Haiti Private Sector Initiative

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Regine
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Joined: Thu Feb 19, 2009 7:49 pm

Haiti Private Sector Initiative

Post by Regine » Thu Feb 19, 2009 9:03 pm

The Next Step….Haiti Small and Medium Business Program:

The Haitian-American Community would like to assist your office to work towards a more inclusive and pro-active Haiti Policy with the implementation of the Haitian-American Chamber of Commerce Haiti Private Sector Initiative.

Please find attached the pertinent documents.

The Haiti Private Sector Initiative aim is two-fold:
(1) To spur private sector development in Haiti in partnership with U.S businesses to create jobs and to contribute towards genuine progress,- and, -
(2) To revitalize the Haitian agricultural sector with the inclusion and engagement of Haiti's 70 percent agricultural workforce
(Haitian farmers and agri-business related workers number nearly 3
million of the total 4.2 million workforce).

The Haiti Private Sector Initiative will contribute towards the redress of Haiti's decimated agricultural industries, - and discourage social and political unrest due mainly to poverty with the creation of an estimated 900,000 jobs.


Introduction/Title Program:
Haiti Small and Medium Business (SME) Program is to:
(a) To capitalize US investment in Haiti for Private Sector Development and Economic Growth,
(b) To remove US import restrictions and tariffs on ALL Haitian goods [exported to the US].

The SME Initiative will be a partnership between the US and Haitian private sectors groups, - with a focus on farming groups and initiatives,- with the goal to organize, expand and strengthen US and Haitian economic ties.
Program Focus: Priority Capitalization of:
■ Public-Private Partnerships (or PPP's) Programs
■ Agricultural Development (to contribute towards Environmental Protection, Conservation, Food Security),
■ Renewable Energy Development.


Background:

The SME Program is a direct response to nearly non-existent financing/credit, lack of investment funds, and limited small/medium business entrepreneurial development, the traditional backbone of a viable economy. The group is a partnership between producers and manufacturers, suppliers and distributors, importers and exporters. Haiti's current overall Private Sector Financing/Credit options are provided through the following:
- US and EU sponsored micro-loans, which though beneficial tend to limit economic growth and expansion, with credit limits not above US$ 2,500 – and,
- [financing/credit] afforded to exactly 15 corporations/families (according to former Haitian PM, Mr. Alexis).

Cause:
Haitian Small/Medium business Enterprises have either no credit options or credit options with collateral request and terms that are outrageously unaffordable. For example, - loan repayment term limit may be 2 years with rates between 20 to 30 percent. This tends to encourage economic stagnation.

Effect:
The SME Program will serve and capitalize an underserved business sector, - for the following:
• To support and promote Competition, Innovation and Technology;
• To create jobs ,- and
• To increase income (standard of living) through improved economic prospects over the short and long-terms.

The Haiti Fund will support US businesses/Investments in Haiti based private sector, for the following:
• To create jobs via private sector business development;
• To supplement the recent (2008) USAID US$ 2 million Haiti Investment Fund;
• To provide credit/capital to increase US investments in Haiti's private sector SMEs;
• To spur US/Haiti SME partnerships towards production increase, value-added production and enterprise growth;
• To increase available credit to qualified Haitian loan micro-loan borrowers,- And thereby, expand entrepreneurial enterprises at the local and rural levels.


Program Priority: The Program will prioritize funding awards and guarantees to enterprises which contribute towards:
♦ Economic and energy self-sufficiency
♦ Agricultural/arboricultural improvements and soil remediation;
♦ Reduction of fossil fuel imports
♦ Increased food security though local cultivation/production.


Program Mission: To capitalize US SME projects in Haiti which promote the following:
• Create jobs and raise productivity
• Support and introduce market value chain development,
• Export value-added within the local, regional and global economies.

The Program will prioritize enterprises with existing assets and sustainable economic activities to leverage for expeditious return on investment. Projects will contribute towards a synchronized expansion of market oriented activities. The result will gain economies of scale and synergy by combining all value chain to support Haiti's market activities.


The Program seeks:
• To introduce competitive and innovative projects capable of responding to demands for goods and services;
• To provide increased market information and access to the global market;
• To increase trade, investment and participation in market activities;
• To encourage entrepreneurial activities/enterprises, - (which will increase employment opportunities).
Emphasis will be on large scale agri-business Projects/Programs that will create jobs, offer production diversification with the inclusion of Haiti's 70 percent agricultural labor force with increased farmer participation to benefit from domestic and international agribusiness markets.
Thereby, simultaneously improving and expanding farmers agricultural output, market and income, - while providing the partnership model aimed towards a profitable approach for all stakeholders, - with the formal and informal private sector[s] as partners/shareholders and beneficiaries to contribute towards viable investment strategies.


Program Target [Enterprises/Groups]:
● Farms (sustenance farms and/or small familial farms)and farming cooperatives; ● Government owned corporations/businesses for public-private partnerships (PPP); ● US businesses and US/Haitian-American (Diaspora) SMEs in partnership with Haiti based businesses.


Program Services:
The US/Haiti SME Program will model, follow and implement guidelines of the US Small and Medium Business Administration (SBA). .
- Tools: The US/Haiti SME Program will aid, counsel, assist and protect US interests and that of their Haitian business concerns, to preserve free competitive enterprise, maintain and strengthen the overall Haitian economy. - Program Resources and Outreach: Through extensive local banking partners' network with public and private organizations, the Program will service 80 percent of Haiti's SMEs. This will provide US businesses increased access to Haiti's marketplace, - while providing local partners access to the global market.


Program Implementation:
Federal Mandate for a Guarantee of loans/funds for US and Haitian-American Businesses operating in Haiti through suggested partners:
• Overseas Private Investment Corp (OPIC) with the OPIC Political Risk Insurance Program Coverage, - and with US Senatorial/Congressional guarantee of funds;
• The Import/Export Bank reestablishment of its Haiti related operations, - with US Senatorial/Congressional guaranteed funding for awarded funds;
• US and Haiti Private banking institutions, - contingent upon applications of US banking rules and regulations,- with terms and rates subject to US market.


Fund Amount:
Suggested US$ 250 million/year renewable over a period of 5 years guaranteed through existing insurance programs. Funds will increase incrementally with investments, loan repayment, etc…

Program Design:
Capitalization/Investment of US/Haiti small and medium business partnerships. The program will be designed to meet a business's key financing needs including:
• debt financing (loans)
• equity financing (investment/seed money)
• surety bonds
• Insurance Coverage


Benefits to the U.S.:
• Increased trade exports to Haiti estimated at US$ 100 million per year in purchase of machinery and equipment, technical and professional expertise, etc…
• Increased discretionary spending with incremental reduction of remittances from Haitian-Americans estimated at US$ 2 billion annually;
• Incremental reduction of U.S. Aid currently estimated at US$ 500 million annually;
• Return on investment/repayment of loan activities estimated at US$ 2.3 billion over 35 years/SME Program Term.
• Increased economic, social and political stability in the western hemisphere.

Benefits to Haiti:
• Incremental increase of State revenue/income via tax collection with private sector development and expansion;
• Open competition and innovation;
• Improved GDP;
• Improved standard of living (through greater access to healthcare, potable water, energy, etc… and greater equitable wealth distribution);
• Increased economic and social mobility;
• Increased economic, social and political stability.


Objective: To develop and increase sustainable economic activities and the income derived there from, - via the capitalization of US SMEs operating in Haiti. The Program will encourage the immediate sharing/implementation of intellectual property and the introduction/implementation of US technology to Haiti for overall improved economic and operations' performance.

Priority awards beneficiaries will contribute towards the following:
♦ To strengthen and optimize existing enterprises to introduce expeditious value-added production and leverage.
♦ To establish partnerships with Haiti's 70 percent agricultural workforce.


Therefore, Priority Awards Beneficiaries will include:

• Public–Private Partnerships (PPP):

(a) To optimize existing assets, operations, production development, diversification and value-added production;
(b) To improve the standard of living with increased wages, employment opportunities, training of labor force;
(c) To allow the Government of Haiti (GOH) to better serve its constituents with increased tax revenues from private sector development and contribution (tax collection).

• Agricultural/Arboricultural Operations:

This component is viewed as the most comprehensive due to the participation of 7% of the Haitian workforce. The Agricultural/Arboricultural Initiative will include soil remediation and related supportive programs/projects to contribute towards improved [Agricultural/arboricultural] practices, and simultaneously:
(a) To expand agricultural development for the following incentives:
(b) To better serve the local population,
(c) To introduce value-added cultivation/production, and production diversification;
(d) To introduce export value-added for global market participation [with export of production excess].
(e) To benefit/include the 70 % [Haitian] agricultural workforce: Beyond actual cultivation/production, US/Haiti agricultural partnerships will increase production and improve practices to increase yields and revenue.

• Renewable Energy Development:

To contribute to US/ Haiti energy Independence and reduction of fuel imports with the introduction of new technology and the development of renewable energy sources, with the following:
(a) To promote, establish and contribute towards alternative energy sources;
(b) To maximize existing sustainable alternatives to petroleum;
(c) To introduce new and proven technologies to the Haitian market for Haitian consumption and export;
(d) To invite US and Haitian award beneficiaries to contribute towards the Haiti Fund.

Goal: to achieve significant economic development via the introduction of US/Haiti SME Partnerships and the implementation of new technologies.

Beneficiaries: US and Haiti via economic growth and development with increased tax base and improved standard of living, social and economic stability in the Haiti.

www.haitianamericanchamber.com
11767 South Dixie Hwy. #275 Miami, FL 33156
info@haitianamericanchamber.com

Partner Companies: Beyond the companies supportive of the Haitian-American Chamber of Commerce listed below are some small and medium U.S Business Enterprises interested in investing in Haiti:
• Haitian-American Chamber of Commerce of Florida. Florida
• American Homegrown fuels, LLC. Florida
• Association for the integrated development of the north of Haiti Inc. (AIDNOH Inc.)
• Bel Soley Inc. Boston. MA
• Bel Soley Ayiti SA, Haiti
• BioTek Solutions, Inc. Florida
• BioTek Haiti S.A. Haiti
• Bruce Enterprises, LLC. Texas
• Business & HealthCare Consulting Group, Inc. (BHCG). NY
• Ciment du Sud S.A. (A Manuthor S.A./Cemex partnership Company), Haiti
• Le Ciment LaPierre, S.A. Haiti
• Equipment Pipeline, Inc. Florida
• First Coast BioFuels, LLC. Florida
• Fondation Seguin (Seguin Foundation org.). Haiti
• Global Minority Business Network, Inc. (GMBN). NY
• Groupe Immobilier d'Haiti. Haiti
• Haiti Blocs, S.A. Haiti
• Haiti Democracy Project. Washington DC
• Haiti Trade Center. Florida
• Haiti Transport S.A. Haiti
• Haitian-American Agro-Industries, Inc. Florida and Haiti
• Hope For Haiti Ministries, Inc. (HFHM)
• Institute for Research in Social Science & Politics (IRSP). MD. U.S.
• InnerLeaf Communications – Marketing. PR. Events. Florida. U.S.
• KCJ Vanilla Company. PA
• Manuthor S.A. Haiti
• MEE Productions, PA
• North Star RMS, Texas
• Port Abraham S.A. Haiti
• Premier Realty and Investment Group. Florida. US
• Saj Rice/Sugar S.A. Haiti
• Saint Leo University HEP. Florida
• Sentient Advisors, Inc. NY
• The Appropriate Infrastructure Development Group (AIDG). Boston, MA
• The Haiti League. NJ
• The Haiti Project. NY
• The Global Syndicate. NY.
• Premier Realty and Investment Group. Florida
• The Soleil Group. NY
• Vulcain Export/Import Company, Florida
• Vulcain Transport Co. Florida
• Vulgus Construction S.A. Florida and Haiti

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Guysanto
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Joined: Fri Mar 07, 2003 6:32 pm

Post by Guysanto » Fri Feb 20, 2009 2:14 pm

Thank you so much for all this information. It can serve as a point of reference for those who are seriously interested in business development in Haiti.

Regine
Posts: 2
Joined: Thu Feb 19, 2009 7:49 pm

Haiti Private Sector Development Initiative

Post by Regine » Sat Feb 21, 2009 5:39 pm

Thank you for your encouragement and support.

We hope the Haitian-American and Haitian-Canadian Diaspora organizations and companies will call on their executive and legislative representatives to support the Haiti Private Sector Initiative Proposal by adding their names and/or companies to our list of supporters,- And write to their political representives in support of the Initiative.

We strongly realize that improved standard of living for all Haitians will be closely tied to economic development in Haiti.

The Haiti Private Sector Initiative will create jobs via business entrepreneurial development and the expansion of existing businesses,- retain educated Haitians at home, as well as engage Haiti's largest workforce: its farmers.

Currently, lack of investment interest in Haiti is precisely why The Haitian-American Chamber of Commerce has taken the leadership in pushing for the Overseas Private Investment Corporation (OPIC) and other such financial institutions to be more engaged in promoting investments in Haiti.

As you may know, OPIC offers insurance to investors that covers many types of risks, including political risks and private property insurance.

We hope to activate existing and available means afforded by OPIC and others to encourage investments in Haiti to minimize and reduce risk factors for interested investors.
For example, should Mr. George Valme with his great innovation choose to open a factory in Haiti to build his stoves, etc....- he should be able to go to a bank to secure the necessary funding.

In the U.S and other working economies, 80 % of the workforce works directly for small and medium businesses. Why not start with the necessary incentives to replicate this in Haiti,- with already currently available means? While providing attractive/available options to investors at reasonable terms and rates.

Furthermore, the Haiti Private Sector Initiatve is also pushing to engage the EX-IM Bank to include Haiti in its list of participative countries (which Haiti is currently not a part of), to facilitate trade financing for U.S exporters and Haitian importers of US commodities.

You will also note the Initiave's emphasis on Agriculture to encourage agricultural development for food security and the inclusion of Haiti 70% agricultural or agricultural related workforce.

Thank you for your support and let's take this all the way.

Regine

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