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World Bank mobilises record $112bn in private capital for developing countries

17 Sep 2026
Financial Nigeria

Summary

The record private capital mobilisation by the Bank rose from $35 billion in 2022 to $112 billion in 2026.

World Bank Group President Ajay Banga

The World Bank Group announced on Thursday a record mobilisation of private capital for developing economies, totalling $112 billion in fiscal year 2026, more than triple the amount raised four years ago, as it intensifies efforts to drive job creation and economic growth across the developing world.

According to the institution, private capital mobilisation (PCM) rose from $35 billion in FY22 to $112 billion in FY26. When combined with the World Bank Group's own financing, total financing and mobilisation in developing countries exceeded $200 billion in the fiscal year.

Growth was recorded across income groups and regions. Private capital mobilised in lower-middle-income countries nearly tripled from $14 billion in FY22 to $37 billion in FY26, while upper-middle-income countries saw investments rise more than fourfold, from $12 billion to $50 billion. In low-income countries, where attracting private investment remains particularly challenging, mobilisation remained at approximately $3 billion. Across Africa, PCM increased by nearly 150 per cent, rising from around $9 billion to $22 billion.

The World Bank attributed the strong performance to a series of reforms over the past three years to strengthen collaboration with the private sector. These changes included simplifying processes, integrating public and private sector operations more closely, and expanding the range of financial instruments available to investors.

A key component of the strategy has been establishing a single point of contact for clients across the institution's public- and private-sector activities, alongside integrated country strategies tailored to individual development priorities.

The Bank also highlighted the role of its Private Sector Investment Lab, which was created to identify practical barriers to investment in developing economies and recommend solutions. Measures introduced include improvements to business and regulatory environments, expanded guarantee programmes, increased local-currency financing, foreign exchange risk mitigation tools and broader opportunities for institutional investors.

The World Bank Group also reported issuing more than $25 billion in guarantees during FY26, exceeding its target of $20 billion in annual guarantee issuance by 2030, four years ahead of schedule. Much of this growth was driven by the Guarantee Platform, established in 2024 to provide clients and investors with a streamlined gateway to guarantee products across the institution.

World Bank Group President Ajay Banga said the achievement signalled a deliberate shift in how the institution engages with private investors.

"Three years ago, our shareholders and clients were clear: utilise World Bank Group financing and knowledge to mobilise 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.

"The result is $112 billion mobilised this year, more than three times where we started. But the number only matters if the capital goes where it can create opportunity and jobs."

Job creation remains the institution's central development priority. The World Bank noted that about 1.2 billion young people in developing countries are expected to reach working age over the next 10 to 15 years, while only about 420 million jobs are projected to be created in the same period. Private businesses account for roughly 90 per cent of jobs in developing economies.

To address this challenge, the World Bank's jobs strategy focuses on investment in infrastructure and human capital, creating business-friendly regulatory environments, and supporting private-sector expansion. The institution has identified five sectors with strong job-creation potential: infrastructure and energy, agribusiness, healthcare, tourism, and value-added manufacturing.

In FY26, these sectors accounted for 55 per cent of total financing and mobilised capital. The World Bank said investment was reaching not only major emerging markets but also lower-income economies, where local and regional investors are increasingly complementing global capital flows.

Looking ahead, the Bank said it plans to expand institutional investor participation through its "originate-to-distribute" initiative, which aims to package and distribute investments more effectively to large-scale investors, including pension funds and other long-term capital providers.

The institution said its overarching goal remains to mobilise more capital from a broader range of sources and direct it towards job creation, business growth and expanded economic opportunity in developing countries.


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