The World Bank Group and Ithmar Capital, a Moroccan Sovereign Investment Fund, have entered into a deal to set up 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.

Its aim is to work 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 utilisation of water resources, said a statement from World Bank Group.

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 this week at the Finance Summit of COP22 in Marrakesh, the 22nd Conference of the Parties to the United Nations Framework Convention on Climate Change, focused on mobilising stronger and more ambitious climate action.

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.

As per the deal, 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.