22 in Marrakech.
A tool for support and concrete initiatives in Africa, GGIF for Africa will aim to attract private investors in search of responsible and ecological investments.
Unlike the majority of climate funds created to date, the purpose of which is to grant grants or concessional financing from donors, GGIF for Africa is structured as a private equity fund.
“The goal of GGIF for Africa is to direct the flow of private capital to infrastructure investments environmentally. As such, the initiative will mobilize private capital, through public-private partnerships (PPP) as well GGIF for Africa and in terms of projects,”said Ithmar Capital.
This initiative was supported by the World Organization of Sovereign Wealth Funds (IFSWF). Because of their financial liquidity and long-term investment horizon, sovereign wealth funds are natural investors in infrastructure projects and want to increase their very low exposure to the continent today. Source: Ecofin