The World Bank Group has announced plans to by its Guarantee Platform to double its annual issuance of guarantees in Africa to $6.4 billion (about N8.960 trillion) by 2030, saying the initiative is expected to improve the lives of no fewer than 190 million people across the continent over the next four years.
The World Bank Group Guarantee Platform is a centralised, “one-stop shop” that consolidates all guarantee and risk insurance products across the World Bank Group. Hosted by the Multilateral Investment Guarantee Agency (MIGA), it combines the experts and products of the World Bank, the International Finance Corporation (IFC), and MIGA.
The bank, in a statement on Wednesday, said the platform aims to boost private sector investment in developing countries by managing and mitigating political, project, and nonpayment risks.
Development experts said the guarantee platform was created to streamline access. Instead of navigating separate arms of the World Bank, investors can now access the full spectrum of guarantee products through a single entry point.
The experts, also said that the platform removes redundant steps and aligns reviews, making the process simpler and more predictable for clients. The platform is also designed to de-risk investments, encouraging commercial lenders to fund vital projects in emerging markets.
According to the statement, the Africa’s working-age population is projected to grow by 740 million over the next three decades, with up to 12 million young people entering the labour force annually.
“Guarantees will play a critical role in attracting private capital into job-rich sectors including agribusiness, energy, infrastructure, healthcare, digital services, finance and trade,” said the bank.
It added that the initiative would create jobs and support Africa’s ambition to become a global engine of growth.
The statement said that new guarantees expected to be issued over the next four years would mobilise about 23 billion dollars in private capital for Africa through several development initiatives.
It listed the initiatives to include AgriConnect, a World Bank Group programme aimed at transforming smallholder farming, creating jobs and strengthening global food security.
Others are Mission 300, a joint initiative of the World Bank and the African Development Bank (AfDB), supported by The Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy for All.
“This initiative seeks to connect 300 million people in Africa to electricity by 2030, while creating more jobs,” the statement said. The statement further said that the guarantees could, by 2030, provide 43 million people with access to electricity as well as improved financial inclusion for 50 million people and businesses, especially those owned by women.
It added that five million people would benefit from improved food and nutrition security, while 51 million people were expected to access digitally enabled services.
The statement further said that 37 million people would be connected to broadband internet, while three million others would gain access to sustainable transport infrastructure and services.
The Managing Director of MIGA, Tsutomu Yamamoto said that Africa remains home to the world’s youngest and fastest-growing workforce, and guarantees will play a critical role in attracting the investment to create the jobs needed to secure their future.
“We are delighted to announce these ambitious new commitments, which will ultimately help to build robust and stable economies that yield quality jobs in everything from agribusiness and healthcare to energy and infrastructure,” Yamamoto said.
The statement revealed that the World Bank Group Guarantee Platform was initiated in 2024 to consolidate guarantee products and experts from across the World Bank Group at MIGA.
It said the platform provides a simplified and comprehensive menu of guarantee solutions to help clients select instruments best suited to their needs. The bank further noted that the platform’s goal is to boost the World Bank Group’s annual guarantee issuance to $20 billion (about N28 trillion) by 2030.