World Bank's Arturo Franco calls for regulatory certainty to attract private capital

Arturo Franco, Director of Strategy at the World Bank, stated that governments must provide regulatory certainty and support policy reforms to attract private capital for development projects. Speaking at the AVPN Global Conference 2026 in New Delhi, Franco emphasized that creating a predictable policy environment is a government responsibility and a critical factor in unlocking investment.

Franco noted that while not all development challenges are commercially viable for the private sector, many more could be funded through commercial means than are currently being financed. He clarified that while blended finance is a tool, regulatory certainty is specifically the work of governments to remove barriers preventing capital flow into emerging markets.

He also highlighted the work of the Private Sector Investment Lab, an initiative established by World Bank President Ajay Banga involving approximately 15 CEOs from asset-owning companies. The lab has identified five major obstacles to deploying private capital in developing countries, with regulatory certainty cited as a primary concern.