• MDBs align on harmonizing job measurement methods across development projects

• Africa remains the largest recipient of infrastructure-linked development finance

• World Bank estimates infrastructure can generate 10,000–50,000 jobs per $1bn invested

Multilateral Development Banks (MDBs) are moving to align how they measure job creation from development projects, particularly in infrastructure-heavy regions such as Africa.

In a joint statement issued on April 16 in Washington, institutions including the World Bank Group, African Development Bank, and European Investment Bank announced plans to strengthen coordination around a common approach to assessing employment outcomes.

The discussions, held in Washington, brought together major development finance institutions financing transport, energy, and urban infrastructure projects across emerging markets. At the core of the initiative is the lack of consistency in how jobs are currently measured. MDBs apply different methodologies, with some counting only direct employment generated during project implementation, while others include indirect and induced jobs across supply chains and local economies.

The process will be iterative and developed in consultation with stakeholders such as the International Labor Organization, with a focus on integrating job quality indicators including wages, job stability, and working conditions.

Africa remains the largest recipient of development finance for infrastructure, making it the most exposed region to inconsistencies in job measurement.

According to estimates used by the World Bank Group, infrastructure investments can generate between 10,000 and 50,000 jobs per $1 billion invested, depending on the sector and methodology applied.

However, across African countries, employment figures vary significantly depending on reporting approaches.

For instance, in Nigeria and Kenya, large infrastructure projects often report different job outcomes depending on whether indirect employment, such as supply chain and logistics jobs, is included. In Ghana, urban mobility and road projects frequently rely on project-specific estimates rather than standardized MDB frameworks.

This lack of harmonization limits the ability of governments to compare employment returns across projects and sectors.

THE SHIFT: FROM FINANCING TO JOB IMPACT ACCOUNTING

The coordination effort reflects a broader shift in development finance, where institutions are increasingly assessed on measurable economic outcomes rather than financing volumes alone.

Employment has become a central metric, particularly as African economies face sustained labor force expansion.

The African Development Bank has indicated that the continent will experience significant growth in its working-age population, increasing pressure to prioritize investments that generate jobs.

MDBs are therefore moving toward frameworks that capture both the quantity and quality of employment, aligning with the “decent work” approach promoted by the International Labor Organization.

Although presented as a technical alignment exercise, the harmonization of job measurement carries direct implications for African economies.

Standardized metrics could improve how governments negotiate financing agreements, influence project selection, and allow clearer comparison of employment outcomes across sectors.

It may also increase scrutiny of whether infrastructure investments generate long-term productive jobs or primarily short-term construction employment.

According to the joint statement consulted by Ecofin Agency, the objective is to “advance collective understanding of the best pathways for job creation and workers’ earnings,” while improving project design and policy dialogue.

OPPORTUNITIES

The move toward harmonized job measurement could strengthen how African governments and development partners assess the economic impact of infrastructure investments. According to the joint MDB statement, the initiative is intended to support “better policy dialogue and stronger project design, to deliver more and better jobs.” By improving comparability across projects, standardized metrics may help direct financing toward sectors with higher employment multipliers, particularly in transport, energy, and urban infrastructure. The World Bank Group has also indicated in its operational approaches that clearer job diagnostics can enhance investment targeting and outcomes in Sub-Saharan Africa, particularly in economies where infrastructure remains a key driver of job creation.

At the same time, aligning methodologies across institutions operating in diverse economic environments presents technical and structural constraints. According to the International Labor Organization, measuring not only the quantity but also the quality of jobs, such as wages, stability, and working conditions, requires robust and comparable labor data systems, which remain uneven across developing economies. MDBs themselves acknowledge that differences in statistical capacity, high levels of informality, and varying project structures complicate the inclusion of indirect and induced employment in job estimates. As noted in the joint statement, the process will be “iterative and refined, based on lessons learned.” This means that full standardization will take time and may continue to produce variations in reported employment outcomes across projects and countries.

Overall, MDBs are not introducing a single unified system, but are moving toward greater alignment of existing methodologies to improve the consistency and comparability of job creation data. For Africa, where infrastructure investment remains central to development strategies, this shift could influence how projects are designed, evaluated, and prioritized based on their employment impact.

By Cynthia Ebot Takang