World Bank Mobilises Record $112bn Private Capital for Developing Economies
The World Bank Group has mobilised a record $112 billion in private capital for developing economies in its 2026 fiscal year (FY26), marking a significant increase in efforts to channel private investment into countries facing major development and job-creation needs. The figure is more than three times the $35 billion recorded in private capital mobilisation in FY22, according to the World Bank.
The institution said the increase, combined with its own financing, pushed total financing and capital mobilisation in developing economies to more than $200 billion during FY26. It also issued more than $25 billion in guarantees, exceeding its $20 billion annual issuance target set for 2030 four years ahead of schedule. The World Bank attributed much of the growth to its guarantee platform, launched in 2024 to make it easier for investors to access guarantee products across the institution.
World Bank Group President Ajay Banga said the stronger mobilisation figures followed changes designed to make the institution faster and more effective in working with the private sector. He said the World Bank Group had adopted a more integrated approach, including establishing a single point of contact for public and private sector activities in individual countries and developing strategies around their specific development priorities. The institution also said its Private Sector Investment Lab has helped identify investment barriers and develop solutions around regulation, guarantees, local-currency financing and foreign-exchange challenges.
The push for more private investment comes as developing economies face a growing employment challenge. The World Bank estimates that 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. Since the private sector accounts for nine out of every 10 jobs in developing economies, the institution said investment in infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing could help create employment at scale. In FY26, 55 percent of the World Bank Group’s total financing and mobilised capital went to these job-intensive sectors.
Banga said the next phase would focus not only on increasing the amount of capital mobilised but also on ensuring that more investment reaches sectors capable of creating jobs and expanding economic opportunities. The World Bank is also developing an “originate-to-distribute” model designed to package investments for institutional investors and attract capital on a larger scale. The institution said its broader ambition is to bring more investors and funding sources into developing economies while removing barriers that have historically limited private-sector investment.
source: The cable