World Bank: Private Sector Holds Key to Job Creation in Fragile States

The private sector must play a central role in creating jobs and fostering long-term stability in countries affected by fragility, conflict, and violence, according to senior officials and business leaders participating in a World Bank discussion on economic development in vulnerable regions.

Speaking during the latest edition of the Talking Development program, Anna Bjerde, Managing Director of Operations at the World Bank Group, warned that more than half of the world's population living in extreme poverty now resides in fragile and conflict-affected countries, a share that is expected to increase in the coming years.

"Jobs are fundamental to stability," Bjerde said, emphasizing that expanding economic opportunities remains a core pillar of the World Bank's updated strategy toward fragile states.

The discussion brought together business leaders operating on the front lines of economic development, including Basma Abdulrahman, Founder and Chief Executive Officer of KESK, an environmentally focused architecture and sustainable energy company, and Brian Kelly, Founder and Chief Executive Officer of Anzana Electric, a renewable energy and electricity distribution developer active across Sub-Saharan Africa.

According to Bjerde, the World Bank increasingly views private-sector development as essential to addressing unemployment and supporting economic resilience, given that private businesses generate the majority of jobs in fragile environments.

The executives highlighted how investments in renewable energy and infrastructure are creating employment opportunities while helping stabilize local economies.

Abdulrahman explained that KESK evolved from a small consulting firm into a company delivering solar power projects and sustainable energy solutions throughout Iraq. The company's growth model combines direct employment with the use of skilled and unskilled labor across multiple projects, while placing a strong emphasis on workforce training and knowledge transfer.

She noted that KESK works with dozens of local subcontractors, creating an extensive network of direct and indirect employment opportunities while helping strengthen the capabilities of small and medium-sized enterprises.

For Kelly, access to electricity remains one of the most powerful catalysts for economic development in Africa.

He pointed to Anzana Electric's role in developing Burundi's first privately financed hydropower project and a second facility currently under development. The company is also partnering with the government to expand electricity distribution networks to reach more than half of the country's population.

According to Kelly, the power-generation projects have already created hundreds of direct jobs, while network expansion initiatives are expected to employ more than 1,000 workers directly and thousands more during construction and implementation phases.

Beyond direct employment, he argued, electrification unlocks broader economic activity by enabling industrial production, commercial development, and entrepreneurship in communities receiving reliable power for the first time.

Kelly emphasized that workforce development is integral to large-scale infrastructure projects. To address growing labor demands, the company has established specialized training centers aimed at preparing technical professionals for careers in the electricity sector.

"Investing in skills development is essential to the success of infrastructure projects and long-term economic growth," he said.

Despite the opportunities, both executives acknowledged that operating in fragile environments presents significant challenges.

Abdulrahman stressed the importance of protecting investor rights and ensuring a level playing field for formally registered businesses, noting that many compliant companies face unfair competition from unregistered entities operating outside legal and regulatory frameworks.

Kelly called for stronger legislative reforms, particularly in infrastructure and energy sectors, to encourage broader private-sector participation. He argued that successful early-stage investments can help build confidence among international and domestic investors, paving the way for larger capital inflows into fragile markets.

Participants concluded that sustainable job creation in conflict-affected and fragile states requires close cooperation between governments and private businesses. Stable regulatory frameworks, improved infrastructure, investor protections, and long-term investments in workforce skills were identified as critical ingredients for stimulating economic growth and strengthening social stability.