The World Bank Group says 1.2 billion young people will reach working age over the next 10 to 15 years, while only about 420 million jobs are projected to be created, highlighting the scale of the employment challenge facing developing economies.
The projection forms part of the World Bank’s renewed push to mobilise more private capital into developing countries, where the private sector currently accounts for nine out of every 10 jobs, according to the institution.
The World Bank said the scale of the challenge means creating jobs cannot depend on public financing alone, making private investment critical to expanding businesses, infrastructure and productive sectors.
The Group said it mobilised a record $112 billion in private capital in fiscal 2026, more than three times the $35 billion mobilised in FY2022.
According to the World Bank, the increase reflects efforts over the past three years to make it faster and simpler for private investors to participate in projects across developing economies.
READ ALSO
Africa was among the regions that recorded a significant increase, with private capital mobilisation rising from about $9 billion in FY2022 to $22 billion in FY2026.
The World Bank also said it issued more than $25 billion in guarantees in FY2026, exceeding its $20 billion annual target for 2030 four years ahead of schedule.
The institution said its jobs strategy focuses on three areas: investing in human and physical infrastructure, creating business-ready regulatory environments, and helping the private sector scale.
It has identified infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing as five sectors with strong potential to generate jobs.
In FY2026, 55% of the World Bank Group’s total financing and mobilised capital went to these sectors, according to the institution.
World Bank Group President Ajay Banga said the record mobilisation figure would only matter if the capital reaches areas where it can create opportunities and jobs.
The World Bank said it is also working to address barriers that can discourage private investment, including regulatory challenges, foreign-exchange risks and limited access to suitable financing.
The Group’s broader objective is to bring more investors into developing economies and channel capital towards businesses and projects capable of supporting employment and economic growth.
