INVEST Year 6 Annual Report

In its sixth year of implementation, INVEST surpassed $1 billion in total capital mobilized. This substantial capital infusion has been channeled into 13 distinct sub-program areas, including agriculture, health systems, water and sanitation, financial services, and renewable energy. The majority of these funds (54.9%) have been allocated to the financial services sector to expand access to capital in underserved markets. Additionally, a noteworthy 23.3% of this capital was directed towards renewable energy projects to support climate mitigation efforts. Implementation of INVEST's buy-in mechanism has resulted in the mobilization of a total of $643 million in year six (October 2022 – September 2023), representing nearly 62% of all capital mobilized during the life of the project. The largest transaction ($277.7 million) resulted from two concurrent bond offerings for the Caisse Régionale de Refinancement Hypothécaire (CRRH), a West African regional mortgage refinancing company. This transaction, supported by the Prosper Africa initiative, reduces the costs of financing and enables CRRH to provide an estimated 6,000 new mortgages across Western Africa to meet the high demand for affordable housing. INVEST's procurement processes remain rapid, with an average time from procurement release to signed subcontract of under 12 weeks. A dedicated team supports partners throughout, including a procurement point of contact, orientation calls, check-ins, and compliance guidance. INVEST continued to expand outreach, adding 11 new firms to its long roster of 119 subcontractors. The USAID Finance and Investment Network (FIN), facilitated by INVEST, grew to 588 members in the last year. The FIN remains a critical source of technical expertise that has allowed INVEST to respond to the objectives of 66 distinct buy-ins across 36 USAID Missions, Bureaus, and Independent Offices (MBIOs). INVEST provides demand-driven services to mitigate risk and facilitate investment in USAID priority sectors. Technical services fall into four main categories: investment opportunity assessments, transaction advisory services, structuring funds and financial instruments, and technical assistance. To date, 62% of buy-ins have included investment opportunity assessments, 38% have included transaction advisory services, 30% have included structuring funds and financial instruments, and 41% have included technical assistance. The Finance and Investment Network (FIN) is a key component of INVEST, providing a platform for member firms to partner with USAID and access procurement opportunities. Over the life of the project, INVEST has mobilized $1.04 billion through 66 buy-ins with 36 Missions, Bureaus, and Independent Offices (MBIOs) working in 82 countries. INVEST has subcontracted with 119 firms through $96 million in subcontracts. Approximately 66% ($63.3 million) of the total value of subcontracts were issued to new or non-traditional partners, as defined by USAID. The INVEST buy-in mechanism has been successful in mobilizing capital for USAID's development objectives, with a significant portion of the funds allocated to the financial services sector and renewable energy projects.