Record $112 Billion Mobilized for Developing Nations

COLOMBO (News 1st); The World Bank Group has mobilized more private capital in fiscal year 2026 than at any other time in its history, marking a major milestone in its drive to channel greater investment into developing economies and accelerate global job creation.

According to the institution, private capital mobilization rose to a record $112 billion in FY26, more than triple the $35 billion recorded in FY22. Combined with the World Bank Group’s own financing, total financing and mobilization in developing countries exceeded $200 billion during the fiscal year, reflecting a significant expansion in support for economic development and private-sector growth.

The increase was recorded across multiple regions and income groups. Private capital mobilization in lower-middle-income countries rose from $14 billion in FY22 to $37 billion in FY26, nearly tripling over the four-year period. Upper-middle-income countries experienced even stronger growth, with mobilization increasing more than fourfold from $12 billion to $50 billion. In low-income countries, where attracting investment remains particularly challenging, mobilization was maintained at approximately $3 billion. Across Africa, private capital mobilization climbed from around $9 billion to $22 billion, representing an increase of nearly 150 percent.

The World Bank Group said the achievement reflects a series of institutional reforms implemented over the past three years to strengthen engagement with the private sector. These changes focused on making operations faster and simpler, improving collaboration between the institution’s public and private sector arms, and expanding investment tools available to investors. The organization also introduced a more integrated country-based approach, providing a single point of contact for public and private sector operations while developing tailored strategies aligned with each nation’s development priorities.

Further support came through the Private Sector Investment Lab, which helped identify practical obstacles preventing investment in developing economies and formulated strategies to address them. The World Bank Group subsequently pursued reforms aimed at improving business and regulatory environments, expanding guarantee products and local-currency financing, addressing foreign exchange challenges, increasing equity investment tools, and creating new mechanisms for institutional investors to participate at scale.

A key highlight was the issuance of more than $25 billion in guarantees during FY26, surpassing the institution’s target of $20 billion in annual guarantee issuance by 2030, four years ahead of schedule. The growth was led by the World Bank Group Guarantee Platform, launched in 2024, which offers investors and clients simplified access to guarantee products across the institution.

Commenting on the achievement, World Bank Group President Ajay Banga said the organization had responded directly to calls from shareholders and clients to mobilize more private capital and become a stronger partner to businesses and investors.

“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. We changed how we work to do that, faster, simpler, and as one World Bank Group,” Banga said.

“The result is $112 billion mobilized 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. That is the work ahead: keep removing barriers, keep expanding the pool of investors, and keep driving more capital into developing economies,” he added.

The World Bank Group emphasized that job creation remains its central priority. It noted that approximately 1.2 billion young people in developing economies are expected to reach working age over the next decade to 15 years, while only about 420 million jobs are projected to be created during the same period. Given that the private sector generates nine out of every ten jobs in these economies, the institution believes greater private investment is essential to narrowing the employment gap.

Its jobs strategy is built around three key pillars: investing in human and physical infrastructure, creating business-friendly regulatory environments, and helping private enterprises expand. The strategy focuses on five sectors considered particularly effective for generating employment at scale: infrastructure and energy, agribusiness, healthcare, tourism, and value-added manufacturing.

In FY26, 55 percent of the World Bank Group’s total financing and mobilized capital was directed toward these job-rich sectors, supporting efforts to translate stronger economic foundations and improved policy frameworks into business expansion, private investment, and employment opportunities.

The institution noted that investment is increasingly reaching lower-income economies rather than being concentrated solely in more accessible markets. Regional and local investors are playing a growing role alongside global capital providers in financing businesses and creating jobs across developing countries.

Looking ahead, the World Bank Group plans to expand the range of investors participating in development finance through its originate-to-distribute (O2D) initiative. The program is designed to package and distribute investments to institutional investors on a larger scale, connecting more pools of long-term global capital with opportunities in emerging and developing markets.

The organization said its long-term objective remains clear: to mobilize more capital from a wider range of sources and direct it toward creating jobs, driving economic growth, and expanding opportunities across the developing world.