A different investment mix may help explain why emerging-market projects face less investor hesitation than large AI projects in developed economies, World Bank President Ajay Banga told CNBC.
Banga called capital availability “not really an issue” during a Tuesday CNBC interview. He said the World Bank’s mobilization reached $112 billion last year, about three times the amount from three years earlier.
Banga pointed to investor questions about circular financing and the business models of AI companies. Emerging-market investment, he said, includes roads, bridges and smaller AI applications, while developed economies seek financing for larger AI use cases.
Banga said private capital overseen by the World Bank is not directed to governments. He said that arrangement can ease fears about debt crises and rising bond yields in some countries.
Banga expects AI to be “transformative and profitable,” while cautioning that setbacks may occur and their timing is uncertain.
