•Seals deals to tackle poverty, fund agric, health projects
From Uche Usim, Bangkok, Thailand
The World Bank Group is targeting up to $5.79 billion in private-sector financing for Nigeria, with one of its major programmes expected to support about 850,000 direct and indirect jobs.
The initiative, outlined in a report titled Unlocking $5.79 Billion in Private Financing, covers investments in agriculture, digital infrastructure, telecommunications and small businesses.
This comes as the global lender launches a new platform to attract more funding, expertise and partnerships from philanthropic organisations to tackle poverty and improve living conditions across the world.
The bank said the financing drive combines policy reforms, commercial investments and measures to reduce risks for investors to attract private capital into sectors considered vital to Nigeria’s economic growth.
The $5.79 billion target comprises financing already mobilised and investments expected from ongoing initiatives. It is not a newly approved loan or grant to the Federal Government.
A major component of the initiative is the Fostering Inclusive Finance for Micro, Small and Medium Enterprises in Nigeria (FINCLUDE) programme, which is expected to mobilise nearly $1.89 billion in private financing and support about 850,000 jobs.
The programme targets more than 250,000 micro, small and medium-sized enterprises (MSMEs), particularly businesses operating in sectors with significant potential for employment creation.
It includes a $500 million financing package backed by resources from the International Bank for Reconstruction and Development and the International Development Association, both arms of the World Bank.
The initiative also seeks to improve access to funding for women-led businesses, with at least 30 per cent of the financing targeted at enterprises owned by women.
In digital infrastructure, the bank’s Building Resilient Digital Infrastructure for Growth (BRIDGE) Project aims to extend affordable broadband access to an additional 58 million Nigerians by 2030.
The project targets an increase in broadband coverage from 92 million people in 2025 to 150 million by 2030.
It is also expected to attract at least $156 million in private equity in its first round of investor selection, with subsequent rounds potentially unlocking up to $1.1 billion by 2030.
The initiative aims to connect 38,800 public schools, 16,900 health facilities and 3,400 local government offices to broadband services. It is also projected to benefit an additional 42 million young people and 15 million women.
Agriculture is another major focus of the bank’s financing drive.
Through its Agricultural Value Chains for Growth (AGROW) Project, the institution aims to support one million smallholder farmers, including women and young people.
The project is expected to attract $220 million from agribusiness companies and another $22 million from certified seed producers to strengthen agricultural value chains and improve farmers’ access to quality inputs.
The World Bank also highlighted financing arrangements supported by the International Finance Corporation (IFC), its private-sector investment arm, for Dangote Industries and Indorama Fertilizer.
The IFC helped mobilise $1.02 billion for Dangote Industries and $282.5 million for Indorama Fertilizer. The investments are expected to strengthen domestic fertiliser production and improve access to farm inputs for more than 10 million smallholder farmers.
In telecommunications, the IFC acted as an anchor investor in a $1.2 billion bond issuance by IHS Towers, helping to attract more than $1.1 billion from private investors.
The transaction illustrates how development finance institutions can use their investments to attract additional private capital into infrastructure projects.
The World Bank said Nigeria’s economic reforms since mid-2023, particularly changes to foreign exchange management and public finances, had helped create more predictable conditions for investment.
The bank’s strategy relies on partnerships between governments, development finance institutions and private investors to channel funds into productive sectors and expand economic opportunities.
However, the success of the financing drive will depend on how much of the anticipated investment materialises and whether the projects deliver measurable improvements in job creation, digital connectivity, agricultural productivity and access to finance for Nigerian businesses.
Meanwhile, the World Bank Group has launched a new platform to attract more funding, expertise and partnerships from philanthropic organisations to tackle poverty and improve living conditions across the world.
The platform, known as the Philanthropy Hub, is designed to connect charitable foundations, investors, development institutions and other partners with projects that need funding and technical support.
Launched yesterday in Bangkok, Thailand, the initiative seeks to turn promising ideas and small-scale projects into wider solutions capable of reaching millions of people, particularly in countries facing growing development needs and limited public funds.
The launch took place at the first World Bank Group Philanthropy Forum, held on the sidelines of the World Bank Group-International Monetary Fund Annual Meetings.
The forum brought together more than 200 leaders from philanthropic foundations, family offices, development institutions and partner organisations.
Speaking on the initiative the Managing Director and Chief Knowledge Officer of the World Bank Group, Paschal Donohoe, said partnerships with philanthropic organisations had become increasingly important as development needs grew and public resources came under pressure.
He said such organisations brought not only grants but also technical knowledge, investment capital and the ability to bring different partners together to address development challenges.
“The Philanthropy Hub will connect ideas, resources and partners to take those solutions to scale, and to deliver for people and communities around the world,” Donohoe said.
The World Bank Group said philanthropic organisations were already supporting some of its key initiatives, including Mission 300, Health Works and Water Forward, which are aimed at addressing critical development challenges.
As part of efforts to expand such partnerships, two leading philanthropic networks in Asia signed memoranda of understanding with the World Bank Group on the sidelines of the forum.
The Asian Venture Philanthropy Network (AVPN) will use its regional network to bring foundations, social investors and private-sector partners together to support the bank’s development programmes.
AVPN also announced a dedicated fund to support Health Works, a World Bank Group initiative aimed at helping 1.5 billion people gain access to quality, affordable healthcare services.
The fund will finance technical assistance to support the implementation of the initiative.
Similarly, Temasek Trust will work with the World Bank Group to develop partnership models capable of attracting philanthropic funding and expanding the reach of development projects.
Drawing on its experience in mobilising funds, bringing partners together and developing innovative financing methods, Temasek Trust will support priority initiatives, including AgriConnect, Health Works and Water Forward.
AgriConnect focuses on agricultural development, while Health Works targets access to healthcare and Water Forward supports efforts to improve access to water.
The World Bank Group said knowledge sharing would also be central to the new hub, with a growing network of partners expected to help turn research, data and practical experience into solutions that deliver measurable results in countries where it operates.
The network includes the Mo Ibrahim Foundation, Latimpacto, Philanthropy Asia Alliance and the Centre for Asian Philanthropy and Society.
Other partners include consulting and advisory firms such as Boston Consulting Group, Bridgespan, Dalberg and Coefficient Giving, as well as academic and research institutions, including the Marshall Institute at the London School of Economics and Indiana University’s Lilly Family School of Philanthropy.
The World Bank Group said the hub would serve as a single point of entry for philanthropic organisations seeking to support its work, helping them identify suitable projects, share expertise and coordinate resources around common development priorities.
The initiative comes as governments face competing demands for public spending, increasing the need for additional sources of funding to support healthcare, agriculture, water access and other essential services.
The World Bank Group operates in more than 100 countries, providing financing, advice and solutions aimed at reducing poverty, creating jobs, strengthening economic growth and addressing major global challenges.
The post •••As World Bank plans $5.79bn investment, 850,000 jobs in Nigeria appeared first on The Sun Nigeria.