• Starting September 1, 2025, companies must allocate at least 30% of labor costs to local workers in World Bank-funded international public works projects
• The goal is to boost local employment, build skills, and strengthen developing economies
• The measure is part of a wider push to modernize public procurement and tackle youth unemployment, especially in Africa

The World Bank will require companies working on international public works projects it finances to dedicate at least 30% of labor costs to local employment. This new rule will take effect from September 1, 2025, and is meant to create jobs, develop skills, and support local economies—especially in developing countries.

The announcement was made in an official statement on July 18. The requirement applies mainly to transport and energy infrastructure projects that follow the Bank’s international competitive bidding procedures.

“By prioritizing the use of local labor in World Bank-funded projects, we not only create immediate employment opportunities for people in our client countries but also invest in the long-term potential of local communities,” said Gallina A. Vincelette (pictured), Vice President for Operations, Policy, and Country Services at the World Bank. She emphasized that this step would help build a more skilled workforce ready to meet future economic demands.

The change is part of a broader strategy launched in March 2025 to improve the efficiency of public procurement. This includes placing greater weight on offer quality, with new criteria covering sustainability, life-cycle costs, innovation, and local employment impact.

With 1.2 billion young people expected to enter the labor market in emerging countries over the next ten years, the World Bank is making jobs a central focus of its operations. Youth unemployment remains a serious obstacle to development in regions like Africa. In 2024, 22.8% of young people in the region were neither in school, training, nor employed.

To address this, the Bank is backing programs that promote vocational training, entrepreneurship, and digital inclusion. It also supports efforts to modernize agriculture and is calling for reforms in education systems to better match young people’s skills with market needs.

As of June 30, 2024, the World Bank’s active project portfolio in Africa stood at $78.8 billion. The funding is mainly focused on education, health, energy transition, digital connectivity, soft infrastructure, and market integration.