Africa’s share rises to $22bn as World Bank says private investment will be critical to closing jobs gap….
The World Bank Group says it mobilised a record $112 billion in private capital for developing economies in the 2026 fiscal year, more than three times the amount recorded four years earlier.
The figure represents a major increase from the $35 billion mobilised in the 2022 fiscal year, according to a statement released by the global financial institution on Thursday.
When combined with the World Bank Group’s own financing, total financing and private capital mobilisation in developing economies exceeded $200 billion during FY26.
The institution also disclosed that it issued more than $25 billion in guarantees during the year, exceeding its $20 billion annual issuance target set for 2030.
The World Bank attributed much of the increase to its guarantee platform, established in 2024 to make it easier for investors and businesses to access guarantee products across the institution.
Africa was among the regions that recorded a significant increase in private capital mobilisation during the period.
According to the World Bank, mobilisation across the continent rose from approximately $9 billion in FY22 to $22 billion in FY26.
Lower-middle-income economies also saw private capital mobilisation increase substantially, rising from $14 billion to $37 billion over the same period.
For upper-middle-income countries, the figure climbed from $12 billion in FY22 to $50 billion in FY26.
Mobilisation in low-income countries, however, remained relatively unchanged at about $3 billion.
The World Bank said the growth reflected a series of changes implemented over the past three years to make the institution more responsive to private-sector investors.
World Bank Group President Ajay Banga said the reforms followed a clear direction from shareholders and clients to make greater use of the institution’s financing and expertise to attract private investment.
“Three years ago, our shareholders and clients were clear: utilize World Bank Group financing and knowledge to mobilize more private capital and become a better partner to the private sector,” Banga said.
“We changed how we work to do that faster, simpler, and as one World Bank Group.”
The institution said one of the changes was bringing its public and private-sector operations closer together at country level, with a single point of contact and integrated strategies designed around individual countries’ development priorities.
The Private Sector Investment Lab also contributed by identifying obstacles that have continued to discourage investment in developing economies and developing measures to address them.
The World Bank said its efforts have included improving business and regulatory environments, expanding guarantees and local-currency financing, addressing foreign-exchange risks, increasing the use of equity instruments and creating new channels for institutional investors to participate on a larger scale.
The institution said the objective is to make it easier for private investors to deploy capital in markets where financing gaps remain significant.
Private investment and the jobs challenge
The World Bank said the push to attract more private capital is closely linked to the employment challenge facing developing economies.
It estimates that 1.2 billion young people in developing economies will reach working age over the next 10 to 15 years, while only about 420 million jobs are expected to be created.
The institution said the private sector currently accounts for nine out of every 10 jobs in developing economies, making private investment a major component of efforts to expand employment opportunities.
Its jobs strategy is therefore focused on strengthening human and physical infrastructure, improving the regulatory environment for businesses and helping companies expand their operations.
The World Bank identified infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing as sectors with significant potential to generate employment on a large scale.
In FY26, 55 percent of the World Bank Group’s total financing and mobilised capital went into these sectors, according to the institution.
The bank said the allocation was intended to translate improved foundations and policies into greater private investment, business expansion and job creation.
New model targets institutional investors
Banga said the World Bank’s focus would now include expanding the pool of investors and directing a greater volume of capital towards developing economies.
“But the number only matters if the capital goes where it can create opportunity and jobs,” he said.
“That is the work ahead: keep removing barriers, keep expanding the pool of investors, and keep driving more capital into developing economies.”
As part of that effort, the World Bank Group is developing an “originate-to-distribute”, or O2D, model aimed at packaging investments in a form that can be distributed to institutional investors at greater scale.
The institution said the approach is designed to widen the sources of development financing and move more private capital into economies where it can support businesses, investment and employment.
The World Bank said its broader ambition is to mobilise more capital from a wider range of sources and channel a larger share of it towards economic opportunities and job creation in developing countries.
