WORLD BANK UNLOCKS N112BN IN PRIVATE FUNDING FOR DEVELOPING ECONOMIES

The World Bank Group has mobilised about $112 billion in private capital to support development projects across emerging and developing economies. The funding was raised through initiatives aimed at increasing private-sector participation in areas where governments and public institutions face challenges in meeting the growing demand for infrastructure and other development needs.

The mobilisation was highlighted as part of the World Bank Group’s efforts to expand financing beyond traditional public funding sources. The institution said greater use of private capital would help developing economies access additional resources for projects capable of supporting economic growth, creating jobs and improving living conditions.

The World Bank has increasingly focused on bringing private investors into sectors such as infrastructure, energy, healthcare, digital development and other areas considered important to long-term economic development. The approach is designed to use public-sector resources and guarantees to attract larger amounts of private financing for projects in countries where investment risks may otherwise discourage investors.

The mobilisation of the funds comes amid concerns over the widening financing gap facing developing countries. Many emerging economies require significant investment to close infrastructure deficits, expand access to essential services and support businesses, while limited government revenues and high borrowing costs have placed pressure on public finances.

The World Bank said continued cooperation between governments, development institutions and private investors would be necessary to increase the flow of capital into developing economies. The institution's approach seeks to use its financing, technical expertise and risk-sharing mechanisms to encourage private investment in projects that can contribute to sustainable economic development.