Applications Invited for USAID’s Digital Invest Program

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About the Organization

USAID leads international development and humanitarian efforts to save lives, reduce poverty, strengthen democratic governance and help people progress beyond assistance.

President John. F. Kennedy created the United States Agency for International Development by executive order in 1961 to lead the US government’s international development and humanitarian efforts.

About the Grant

Digital Invest is a U.S. government-funded program overseen by a team of technical experts at USAID who provide highly customized support to the private sector. Its purpose is to select and support investment fund managers, wholesale internet infrastructure providers, and other private sector partners to accelerate new investments that benefit digital finance and internet service providers in emerging markets.

Grant size

USAID anticipates developing four public-private partnerships under the above objectives, each with up to $500,000 in USG grant capital, and an equal if not greater amount of private sector resource commitments

Objectives

 The objectives of collaborations developed under this addendum are:

• Objective 1: Support the sustainable growth and expansion of competitive internet service providers (ISPs) and related telecommunications infrastructure companies in emerging markets.
• Objective 2: Support the sustainable growth and expansion of competitive and inclusive digital financial services in emerging markets.

Objective 1:

Under Objective 1, USAID seeks to support new partners to significantly advance open, interoperable, reliable, inclusive, and secure networks in currently un- or under-connected areas by supporting partners advancing a competitive ISP ecosystem. Partnerships may include:

• ISPs: Financing and assistance for ISPs developing critical infrastructure that benefits the broader ISP ecosystem in their market(s). This may include wholesale wireless access or international transit services, internet exchange points, or other such infrastructure that addresses key constraints in a particular market or set of markets that, if addressed, could unlock significant growth for the ISP sector in current un- or under-served communities. Such investments should enable last mile services of not just an ISP’s own company but also those of other retail ISPs in the market;
• Network Infrastructure & Equipment Providers: Funding for telecommunications infrastructure and equipment providers developing fiber, tower, data center, and other open access or wholesale network services that can support the deployment of affordable and inclusive connectivity services to underserved communities; or
• Financing Partners: Support for the creation of investment funds or other financial vehicles or approaches that directly support or lower the cost of capital for competitive ISPs that seek to connect traditionally underserved communities, hard-to-reach areas, and/or community anchor institutions, including through debt or equity facilities, impact bonds, outcomes funds, or other structures designed to best support ISPs in developing country environments.

Objective 2:

Under Objective 2, USAID seeks to partner with private sector partners providing proven, innovative, and responsible solutions that promote secure and resilient financial inclusion and new income generation in emerging markets, with a focus on de-risking and scaling capital flows for the sector. Potential partners are expected to demonstrate and advocate for ethical business practices and industry standards advancing consumer protections, cybersecurity, and responsible innovation. Regardless of whether potential partners focus on retail-level, customer-facing financial services or the upstream (i.e., business-tobusiness) part of the financial services value chain, they are expected to ultimately contribute to the development of affordable, accessible, and inclusive financial services and use trusted vendors across software and hardware supply chains. New partners across the digital finance sector may include:

• Financing Partners: Private sector partners developing and advancing financial models and investment approaches that directly support or lower the cost of capital for competitive digital financial service providers that promote financial wellbeing for underserved consumer populations, including through debt or equity facilities, impact bonds, project finance facilities, or other structures designed to increase access to finance and address existing market challenges.
• Service Providers for the Digital Finance Sector: Private sector partners providing financing, market acceleration services, digital infrastructure, critical technology or business model innovations, and other assistance to digital financial service providers promoting financial wellbeing and enabling improved incomegeneration opportunities for underserved consumers or businesses in emerging markets.

Geographic Scope:

Proposed partnerships should focus on countries where USAID is currently present. While this call for concepts is global in scope, priority regions include Sub-Saharan Africa, Central, South, and Southeast Asia, and Latin America and the Caribbean.

How to Apply

Please refer to the Call for Concepts for details on new partnership opportunities. Final concept notes will be co-developed with the Digital Invest team before April 15, 2024.

For more information please check the Link

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Tags Sustainable Development Goals (SDGs) Others