SOURCE: Development Innovations Group

Development Innovations Group

November 06, 2013 08:00 ET

DIG: Haitian Businesses Access USG Capital in Ground-Breaking Solution to Haiti's Slow Recovery

WASHINGTON, DC--(Marketwired - November 06, 2013) - Today, businesses essential to Haiti's reconstruction and economic development are benefiting from the U.S. government's support following the devastating 2010 earthquake. These businesses are accessing much-awaited loans channeled through Haitian financial institutions thanks to a USD 26-million housing finance facility ("REBATI Fund"). The Overseas Private Investment Corporation, the U.S. Agency for International Development and the Clinton Bush Haiti Fund came together to offer this ground-breaking solution to Haiti's slow recovery. The Development Innovations Group (DIG), a global leader in financial services for the poor, is managing the ten-year, USD 26 million housing finance facility. Just months after its February 2013 launch, the fund disbursed USD 1.25 million of an USD 8 million loan to the Société Financière Haïtienne de Développement (SOFIHDES), Haiti's largest development finance institution focused on assisting small and medium enterprises (SMEs). 

Unique in its kind, the REBATI Fund provides Haitian financial institutions with long-term capital liquidity, repayable on affordable terms of up to ten years. Through targeted technical assistance, DIG is helping sound, reputable microfinance institutions, lenders to small- and medium-sized enterprises, and regulated non-bank financial institutions such as the caisses populaires (credit cooperatives) to design and market new housing finance products. These financial products include: housing microfinance loans (ranging from USD 1,000 to USD 5,000); SME repair and construction loans (USD 3,000 - USD 40,000); and micro-mortgages (USD 5,000 - USD 25,000). 

The disbursement to SOFIHDES comes at a critical time. The reconstruction needs in Haiti remain acute following the January 2010 earthquake that devastated the country. An estimated 260,000 homes were damaged or rendered uninhabitable and tens of thousands of businesses were destroyed. Given the extent of the damage to buildings, the affected families and business owners continue to face the arduous task of rebuilding their homes and businesses. Complicating matters, the natural disaster impacted the livelihoods of most families in the earthquake-affected areas. 

In response to the earthquake, SOFIHDES significantly increased its lending activities to promote Haiti's economic development. The REBATI Fund's USD 8 million loan, the largest ever received by SOFIHDES, is helping make this goal a reality. According to SOFIHDES' General Manager, Thony Moïse, this new partnership gives the financial institution an "opportunity to better address the needs of the Haitian SMEs in a new segment, which is the housing market." With a gross portfolio of ~USD 17 million in 2013, SOFIHDES's portfolio has grown an average of 30% per year since the 2010 earthquake. SOFIHDES has already pre-qualified 20 businesses to benefit from its increased capital and began disbursing loans to them. These clients include hotels, private schools, hospitals, craft producers, and construction material businesses, all essential to Haiti's long-term reconstruction and development efforts. As these businesses are reconstructed and expanded, new jobs will also be created. And this is just the beginning of the REBATI Fund's contribution to rebuilding Haiti…

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Contact Information

  • Development Innovations Group
    USA: 4330 East West Highway, Suite 1150 Bethesda, MD 20814
    Tel: (301) 664 9644
    Fax (301) 664 9645
    Web: Email contact