New World Bank president says new strategy needed to boost private investment in emerging markets

WASHINGTON (Reuters) – The World Bank must use “informed “Risk-taking” to encourage greater involvement of private investors in helping developing countries tackle climate change, change and leapfrog fossil fuel energy, its new president, Ajay Banga, said on Sunday. Banga told CNN’s “Fareed Zakaria GPS” program that ongoing efforts to expand the World Bank’s lending capacity and revamp its business model may unleash “Tens of billions” of money, but will not unlock the estimated trillions needed to ensure a just energy transition.

Formerly MasterCard Inc. (NYSE: NYSE: 1000 Well

) June 2 Incumbent CEO. “The only way out is to find ways to convince the private sector that this is part of their future,” said Banga, who will be visiting Peru and Jamaica, as part of a visit to the countries in the region where the bank operates.

“I think what we have to do is … find ways in the MDB system to think about different playbooks — take risks that they can’t take,” he said. explain.

He said that private companies must deliver returns to shareholders and cannot bear the risks involved, but banks can help.

“This is something we can do by taking smart risks,” Banga said, noting that thanks to improvements in storage and storage, renewable Energy is now in many cases cheaper than fossil fuels. period.

Affordable electricity is a key starting point for social and economic development in emerging economies, but new solutions are needed to avoid “emission-intensive growth models” Second is an advanced economy, or has no hope of passing 50, he added.

The Indian-born executive was nominated for the job by the US precisely because of his previous experience in the private sector, he has pledged to find out Raise the barriers to investing and find ways to maximize your bank’s impact.

Banga told CNN that he will also join other Multilateral lenders and development organizations work closely together, noting that Ilan Golfakin, president of the Inter-American Development Bank, will be visiting with him this week.

“There is so much we need to do. We need everyone to pull together,” he said. “What we don’t need are islands in this area.” 25