INVEST

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USAID INVEST is an initiative that mobilizes private capital for better, more sustainable development results.

ABOUT US

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 62 countries and 14 development sectors.

WHAT WE DO

By reducing barriers for investors, INVEST mobilizes investment for development and channels private capital into high-impact regions and sectors.

The diagram depicts an image of how private capital is funneled into two areas of work which are operational support and technical services - this method of funneling leads to better development results. Operational support includes partner facilitation, streamlined procurement, and integrated learning and research. Technical Services include transaction advisory services, investment opportunity assessments, and structuring funds and financial instruments.

INVEST’s work can be categorized under three 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 Transaction Support

As of October 2020, INVEST had mobilized $172 million in capital and supported 85 transactions, including 18 closed transactions. The projected value of total capital mobilized as a result of transactions supported by INVEST is estimated at over $1.6 billion.

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 February 2017 and July 2021, INVEST has grown the USAID Finance and Investment Network from 26 to more than 405 members. This diverse network has expertise in a wide range of sectors and works in 195 countries.  
 
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.

The diagram depicts a 3-Step model on how INVEST supports new and underutilized partners. The first step involves strategic recruitment and streamlined procurement. The second step deals with customized onboarding and simplified subcontracting and the third step works on sustained, tailored support for successful collaboration. An effective partnership leads to partners gaining government know-how and USAID gaining access to market-based expertise. This leads to better and more sustainable development resul

Learn more about how INVEST supports new and underutilized partners

INVEST Stats and Stories

Latest Quarterly Report: INVEST Quarterly Report Year 4 Quarter 2

Learning & More

Check out the INVEST Learning page to find out where INVEST works and to access INVEST publications.

For questions about USAID INVEST, please contact INVEST_Network@DAI.com

Last updated: July 21, 2021

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