Audit of USAID/Haiti's Leveraging Effective Application of Direct Investments Program
Summary — An audit of USAID/Haiti's $12 million LEAD program found it fell significantly short of expected results, awarding only 12 grants instead of 40 and creating 637 jobs instead of the targeted 13,000.
Key Findings
- Program awarded only 12 grants ($1.9M) instead of expected 40 grants ($5.5M) after 3 years.
- Created only 637 jobs compared to unrealistic target of 13,000+ jobs.
- Most grants went to businesses in Port-au-Prince rather than decentralizing economic activity.
- Outreach to Haitian diaspora in the US was insufficient.
- Program suffered from staffing problems and lengthy approval processes.
Full Description
This audit report examines USAID/Haiti's Leveraging Effective Application of Direct Investments (LEAD) program, a $12 million initiative implemented by the Pan American Development Foundation (PADF) from 2011-2015. The program aimed to create jobs and attract foreign investment through business-plan competitions and matching grants for small and medium-sized enterprises (SMEs).
The audit found significant shortfalls in program performance. After nearly three years of implementation, the program had awarded only 12 matching grants totaling $1.9 million instead of the expected 40 grants worth $5.5 million. Job creation was particularly disappointing, with only 637 jobs created compared to the target of over 13,000.
Several factors contributed to these poor results, including staffing problems, poor quality business plans requiring extensive remediation, lengthy review processes, and Haiti's difficult business environment. The program also failed to effectively engage the Haitian diaspora in the United States and did not adequately track cost-sharing requirements.
The audit made nine recommendations to improve program effectiveness, including focusing on high-impact activities, setting realistic job creation targets, conducting performance evaluations, and developing better strategies for diaspora engagement.