Overview

  • Haiti is extremely vulnerable to natural hazards with more than 90 percent of the population at risk.  On October 4, 2016, Hurricane Matthew, the most devastating disaster since the 2010 earthquake, battered Haiti’s southern peninsula, causing damage equivalent to 32% of GDP. One third of hospitals in that region were affected, more than 500 schools were destroyed, and the losses in agriculture, fishing, and livestock had a long-term impact on the livelihood of the affected communities.

    However, the country has been taking significant steps to get ready for these inevitable natural disasters. While the recent storms Irma and Maria skirted the island of Hispaniola, initial assessments show that the Government was better prepared and had incorporated lessons learned from the experience with Hurricane Matthew.

    Political Situation

    February 7, 2018 marked the first anniversary of the inauguration of President Jovenel Moïse, who was elected under the banner of the party of former president, Michel Martelly. President Moïse appointed Jacques Guy Lafontant Head of Government before launching his “Caravan of Change” initiative throughout the country.

    The international community has continued to provide support to Haiti on many levels. Haiti and its partners have maintained their ties, with a view to accelerating reforms and moving programs forward to achieve inclusive and sustainable development for all Haitians.

    Economy

    Haiti faces important challenges to generate faster growth and fight poverty.

    Haiti remains the poorest country in the Americas. According to the latest household survey (ECVMAS 2012), more than 6 million out of 10.4 million Haitians (59%) were living below the national poverty line of US$2.41 per day and over 2.5 million (24%) were living below the national extreme poverty line of US$1.23 per day.  Haiti is also one of the most unequal countries, with a Gini coefficient of 0.59 as of 2012.

    However, despite efforts made by the Haitian Government, forecasts show a significant fiscal deficit for the current year. Economic growth has slowed to 1%. Owing in large measure to a poorly performing agricultural sector, Haiti’s GDP growth slowed to 1.2% in 2017, compared to 1.5% in 2016. Public expenditure increased to meet post-Matthew reconstruction needs. Resource mobilization continues to be a challenge with internal revenues only reaching 12.9% of GDP. In addition, while Hurricane Matthew caused agricultural output to fall by 5.1 percent over the first half of the fiscal year, sector production increased by 0.8 percent by the end of the year.

    However, the depreciation of the Haitian gourde against the dollar continues, sliding from an average of 62.85 gourdes to one US dollar in October 2017 to 64.05 gourdes by February 2018. In early March, the Haitian Government issued a decree requiring all commercial transactions to be conducted in gourdes in the country. At the same time, the Central Bank of Haiti is holding to a monetary policy aimed at smoothing exchange rate variations and containing inflation.

    Last Updated: Apr 02, 2018

  • The World Bank Group country partnership framework – discussed by the Board in September 2015 - aims to support the country’s efforts to provide economic opportunities for all Haitians and reduce poverty. The framework aims to strengthen institutions, government capacity and public financial management as aid and concessional financing rapidly decline. The focus is on three main areas:

    • Generating greater economic opportunities outside Port-au-Prince by increasing energy access and developing renewable energy, improving access to finance, and supporting a more competitive and productive private sector through public and private infrastructure in energy and ports. 
    • Strengthening human capital and access to services through better primary schools, improved maternal and child health services, combined with greater access to water and sanitation in communes most affected by cholera, as well as health prevention and treatment. 
    • Enhancing climate resilience by improving disaster response capacity and increasing the number of Haitians protected by new investments in flood mitigation and other climate resilient infrastructures, including drainage, reinforced bridges and all-weather roads. 
    • Strengthening governance to enhance government efficiency through investments that aim to foster transparency and accountability, including public financial management reporting, strengthen institutions and government capacity to produce key data, manage sectors, implement evidence-based policies, and boost government capacity to finance basic service delivery.  

    The World Bank’s portfolio in Haiti is currently comprised of 17 active projects for a total committed amount of US$892.69 million, of which US$811.47 million is from IDA.

    This sum includes the US$100 million from the IDA CRW to respond to Hurricane Matthew through additional financing to agriculture, health, water and sanitation, transport, and disaster risk management. An additional sum totaling more than US$91 million from different Trust Funds supports implementation of these 17 projects.

    The IDA18 allocation for Haiti is US$260 million (up from US$120 million under IDA17).  This allocation could be further leveraged through global trust funds.

    Support for the private sector

    The investment climate in Haiti is hampered by a number of challenges, including business environment, land availability and ownership rights, access to basic infrastructure, logistic and financial services, and access to skills. IDA resources finance tourism in the North, transport connectivity and market infrastructure in the Centre and Artibonite regions, the development of regional value chains in each of the 10 departments, and technical assistance on financial inclusion. In addition to IDA, the World Bank Group engages in Haiti’s private sector through an active IFC portfolio.

    IFC’s strategy in Haiti is twofold:

    • In the immediate term, creating jobs, access to basic infrastructure, and income opportunities by making catalytic investments despite remaining challenges;
    • Supporting the development of a sustainable and inclusive economy, through advisory programs that help address challenges and foster a more conducive environment for investors and for micro, small, and medium enterprises.

    IFC’s current portfolio in Haiti amounts to US$124 million, of which US$54 million has been mobilized from other partners. IFC has supported many of Haiti’s flagship private sector projects in sectors such as energy, water, transport, manufacturing, financial markets and hospitality. These investments and IFC’s advisory services in Haiti have helped create over 8,000 new jobs and safeguard 5,000 existing jobs, provide clean and affordable water and energy, and improve real sector competitiveness.

    Through its advisory programs with the private sector and the Government, IFC supports access to finance, public-private partnerships, improvements to Haiti’s investment climate, and programs that make small and medium enterprises more productive. These programs have supported the business training of nearly 3,000 entrepreneurs and company managers (45% of whom are women), through partner SOFIHDES. MiCRO, an IFC Advisory Services project, insures 60,000 micro-entrepreneurs against natural disasters. 

     

    Last Updated: Apr 02, 2018

  • With support from the World Bank Group, Haiti has made significant strides on several fronts: disaster risk management, resilience, housing, electricity, transport infrastructure, water and sanitation, agriculture, education, health, regional development, private sector growth, statistical capacity building, and public financial management.

    Below is a snapshot of the key results:

    Education

    • Enrollment of over 240,000 pupils in non-public primary schools;
    • Provision of more than 481,840 tuition waivers to primary school children in the most disadvantaged areas;
    • Maintenance of school attendance rate at 88% in public and non-public schools in the most disadvantaged areas;
    • Provision of financial support to allow for the reopening of 2,824 schools after the 2010 earthquake.

    Food security

    Daily provision of quality hot meals to over 465,897 children attending primary school.

    Health 

    •   Financing of all routine vaccinations throughout the country for 2016 and 2017;
    •  Financing of the exceptional vaccination campaign against diphtheria for 2017 and 2018;
    • Rehabilitation of more than 95 health institutions (infrastructure, water and sanitation, etc.);
    • Increased access to prenatal consultations (at least four) for over 28% of the women living in the Northeast, Centre, Northwest, and South regions.

    Cholera 

    • A decline in hospital deaths from cholera to 0.85% thanks to financing for the community response nationwide and patient care.
    • Cholera treatment and prevention training for more than 3 million people;
    • Distribution of water treatment products and/or soap to almost 600,000 persons;
    • Deployment of staff and/or equipment to over 200 cholera treatment centers and oral rehydration stations;
    • Training provided to more than 6,000 health, hygiene and other medical staff.
    • Support for the construction of WASH infrastructure in health institutions, epidemiological surveillance, financing of the transport network, and laboratory capacity building.   

    Access to water

    • Improved access to safe drinking water for 286,873 rural residents.

    Transport

    • Protection and rehabilitation of resilient roads and bridges, with the reconstruction of the Chalon, Fauché, Dolin Maniche, and Boucan Carré bridges;
    • Provision of US$8.6 million to finance rehabilitation works on the eight kilometers of road connecting the city of Cap Haïtien (Haiti’s second most populous city) and Labadie, a seaside resort that welcomes hundreds of thousands of tourists each year.
    • Upgraded neighborhood infrastructure in earthquake-damaged areas (e.g., roads and drainage systems, street lighting, and reinforced ravines) for some 200,000 people;
    • Stabilization of the Marigot-Jacmel and Port-Salut-Les Anglais roads.

    Post-earthquake relocation and housing

    • Financed rental subsidies for more than 50,000 people to move from temporary camps to more secure housing after the 2010 earthquake;
    • Rebuilt or repaired housing for more than 12,000 people.

    Disaster prevention capacity building

    • Improved civil protection services in communes;
    • Establishment of an emergency radiocommunications/early warning system in four departments.

    Energy

    • Expanded access to electricity for more than 184,000 persons;
    • Financing of solar-powered street lights that benefited 18,000 persons.

    Response to Hurricane Matthew

    • Construction and rehabilitation of infrastructure in departments ravaged by Hurricane Matthew, in particular the South and Grand’Anse departments;
    • Rehabilitation of 60 schools, construction of semi-permanent sheds in almost one hundred schools, and provision of school kits;
    • Provision of hot meals to over 22,000 pupils in almost 90 schools in the Grande Anse, South, and Nippes regions;
    • Co-financing of 1,360 mobile clinics facilitating the vaccination of 20,000 children, as well as nutritional screening for 187,000 children. More than 11,000 pregnant women had at least two prenatal consultations;
    • Restoration of the vaccine cold chain in the southern peninsula (90 solar refrigerators, among others) after Hurricane Matthew;
    • Reconstruction of Ladigue bridge, restoring access for more than 2 million Haitians in the southern peninsula;
    • Rehabilitation of over 73 water supply networks in rural areas in the Grande Anse, South and Nippes departments;
    • Rehabilitation of the electricity network and restoration of electricity services to more than 200,000 persons in the cities of Les Cayes and Jérémie.

    International Finance Corporation

    IFC has provided more than US$94.8 million in credits to SMEs.

    • Financing to the tune of US$13 million (over US$3 million mobilized) has been provided to Codevi, a garment manufacturing company and one of the largest private sector employers in Haiti. It employs about 7,800 workers and is expected to add 2,000 over the next three years. About 30,000 people in the northern town of Ouanaminthe, where Codevi is located, derive their livelihoods from indirect jobs associated with the company’s operations.
    • IFC provided US$17 million and mobilized US$12 million from FMO for the construction of the 30 MW E-power plant.  The E-power company has increased its installed electric production capacity in the Port-au-Prince metropolitan area by 35 percent, and generates power for 1.6 million customers.
    • Teleco, the national phone company, was losing $1 million a month and barely serving 20,000 customers. NATCOM, a public-private partnership supported by IFC, now serves about 1.7 million subscribers.
    • IFC has invested US$13.25 million and mobilized an additional US$13.25 million in long-term financing from FMO for construction of a new hotel in Haiti.
    • IFC provided venture capital for a start-up, DloHaiti, to finance water purification and distribution across the country. IFC support will promote the expansion of the distribution network, with an increase from 8 kiosks to 100 kiosks and from 667 distributors to 4,000 distributors in Haiti over the next three years.
    •  Approximately 60,000 low-income micro-entrepreneurs are insured against natural disasters through an IFC/Micro/Fonkoze partnership. This helps protect their livelihoods against weather-related risks and natural disasters.

     

    Last Updated: Apr 02, 2018

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LENDING

Haiti: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments


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Additional Resources

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