The Inter-American Development Bank (IDB) approved a $17.5 million grant to Haiti, to attract investment and foster private sector development by strengthening the institutional capacity of the country’s investment promotion agency – the Center for Investment Facilitation (CFI) and other government agencies that are entrusted with business climate policy.

The grant comes at a time when Haiti’s economy, which was devastated by the 2010 earthquake, is growing at an annual rate of 5 percent, with even higher rates expected over the next five years. The country received an all-time record of $181 million in foreign direct investment (FDI) in 2011. Such investment is vital to help Haiti break the cycle of aid dependency and achieve sustainable economic growth.

Haiti has considerable potential to expand its exports of apparel and agriculture, given the country’s special trade access to the U.S. and the European Union. Tourism is another promising area, as is the construction of infrastructure to replace or expand roads, homes, public buildings and water and electricity grids. For such projects, public-private partnerships are desirable, but they require the backing of a dynamic investment promotion agency and solid government policies aimed at making it easier to do business in the country.

Programs to strengthen the institutional capacity of the Center for Investment Facilitation, implement a country branding campaign aimed at promoting Haiti as an investment destination, support the improvement of the country’s business climate, promote public private partnerships and provide potential investors with up-to-date information on investment projects are some of the initiatives that will be supported through the IDB grant.

HL/ HaitiLibre