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World Bank unveils digital strategy to tackle developing countries’ job gap

The World Bank Group has introduced its first digital strategy to help developing countries expand internet access, strengthen businesses and create employment opportunities amid a projected shortage of 780 million jobs over the next 10 to 15 years.

The bank estimates that 1.2 billion young people will reach working age during this period, while developing economies are expected to generate only about 420 million jobs.

The strategy is designed to help countries use digital technology to boost productivity, improve access to services and expand opportunities for people to earn a living. For small and medium-sized enterprises (SMEs), it could improve access to finance, help businesses connect with more customers and support the adoption of digital tools for daily operations.

“Digital technology can help countries create jobs and make scarce resources go further,” said World Bank Group President Ajay Banga. He stressed the importance of reliable internet connectivity, affordable devices, digital skills and useful services in enabling countries to realise these benefits.

The strategy centres on four priorities: expanding internet connectivity, reducing the cost of devices and data, strengthening digital services and skills, and preparing countries to benefit from artificial intelligence (AI).

The scale of the digital divide remains a significant challenge. According to the World Bank, more than two billion people worldwide were still offline in 2025. Internet usage stood at just 23 per cent in low-income countries, compared with 94 per cent in high-income countries.

The bank noted that internet coverage alone does not guarantee access. Some people live in areas served by networks but cannot afford smartphones or data, lack the necessary digital skills or have limited access to relevant online services.

These obstacles also affect small businesses that rely on digital platforms to promote products, communicate with customers, receive payments and manage their operations.

To address the gaps, the World Bank Group will support improvements across digital infrastructure, including international cables, national networks and connections serving homes, businesses, schools and healthcare facilities.

Its approach will include encouraging infrastructure sharing, promoting competition and deploying public financing and guarantees to attract private investment into underserved markets. In communities where electricity and internet access are both inadequate, the bank will support coordinated planning to address the two challenges together.

The strategy also seeks to make entry-level smartphones and broadband services more affordable. The World Bank Group plans to work with manufacturers, mobile operators, financial institutions and device refurbishment businesses, while partnerships could expand responsible payment options that allow consumers to spread the cost of devices over time.

Another priority is the development of digital systems for identification, payments and secure information-sharing. These systems could simplify access to public and private services for individuals and businesses.

Digital literacy initiatives and employment-focused training will also feature in the strategy, helping more people and small enterprises use technology safely and productively.

The World Bank identified infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing as five sectors where digital technology could help create jobs.

In agriculture, AI tools could help farmers detect crop diseases. Other applications could support healthcare workers in carrying out specific tasks and help businesses manage their inventory more efficiently.

The bank said it would assist countries in developing the connectivity, computing resources, local data and skills required to benefit from AI. It also highlighted “small AI” — tools designed for specific tasks and local conditions — as a practical approach to applying the technology.

Privacy, cybersecurity and fraud protection will be incorporated into the strategy as countries expand their digital systems.

Alongside the strategy’s launch, the World Bank Group announced the AI Infrastructure and Readiness Initiative, which aims to help governments in emerging markets access affordable computing capacity and apply AI to practical challenges.

The initiative will provide shared, pay-as-you-go graphics processing unit (GPU) infrastructure. GPUs are specialised computing hardware used to develop and run AI applications.

According to the bank, this model could provide a practical alternative to building standalone national data centres. The initiative will initially target Africa and Latin America, with Cassava Technologies and NVIDIA serving as knowledge partners.

Through the strategy and the accompanying initiative, the World Bank Group aims to help developing countries translate digital access into greater productivity, improved services and more employment opportunities. For SMEs, better connectivity, more affordable technology and stronger digital skills could reduce barriers to adopting digital tools and reaching wider markets.

Source: worldbank.org

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