By Bunmi Yekini
The World Bank Group has announced the next phase of its Private Sector Investment Lab (PSIL), focusing on scaling up tested investment solutions and driving job creation in developing countries through greater private sector engagement.
The initiative marks a strategic pivot toward implementation, after 18 months of diagnosing investment barriers and testing practical solutions. The Lab will now embed five key investment-enabling strategies into World Bank operations, including regulatory and policy certainty, political risk insurance, foreign exchange risk management, junior equity capital, and securitization.
“With the expanded membership, we are mainstreaming this work across our operations and tying it directly to the jobs agenda that is driving our strategy,” said World Bank Group President Ajay Banga. “This isn’t about altruism, it’s about helping the private sector see a path to investments that will deliver returns, and lift people and economies alike. It’s central to our mandate.”
To strengthen its implementation phase, the Lab has broadened its membership to include leaders from sectors proven to spur job creation—such as infrastructure, agribusiness, healthcare, tourism, and manufacturing. New members include high-profile business executives such as Aliko Dangote of Dangote Group, Bill Anderson of Bayer AG, Sunil Bharti Mittal of Bharti Enterprises, and Mark Hoplamazian of Hyatt Hotels Corporation.
“I am honored to join the Private Sector Investment Lab during its next phase focused on implementation,” said Anderson. “Together, businesses and the WBG can unleash job creation in emerging markets by managing the risks and realizing the opportunities for the next generation growing up in low and middle-income countries.”
The Lab’s new focus areas already show promise. Streamlined political risk guarantees have boosted issuance by 30%, while the IFC has committed one-third of its long-term financing in local currencies, targeting 40% by 2030. Additionally, initiatives like the Frontier Opportunities Fund, designed to absorb early-stage risks, are now being capitalized through philanthropic and donor support.
Sunil Bharti Mittal highlighted the transformative power of private investment: “I have seen firsthand the power of connectivity to transform lives by creating opportunities for businesses to grow and communities to thrive. I hope that the successes of the telecommunications sector will be valuable as PSIL embarks on the next stage of its important work.”
Shriti Vadera, Chair of Prudential plc and Chair of the Lab, underscored the importance of continuity: “We are grateful to the Lab leaders who helped deliver such important results in the first phase. We welcome our new members’ support in continuing our focus on five key areas… and creating an asset class and liquid market to attract institutional funds.”
The PSIL was initially launched with participation from major institutions including AXA, BlackRock, HSBC, Macquarie, and Temasek. As it shifts from ideas to execution, its broader coalition is set to drive investment where it’s most needed, unlocking economic potential and generating employment across emerging markets.