Washington dc: The World Bank is spearheading a transformative initiative known as the International Finance Corporation (IFC2030) strategy, aimed at bolstering private capital mobilisation. Ajay Banga, the President of the World Bank, announced this strategic plan during the plenary session of the bank’s annual meeting, asserting that the reforms underpinning this initiative are crucial for job creation.
According to News Agency of Nigeria, Banga highlighted that a significant portion of jobs-approximately 90 percent-are ultimately created by the private sector. However, he noted that the journey to private-sector-led job creation often begins with the public sector. As countries progress, private capital and entrepreneurship gradually assume the forefront. Banga emphasized that entrepreneurs require conducive conditions to thrive, which do not materialize by chance. The World Bank Group plays a pivotal role through its unique three-pillar strategy.
The first strategy involves governments, often in collaboration with the private sector, in building the essential human and physical infrastructure to foster opportunities. This infrastructure encompasses roads, ports, electricity, education, digitisation, and healthcare. Banga explained that the World Bank’s public arms, IBRD and IDA, finance these investments and facilitate the effective use of resources, while also establishing public-private partnerships.
The second pillar focuses on creating a business environment characterized by clear rules, a level playing field, and sound economic management. This includes secure land rights, predictable taxes, transparent institutions, and responsible debt management and exchange rate policies. Banga stated that these reforms are supported alongside the IMF through the World Bank’s Knowledge Bank, employing policy tools and performance-based financing.
The third pillar involves helping the private sector scale and embrace risk-taking through IFC and MIGA, providing capital, equity, guarantees, and political risk insurance, backed by ICSID. Banga identified five high-potential sectors for job creation: infrastructure and energy, agribusiness, healthcare, tourism, and value-added manufacturing, including essential minerals. These sectors, he noted, are growth engines capable of generating jobs locally without displacing work from developed economies and are instrumental in building a middle class that will drive future global demand for goods and services.
Over the past two years, the World Bank has initiated strategic projects across these sectors. These initiatives are interconnected and leverage the full scope of the World Bank Group, in collaboration with partners, to achieve large-scale results. Banga elaborated on the World Bank’s electricity strategy, which prioritizes accessibility, affordability, and reliability while managing emissions responsibly. This strategy aims to connect 300 million Africans to electricity by 2030, offering countries the flexibility to choose energy solutions that suit their needs, such as upgrading grids or adopting solar, wind, hydro, gas, and geothermal energy.
Additionally, the World Bank, in partnership with the IAEA, has commenced efforts to provide nuclear support for the first time in decades. The goal is to generate sufficient power to enhance productivity for individuals and businesses. Banga also mentioned a target to deliver healthcare to 1.5 billion people, with a summit in Tokyo scheduled for December to unite governments, investors, and innovators to advance this agenda. Indonesia is leading by example, committing to provide every citizen with an annual primary care visit on their birthday, a strategy that could revolutionize healthcare for 300 million people.