Digital Invest: A Snapshot of 2023 Successes and the Road Ahead
From launching four new partnerships to investing in 64 technology companies across 40 countries, USAID’s Digital Invest spent the last year growing its program in support of internet connectivity infrastructure and digital financial services that strengthen open, inclusive, and secure digital ecosystems in emerging markets.
With 2.6 billion people around the globe still offline as of 2023, investment in internet connectivity and digital financial infrastructure continues to be critical to bring people online and into the digital economy.
New Partnerships in 2023
In 2023, USAID launched four new partnerships with two internet service providers (ISPs) and two fund managers, bringing the program to 13 total partners and diversifying the Digital Invest portfolio with new, innovative approaches to driving internet access and digital financial inclusion in emerging markets.
We’re proud to announce our newest partners:
Converged Technology Networks, an ISP based in Malawi, will be completing a new wireless backhaul link to deliver lower cost capacity to the capital of Lilongwe. This, combined with the launch of the first internet exchange point in Lilongwe, will allow ISPs in Malawi to access lower cost capacity and keep traffic local—enabling the expansion of digital connectivity and services in the country.
Sturgeon Capital, an emerging markets-focused venture fund manager, invests in early-stage technology startups solving fundamental problems affecting the day to day lives of small businesses and consumers. Sturgeon is launching a new fund investing in early-stage technology startups across Central and South Asia, with a focus on digital inclusion, new job creation, and more equitable gender representation across the tech sector.
Mercy Corps Ventures, the impact investing and innovative finance arm of the global development organization Mercy Corps, will increase its investment and support for high-growth technology startup companies building climate adaptation and financial resilience for underserved communities in emerging markets.
Roke Telkom, a Ugandan-based ISP, will develop new fixed wireless infrastructure to expand affordable and inclusive broadband services in underserved areas of Northern, Eastern, and Western Uganda. This will support the ISP ecosystem in the country by offering colocation and wholesale services at competitive rates, allowing for more affordable last mile services to the end consumer.
By partnering with Digital Invest, these private sector companies will also further the goals and objectives of the U.S. Department of State’s Digital Connectivity and Cybersecurity Partnership and the G7-led Partnership for Global Infrastructure and Investment—of which Digital Invest is a flagship program—to improve digital connectivity in low- and middle-income countries to advance sustainable, inclusive growth and to promote an open, interoperable, reliable, and secure Internet .
Success Snapshot
Whether raising capital for fintech companies and ISPs or building broadband infrastructure that enables underserved populations, small businesses, and healthcare facilities to connect to the internet, Digital Invest partners have continued to make strides towards closing the digital divide since the program started in 2022. Below, you will find a snapshot of Digital Invest’s current statistics, which represent the program’s progress since 2022:
$275 Million Raised
Our partners have raised over $275 million in investment capital for current funds and projects, a leverage of 42:1.
$475 Million Total Expected
Digital Invest partners aim to raise an estimated $475 million for current funds and projects, a projected leverage of over 56:1.
64 Companies
Our partnerships support investments in 64 technology companies working on financial technologies, internet service, and infrastructure.
40 Countries
Our partners’ current investments span 40 markets across Latin America, Africa, Central Asia, and South and Southeast Asia.
114,000 Connections
Our partners have helped create over 114,000 new secure network nodes for internet connectivity.
350 km
Our partner CSquared has installed 350 km of backbone fiber in Liberia. New partnerships will result in additional towers and IXP infrastructure in Uganda and Malawi.
9.3 Million Consumers
Our partners have helped serve over 9.3 million consumers with internet connectivity and digital financial services.
14,500 New Jobs
Our partnerships have helped create over 14,500 new jobs in the U.S. and abroad.
Other Highlights
Throughout 2023, Digital Invest partners hosted events and training sessions, published insightful reports, articles, and blogs, recorded podcasts, and attended and spoke at conferences around the world to share their expertise, learnings, and innovations in the internet connectivity and digital financial service sectors.
In November 2023, for example, leaders from Digital Invest partners CSquared, Connectivity Capital, Roke Telkom, Converged Technology Networks, and Microsoft Airband ISP partner Ekovolt joined USAID team members at AfricaCom in Cape Town, South Africa to speak on blended finance as an approach for advancing ISP ecosystems.
What's in store for 2024?
USAID’s Digital Invest program is recruiting a new cohort of investment fund managers, project developers, and other private sector partners to leverage a relationship with USAID and approximately $500,000 each in funding to expand internet access and inclusive digital financial services in emerging markets.
Eligible candidates are encouraged to submit questions and proposed partnership summaries to digitalinvest@usaid.gov by Thursday, February 15, 2024. Final concept notes will be co-developed with the Digital Invest team and are due Monday, April 15, 2024.