World Bank Mobilises Record $112bn Private Capital for Developing Economies

The World Bank Group mobilised a record $112 billion in private capital for developing economies in its 2026 fiscal year, more than tripling the $35 billion recorded four years earlier.

The development finance institution disclosed this in a statement on Thursday, noting that its total financing and private capital mobilisation for developing economies exceeded $200 billion during the year.

According to the World Bank, the growth in private capital mobilisation was recorded across different income groups.

Private capital mobilisation in lower-middle-income countries increased to $37 billion, compared with $14 billion in fiscal 2022, while mobilisation in upper-middle-income countries rose from $12 billion to $50 billion.

In low-income countries, where attracting private investment remains more challenging, mobilisation remained relatively stable at about $3 billion.

Africa also recorded significant growth, with private capital mobilisation rising from $9 billion in fiscal 2022 to approximately $22 billion in fiscal 2026, representing an increase of nearly 150 per cent.

World Bank Group President, Ajay Banga, said the institution had changed the way it operates to mobilise more private capital and strengthen its partnership with the private sector.

He said the $112 billion figure was significant, but stressed that the ultimate objective was to ensure that the capital reaches areas where it can create jobs and expand economic opportunities.

The World Bank attributed the increase to reforms introduced over the past three years, including efforts to simplify its operations, improve coordination between its public and private-sector arms and expand the range of financial instruments available to investors.

The institution also issued more than $25 billion in guarantees during the fiscal year, exceeding its $20 billion target for annual issuance by 2030, four years ahead of schedule.

The growth in guarantees was driven largely by the World Bank Group Guarantee Platform, established in 2024 to provide clients and investors with a single access point to guarantee products across the institution.