INVEST Project: Mobilizing Private Investment for Development

Launched in 2018, INVEST is driven by a research and learning mandate, with a focus on unlocking private investment as a key way for USAID to engage the private sector. The initiative conducts rapid and constant learning that informs USAID programs and strategies, and is fast and flexible, responding to tailored approaches to USAID and market needs. INVEST works with the private sector to mobilize capital for better development outcomes, with a focus on three main areas: investment opportunity assessments, structuring funds and financial instruments, and transaction advisory services. In the DRC's coffee and mining sectors, INVEST assessed opportunities for blended finance, while in India, a blended financing vehicle was designed for USAID to crowd in private capital. INVEST also provided transaction advisory support to close deals for Kenyan off-grid energy companies and structured investment deals in mining for the Afghan government. INVEST supports market-driven solutions to address development challenges, fostering operational and technical innovation for better development outcomes and impact across USAID. At the core of INVEST is a partner network of new, underutilized, and local firms with valuable experience in investment and deploying private capital for development. The partner network enables USAID to access niche, technical experience on demand, leveraging USAID funding in innovative ways and at scale. INVEST places a high priority on developing targeted learning and communications products that document and share what INVEST is learning with USAID and partners. This quarter, main topics of focus included strategic corporate investment partnerships, the INVEST initiative and partner network, and INVEST Power Africa transaction advisory. INVEST facilitated 15 hands-on learning events and developed and published 15 written learning products, including three Close-ups, six Snapshots, five blog posts, and the Corporate Investment Partnership report. INVEST builds on the BAA learning mandate to develop a knowledge base of what approaches to blended finance work best across different circumstances and to fill gaps in the evidence base on private capital mobilization for development. INVEST works with USAID and the partner network to develop and implement innovative procurement and contracting processes for collaborative development solutions. Thirty-three firms have engaged in INVEST technical activities to date, demonstrating the initiative's ability to leverage new, underutilized, and local partners to implement the PSE policy and build their capacity for further work with USAID.