USAID INVEST is an initiative that mobilizes private capital for better, more sustainable development results.
As the world’s development challenges become more complex, USAID recognizes the need for market-based solutions.
USAID INVEST unlocks the power of private capital to drive inclusive growth in countries where USAID works. Investors and businesses look to emerging markets for better returns and new opportunities. However, investing in these markets is complex, and investors can encounter poor risk-reward ratios that make investment unattractive. INVEST helps address these challenges and facilitates work between USAID and partners in the investment community and the private sector.
Mobilizing investment into high-impact areas requires working with firms that have valuable, sector-specific expertise, including many organizations that have not worked extensively with USAID in the past. INVEST employs user-friendly procurement and subcontracting processes that level the playing field, ensuring that USAID can work with the best firm for the job, regardless of that firm’s size, location, or previous experience with government contracting. With 36 USAID Missions, Bureaus, and Independent Offices participating, INVEST's activities span 81 countries.
WHAT WE DO
By reducing barriers for investors, INVEST mobilizes investment for development and channels private capital into high-impact regions and sectors.
INVEST’s work can be categorized under four pillars of support:
Investment Opportunity Assessments
INVEST helps USAID understand market conditions and identify investment opportunities.
Structuring Funds and Financial Instruments
INVEST designs or structures blended finance funds, investment platforms, and other financial products.
Transaction Advisory Services
INVEST helps link capital suppliers to businesses that need investment to grow.
INVEST helps strengthen the commercial viability of a project at pre-or post-investment stages by developing the capabilities of fund managers or the businesses and projects in which they invest.
INVEST Transaction Support
As of December 2022, INVEST had mobilized $488.8 million in capital and supported 175 transactions, including 111 closed transactions. An additional $1.2 billion in transactions are projected based on current capital raise efforts.
For example, USAID INVEST helped Nigeria's Tomato Jos raise $4.4 million in equity and helped the African healthcare technology company Field Intelligence complete a $3.6 million investment round.
USAID Finance and Investment Network
At the core of INVEST’s work is the USAID Finance and Investment Network, a partner network of firms that have experience in investment and development. This network enables USAID to access the technical expertise needed to catalyze investments that lead to positive development results.
Between September 2017 and March 2023, INVEST has grown the USAID Finance and Investment Network from 26 to more than 543 members.
USAID subcontracts with members of the network through a streamlined but rigorous procurement process. For more information on INVEST’s procurement process, visit the INVEST Procurement Website.
Learn more about the USAID Finance and Investment Network.
To join the partner network, please email INVEST_Network@dai.com
How Invest Supports New and Underutilized Partners
Facilitating investment requires working with private-sector firms that have valuable sector-specific expertise within blended and innovative finance. Many of these firms have not worked extensively with USAID in the past. USAID refers to these firms as “new and underutilized partners.”
These partners often have niche expertise informed by on-the-ground experience. They bring different perspectives, distinct skill sets, and fresh insights to solving development challenges. USAID recognizes that these partners, especially small and local firms, can strengthen local capacity, provide specialized know-how, and deepen local markets. Unfortunately, these firms often do not have much experience with government proposal submissions or contracting paperwork.
INVEST employs user-friendly strategies that make it easier for a broader and more diverse group of partners to work with USAID.
Learn more about how INVEST supports new and underutilized partners.
INVEST Stats and Stories
Latest Quarterly Report: INVEST Year 6 Quarter 1 Report
Learning & PUBLICATIONS
Check out the INVEST Publications page to find INVEST's research reports and learning products.
For questions about USAID INVEST, please contact INVEST_Network@DAI.com