A Network Approach to Engaging the Private Sector USAID INVEST Resource Guide

NOTE: The INVEST project closed in September 2024. All data is accurate as of that date, but this page is no longer being updated.

While USAID often engages with private sector partners to harness their resources, expertise, and insights, several barriers persist in fully realizing the potential of private sector engagement.

There’s a perceived culture clash between USAID and the private sector, heightened by the lack of a shared language. Interactions with the private sector are frequently transactional, focused on a specific project or deliverable, rather than a true partnership. Traditional procurement processes can deter prospective partners, especially ones that are new to working with government agencies. Many USAID staff also lack expertise in blended finance activities and the relationships and understanding to recruit the right partners.

"We know there is a whole new set of actors that can come in and provide game-changing approaches and resources. But how do you access them when you’re a bureaucratic organization?” - USAID Prosper Africa

"Investment facilitation does not exist as a workstream at the Mission, so there is not a set of established partners for this type of work.” - USAID El Salvador

INVEST established the USAID Finance and Investment Network (FIN) in response to these challenges. Membership in the FIN has grown from an initial 26 partners in 2017 to almost 600 organizations by the end of the project in September 2024, representing the diversity of the investment ecosystem. Members include fund managers, investment banks, advisory firms, and organizations with expertise in impact investing, from across geographies and sectors – many of them locally established entities new to working with USAID.

This network approach represents a departure for USAID, allowing the Agency to cultivate longer-term relationships. Communication and support are tailored to achieve project related goals, while keeping in mind the aim of incentivizing firms to pursue USAID partnerships in the future.

Through INVEST, members of the FIN have implemented activities in 86 countries and a wide range of sectors, mobilizing more than $1.61 billion in private capital for development.

Finance and Investment Network Database

FIN members have capabilities informed by on-the-ground experience. They offer USAID complementary perspectives, distinct skill sets, and fresh insights to solving development challenges. explore the interactive list of member organizations by sector or geography below.

HOW DOES A NETWORK APPROACH WORK?

This learning brief captures the process behind creating the FIN, as well as perspectives and insights from both USAID and network members into how it has affected their ability to partner with each other. Below are a few key takeaways.

1. The network model, as implemented by INVEST, is defined by three core elements:

• Strategic recruitment and streamlined procurement
• Customized onboarding and simplified contracting
• Tailored support for successful collaboration and network building

2. Engaging the private sector through a facilitated network approach has delivered benefits in line with the PSE Modernize reform initiative. The role of network facilitator has proven to be essential to allowing USAID and private sector firms to focus on their core competencies.

3. A set of performance metrics has helped define goals and assess the efficacy of the network approach.

VOICES FROM THE NETWORK

“USAID has been an invaluable partner and has significantly contributed to the success of this project. The legitimacy, established reputation, and track record of the organization coupled with the catalytic funding and the professionalism brought about by the structure of the project has generated confidence in potential investors, building trust in CGC's value proposition and being one of the critical contributing factors to us successfully raising private sector capital from reputable investors” - Creative CFO, an INVEST partner

Hear from INVEST's partners directly in the video below.