Financial Innovations Compact – Unga25’s Un Global Compact Leaders’ Summit

World Bank and Innovations in Financing for Developing Countries

September 23, 2025

When I listen to all these discussions, I always think back to recent global events that have shaped where we are today. Let me start with last year's UNGA midterm review of the SDGs, this year's Finance for Development event in Seville, Spain, and most recently, the Africa Climate Summit in Addis Ababa.

All three provide a sobering picture of long-term trends:

1. The SDGs are hopelessly off track.
2. In Seville, we saw clearly that what is needed in terms of financing is not billions but trillions-and those resources are missing.
3. And in Africa, a continent responsible for only 3-4% of global emissions, the effects of climate change are hitting disproportionately hard.

Over the next ten years, about 1.2 billion young people will enter the labor market, yet the prospects are that only a fraction will find jobs. This presents a huge jobs challenge-at a time when ODA levels are falling, and, as I saw in Addis, private sector engagement in development is shrinking compared to two years ago in Nairobi.

So, when we talk about global trends, we cannot only focus on OECD countries and assume all is well. We must think globally, especially about those who have been left behind-particularly across Africa.

The first imperative is staying engaged-not just with speeches, but with real action. That means investing, financing, and delivering concrete results. People are tired of promises without follow-through. We need radical transparency:

• When we make announcements at UNGA, we should state clearly what will be delivered.
• And a year later, we should report what was actually achieved.

Accountability and transparency must start with us-not pointing fingers at others.

At the World Bank, we cannot simply lament falling ODA levels and join the ranks of the discouraged. Far from it! We must innovate and stay sharply focused on the people we serve.

One example is the International Development Association (IDA), our concessional financing arm for low-income countries. Over 65 years, IDA has evolved to leverage donor resources far beyond traditional ODA. For every $1 contributed by donors, we now leverage $4 in financing, turning, for instance, $24 billion into $100 billion in commitments for the next three years-70% of which will go to Africa.

This is possible because multilateral development banks are leveraging machines. With relatively little capital, we can generate significant commitments. At the World Bank, for every $1 in equity, we can commit around $10 over a decade. Through balance sheet optimization, we have identified another $100 billion for lending.

But this is not enough. As previous speakers have said, the private sector will be essential. We need them investing in developing countries, especially in Africa. That requires:

• Supportive policy and regulatory reforms;
• Instruments for de-risking, including guarantees and risk-sharing facilities;
• A stronger domestic private sector alongside international investors.

The good news: this is possible. But we must stay focused on results, not just on mobilizing money.

Some have pointed out that AI and digital technologies require vast amounts of energy. Yet in Africa, half the population still lacks access to electricity. That is why we launched Mission 300-to provide 300 million Africans with electricity by 2030.

This cannot be done by the World Bank alone. It requires the African Development Bank, bilateral partners, governments, and the private sector all working together.

Even in challenging times, we must stay laser-focused on scaling real projects, delivering results, and honoring our commitments-especially for countries and communities left behind.

This is about more than money. It is about human development, about ensuring everyone has a fair chance. It is about commitment and resolve.

Finally, we must also be self-critical. Don't just speak-invest, deliver, and then speak from experience. Build coalitions, mobilize political support, and focus relentlessly on the hardest-to-reach communities.

If we do that-if we invest, innovate, and hold ourselves accountable-we can build a better world together.

Thank you.