Jobs are an important pathway out of poverty, and the private sector is a critical engine of job creation. The International Development Association (IDA) Private Sector Window (PSW) leverages IDA’s resources and helps mobilize sustainable private sector investment in the most fragile markets. By working closely with the World Bank Group’s private sector arms—the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA)—the IDA PSW de-risks investments and catalyzes job-creation in the world’s poorest and most vulnerable countries. In addition, IFC has created a Concessional Capital Window (CCW) to provide concessional financing for the most vulnerable countries, targeting projects in IDA countries, non-IDA fragile and conflict-affected situations and those supporting forcibly displaced persons and their host communities.
As of end-December 2024, $5.4 billion from the IDA PSW has mobilized over $31 billion in private investment across low-income and fragile countries. These investments are expected to create 3 million jobs and deliver 4 million loans to small businesses—spurring growth through direct, indirect, and induced employment.
One way that the IDA PSW plays a pivotal role in fostering private sector-led job creation in challenging environments is through investments that support micro, small, and medium-sized businesses.
Through an investment in the Africa Go Green Fund, focused on energy efficiency and renewable energy, the IDA PSW is helping scale sustainable energy solutions across the continent. The initiative is expected to create up to 60,000 indirect jobs by financing private sector-led projects that improve energy access and efficiency.
Through the Base of the Pyramid program, the IDA PSW is helping to expand access to credit, particularly for micro and small enterprises and women-owned businesses. In the Kyrgyz Republic, the project has reached over 100,000 individuals and businesses in the country—helping to spur job creation and support economic growth. In Madagascar, the initiative is expected to reach 140,000 micro, small, and medium-sized enterprises by 2027—helping people start or grow income-generating activities and improve the quality of life for themselves and their families.
The IDA PSW co-invested in the I&P Afrique Entrepreneurs II Fund, which provides equity financing to small and medium-sized enterprises across Burkina Faso, Cameroon, Comoros, Côte d'Ivoire, the Democratic Republic of Congo, Madagascar, Mali, Senegal, Togo, and Uganda. This initiative aims to fill a significant gap in financing, supporting job creation and economic growth in these regions.
The IDA PSW also supports IFC investments and MIGA guarantees to mobilize private capital and support sustainable economic growth in IDA countries.
In Guinea, Guinea-Bissau, and Liberia, MIGA—backed by the IDA PSW—is supporting the upgrade and expansion of telecom infrastructure to improve mobile connectivity and unlock mobile money services, eliminating a constraint on social and economic development. The project addresses barriers, like poor roads, lack of electricity, and high network costs, with a focus on improving rural coverage.
In Haiti, where political instability and natural disasters have hindered development, the IDA PSW supported IFC’s investment in the Caribbean Bottling Company, a leading local beverage and bottled water producer. The project has created around 400 direct and indirect jobs while improving access to safe drinking water in underserved rural communities. Beyond its social impact, this investment is boosting investor confidence and demonstrating the potential for sustainable manufacturing growth in one of the world’s most fragile economies.
With support from the IDA PSW and AgDevCo, IFC invested in Westfalia Fruto Mozambique in 2020 to boost avocado and litchi production in the remote Barue District. The project developed 100 hectares of orchards, created over 600 jobs—95 percent filled locally—and spurred wider agricultural growth, doubling the number of commercial fruit and vegetable farmers in the area within two years.
In Myanmar, the IDA PSW co-invested in Anthem Asia, one of the few private equity funds targeting smaller-sized, earlier-stage small and medium-sized enterprises. This investment helps fill Myanmar's significant financing gap for such businesses, supporting job creation and economic development.
With $10 million in local currency financing, the IDA PSW is helping extend microloans in Senegal to around 13,000 smallholder farmers through Union des Mutuelles Alliance de Crédit et d'Epargne pour la Production—supporting rural entrepreneurs who often lack formal financial records or credit history and enabling them to grow their businesses and livelihoods.
In Somalia, where over half the population lacks electricity, MIGA provided a guarantee to Kube Energy for a solar hybrid power plant. With support from the IDA PSW, this commercial solar power project will replace existing diesel generation. The initiative is not only improving energy access and reducing greenhouse gas emissions; it is also creating jobs and sustaining livelihoods in one of the world's most challenging environments.
To expand access to finance for green and social initiatives in Tanzania, IDA PSW supported IFC’s investments in sustainability bonds issued by NMB Bank. In addition to increasing financing for small businesses, the investments will support projects in renewable energy, energy efficiency, sustainable water and wastewater management, green buildings, clean transport, and affordable housing. It is expected that at least 3,200 new jobs will be created over four years by projects and businesses funded or co-funded by proceeds from the bonds.
In conflict-affected Yemen, where 80 percent of the population relies on humanitarian aid, the IDA PSW helped IFC mobilize $75 million in financing for local food producer Hayel Saeed Anam (HSA) Group—providing vital working capital to keep operations running and food supplies stable amid economic collapse. The investment safeguarded over 5,000 jobs and is expected to support more than 61,000 additional jobs across the supply chain.
Last updated: July 2025