Accra, July 16, 2024—The annual Country Policy and Institutional Assessment (CPIA) for Africa confirms that countries in Sub-Saharan Africa (SSA) weathered 2023 relatively well thanks to credible economic and social policy reforms. In particular, governments and central banks have started to shift attention from weathering global shocks to building credibility, capacity, and transparency.
Tag Archives: Financing
Developing countries need more support to navigate growing turbulence in global trade
The benefits of international trade for developing countries are well established. Over the 
past 30 years, low- and middle-income countries doubled their share of global exports to 30 percent. Over the same period, the share of the world’s population living in extreme poverty declined dramatically — from 47 percent to just 10 percent. One billion people climbed out of poverty.
Why global growth is tepid, but commodity prices remain high
Global economic growth this year and next is expected to be nearly half a percentage point 
slower than the average in the half decade before the COVID-19 pandemic. Yet average commodity prices in 2024-2025 are predicted to remain close to 40 percent above 2015-2019 levels (Figure 1).
Prices of energy and food commodities, for instance, are expected to moderate but remain about 40 and 30 percent above their 2015-2019 averages, respectively. Base metals prices are set to rise slightly this year and next, averaging roughly 40 percent higher than in 2015-2019.
World Bank Group Guarantee Platform Goes Live
Platform will revolutionize the landscape of development financing
WASHINGTON, July 1, 2024 – Starting today, the World Bank Group (WBG) guarantee platform is open for business. The platform, housed at the Multilateral Investment Guarantee Agency (MIGA), brings together products and experts from the World Bank, International Finance Corporation (IFC), and MIGA for simplicity, efficiency, and speed. It aims to boost WBG annual guarantee issuance to $20 billion by 2030.
WBG Guarantees will serve as a one-stop-shop for all WBG guarantee business, providing the best guarantee solutions for clients to meet project needs and development priorities. WBG clients can now choose from a simplified market-friendly menu of guarantee options. The platform will provide three types of coverages: credit guarantees for loans to the public or private sector; trade finance guarantees for trade finance projects involving public entities; and political risk insurance against non-commercial risks for private sector projects or public-private partnerships.
“MIGA is excited to host and begin the operationalization of the guarantee platform. This marks a pivotal moment in our commitment to sustainable economic development,” said Hiroshi Matano, MIGA Executive Vice President. “We aim to leverage the World Bank Group’s collective expertise and knowledge of guarantee business to usher the WBG into a new era of partnership with the private sector, catalyzing foreign investment in emerging markets and developing economies.”
A major priority during the WBG’s recent evolution process was enabling and catalyzing private capital flows, underscoring the effectiveness of guarantees. The G20 Independent Expert Group’s report on Strengthening Multilateral Development Banks called for expanded use of guarantees to mitigate risk and unlock private finance. And the Private Sector Investment Lab, launched by the WBG in June 2023 to identify barriers and solutions for private sector investment in emerging markets, provided specific guidance on using guarantee instruments.
The platform’s transformative solution is set to revolutionize the landscape of development financing, revitalizing the role of guarantees in development and aligning with the overall effort to mobilize private capital for development. It complements the World Bank’s country-level support in creating an environment supportive to private capital mobilization. This collaboration is supported by IFC’s advisory and financial instruments to enhance private sector engagement with country clients.
The new platform introduces a scalable model, prioritizing high-impact projects, thereby optimizing resource allocation, and facilitating growth. Leveraging the collective expertise of the WBG, the platform will drive impactful solutions across diverse sectors, including energy access, pandemic preparedness, and climate action. Through collaborative efforts and innovative financing systems, the platform is set to drive sustainable development and promote inclusive growth worldwide.
In fiscal year 2024, the World Bank Group issued approximately $10.3 billion in new guarantees using products that will be part of the platform: $8.2 billion from MIGA, $1.4 billion from IFC, and nearly $700 million from the World Bank.
About World Bank Group Guarantees
Initiated in 2024, World Bank Group Guarantees consolidates all guarantee products and experts from across the World Bank Group institutions at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the WBG’s annual guarantee issuance to $20 billion by 2030.
For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees
Stay updated and follow us at https://twitter.com/MIGA and https://www.linkedin.com/company/wb-miga
Contact:
In Washington: Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org
USAID SUMMER WEBINAR SERIES
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Canada Pledges US$200 Million to World Bank’s Hybrid Capital
Support for new products will expand lending headroom by tens of billions
WASHINGTON, June 13, 2024— Canada became the latest World Bank Group shareholder on Thursday to invest in hybrid capital, a financial product with special leveraging potential that expands the Bank’s lending capacity to help developing countries advance the U.N.’s Sustainable Development Goals.
Building resilience in South Asia
Progress on basic energy access reverses for first time in a decade
Global Growth Is Stabilizing but at a Weak Level | World Bank Expert Answers
Growth Stabilizing But at a Weak Pace
Despite an improvement in near-term prospects, the global outlook remains subdued by
historical standards. In 2024-25, growth is set to underperform its 2010s average in nearly 60 percent of economies, comprising over 80 percent of the global population. Downside risks predominate, including geopolitical tensions, trade fragmentation, higher-for-longer interest rates, and climate-related disasters. Global cooperation is needed to safeguard trade, support green and digital transitions, deliver debt relief, and improve food security. In EMDEs, public investment can boost productivity and catalyze private investment, promoting long-run growth. Comprehensive fiscal reforms are essential to address ongoing fiscal challenges in small states, including those arising from heightened exposure to external shocks.
Netherlands for the World Bank 
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