The World Bank Group has announced a major financial initiative aimed at attracting about $23 billion in private investment into Africa over the next four years.
The global lender said the funding drive will be supported through a large expansion of its guarantee programmes, which are designed to reduce risks for investors and encourage businesses to invest more in African economies.
According to the bank, the new strategy will be driven through its recently introduced Guarantee Platform, a central system created to simplify access to financial guarantees for investors and development partners.
The institution explained that the platform is expected to more than double its annual guarantee support in Africa to about $6.4 billion by 2030. The project is also expected to improve the lives of around 190 million people across the continent within the next four years.
The World Bank noted that Africa’s rapidly growing population makes the initiative very important. It revealed that the continent’s working-age population is expected to increase by 740 million people over the next 30 years, while nearly 12 million young Africans are expected to join the labour market every year.
To address this challenge, the bank said the guarantees would help attract investments into sectors capable of creating large numbers of jobs. These sectors include agriculture, energy, healthcare, infrastructure, finance, trade, and digital services.
The organisation stated that the initiative is part of broader efforts to help Africa become a stronger driver of global economic growth in the future.
As part of the programme, the World Bank plans to support major continental projects such as AgriConnect, an initiative focused on improving small-scale farming and food security across Africa.
The funding package will also support Mission 300, a joint electricity programme between the African Development Bank and the World Bank that aims to provide electricity access to 300 million Africans by the year 2030.
The bank explained that the guarantees are expected to help provide electricity access to about 43 million people. In addition, around 50 million individuals and businesses are expected to gain better access to financial services, especially women-owned businesses and small enterprises.
The initiative is also expected to improve digital connectivity across Africa. The World Bank said about 37 million people could gain broadband internet access, while 51 million others may benefit from digitally enabled services.
Additionally, about three million people are expected to benefit from improved and sustainable transport infrastructure under the programme.
Speaking on the development, Managing Director of the Multilateral Investment Guarantee Agency, Tsutomu Yamamoto, described Africa’s growing youth population as a major economic opportunity if supported with the right investments.
He stated that guarantees would help attract the level of private investment needed to create jobs and strengthen important sectors such as agribusiness, healthcare, energy, and infrastructure.
The World Bank Group Guarantee Platform was launched in 2024 to combine the expertise of the World Bank, the International Finance Corporation, and MIGA into a single system.
The platform was created to reduce delays, remove duplicated processes, and make it easier for investors and lenders to support projects in developing economies, especially across Africa.
