USAID CATALYZE: Mobilizing Capital for Development

Speeches Shim

About Us

USAID CATALYZE will mobilize $2 billion in blended finance over eight years (through 2027) to achieve a broad array of development objectives around the globe. Emphasizing underfinanced social sectors and higher-risk countries, CATALYZE will collaborate with USAID missions and bureaus, investors and financial institutions, small and large enterprises, a deep diversity of market intermediaries, and other key stakeholders to develop commercially viable business models to create jobs, expand sustainable social services, optimize supply chains, and advance inclusive growth. All of our activities incorporate a gender-lens investing approach. Ultimately, CATALYZE envisions proliferation of sustainable blended finance markets that will refine, scale and sustain ongoing investment beyond the life of the project.

CATALYZE is one of multiple USAID Private Sector Engagement (PSE) Hub projects aimed at strengthening partnerships with new or underutilized private sector firms. The PSE Hub includes a growing network of approximately 250 partners that provide niche technical expertise to USAID projects with a focus on mobilizing addition private investment alongside USAID funds.

What We Do

USAID's CATALYZE project engages with domestic and international finance providers to mobilize financing across sectors, geographies and transaction type and size. This market development approach enables enterprises to obtain the necessary investment and working capital to sustain and grow their businesses, and advance development priorities. The CATALYZE platform can:

Develop a pipeline of financeable transactions in target geographies and sectors;
Link financeable opportunities to sources of capital , structure funds, and close complex transactions;
Support financial and non-financial intermediaries in USAID presence countries to build or strengthen local ecosystems; and
Facilitate the use of blended finance and private capital in development, including, but not limited to:

Use performance incentives
such as results-based contracts, performance grants, development impact bonds, and other products.

Develop risk mitigation tools
such as country- or sector-specific blended-finance platforms or funds, pre-investment feasibility studies, and other tools that incorporate risk mitigation features.

Provide catalytic capital,
via the grants mechanism, for seed funding, co-funding, first-loss capital, and performance grants.

PSE Team Network Opportunities

CATALYZE will continue to contribute to the growing USAID Partners Network, and will crowd in new partners through CATALYZE’s blended finance activities in frontier markets and social sectors, increasing PSE Hub projects’ access to niche technical and financial expertise. CATALYZE will also publish a pipeline of upcoming solicitations for this network, and other potential partners.

Blended Finance Market Development

CATALYZE is focused on building a sustainable supply of private capital, channeling it into high impact local firms, and ensuring a conducive investment environment. 

Learn more about CATALYZE’s approach and activities

Last updated: August 26, 2020

Share This Page