The Washington-based World Bank and Moroccan sovereign wealth fund Ithmar Capital have signed a memorandum of understanding (MoU) to set up a green fund for Africa.

The Green Growth Infrastructure Facility for Africa (GGIFA) is the first pan-African fund specialising in green investment.

It will invest in low carbon infrastructure such as clean energy, transport and water efficiency.

GGIFA will be structured as a private capital fund, bringing in private investors interested in Morocco and Africa. It will also include a public private partnerships (PPP) unit to focus on originating projects alongside government bodies. The fund will focus on reducing risk for projects which are marginally not bankable, so they become bankable, through innovative project prepartion and capital structures.

GGIFA will work with sovereign wealth funds, regional development banks and institutional investors to increase private investment in green infrastructure.

The IFC, part of the World Bank, has identified $783bn of climate investment opportunities in sub-Saharan Africa and $265bn in the Middle East & North Africa.

Ithmar is part of Hassan II Fund for Economic and Social Development.