Ajay Banga has spent three years trying to persuade private investors to spend more money in developing economies. At the World Bank Group’s annual meeting in Bangkok, Thailand, last week, he presented an impressive figure: $112 billion.
That’s the amount of private capital the group mobilized in fiscal 2026, and more than three times the $35 billion it mobilized in fiscal 2022 before Mastercard’s former CEO took over.
But the increase is uneven. During the same period, private capital mobilization in upper-middle-income countries more than quadrupled to $50 billion. In low-income countries, the figure remains at about $3 billion.
For Banga, the goal is to create jobs in a country where millions of young people will soon join the workforce.
“The idea of focusing on employment is to avoid personal reasons overriding the bigger picture,” Banga said during an Oct. 14 discussion on emerging market investing.
About 1.2 billion young people in developing countries will reach working age in the next 10 to 15 years, and their economies are expected to create about 400 million to 420 million jobs, according to estimates released by the World Bank this month.
Banga said the organization must continue to invest in bridges, schools, health care and other essential services, while also supporting businesses that can employ the people who rely on them.
Public financing and philanthropy remain important. But Banga believes private investors, including pension funds and asset managers, must provide the bulk of the additional capital.
Bringing private investors to emerging markets
One of the most important changes in Banga is the simplification of the investment process for working with the World Bank Group.
In July 2024, the organization launched a unified guarantee platform that brings together credit guarantees, trade finance guarantees and political risk insurance. The aim is to reduce risks that prevent banks and other investors from financing projects in developing economies.
Faheen Allibhoy, global head of development finance and advisory at J.P. Morgan, said the platform makes it easier for financial institutions to set up transactions that they might otherwise avoid.
Allibhoy described the platform as a “game changer” during discussions in Bangkok, explaining that guarantees backed by highly rated institutions make it easier for commercial banks to establish investments.
The World Bank Group issued $25 billion in guarantees in fiscal 2026, exceeding its previous target of $20 billion annually through 2030.
In South Africa, the organization is supporting a credit guarantee scheme aimed at attracting private investment in power, water, transport and other infrastructure.
The broader program is expected to raise about $10 billion over the next decade and create nearly 1 million direct and indirect jobs, according to World Bank forecasts.
These investments and jobs have yet to materialize.
Banga is also working to change the way development banks finance projects.
He said in a plenary speech on October 16 that the six multilateral development banks were developing common methods for evaluating, documenting and packaging investments.
The idea is to make it easier for pension funds, insurance companies and other institutions to buy or hold investments in developing countries, freeing up money on development banks’ balance sheets for other projects.
The initiative is still under development. Banga did not say how much new investment it could generate.
Small-scale AI and employment challenges
Banga also sees technology as a way to help businesses grow and become more productive.
At a small artificial intelligence panel meeting on Oct. 12, he described applications that could help farmers, health care workers and teachers without the need for expensive computing infrastructure.
One example is a platform developed with the help of Google to connect farmers in India and other countries with agricultural supplies, crop insurance, financing and buyers.
Illiterate farmers can point a basic mobile phone at a diseased leaf, identify the problem and order appropriate treatment through the cooperative.
The appeal, Banga believes, is that narrow AI tools can boost productivity in an economy where access to the largest language models remains limited.
On October 20, the World Bank Group expanded this effort, launching its first comprehensive digital strategy at the Global Artificial Intelligence and Digital Summit in Seoul, South Korea.
The strategy aims to improve internet connectivity, reduce the cost of smartphones and data, expand digital financial services and help countries develop the skills needed to use artificial intelligence applications.
The organization also announced an artificial intelligence infrastructure and readiness plan with knowledge partners such as Nvidia and Cassava Technologies to help governments obtain affordable computing power through shared infrastructure.
The initiative will initially focus on Africa and Latin America. The bank has not disclosed the total investment amount or implementation timeline.
The digital access gap remains wide. According to the World Bank, only 23% of people in low-income countries will use the Internet by 2025, compared with 94% in high-income countries.
Banga’s new strategy could help small businesses secure financing and attract customers, but those gains will depend on affordable technology and reliable infrastructure.
The World Bank Group has made significant progress in mobilizing private capital. Putting these funds to work in poorer economies where businesses struggle to attract financing and where employment needs are greatest remains a work in progress.