NAIROBI, Kenya – The World Bank Group mobilised a record $112 billion (about Sh14.5 trillion) in private capital for developing economies in the 2026 financial year, more than tripling the amount mobilised four years earlier.
The World Bank said private capital mobilisation rose from $35 billion (about Sh4.5 trillion) in FY2022 to $112 billion in FY2026 as it expanded the use of guarantees, local-currency financing, equity instruments and other tools designed to attract private investors to developing markets.
Combined with the Group’s own financing, the mobilisation brought total financing and mobilisation in developing economies to more than $200 billion (about Sh25.9 trillion) during FY2026.
Africa mobilisation rises to $22 billion
Africa was among the regions that recorded significant growth, with private capital mobilisation increasing from approximately $9 billion (about Sh1.2 trillion) in FY2022 to $22 billion (about Sh2.8 trillion) in FY2026.
The World Bank said the increase represented growth of nearly 150 per cent over the four-year period.
The institution said the broader increase reflected reforms introduced over the past three years to make its operations faster and simpler while bringing its public- and private-sector arms closer together.
Lower-middle-income countries attract more capital
Private capital mobilisation to lower-middle-income countries nearly tripled, rising from $14 billion (about Sh1.8 trillion) in FY2022 to $37 billion (about Sh4.8 trillion) in FY2026.
In upper-middle-income countries, mobilisation more than quadrupled from $12 billion (about Sh1.6 trillion) to $50 billion (about Sh6.5 trillion).
For low-income countries, where private investment is more difficult to attract, mobilisation remained at approximately $3 billion.
World Bank expands guarantees
Guarantees have become a major tool in the World Bank Group’s efforts to attract private capital into developing economies.
The Group issued more than $25 billion (about Sh3.2 trillion) in guarantees in FY2026, exceeding its target of $20 billion in annual issuance by 2030 four years ahead of schedule.
The growth was led by the World Bank Group Guarantee Platform, established in 2024 to provide clients and investors with a single access point for guarantee products across the institution.
The guarantees are intended to help reduce risks that can discourage private investors from financing projects in developing markets.
Banga links capital to job creation
World Bank Group President Ajay Banga said the increase in private capital mobilisation would only be meaningful if the money reached sectors and economies where it could generate jobs and economic opportunities.
“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,” Banga said.
“We changed how we work to do that—faster, simpler, and as one World Bank Group.”
Banga said the institution’s next priority was to continue removing barriers to investment and expanding the pool of investors able to participate in developing-economy projects.
World Bank warns of jobs challenge
The World Bank estimates that 1.2 billion young people in developing economies will reach working age over the next 10 to 15 years, while only about 420 million jobs are expected to be created.
The private sector currently accounts for nine out of every 10 jobs in developing economies, making private investment central to the institution’s jobs strategy.
The strategy focuses on three areas: investing in human and physical infrastructure, creating business-ready regulatory environments and helping private businesses scale.
Five sectors targeted for investment
The World Bank has identified infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing as sectors with significant potential to generate investment and employment.
In FY2026, 55 per cent of the World Bank Group’s total financing, including its own financing and mobilised capital, went to these five sectors.
The institution said investment was also reaching lower-income economies, where regional and local investors are increasingly complementing international capital in financing businesses and supporting job creation.
World Bank seeks institutional investors
The World Bank Group is also seeking to expand the pool of investors participating in developing-economy projects through its originate-to-distribute model.
Under the model, a financial institution originates or issues a loan before distributing it to other investors rather than retaining the exposure until the loan is fully repaid.
The approach is intended to connect developing economies with large pools of long-term capital held by institutional investors.
The World Bank said the next phase of its strategy would focus on mobilising capital from more sources and directing a greater share towards investment, business expansion and job creation in developing economies.
