World Bank mobilises $112bn in private capital for developing economies in FY2026

The World Bank attracted a record $112bn in private capital for developing economies in its 2026 fiscal year, more than tripling the amount from 2022. Read More: https://punchng.com/wbank-mobilises-112bn-private-capital-for-developing-economies/

The World Bank Group attracted a record $112 billion in private capital for developing economies in its 2026 fiscal year, more than tripling the $35 billion mobilised in fiscal 2022.In a statement released on Thursday, the lender said private capital mobilisation rose sharply over the four-year period, while total financing and mobilisation by the World Bank Group in developing economies exceeded $200 billion during the year.Gains were recorded across income groups. Private capital mobilisation in lower-middle-income countries climbed to $37 billion from $14 billion in fiscal 2022, while upper-middle-income countries saw an increase to $50 billion from $12 billion. In low-income countries, where attracting private investment remains more challenging, mobilisation held steady at about $3 billion.Africa posted a particularly strong performance, with private capital mobilisation rising to approximately $22 billion from $9 billion four years earlier, an increase of nearly 150 per cent.World Bank Group President Ajay Banga attributed the results to reforms implemented over the past three years. “Three years ago, our shareholders and clients were clear: utilise 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 $112bn mobilised this year, more than three times what 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.”The institution said the growth stemmed from efforts to streamline operations, improve coordination between its public and private-sector arms, and expand the range of financial instruments available to investors. These included introducing a single point of contact for public and private activities in individual countries, developing integrated country strategies aligned with local priorities, expanding guarantees and local-currency financing, addressing foreign-exchange risks, increasing the use of equity instruments, and creating new channels for institutional investors.The World Bank also issued more than $25 billion in guarantees during the fiscal year, surpassing its target of $20 billion in annual issuance by 2030, four years ahead of schedule. The increase was driven by the World Bank Group Guarantee Platform, launched in 2024 to offer clients and investors a single access point to guarantee products across the institution.The mobilisation reflects the World Bank Group’s broader strategy of using its financing and risk-sharing tools to draw private investment alongside public development funding, especially in markets where perceived risks have traditionally limited access to capital.