The World Bank has announced an update to its procurement requirements, aiming to address job challenges in developing countries. Starting September 1, 2025, companies bidding on international civil works contracts funded by the World Bank will need to ensure that 30% of labor costs are local. This move is designed to boost domestic job creation and skills development.
Gallina A. Vincelette, Vice President for Operations Policy and Country Services at the World Bank, stated: “This new requirement underpins our commitment to job creation. 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. This approach helps build a skilled and better-equipped workforce and strengthens local economies.”
These changes are part of a broader update to the World Bank's procurement framework introduced earlier in March 2025. The framework aims to improve outcomes by attracting qualified bidders and innovative solutions in investment projects financed by the bank. It emphasizes quality in bid evaluation, considering life-cycle costs, innovation, sustainability, and local job creation.
The initiative comes as a response to the anticipated entry of 1.2 billion young people into the workforce in emerging economies over the next decade.
Contact information for further inquiries includes Uwimana Basaninyenzi based in Washington at +1 202 744 3489 or via email at ubasaninyenzi@worldbankgroup.org.
For more details about this initiative, visit www.worldbank.org/procurement or follow their social media channels on Facebook, X (Twitter), and YouTube.