Bridging the Digital Divide: USAID’s Digital Invest Program Expands Reach with Four New Partnerships.
In a significant stride towards fostering global digital inclusivity, the United States Agency for International Development (USAID) has announced the launch of four new public-private partnerships under its Digital Invest program. This initiative, a key component of the G7-led Partnership for Global Infrastructure and Investment (PGII), is designed to bolster digital connectivity infrastructure and financial technology services in emerging markets. The ultimate goal is to create open, inclusive, and secure digital ecosystems that reduce the digital divide and bring the benefits of the digital age to traditionally excluded communities.
Digital Invest, a blended-finance program unveiled by President Biden in June 2022, is part of the U.S. Department of State’s Digital Connectivity and Cybersecurity Partnership. USAID is leveraging an initial $6.45 million in U.S. government funding to support this program, aiming to mobilize an estimated $455 million in investment capital. Since its inception, Digital Invest partners have already mobilized over $135 million, contributing to the growth of 35 portfolio companies across 27 countries.
Here’s a closer look at the new partnerships set to be launched by USAID this year:
- CSquared’s Fiber Backbone Network in Liberia:
- Africa-based technology company CSquared is taking a bold step by establishing a 350-kilometer open-access fiber backbone network in Liberia. This infrastructure will provide transformative network capacity to Internet Service Providers (ISPs) and mobile network operators, potentially bringing quality internet access to as many as one million people in Liberia.
- Microsoft Airband’s Global Incentive Fund:
- Microsoft Airband is contributing to the cause by supporting the development and launch of a global incentive fund. Managed by Resonance, this fund aims to incentivize ISPs providing digital access to community institutions such as health clinics, schools, and local government facilities, thus ensuring digital inclusion at the grassroots level.
- Modus Capital’s Venture-Builder Program in Egypt:
- Modus Capital is launching a venture-builder program specifically tailored for early-stage financial technology companies in Egypt. This initiative seeks to improve financial well-being across underserved populations, utilizing the infrastructure and best practices of Modus’ venture platform. The program comprises venture capital funds, venture builders, and a corporate innovation arm.
- SIMA Funds’ Crowdfunding Platform – Sow Good Investments:
- Impact investment firm SIMA Funds is venturing into the realm of crowdfunding with the launch of Sow Good Investments. This platform aims to catalyze U.S. retail investments into fintech-enabled microfinance institutions and pay-as-you-go solar financing and distribution companies operating across sub-Saharan Africa and Southeast Asia.
As these partnerships come to fruition, USAID’s Digital Invest program is poised to make a tangible impact in reducing the digital divide. By supporting digital infrastructure and service providers in developing markets, these initiatives are laying the foundation for a more connected and inclusive global digital landscape. The commitment to innovation and collaboration showcased by these partnerships aligns with the broader mission of fostering sustainable market growth and bringing the benefits of the digital revolution to all corners of the globe.