News Investigators/ The World Bank Group has inaugurated private sector investment Lab with expanded membership which focuses on job creation.
The World Bank Group President, Ajay Banga said this at the ongoing International Monetary Fund (IMF)/World Bank Meetings on Wednesday in Washington D.C.
According to him, this new chapter also expands the Lab’s membership to include industry leaders with experience generating jobs in developing economies.
Mr Banga said that it also aligns directly with the bank’s sharpened focus on job creation as a core driver of development.
“With the expanded membership, we are mainstreaming this work across our operations and tying it directly to the jobs agenda that is driving our strategy.
“This is not about altruism, its about helping the private sector see a path to investments that will deliver returns, and lift people and economies alike, its central to our mandate,” he said.
Mr Banga said that over the last 18 months, the Lab brought together leaders from global financial institutions to identify the most pressing barriers to private sector investment in developing countries and to test actionable solutions.
He said that the work had been consolidated into five priority focus areas that were being integrated across bank group operations.
“Regulatory and policy certainty: Supporting governments in creating stable regulatory frameworks, for instance, the effort to connect 300 million people in Africa to electricity relies on upfront policy clarity to attract long-term capital.
“Political risk insurance: Streamlined guarantee instruments has led to a 30 per cent increase in issuance compared to 2024, enhancing investor confidence and helping the bank meet its goal of tripling the use of guarantees by 2030.
“Foreign exchange risk: Scaling local currency financing to deepen domestic capital markets. In 2924, International Finance Corporation (IFC) commitment on one-third of its long-term financing in local currency with a goal of reaching 40 per cent by 2030 improved.
- “Junior equity capital: inauvurated the Frontier Opportunities Fund to absorb early-stage risk initially capitalised with IFC income, the fund would grow with donor and philanthropic contributions.
“Securitisation: Collaborating with institutions such as S&P and BlackRock to standardise and securitise portfolios, unlocking capital from pension funds, insurers, and sovereign wealth funds,” Banga said.
He said that as the Lab enters its implementation phase, it would also be expanding its membership to include private sector leaders in sectors critical to job creation such as infrastructure and energy, agribusiness, healthcare, tourism, and manufacturing.
The World Bank Group president said that these industries had a proven ability to translate investments into broad-based employment and economic opportunity.
“New members of the Lab include: Bill Anderson, CEO, Bayer AG. Sunil Bharti Mittal, Chair, Bharti Enterprises. Aliko Dangote, President & CEO, Dangote Group. Mark Hoplamazian, President & CEO, Hyatt Hotels Corporation
“We are grateful to the original Lab leaders who helped us deliver strong results in the initial work period.
“Now we are building on that foundation bringing in additional leaders from sectors that are central to job creation and moving from ideas to implementation,” Banga said.
The News Agency of Nigeria (NAN), reports that the Lab’s founding members included senior executives from AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group.
Others are Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek, and Three Cairns Group. The Lab is chaired by Shriti Vadera, Chair of Prudential plc.
NAN
