World Bank plans to mobilize additional funding to accelerate job creation

Yesterday 20:42

By: Azzat Manal

World Bank plans to mobilize additional funding to accelerate job creation

The World Bank Group plans to mobilize additional public and private financing to accelerate job creation and support countries in meeting their development needs, its president, Ajay Banga, said on Friday in Bangkok. Speaking during the annual meetings of the International Monetary Fund and the World Bank Group, scheduled to run through October 18, Banga stressed the need for more effective development financing amid mounting economic and social pressures.

Banga highlighted the scale of the global employment challenge, estimating that approximately 1.2 billion young people will enter the labour market over the next 10 to 15 years, while only around 400 million jobs are expected to be available. The gap underscores the importance of policies and investments that can help economies generate employment on a much larger scale.

The World Bank Group intends to strengthen cooperation with governments, development partners and private investors, while using modern technologies to improve the impact of its financing. Banga noted that conflicts, constrained public budgets, rising debt burdens and higher living costs are making it increasingly difficult for countries to fund development priorities and expand employment opportunities.

The institution’s employment strategy focuses on three main areas: developing physical infrastructure and human capital, strengthening legal and institutional frameworks, and reducing the risks that discourage private investment. The approach also seeks to improve access to finance through guarantees, equity investments and financing in local currencies, helping businesses invest and expand.

Technology, particularly artificial intelligence, is expected to play a growing role in this strategy. The World Bank Group plans to help countries strengthen electricity supplies, expand digital connectivity, improve access to equipment and develop the skills needed to use AI applications. Potential areas of application include agriculture, education, healthcare and entrepreneurship, where technological tools could support productivity and create new economic opportunities.

Banga also pointed to a significant increase in private capital mobilization, which rose from approximately $35 billion in the 2022 fiscal year to $112 billion in the most recent fiscal year, according to figures he cited. Total financing from the World Bank Group exceeded $230 billion, reflecting the scale of its efforts to support development and investment across multiple sectors.

The funding is directed toward areas considered important for productivity and employment, including infrastructure, energy, agrifood systems, healthcare, tourism and higher-value manufacturing. The institution is also expanding its climate-related financing, which reached $96 billion, including $48 billion in private capital mobilized for climate action.

Water security and agricultural development remain additional priorities. The group aims to improve water security for 400 million people by 2030, contributing to a broader partner-led ambition to reach one billion people. It also plans to support 200 million smallholder farmers, while increasing its engagement in critical minerals, economic corridors and infrastructure projects designed to connect communities with markets and encourage local industry.

Banga called for existing initiatives to be expanded and made more effective to meet the expectations of the next generation. The strategy reflects the World Bank Group’s broader effort to combine public resources, concessional financing, private investment and technological innovation to help countries strengthen their economies and create more sustainable employment opportunities.