About 800 million young people in developing countries could face an uncertain employment future over the next 10 to 15 years, as the number of new workers entering the labour market is expected to far exceed available jobs.
According to World Bank projections, about 1.2 billion young people will reach working age across developing economies during the period, while existing economic capacity is projected to generate only about 420 million jobs.
The looming employment gap has prompted the World Bank Group to intensify efforts to attract private investment into developing economies, announcing that it mobilised a record $112 billion in private capital during the 2026 fiscal year.
The latest figure brings the World Bank Group’s combined financing and private capital mobilisation for developing economies to more than $200 billion.
Sub-Saharan Africa, which has one of the world’s fastest-growing youth populations, recorded a significant increase in private capital mobilisation, with inflows rising by nearly 150 per cent to $22 billion in FY26, compared with $9 billion in FY22.
The World Bank said the private sector accounts for nine out of every 10 jobs in emerging markets, prompting it to channel 55 per cent of its FY26 financing into five sectors considered capable of generating significant employment: infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing.
World Bank Group President, Ajay Banga, said expanding access to private capital was central to addressing the growing employment challenge in developing economies.
“Three years ago, our shareholders and clients were clear: utilise World Bank Group financing and knowledge to mobilise more private capital and become a better partner to the private sector. We changed how we work to do that, faster, simpler, and as one World Bank Group,” Banga said.
“The result is $112 billion mobilised this year, more than three times where we started. But the number only matters if the capital goes where it can create opportunity and jobs. That is the work ahead: keep removing barriers, keep expanding the pool of investors, and keep driving more capital into developing economies,” he added.
Private capital mobilisation increased across several income groups. In lower-middle-income countries, it rose from $14 billion in FY22 to $37 billion in FY26, while upper-middle-income countries recorded an increase from $12 billion to $50 billion over the same period.
Low-income countries, however, attracted about $3 billion in private capital despite challenging macroeconomic conditions.
The World Bank Group also issued more than $25 billion in guarantees during FY26 to encourage greater private-sector participation, surpassing its 2030 target of $20 billion four years ahead of schedule.
The institution attributed the development partly to its unified World Bank Group Guarantee Platform, established in 2024 to simplify risk-mitigation instruments and make it easier for international investors to participate in projects in developing economies.
The Group said it would further expand its Originate-to-Distribute initiative, which packages investments to connect institutional investors, including pension funds and sovereign wealth funds, with high-impact projects in Africa and other developing regions.
The initiative is expected to help broaden the pool of investors and direct more private capital towards sectors capable of supporting economic growth and employment in developing countries.
