World Bank Aims for Big Growth in Critical Minerals Sector
By Francis Ntow, Special Correspondent, Bangkok
Bangkok, Oct. 17 – The World Bank has announced an ambitious plan to grow its critical minerals business fivefold over the next five years. This initiative is designed to help countries rich in natural resources develop their local industries, create jobs, and keep more economic value within their borders.
World Bank President Ajay Banga shared these goals during the recent International Monetary Fund (IMF) and World Bank Group (WBG) annual meetings held in Bangkok. The new program focuses on enhancing capabilities in countries that are part of this initiative.
“It’s a significant move for critical minerals. Our aim is to increase our business in this area five times over the next five years,” Banga stated. “We have launched our first country compacts this week with our Multilateral Development Bank partners to strengthen local industries and support job creation at home.”
The World Bank has pinpointed 20 countries to collaborate on this initiative. Eight of them—Argentina, Bolivia, Egypt, India, Kazakhstan, Malawi, Mauritania, and Zambia—have already begun outlining their goals and commitments under the new program.
These plans will include existing reforms to modernize mineral licensing, enhance environmental protections, improve infrastructure, and develop local workforce skills to attract investment and benefit communities long-term.
With Africa holding vital mineral resources crucial for energy transition and the growth of artificial intelligence, such as cobalt, copper, lithium, and manganese, this initiative opens doors for the development of local processing and manufacturing sectors.
Banga emphasized that the World Bank will support these countries in turning their mineral wealth into real economic benefits. He noted, “Each country has unique challenges and solutions, but we all share the same goal: to boost development and create jobs. Now we focus on executing these plans on a larger scale.”
This critical minerals initiative falls under the broader job creation agenda of the World Bank. With an estimated 1.2 billion young people expected to enter the job market in the next decade or so, while only around 400 million jobs are projected to be created, there could be an 800 million job shortfall.
Banga highlighted the importance of building industries around mineral resources to close this gap, shifting from just extraction to processes that include manufacturing and other supporting services.
Infrastructure development was noted as another essential factor for attracting investments and creating jobs. The World Bank recently launched 52 new corridor projects in partnership with the European Commission’s Global Gateway and the U.S. International Development Finance Corporation, up from 20 three years ago.
These projects are designed to enhance infrastructure and link it to economic opportunities across involved countries. “Infrastructure connects communities, and as it grows, so do the opportunities,” Banga explained.
As an example, Banga mentioned the Lobito Corridor in Central Africa, which, while initially focused on transporting minerals, is now also helping farmers reach markets and driving the development of towns in the area.
On the topic of attracting private investment, the World Bank has ramped up its efforts, increasing mobilized funds from approximately $35 billion in 2022 to $112 billion, with total financing reaching $230 billion. Nearly 55% of this funding has been directed towards infrastructure, energy, agribusiness, health, tourism, and value-added manufacturing—sectors key to raising productivity and creating jobs.
However, Banga recognized that attracting commercial capital in low-income countries remains a challenge, with only $3 billion collected. In contrast, mobilization in upper-middle-income nations has surged fourfold.
In future efforts, the World Bank aims to broaden its operations and investment opportunities by strengthening its presence in major financial hubs like New York, Frankfurt, Milan, and Tokyo, to build project pipelines and connect with investors.
“To succeed, we must meet private-sector clients where they are making investment decisions. But developing stronger project pipelines is just part of the solution,” he noted.
Additionally, six multilateral development banks are collaborating to establish common strategies for assessing and packaging investments, which can make it easier for projects backed by development institutions to attract long-term investors, such as pension funds and insurance companies.
Reflecting on the current global challenges, Banga reiterated that the world, facing a new set of issues, needs unified action to boost economic opportunities. “The jobs gap is a prediction, not a certainty. We are beginning to demonstrate what our model can achieve, and now we must scale it to meet the demands of the next generation. The future is ours to create, so let’s work together to build it,” he said.
