If you are reading this article, chances are you already know that your company can’t do it all on its own. In today’s complex world, partnerships are key to gaining traction in new markets; maintaining reliable, resilient supply chains; and driving sustainable impact.
As one of the world’s largest aid agencies, USAID’s projected 2023 budget is over $29 billion—a significant sum in support of critical missions and initiatives around the world. However, it is clear that in order to solve unprecedented global problems like extreme poverty and food security, and complex wicked challenges like biodiversity loss and climate change, this level of support still requires the kind of innovative solutions and capacity-building that only partnerships provide.
And, so, USAID is building ever-more sophisticated processes and tools as part of its internal efforts to modernize its engagement with the private sector to achieve the goals and objectives of not only the Agency, but also participating organizations on both sides of the development continuum. In other words, for companies looking to partner with USAID, there’s never been a better time.
Resonance has worked with USAID for over 16 years, helping to pioneer USAID’s private sector engagement (PSE) policy and mainstream cross-sector collaboration across the Agency.
Here, we walk you through the three primary ways that companies can partner with USAID.
Companies looking to address a business challenge spanning multiple markets might be interested in a global partnership with USAID. These partnerships often originate with partnership/PSE staff at USAID’s headquarters in Washington, DC. Typically, they’ll map to global Agency priorities, such as food security, climate change, global health, water and sanitation, innovation and technology, and gender equality.
A global partnership often starts with a general scope of work, partner commitments, and a Memorandum of Understanding (MOU). Country-specific activities are typically ironed out later, upon MOU signing and partnership roll-out. (And these depend on the buy-in and interest of USAID’s country offices, which have their own strategic priorities.)
Pursue a global partnership with USAID when:
Keep in mind that global partnerships, while high-profile and ambitious in scope, can be the most complex to negotiate and navigate. They must be well-designed and well-managed—with committed hands-on partners—if they’re to deliver success and impact on the ground.
To explore the potential for a global partnership with USAID, check in with the Agency’s Private Sector Engagement (PSE) Hub or the PSE contact for the relevant USAID Bureau. (In its global headquarters, USAID also maintains a cohort of relationship managers, who help channel and streamline collaboration with key multinational company partners.) These teams will direct inquiries and provide resources on the best way to move forward. If they don’t think a global partnership is the best fit, they may redirect you to a contact at one of USAID’s country offices (see below).
USAID has more than a hundred country- or regional-level offices (or Missions) around the world, whose staff focus on national or regional development initiatives. Their work spans a broad spectrum of development challenges and priorities, and they bring strong, pre-existing relationships with local government and local organizations.
Sometimes a Mission might have unprogrammed money available for stand-alone partnership projects—or there might be mutual benefit in an ongoing relationship, to help guide and inform each other’s country strategy, for example.
Pursue a country- or region-specific partnership with USAID when:
Partnerships with Missions allow companies to build longer-term and more expansive partnership relationships in-country. These relationships and networks, however, will be geographically bound and will not necessarily translate into partnerships with other USAID offices.
All Missions are encouraged to partner with companies to advance the objectives outlined in their country development cooperation strategies (CDCS). If you suspect that your business goals are aligned with a particular USAID Mission’s objectives, contact the Mission’s PSE representative to initiate a conversation.
And lastly, when we look at how companies partner with USAID, we look at project-based partnerships.
Every year, USAID’s global Missions and Washington-based Bureaus fund and oversee a wide range of projects in support of their development objectives. While these activities may differ in their focus, budget, and timespan, most of them are led by one or more external implementing partners (aka IPs)—including global development firms (like Resonance!) and nonprofit organizations.
USAID funds the projects and acts as an engaged client, while IPs typically lead day-to-day decision-making, on-the-ground project management, and partnership development to meet the project’s objectives. An increasing number of USAID projects include dedicated partnership funds that set aside budget and project scope to co-design and implement partnerships in a given geography or sector.
Pursue a project-based partnership with USAID when:
This is the most frequent USAID partnership type. When you partner with USAID, on projects especially, they're relatively simple to forge and they come with a dedicated partner unit—in the form of on-the-ground IPs and local technical experts—to help coordinate the partnership and execute partnership activities. That said, such partnerships are limited by the USAID project’s scope, objectives, geography, and timeframe.
Upcoming USAID projects can be found and searched on the USAID Business Forecast. Otherwise, companies can directly partner with USAID projects by building relationships with the relevant IPs or by consulting with the USAID PSE representative for target countries or through the Mission’s website.
At the World Economic Forum in January 2023, Administrator Samantha Power announced USAID was launching the Enterprises for Development, Growth, and Empowerment (EDGE) Fund, an innovative new fund designed to unlock and unleash outsized private sector impacts on global development challenges.
The EDGE Fund is one initiative within USAID’s PSE Modernize reform effort, designed to work across and within Agency systems and stakeholders to lower barriers for staff and partners to create impact through collaboration.
The following list of planned activities are among the first projects slated to receive resources through the EDGE Fund:
The PSE Modernize reform effort works across and within USAID systems and stakeholders to lower barriers for staff and partners to create impact through collaboration. With these reforms, USAID will create a streamlined and productive experience for its partners, reducing hurdles and increasing USAID’s impact through the private sector. Although the inaugural window for applications to the EDGE Fund has closed; future opportunities, subject to funding availability, will be promoted at its Edge Fund site . The Agency also welcomes expression of interest in collaboration via its EDGE Fund inquiry form.
Business relationships are fluid—they iterate over time as conditions and the world around us changes. You may start a relationship with USAID at the Mission level, and eventually find your way to a global partnership. Or, you may pursue USAID project-based partnerships in countries around the globe. Whatever the case, a partnership with USAID is worth considering (hint: many of the world’s largest multinational companies are—or have been—USAID partners).
Resonance works with companies to help them make informed decisions about when, how, and with whom to partner to achieve results. For more about how we’ve helped companies achieve business goals through cross-sector partnership, contact us.
Editor’s Note: This post has been updated for accuracy and current best practices.