The World Bank Group mobilised about $22 billion in private capital for Africa during its 2026 financial year, marking a sharp increase from roughly $9 billion recorded four years earlier as the institution steps up efforts to channel investment into businesses and job creating sectors across the continent.
The African figure formed part of a record $112 billion in private capital mobilised globally by the World Bank Group in fiscal 2026. The global total was more than three times the $35 billion recorded in 2022, highlighting the institution’s growing reliance on private investment alongside its own financing.
For Africa, Brandspur Banking News reports that the increase comes as governments contend with a rapidly expanding working age population, infrastructure shortages and limited access to affordable finance. The World Bank Group said its approach is increasingly centred on using financing, guarantees and technical support to reduce barriers that can discourage private investors from entering developing economies.
Across lower middle income economies, private capital mobilisation rose from $14 billion in fiscal 2022 to $37 billion in fiscal 2026, while upper middle income countries recorded an increase from $12 billion to $50 billion. Mobilisation in low income countries, however, remained around $3 billion, reflecting the difficulty of attracting investors to markets facing higher levels of risk.
The World Bank Group said reforms introduced over the past three years had helped simplify how it works with governments and businesses. Its public and private sector operations have been brought closer together, with a single country level contact point and development strategies tailored to individual economies.
The institution has also broadened the financial tools available to private investors, including guarantees, local currency financing and equity instruments. Efforts have additionally focused on foreign exchange risks and regulatory and business conditions that can affect investment decisions.
Guarantees have become a particularly important part of the strategy. The World Bank Group issued more than $25 billion in guarantees in fiscal 2026, surpassing its annual target of $20 billion by four years ahead of the 2030 deadline.
A major driver was the World Bank Group Guarantee Platform, launched in 2024 to give governments and investors a single entry point for guarantee products across the institution.
World Bank Group President Ajay Banga said the organisation had responded to requests from its shareholders and clients to use its resources and expertise to attract more private investment.
He said the scale of mobilisation should ultimately be measured by where the money goes and whether it generates opportunities and employment.
That focus is particularly relevant to Africa, where the gap between the number of young people entering the labour market and the number of jobs expected to become available remains significant.
The World Bank Group estimates that 1.2 billion young people in developing economies will reach working age within the next 10 to 15 years, while only about 420 million jobs are projected to be created.
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Private businesses already account for nine out of every 10 jobs in developing economies, making private investment a central part of efforts to expand employment and productive activity.
The World Bank Group has identified infrastructure and energy, agribusiness, healthcare, tourism and value added manufacturing as sectors with significant potential to attract investment while generating jobs. In fiscal 2026, these five areas accounted for 55 per cent of the group’s combined financing and mobilised private capital.
For economies such as Nigeria, the areas are closely linked to longstanding development needs, from energy and transport infrastructure to agricultural processing, healthcare services and manufacturing capacity. Increased private investment in such sectors could provide businesses with capital to expand while supporting additional employment.
The World Bank Group also said private investment was reaching some lower income economies through increased participation by regional and domestic investors, rather than relying solely on international capital.
It is now developing its originate to distribute initiative to broaden the investor base further. The programme is intended to create ways of packaging investments so institutional investors can participate more easily in opportunities across developing economies.
With Africa facing substantial financing needs for infrastructure, business expansion and employment, the World Bank Group said its broader objective was to bring more sources of capital into developing markets and direct investment towards activities capable of supporting businesses, jobs and economic opportunities.
