The World Bank Group has launched the next phase of its Private Sector Investment Lab, reinforcing its commitment to job creation and sustainable development in emerging economies. The initiative, which seeks to unlock private capital for impactful investments, now includes Nigeria’s Aliko Dangote and Bharti Airtel’s Sunil Mittal among its newly appointed members.
The inclusion of these industry giants marks a strategic pivot in the Lab’s mission—from identifying barriers to investment to accelerating practical, job-focused solutions. Their addition brings hands-on experience in driving employment through large-scale infrastructure, manufacturing, and telecommunications projects across Africa and Asia.
Mainstreaming Private Sector-Led Development
World Bank Group President Ajay Banga emphasized that the expanded Lab aligns directly with the institution’s sharpened focus on job creation as a catalyst for development.
“This isn’t about altruism,” Banga said. “It’s about helping the private sector see a path to investments that deliver returns and lift people and economies alike. It’s central to our mandate.”
The Lab’s latest phase builds on 18 months of collaborative work between global financial leaders, which resulted in the identification of five core areas hindering private investment in developing markets. These barriers are now being tackled through actionable strategies across Bank Group operations.
Five Strategic Pillars to Unlock Investment
- Regulatory and Policy Certainty: The Lab is working with governments to establish stable policy environments. For example, achieving universal electricity access for 300 million Africans hinges on regulatory clarity, which is crucial for long-term capital investment.
- Political Risk Insurance: A streamlined approach to guarantee instruments has led to a 30% increase in usage, giving investors the confidence to pursue higher-risk projects. The Bank aims to triple the use of such guarantees by 2030.
- Foreign Exchange Risk: To combat currency volatility, the International Finance Corporation (IFC) has committed one-third of its long-term financing in local currencies, with plans to increase this to 40% by 2030.
- Junior Equity Capital: Through the Frontier Opportunities Fund, early-stage risks are being absorbed to catalyze new investments. Initially funded by IFC income, the fund is expected to grow with donor and philanthropic backing.
- Securitization: By partnering with firms like S&P and BlackRock, the Lab is working to standardize and securitize investment portfolios, making them more attractive to institutional investors such as pension funds and sovereign wealth funds.
New Voices from Critical Sectors
The appointment of Dangote, Mittal, and other new members like Bayer AG CEO Bill Anderson and Hyatt Hotels CEO Mark Hoplamazian reflects a focus on sectors with proven job-multiplying potential: energy, healthcare, agribusiness, tourism, and manufacturing.
“These industries translate capital into opportunity,” Banga said, noting that the expanded Lab will now focus on implementation over ideation.
The initiative is chaired by Shriti Vadera, Chair of Prudential plc, and builds on a foundation laid by initial members from global firms including AXA, BlackRock, Tata Sons, and Standard Chartered.
As the Lab enters its next phase, its success will be measured not just by capital raised, but by the millions of livelihoods unlocked through purposeful private investment.
