Investment Note to Strengthen Resilience and Food Security in Southeast Haiti
Summary — This investment note focuses on strengthening resilience and food security in Southeast Haiti. It highlights the potential of the yam sector and proposes investments to increase agricultural production, develop value-added processing, and improve market access for farmers in the region.
Key Findings
- Agriculture accounts for about 38% of total employment in Haiti.
- 5 million people (45% of the population) are in need of emergency assistance.
- Yam is the 3rd most produced crop nationally.
- 60% of the poorest households in Haiti are rural households.
- Investment in the yam sector in Southeast Haiti has the potential for a 17.5% IRR.
Full Description
This investment note outlines opportunities to strengthen resilience and food security in Southeast Haiti, with a specific focus on developing the yam sector. The document highlights the importance of agriculture in Haiti, noting that it accounts for a significant portion of total employment and GDP. It identifies challenges such as civil unrest, political instability, and macroeconomic vulnerability, but also emphasizes the potential for building resilience through investments in rural employment and poverty reduction. The note proposes interventions to increase agricultural production and productivity, create added value through processing, and improve market access for farmers, ultimately aiming to improve livelihoods and food security in the region.
Full Document Text
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Investment Note to Strengthen Resilience and Food Security in Southeast Haiti Haiti | Investment Forum Rome, Italy | October 18-19, 2022 1 Section 1: Overview The agricultural sector accounts for 20.3% of GDP2 PIB Nominal 2020 (billion USD$)2 14.51 Share of agriculture, livestock, forestry and fisheries (billion USD$)2 2.95 • The majority of Haitians depend on the agricultural sector, mainly subsistence agriculture.1 • Agriculture accounts for about 38% of total employment.1 ⮚ Diversification of crops in rural Haiti.1 ⮚ On average, farm households produce about five crops.1 ⮚ Main crops: maize, tubers, mango, coffee, avocado, citrus, rice, sorghum, beans and cocoa.1 ⮚ The livestock sector is characterized by small animals such as chickens and goats.1 Haiti is a net importer of food. CHALLENGE: Strengthen the resilience and food security of populations through promising sectors • 4.5 million people (45% of the population) in need of emergency assistance (≥ IPC 3). 1 World Bank & National Observatory of Poverty and Social Exclusion. 2014. 2 World Bank. 2020. https://www.banquemondiale.org/fr/home 2 Section 2: Investment environment Weaknesses • Civil unrest, political and social instability, macroeconomic vulnerability • Informal and low-paid jobs, unskilled workers, lack of organization, reduced infrastructure Potential • Good agroecological conditions • Building resilience and food security • Investments in rural employment and poverty reduction • Maintain and develop agricultural economic activities • Develop the domestic market and explore the export potential of certain products(eg. strengthening quality, connections with the Dominican Republic) 3 Section 2: Investment environment YAM • At national level: 3rd crop produced (quantity) • South-East: 4th producing region1 • Planted area in South-East: 998 ha1 Crop National area in hectares 20191 Yam 12,490 • Yam in agroforestry, banana-coffee agroforestry system • Agroforestry systems allow for environmental protection and climate change mitigation (e.g. erosion reduction) • Food security (nutritional) and resilience of populations • Both subsistence and export crops • Largely consumed by Haitians, in the form of porridge 55%-71% of the population is considered poor2 → For the 5 targeted communes → % depends on municipality NB. 2012 National Poverty Line: $2.32/day 60% of the poorest households in Haiti are rural households3. 1 USAI. 2021. Production surveys (ENPA). 2 IDB. 2020. Estimating and forecasting poverty and income inequality in Haiti. 3 IFAD. 2017. Agriculture in Haiti. 4 Section 3: HiH Investment Note Investments to strengthen resilience and food security in South-East Haiti Objective Strengthen the development of promising agricultural sectors Types of intervention • Increased agricultural production and productivity • Creation of added value through the development of transformation • Market access Departement: South-East Municipalities: La Vallée, 5 5 - Section 3: HiH Investment Note Strategic frameworks for the promotion of the agricultural sector • Rural roads and agricultural infrastructure • Improved storage to limit post-harvest losses • Valorisation of products & Promotion of Priorities Post-Covid-19 agricultural entrepreneurship Economic Recovery Plan • Promotion of export chains (PREPOC) 2020-2023 • Strengthening the sector's monitoring and evaluation system and providing it with reliable agricultural statistics Politique et Stratégie Nationales de Souveraineté, de Sécurité Alimentaire et de Nutrition en Haïti (PSNSSANH) • Food security and food sovereignty 6 6 Investment Opportunities Investment Note to Strengthen Resilience and Food Security in Southeast Haiti 7 7 Investment Note to Strengthen Resilience and Food Security in Southeast Haiti Opportunity 1: Development of the yam sector Expected results Type of intervention 1: Increased agricultural production and productivity Indicators Description of activities • Access and local production of quality plants • Demonstration plots • Training & capacity building (e.g. FFS) • BAC institutional support (solar electricity system, laboratory, etc.) • Yam processing (flour), recipe, chemical analysis and nutritional guidelines • Yields multiplied by 2 • Diversification of the varieties used • Improved access to plants • Development of local enterprises (inputs, processing of yam into flour) • Increased farmers' incomes • Improved food security and nutrition • Development of farmers associations • Increased support of farmers through BAC (trainings) ✔ 1500 households receive a technical package and training ✔ 1500 families see their livelihood improved through the different interventions ✔ 500 ha of sustainable production (300 ha agroforestry, 200 ha full sun) ✔ 100 demonstration plots in place ✔ 10 business creations => job creations (women) ✔ Increased revenues of 1,550 to 1900 USD for full sun yam producers ✔ Increased revenues of 350 to 550 USD for agroforestry yam producers 8 Investment Note to Strengthen Resilience and Food Security in Southeast Haiti Opportunity 1: Development of the yam sector Type of intervention 1: Increased agricultural production and productivity Economic indicators Risks & Mitigation ❑ NPV: 1.2 millions US$ ❑ IRR: 17,5% ❑ Total investment: 5.8 millions US$ ❑ Duration of intervention: 5 years ❑ Possible source of funding: Development partners ⮚ 2,8M USD: technological packages & business development support ⮚ 960,000 USD: plants improvment and production ⮚ 800,000 USD: trainings, demonstration plots & FFS ⮚ 245,000 USD: institutional support to BAC ⮚ 200,000 USD: yam processing, recipe, chemical analysis and nutritional guidelines • The political and social situation in the country hampers activities • Crop loss = > good practices • Reluctance to adopt technical packages by farmers • Low capacity => technical assistance Zone 9 INVESTMENT NOTE HAITI SUMMARY US$5.8M Total investment 17.5% Mean IRR 1,500 Beneficiaries US$350-US$1,900 Increase in revenues/capita 60,894 tCo2-e Emission reduction Intervention Development of the yam sector Cost (USD) US$5.8M IRR (%) 17.5% NPV US$1.2M Sustainable results Beneficiaries: 1,500 households Increase in revenues/capita: US$350 – US$1,900 (depending on production system) Emission reduction: 60,894 tCo2-e KEY INVESTMENTS 10 THANK YOU FOR YOUR ATTENTION MESI ANPIL! Haiti | Investment Forum Rome, Italy | October 17-19, 2022 11