World Bank Group attracts record private investment for development
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The World Bank Group channeled a record $112 billion in private capital to developing countries in fiscal year 2026, more than tripling the $35 billion mobilized in 2022.
Over the past four years, the organization changed its approach to better collaborate with the private sector, streamlining processes and uniting its public and private arms under a single point of contact in each country. These changes resulted in increased private capital mobilization (PCM) across income levels.
PCM to lower-middle-income countries nearly tripled, rising from $14 billion to $37 billion, while it more than quadrupled in upper-middle-income countries, going from $12 billion to $50 billion. The World Bank Group also focused on removing obstacles to investment in developing economies through initiatives like the Private Sector Investment Lab. They worked to improve business environments, increase guarantees and local-currency financing, and address challenges related to foreign exchange rates.
The Group issued over $25 billion in guarantees, exceeding its target for 2030 by four years. World Bank Group President Ajay Banga stated the goal is to create opportunity and jobs through this increased capital flow. The organization prioritizes job creation, as 1.2 billion young people in developing economies will enter the workforce over the next decade, while only 420 million jobs are currently projected to be available.
They are focusing investment on five job-rich sectors, infrastructure, agribusiness, healthcare, tourism, and manufacturing, and are working to connect more institutional investors with opportunities in these economies.
