Investing in Haiti
What is Haiti INVEST
Haiti INVEST is a multi-million dollar USAID/Haiti activity that aims to stimulate private sector investment in Haiti. The program focuses on enterprise-led development, unlocking the potential of the private sector to create lasting employment and economic growth. Using a pay-for-performance compensation model to incentivize financial intermediaries and other actors, the program seeks to facilitate investment in Small and Medium Enterprises (SMEs), specifically by bridging the gap between companies’ needs and the supply of capital. The goal is to engage the investor community and the advisors that facilitate the flow of private capital to target companies.
Haiti INVEST works with local and overseas Transaction Advisors who are the bridge between SMEs looking for capital and the sources of investment capital, whether equity or debt. Local advisors are tasked with identifying SMEs that need growth capital, providing them with the assistance needed to prepare them for investment capital, and finding investors. They work with SMEs throughout the entire process of capital raising, working on such tasks as business plan preparation, marketing presentation, roadshows, and closing deals. Overseas Transaction Advisors have a network of investors looking for business in Haiti. They work with these overseas investors to inform them of the opportunities, organize roadshows, perform detailed due diligence on local companies, and accompany investors until deal closing.
Eligible Transaction Advisors partners for Haiti INVEST have at least two years of experience working in the field and a demonstrated ability to raise capital for enterprises.
Haitian Small and Medium Enterprises
The goal of Haiti INVEST is to increase the flow of investment to Small and Medium Enterprises (SMEs) in Haiti. While the program does identify some key sectors of interest, namely housing, agriculture, and tourism, businesses in a number of other sectors are eligible for support.
Haiti INVEST has certain criteria that eligible SMEs must meet, namely:
– At least two years of operations
– At least five employees
– Annual sales of USD 200,000.00 or more
– Seeking financing of at least USD 100,000.00
Haiti INVEST does NOT invest directly into SMEs, nor does it provide grants to companies. Rather, the program provides financial incentives to Transaction Advisors who work with these companies to help them identify investment capital, whether debt or equity. Transaction Advisors act independently and are free to choose the clients with whom they work, having assessed their ability to provide assistance.