Overseas Haitians and The Haitian Economy Patrice Backer Promo Capital - PowerPoint PPT Presentation

Overseas haitians and the haitian economy patrice backer promo capital
Download
1 / 21

  • 106 Views
  • Uploaded on
  • Presentation posted in: General

Overseas Haitians and The Haitian Economy Patrice Backer Promo Capital. International Development Research Centre Ottawa, Canada April 8, 2005. Agenda. Haitian Diaspora Remittances & Investment Impact on Haitian Economy The PromoCapital Example Areas to Explore.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

Download Presentation

Overseas Haitians and The Haitian Economy Patrice Backer Promo Capital

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Overseas haitians and the haitian economy patrice backer promo capital

Overseas Haitians and The Haitian EconomyPatrice BackerPromoCapital

International Development Research Centre

Ottawa, Canada

April 8, 2005


Agenda

Agenda

  • Haitian Diaspora

  • Remittances & Investment

  • Impact on Haitian Economy

  • The PromoCapital Example

  • Areas to Explore


Significant migration patterns

Significant Migration Patterns

  • 1930s, 40s and 50s

    • Cuba, French Guyana, Dominican Republic

    • Primarily rural population, field laborers & sugar cane cutters

  • 1960s and early 1970s

    • US (Northeast), Canada, French-speaking Africa, France (later to US or Canada), Bahamas

    • Professionals  “brain drain”

  • Late 1970s and early 80s

    • US (Florida), Bahamas, Turks and Caicos

    • Economic migrants primarily from the North (Cap-Haitien, Port-de-Paix, La Tortue) and vicinities

  • Late 1990s/Early 2000s

    • Siphoning off by Canada of our “best and brightest”

    • Age range: between 25 and 40

    • Professionals  “brain drain”

    • Middle management in private sector affected


Geographic distribution

Geographic Distribution

TOTAL – SELECTED LOCATIONS: 1,267,000


Agenda1

Agenda

  • Haitian Diaspora

  • Remittances & Investment

  • Impact on Haitian Economy

  • The PromoCapital Example

  • Areas to Explore


Remittances are critical to haitian economy

Remittances are Critical to Haitian Economy …

  • 28% of GDP (Est. 2004)  17% in 1999

  • More than USD 1 billion annually (formal and informal)  mostly from the US

  • Primarily geared towards consumption

    • Living Expenses (groceries, clothing, rent/mortgage)

    • Education

    • Gifts for special occasion

    • Medical expenses

    • New home constructions


Comparative data

Comparative Data

Source: SOGEBANK


But there are issues

… But There Are Issues

  • Large percentage goes right back to “donor countries” due to purchase of imported products

  • Remittances/Investments are sometimes counter-productive or mismanaged

    • “Assisted” mentality

    • Waste/theft by family members or recipients

  • Long-term:

    • Haitian migration has slowed to a trickle

    • Expected tapering-off of remittances in 15-20 years


Overseas haitians also invest through smes

Overseas Haitians Also Invest Through SMEs

  • Lack of products and services provides opportunities, especially in food exports

  • Trade conducted primarily out of Florida

    • Proximity

    • Entrepreneurial spirit of local Haitian community

  • Businesses are small and face same challenges as their US counterparts

    • Lack of financing

    • Deficient management skills

    • Competition and lack of growth opportunities


Portfolio investments not common

Portfolio Investments Not Common

  • Trust factor  scams, “cooperative” scandal

  • Priority is family or community

  • Securities laws in the US  major issue !!!

  • PromoCapital  new approach at the issue


Agenda2

Agenda

  • Haitian Diaspora

  • Remittances & Investments

  • Impact on Haitian Economy

  • The PromoCapital Example

  • Areas to Explore


Impact of overseas remittances

Impact of Overseas Remittances

  • Lack of reliable statistics other than Central Bank data

    • Regional impact?

    • Job creation?

  • Empirical evidence:

    • SMEs in provinces, especially in the North

    • New constructions and home improvement in low-income areas

    • “Local tourism” flow, especially during holidays  stability of currency


Initiatives from the diaspora numerous but small

Initiatives from the Diaspora: Numerous but Small


Agenda3

Agenda

  • Haitian Diaspora

  • Remittances & Investments

  • Impact on Haitian Economy

  • The PromoCapital Example

  • Areas to Explore


Promocapital overview

PromoCapital Overview

  • History

    • Washington, DC Workshop – June 2003

    • Incorporation – Fall 2003

    • Launch – January 1, 2004

  • Structure

    • PromoCapital Haiti S.A. – SFD

    • PromoCapital USA, Inc. – Wholly owned subsidiary


Promocapital overview cont

PromoCapital Overview (cont.)

  • Capital Structure

    • 400,000 shares sold

    • Raised USD 1 million

    • 50% owned by Haitian Americans and US residents

    • 50% owned by Haitians and Haiti residents

    • There are 67 shareholders:

      • 36 in the US

      • 31 in Haiti

  • Focus on larger investments:

    • Infrastructure

    • Real Estate – larger scale

    • National production / Export oriented


Promocapital us partners

PromoCapital: US Partners


Channeling diaspora investments differently

Channeling Diaspora Investments Differently


Agenda4

Agenda

  • Haitian Diaspora

  • Remittances & Investments

  • Impact on Haitian Economy

  • The PromoCapital Example

  • Areas to Explore


Real estate

Real Estate

  • Leveraging credit to facilitate real estate loans

    • US residents have built credit record

    • Real Estate financing in Haiti constrained by:

      • Scarcity of credit

      • High downpayments

  • Possible solution:

    • US resident as “guarantor”/co-payer

    • Agreement between US and local banks

    • Application from local relative


M si anpil thank you merci beaucoup much simasg racias

MèsiAnpilThankYouMerciBeaucoupMuchísimasGracias


  • Login