The World Bank Group says its Guarantee Platform aims to double its annual issuance of guarantees in Africa to 6.4 billion dollars by 2030.
A statement by the bank on Wednesday, said the initiative would improve the lives of no fewer than 190 million people over the next four years.
The World Bank Group Guarantee Platform is a centralised, “one-stop shop” that consolidates all guarantee and risk insurance products across the World Bank Group.
Hosted by the Multilateral Investment Guarantee Agency, it combines the experts and products of the World Bank, the International Finance Corporation, and MIGA.
The platform aims to boost private sector investment in developing countries by managing and mitigating political, project, and nonpayment risks.
It was created to streamline access. Instead of navigating separate arms of the World Bank, investors can now access the full spectrum of guarantee products through a single entry point.
It removes redundant steps and aligns reviews, making the process simpler and more predictable for clients.
The platform is also designed to de-risk investments, encouraging commercial lenders to fund vital projects in emerging markets.
According to the statement, the Africa’s working-age population is projected to grow by 740 million over the next three decades, with up to 12 million young people entering the labour force annually.
It added that the initiative would create jobs and support Africa’s ambition to become a global engine of growth.
The statement said that new guarantees expected to be issued over the next four years would mobilise about 23 billion dollars in private capital for Africa through several development initiatives.
It listed the initiatives to include AgriConnect, a World Bank Group programme aimed at transforming smallholder farming, creating jobs and strengthening global food security.
Others are Mission 300, a joint initiative of the World Bank and the African Development Bank, supported by The Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy for All.
The initiative is expected to connect 300 million people in Africa to electricity by 2030, while creating more jobs.
The statement further said that the guarantees could, by 2030, provide 43 million people with access to electricity as well as improved financial inclusion for 50 million people and businesses, especially those owned by women.
It added that five million people would benefit from improved food and nutrition security, while 51 million people were expected to access digitally enabled services.
The statement further said that 37 million people would be connected to broadband internet, while three million others would gain access to sustainable transport infrastructure and services.
(NAN)
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