‎‎By Onu Okorie
‎
‎World Bank Group says it mobilised a record $112 billion in private capital for developing economies including Nigeria in fiscal year 2026, more than triple the $35 billion mobilised in FY22, as it intensifies efforts to create jobs and expand economic opportunities.
‎The institution said the latest figure represents the highest annual level of private capital mobilisation in its history. Combined with the World Bank Group’s own financing, total financing and mobilisation in developing economies exceeded $200 billion during FY26.
‎Job creation remains at the centre of the World Bank Group’s development agenda, with the institution warning of a significant employment gap facing developing economies.
‎According to the Group, about 1.2 billion young people are expected to reach working age in developing economies over the next 10 to 15 years, while only around 420 million jobs are projected to be created. The private sector currently accounts for nine out of every 10 jobs in these economies.
‎The World Bank Group said its jobs strategy is built around three mutually reinforcing priorities: investment in human and physical infrastructure; creating business-ready regulatory environments; and helping the private sector expand.
‎The strategy focuses particularly on five job-intensive sectors — infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing — where stronger foundations and improved policies could unlock investment and employment on a large scale.
‎In FY26, 55 per cent of the World Bank Group’s total financing, including financing from its own account and capital mobilised, went to these five sectors.
‎The institution said private investment is also increasingly reaching lower-income economies, rather than being concentrated only in the most accessible markets. Regional and local investors are playing a growing role alongside global capital in financing businesses and supporting job creation.
‎The Group said it is now seeking to broaden the range of investors participating in developing economies through its “originate-to-distribute” initiative. The approach is intended to package and distribute investments to institutional investors at greater scale, connecting long-term pools of global capital with investment opportunities in developing countries.
‎The increase in mobilisation has been broad-based across income groups and regions.
‎Private capital mobilised for lower-middle-income countries increased from $14 billion in FY22 to $37 billion in FY26, while mobilisation in upper-middle-income countries rose from $12 billion to $50 billion over the same period.
‎In low-income countries, where attracting private capital remains particularly challenging, mobilisation was maintained at about $3 billion. Across Africa, private capital mobilisation increased from approximately $9 billion in FY22 to $22 billion in FY26, representing an increase of nearly 150 per cent.
‎The World Bank Group also reported record guarantee issuance, with more than $25 billion in guarantees issued during FY26. The figure surpasses the institution’s annual guarantee issuance target of $20 billion by 2030, achieving the goal four years ahead of schedule.
‎Much of the growth in guarantees was driven by the World Bank Group Guarantee Platform, established in 2024 to provide clients and investors with a single and simpler access point to guarantee products across the institution.
‎The World Bank Group attributed the results to three years of institutional reforms aimed at making its engagement with the private sector faster and simpler. The reforms have also sought to bring the public and private arms of the institution closer together and expand the range of tools available to investors.
‎The institution said it has established a single point of contact for its public and private sector operations in each country and has begun developing integrated country strategies based on individual development needs and priorities.
‎The Private Sector Investment Lab has also contributed to the effort by identifying practical barriers to investment in developing economies and developing measures to address them.
‎Among the measures pursued by the World Bank Group are improvements to business and regulatory environments, expanded guarantees and local-currency financing, efforts to address foreign-exchange challenges, increased use of equity instruments and new mechanisms for institutional investors to participate at scale.
‎World Bank Group President Ajay Banga said the changes were driven by calls from shareholders and clients to increase private capital mobilisation and strengthen the institution’s partnership with the private sector.
‎“Three years ago, our shareholders and clients were clear: utilise World Bank Group financing and knowledge to mobilize more private capital and become a better partner to the private sector. We changed how we work to do that—faster, simpler, and as one World Bank Group,” Banga said.
‎He added that the $112 billion mobilised in FY26 was significant only if the capital reached economies and sectors where it could generate jobs and opportunities.
‎“The work ahead is to keep removing barriers, keep expanding the pool of investors, and keep driving more capital into developing economies,” he said.