The World Bank is ramping up efforts to channel more private capital into the countries it serves by creating a central platform to streamline its guarantee offerings and committing to significantly increasing their use.
In July, the World Bank officially launched its guarantee platform, a one-stop shop for these financial products designed to mitigate risks by providing insurance against various challenges. These guarantees primarily target potential foreign investors, aiming to de-risk projects that might otherwise struggle to attract private financing. Additionally, the platform offers guarantees to governments, making it easier for them to access financial markets.
The development was influenced by recommendations from the Private Sector Investment Lab, a group of CEOs convened by the bank President Ajay Banga to advise the bank on strategies to expand and expedite private capital for development.