2024 Investment Climate Statements: Haiti
Summary — Haiti faces significant investment challenges due to gang violence, political instability, and economic crisis despite having favorable investment laws. The country experienced a 45% reduction in textile industry workforce and declining foreign direct investment.
Key Findings
- Haiti's textile industry workforce decreased by 45% from September 2023 to March 2024 due to security issues.
- Over 362,000 people were internally displaced by gang violence from April 2022 to March 2024.
- Foreign Direct Investment declined from $50 million in 2021 to $39.3 million in 2023.
- Haiti experienced negative GDP growth of 1.9% in 2023 with 27.3% inflation rate.
- About 5.5 million Haitians are in need of urgent humanitarian aid due to gang-related supply chain disruptions.
Full Description
Haiti presents a paradoxical investment climate where favorable legislation coexists with severe practical challenges. The country's investment laws are non-discriminatory and allow foreign investors the same rights as domestic ones, including 100% ownership of companies. However, the investment environment is severely compromised by gang violence, political instability, and economic crisis.
The security situation has dramatically worsened, with over 362,000 people displaced by gang violence from April 2022 to March 2024. Gang-controlled roadblocks and port blockades have disrupted supply chains, leading to food price surges and affecting 5.5 million Haitians in need of humanitarian aid. The textile industry, a key employer, saw its workforce shrink by 45% from September 2023 to March 2024.
Politically, Haiti experienced a transition following Prime Minister Ariel Henry's resignation in March 2024, leading to the establishment of a Transitional Presidential Council. The assassination of President Jovenel Moïse in July 2021 continues to impact political stability. Economic indicators are concerning, with negative GDP growth of 1.9% in 2023, 27.3% inflation rate, and Foreign Direct Investment declining from $50 million in 2021 to $39.3 million.
Despite these challenges, Haiti maintains cooperation with international financial institutions like the IMF and World Bank, implementing Staff Monitored Programs and anti-money laundering measures. The Center for the Facilitation of Investments operates to promote investment opportunities, though with limited success due to the deteriorating security and economic conditions.