The World Bank Group is stepping up efforts to attract private investment into developing economies as it seeks to help address a widening jobs challenge, with 1.2 billion young people expected to reach working age over the next 10 to 15 years but only about 420 million jobs projected to be created.
The World Bank says private investment will be central to meeting the employment challenge because the private sector currently creates nine out of every 10 jobs in developing economies.
As part of that push, the Group mobilised a record $112 billion in private capital in fiscal 2026, more than three times the $35 billion recorded in FY2022.
The World Bank said the increase reflects efforts to make it easier for private investors to participate in projects across developing economies, including through guarantees, local-currency financing and other investment tools.
The mobilisation of private capital has also increased significantly in Africa, rising from about $9 billion in FY2022 to $22 billion in FY2026, according to the World Bank.
The Group said its approach is increasingly focused on sectors capable of generating large numbers of jobs, particularly infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing.
In FY2026, 55% of the World Bank Group’s total financing and mobilised capital went to these five sectors.
The World Bank is also using guarantees to reduce some of the risks that can discourage private investors from entering developing markets.
It issued more than $25 billion in guarantees in FY2026, exceeding its $20 billion annual target for 2030 four years ahead of schedule.
The Group said its Guarantee Platform, launched in 2024, provides a single point of access to guarantee products across the World Bank Group, with the aim of making the process simpler for clients and investors.
Beyond financing, the World Bank said it is working to address barriers to private investment, including regulatory constraints, foreign-exchange risks and limited access to suitable financing.
World Bank Group President Ajay Banga said the mobilisation of private capital will only have an impact if it reaches businesses and projects that can create opportunities and jobs.
The Group’s broader strategy is therefore to bring more investors into developing economies and direct capital towards sectors where businesses can expand, create employment and support economic activity.
