USAID Invest, Year 2 Report

The activity aims to cultivate a pipeline of high-potential businesses in the agriculture and agriculture-enabling sectors and provide them with investment readiness and transaction advisory services to mobilize significant private investments in the DRC. In Year 2, which spans from October 1, 2022, to September 30, 2023, USAID Invest has met or exceeded its cumulative Year 2 targets for all 11 indicators. Notably, the activity has facilitated $28,855,180 in investments versus a target of $15 million through Year 2 across 11 transactions. This achievement is attributed to the groundwork laid in Year 1, where systems, processes, and relationships were developed, and a strong pipeline of firms and investors was created. The activity has facilitated transactions for a variety of Congolese Small and Medium Enterprises (SMEs), including a packaging firm catering to the needs of agribusinesses and firms in other sectors, a manufacturer using agricultural raw materials in its production in Eastern DRC, an agriculture cooperative, an agribusiness active in the maize value chain, a coffee cooperative in North-Kivu, a coffee cooperative in South-Kivu, and a palm oil-based soap manufacturer. USAID Invest has also introduced 13 investors to the DRC who now include DRC and/or agriculture in the DRC within their investment mandate. In addition to facilitating investments, USAID Invest has supported 91 firms with investment readiness and business development services through masterclasses and workshop events in Years 1 and 2. The activity has also participated in domestic and international conferences and events, including the Makutano conference in DRC, the Africa Leaders Summit in Washington DC, the African Fine Coffees Association (AFCA) conference in Kampala, and the Africa Energy Forum (AEF) in Nairobi. USAID Invest has carried out critical work in collaboration with partners to support the business enabling environment (BEE) for investment in the DRC. The activity has coordinated with stakeholders and Advisory Committee members, supported a broader convening with business associations and government on agriculture sector investment, and promoted DRC as a destination for investment. USAID Invest has also identified and begun planning with the Central bank of Congo (BCC) to support a priority reform to address the impact of the lack of a legal and regulatory framework for investment funds and investment management companies on DRC's ability to increase access to finance. The activity has documented several lessons learned and overcome challenges, including the security threats in Eastern DRC, the ongoing crisis over the supply of corn in DRC, declining prices, and increasing inventory of coffee. The Investment Capital Map Report provides a mapping of the major current and potential investors in the DRC that could be relevant to USAID Invest. The report includes a high-level analysis of investment trends in the DRC and recommendations for how USAID Invest can engage with each segment of finance providers to mobilize a diversified pool of capital. The Capital Map is now posted online and available to the public through USAID MarketLinks. The report provides an overview of the landscape of capital providers in the DRC and analyzes them based on their types, strategies, and instruments, among other parameters. It includes a recommendations section for how USAID Invest can engage with each segment of finance providers to mobilize a diversified pool of capital.