The World Bank Group Country Partnership Framework for Haiti was validated by the Board of Directors in September 2015 and revised slightly in 2018. It is designed to support the country’s efforts to provide economic opportunities for all its people and to combat poverty. The Framework seeks to strengthen institutions, build government capacity, and enhance the management of public finances. It is based on three priority pillars and one cross-cutting pillar on governance:
- Promote inclusive growth by creating greater economic opportunities, particularly outside of Port-au-Prince, by strengthening access to energy, developing renewable energy, facilitating access to financing, and promoting the competitiveness and productivity of the private sector through the development of public and private energy infrastructure.
- Strengthen human capital and access to services, by improving primary education and maternal and child healthcare, while extending access to water and sanitation in the communities most affected by cholera, and implementing preventative healthcare and treatment measures.
- Improve capacity to adapt to climate shocks, by strengthening capacity to respond to disasters and protecting a greater number of Haitians through investments in mechanisms to combat flooding as well as in other climate-resilient infrastructure projects, including drainage systems, reinforced bridges and all-weather roads.
- Strengthen governance to improve State effectiveness, by investing in mechanisms to promote transparency and accountability, including accountability within the framework of public financial management; strengthen institutions and government capacity to generate key data and adopt policies based on reliable data; and, finally, to enhance government capacity to finance the provision of basic services.
The World Bank's portfolio in Haiti now stands at $750 million and covers 17 active projects. This is complemented by almost $ 90 million from trust funds that support the implementation of these projects. With over 24% of the allocated resources, the transport sector is the largest recipient of World Bank funding. Around 17% of the investments have been allocated to the social, urban and resilience sectors, 14% to the energy sector, 13% to the health sector, 12% to the agricultural and environmental sector and 12% to the water and sanitation sector. The remaining resources are earmarked for the education, governance, trade and competitiveness sectors.
The envelope allocated to Haiti under the 18th IDA replenishment (IDA-18, which covers the 2017-2020 period) totals $260 million (compared to $120 million under IDA-17). A total of $ 105 million has already been programmed for the 2018 fiscal year and the rest will be scheduled in 2019 and 2020.
Support for the Private Sector
The investment climate in Haiti is beset by many challenges, including a weak real estate sector, inadequate basic infrastructure, and a lack of logistical and financial services and skills.
IDA resources are financing tourism development in the Nord region, the transportation networks and market infrastructure in the Centre and Artibonite regions, the development of regional value chains in each of the 10 departments, and technical assistance for financial inclusion.
In addition to IDA activities, the World Bank Group also supports the Haitian private sector through the International Finance Corporation (IFC).
The IFC strategy in Haiti is twofold:
- In the immediate term, create jobs, facilitate access to basic infrastructure and financial services, and create revenue streams by making catalytic investments;
- Contribute to the development of a sustainable and inclusive economy through technical assistance programs designed to make the business environment more attractive for investors and for micro, small, and medium enterprises.
The IFC portfolio in Haiti stands at $123.4 million, of which $54.4 million has been mobilized from other partners. IFC supports private sector projects in Haiti in the areas of energy, water, transport, manufacturing, financial markets and the hotel industry. These IFC investments in Haiti have helped to create jobs, expand the supply of drinking water and raise electricity generation capacity in the metropolitan area of Port-au-Prince. By virtue of its advisory service programs for the private sector and the Government, IFC helps to promote access to financing, public-private partnerships, an improved investment climate as well as mechanisms to strengthen the productivity of small and medium enterprises.
Moreover, the World Bank Group’s initiative to establish a leasing market in Haiti is consistent with the aim of maximizing financing for development. By unlocking access to private financing for Haitian businesses, the project has allowed the private sector to play a greater role in driving economic growth. Working closely with the Haitian Government, the World Bank Group has helped to improve the fiscal and regulatory environment, launched a campaign to raise awareness of the benefits of leasing, trained SMEs and other stakeholders, and assisted in establishing Haiti’s first leasing company. Two years after its creation, this company has generated 110 leasing contracts with more than 70 companies, the majority of which are SMEs.
Last Updated: Apr 05, 2019