Guide de l'investissement en Haïti

 © Pergo70 / Dollar Photo Club Publica�on date: May 2019 Produced by The Centre de Facilita�on des Inves�ssements (CFI) Hai� With support from The Inter-American Development Bank (IADB) through its - Grant no. 2879/GR HA Cover pain�ng and ar�st Intui�on - Sophia Domeville - www.sophiadomeville.com 2 © Airmaria / Dollar Photo Club HAITI AT A GLANCE Official Name: Republic of Hai� Capital: Port-au-Prince Other Major Ci�es: Cap-Haï�en, Gonaïves, Les Cayes, Jacmel Area: 27,750 km2 Popula�on: 11.1 million Languages: O!cial languages are French and Hai"an Creole. © Rafaelle Castera / www.imagineayiti.com English and Spanish are widely spoken in the business community and increasingly among #$%"$& '()*+ Life Expectancy: 60 (men), 63 (women) Time Zone: 56D Poli�cal System: Unitary Semi-Presiden"al Legal System: Civil law system based on the French Napoldonic Code Climate: Tropical; avg. minimum of 20ºC (63ºF), avg. maximum 34ºC (94ºF) Currency: Hai"an Gourde (HTG) USD = 90.9 HTG (May 2019) GDP: USD 8.6 billion (2017) Economic Growth: !"#$ %!,-./ Infla�on: !"#9% &'(!8)  TABLE OF CONTENTS BUSINESS OPPORTUNITIES .................................................................................................. 13 • DISCOVER HAITI • APPAREL • BUSINESS PROCESS OUTSOURCING (BPO) AND INFORMATION TECHNOLOGY (IT) One of the fast growing economies in the Western Hemisphere, • TOURISM • AGRICULTURE AND AGRIBUSINESS the Caribbean’s first independent na�on is set to take off. • PUBLIC-PRIVATE PARTNERSHIPS (PPP) INVESTMENT CLIMATE ........................................................................................................ 35 • INTRODUCTION • ECONOMIC POLICY • INDUSTRIAL PARKS AND FREE TRADE ZONES • WORKFORCE • INFRASTRUCTURE • TRADE AND INVESTMENT AGREEMENTS • U.S. TRADE PREFERENCES • VISAS AND PERMITS VISITING, WORKING AND LIVING IN HAITI ......................................................................... 55 • VISAS AND PERMITS • ACCOMMODATIONS IN HAITI • TELECOMMUNICATION/ INTERNET • BANKING • TRANSPORTATION • HEALTH • INTERNATIONAL SCHOOLS • LIFE IN HAITI LEGAL AND REGULATORY FRAMEWORK ........................................................................ 59 • LAND OWNERSHIP BY NON-HAITIAN NATIONALS • REGULATORY INSTITUTIONS • BUSINESS ENTITIES AND REGISTRATION • CUSTOMS REGULATIONS AND PROCEDURES • SETTLEMENT OF COMMERCIAL DISPUTES • LABOR LEGISLATION • TAXES, CONTRIBUTIONS AND INCENTIVES • ACCESS TO FINANCE THE CENTRE FOR FACILITATION OF INVESTMENTS (CFI) .................................................... 67 HISTORY OF HAITI .......................................................................................................... 68  ACP African, Caribbean and Pacific (countries) IIC Inter-American Investment Corpora�on ADIH Hai�an Manufacturers Associa�on (Associa�on des Industries ILO Interna�onal Labour Organisa�on d’Hai�) INFORHT Na�onal Hotel Training Ins�tute (Ins�tut Na�onal de Forma�on en BIC Credit Informa�on Bureau (Bureau d’Informa�on sur le Credit) Hotellerie et Tourisme) BNC Na�onal Credit Bank (Banque Na�onal de Credit) IRII Industrial Revolu�on II BPO Business Process Outsourcing LDC Less Developed Country BRH Central Bank of Hai� (Banque de la Republique d’Hai�) MAST Ministry of Labor and Social Affairs (Ministère des Affaires Sociales et du Travail) BUH Bank of the Hai�an Union (Banque de l’Union Hai�enne) MCI Ministry of Trade and Industry (Ministère du Commerce et de CARICOM Caribbean Community l’Industrie) CARIFORUM Caribbean Community and the Dominican Republic MIGA Mul�lateral Investment Guarantee Agency (World Bank Group) CBTA Caribbean Basin Trade Partnership Act MTPTC Ministry of Public Works, Transport, Energy and Communica�ons (Ministère des Travaux Publics, Transports et CCAH Hai�an Chamber of Concilia�on and Arbitra�on (Chambre de Communica�ons) Concilia�on et d’Arbitrage d’Hai�) OAS Organiza�on of American States CDES Council for Economic and Social Development OFATMA Insurance Office for Occupa�onal Injury, Sickness and Maternity CFI Center for Facilita�on of Investments (Office d’Assurance Accidents du Travail, Maladie et Maternité) CII Inter-Departmental Commission on Investments (Commission ONA Re�rement Insurance Office (Office Na�onal d’Assurance) interministérielle des Inves�ssements) OPIC Overseas Private Investment Corpora�on CODEVI Industrial Development Corpora�on (Compagnie du Développement Industriel) OTEXA US Department of Commerce, Office of Tex�les and Apparel CONATEL Na�onal Council of Communica�ons (Conseil Na�onal des PACEGI Presiden�al Advisory Council on Economic Growth Télecommunica�ons) PIC Caracol Industrial Park (Parc Industriel Caracol) DFQF Duty Free Quota Free PIM Metropolitan Industrial Park (Parc Industriel Métropolitain) EDH Hai� Electricity (Electricité d’Haï�) PPPs Public-Private Partnerships EIB European Investment Bank RN Primary Roads (Routes Na�onals) ELVIS Electronic Visa Informa�on System SHODECOSA Superior Housing Development Corpora�on EPA Economic Partnership Agreement (with the European Union) SOFIHDES Development Finance Corpora�on of Hai� (Société Financière EU European Union Hai�enne de Développement) FDI Industrial Development Funds (Fonds de Développement SONAPI Na�onal Associa�on for Industrial Parks (Société Na�onale des Industriel) Parcs Industriels) FECCANO Federa�on of Coopera�ves of Cocoa Coopera�ves (Federa�on des SEDF Soros Economic Development Fund Coopera�ves Cacaoyeres du Nord) SIDSA Free Trade Zone in Tabarre (Societé Immobiliere de FMO Dutch Development Bank Developpement S.A.) GATT General Agreement on Trade and Tariffs TLIA Toussaint Louverture Interna�onal Airport HOPE AND HOPE II ACTS Hai�an Hemispheric Opportunity through Partnership Acts UCREF Central Unit for Financial Informa�on (Unité Centrale de Renseignements Financiers) HELP ACT Hai� Economic Li� Program ULCC Unit for Comba�ng Corrup�on (Unité de Lu�e Contre la HINSA Hispaniola Free Trade Zone and Industrial Park Corrup�on) HTG Hai�an Gourdes (local currency) UNESCO United Na�ons Educa�onal Scien�fic and Cultural Organiza�on ICSID Interna�onal Centre for Se�lement of Investment Disputes UPISA Unit for the Promo�on of Private Investment in the Agricultural Sector (Unité de Promo�on de l’Inves�ssement Privé dans le IDB Inter-American Development Bank Secteur Agricole) IFC Interna�onal Finance Corpora�on (World Bank Group) WTO World Trade Organiza�on  © Rafaelle Castera / www.imagineayi�.com ACKNOWLEDGMENTS Private investment by domes�c and foreign actors has been a fundamental driving force in almost The CFI is grateful to the many organiza!ons and every instance of rapid and sustained economic growth in modern history. Companies commi�ng in"!tu!ons that helped make the to emerging countries can reap unparalleled returns while knowledge and exper�se are advanced, publica!on of this guide possible by providing new markets are accessed and old markets are expanded. feedback, inputs, and other forms of assistance. The guide’s content was developed Hai� is currently seeing consistent increased levels of private investment and faster rates of through consulta!#ns with public and the private economic growth, which promise to transform the country into one where the once frustrated sector organiza!ons as well as mu$!lateral hopes of its people can be realized through dynamic progress and development. In numerous agencies. Its produc!on would not have been economic sectors spanning from agriculture to high-level manufacturing, Hai� has shown that it possible without the support and par!%ipa!on of is more than capable of hos�ng leading corpora�ons whose success is inspiring them to reinvest the Hai!an private and expand, while posi�vely impac�ng local lives and deepening the iden�ty of their brands sector. Coopera!on between the IDB and interna�onally. Hai!’s Ministry of Commerce and Industry was essen!al to the project’s success. The guide was Furthermore, with a lack of growth in key La�n American markets and the resul�ng impera�ve developed and &nanced with the support of IDB, need for companies to go global, Hai� stands out as a very a�rac�ve market in which to do The CFI’s leading source of mul!lateral assistance. business in, and an excellent loca�on to serve as a pla�orm for world markets. We invite you to be part of this new chapter opening in Hai�’s unique history. This guide, produced by the CFI (Center for Facilita�on of Investments), is aimed at both local and interna�onal investors, who want to understand more about inves�ng in Hai�. It intends to display DISCLAIMER the wealth of business opportuni�es that are currently available, as well as to provide investors with While every reasonable !"ort has been made a strong founda�on of informa�on to support them in their investment decision. Moreover, the to ensure that the informa#on provided in CFI wants to assure investors that they will be supported throughout the en�re process leading to this publica#on is accurate as of the date of the implementa�on of their investment, from the preliminary explora�on phase up to the post- publica#on, no business or other decision establishment a�ercare support. should be made by the reader solely on the basis of this informa#on. Nothing in this The CFI is your partner for inves�ng successfully in Hai�. publica#on is intended as business, legal, or tax advice. The materials contained in this publica#on were assembled in May 2019 and The CFI Team were based on the laws in e"ect and the informa#on available at that #me. Please visit the CFI’s homepage for the latest informa#on and to download this guide: www.cfihai�.com  BUSINESS OPPORTUNITIES © USAID / Naomi Logan DISCOVER HAITI One of the fast growing economies in the of experience working with interna�onal Western Hemisphere, the Caribbean’s !rst companies and investors. independent na"on is flourishing. Hai� is on the move. Come and see what it Hit hard by a succession of natural disasters has to offer. that have provided setbacks to the country’s economic development, Hai! is experiencing This sec�on highlights four key opportuni�es a resurgence. The growth rate for 2018, for poten�al investors in Hai�: 2.4%, was well above the 0.9% average for La!n America and the Caribbean, and is • Apparel; expected to con!nue to exceed the region’s • Business process outsourcing and average for 2019. informa�on technology; • Tourism; and !"#$%&'&( )* +,)#-. /0( +'-1/%& -01&$%2&0% -0 • Agriculture and agribusiness. -03'/$%',.%,'&4 -0.#,(-05 /-'+"'%$6 7-578/*$6 +"'%$6 /0( .&##,#/' /0( -0%&'0&% $&'1-.&$4 /0( The possibili�es the country offers investors, +'"+&##&( )* / (-1&'$&#* %/#&0%&( +"+,#/!"0 however, go well beyond the list profiled in "3 "1&' 99 2-##-"06 ;/"!#$ &."0"2* )"/$%$ this guide and extend to such sectors and / 5'"8-05 '/05& "3 ),$-0&$$ /0( #&-$,'& ac�vi�es as renewable energy, electronics /.!1-!&$6 3'"2 2/0,3/.%,'-05 %" manufacturing, and investment in the /5'-),$-0&$$ construc�on and building materials industry. The country's considerable success in apparel The CFI is the first port of call for investors exports is complemented by a strong value interested in these or other opportuni�es. added manufacturing sector with over two decades of experience in the production of transformers and inductors, as well as more recent expansion into the production of Sûrtab is an Android-based tablet brand that Android-based tablets. Furthermore, a surge is based in Port-au-Prince. The company manufactures affordable and in homegrown iOS and Android app durable tablet PCs and has expanded from 5 development, doing and multi language to more than 60 Haitian employees and will computer programming skills,are continue to grow as they increase their capacity. transforming Haiti into a technologically savvy country with competitive costs Sûrtab tablets are currently available in electronic shops in Haiti and are sold Interna�onal brands are also con�nuing wholesale in Haiti, the Caribbean and Africa. to come to and thrive in Hai�, including Heineken Breweries, Coca-Cola and Unilever, as well as hospitality chains such as Marrio�, Best Western, NH Hotels, and Occidental. Their successes draw from Hai�’smul�-lingual and mul�-na�onal workforce with decades  Volume of exports represents only a frac!on of the available quota. Moreover, preferences for exports of certain apparel and non "##"$%& '(()* +( +,% -./+%) 0+"+%* "$% 12(+" 3$%%4 " #"$!52&"$&6 • valuable advantage for investors who locate their manufacturing 3"5/&/!%* /. 7"/!8 90%% :";&%<8 Another key advantage is Hai�’s physical proximity to the United • States, which results in short shipping �mes. The transit �me from Port-au-Prince and Cap Hai�en to Port Everglades in Florida is three days. Upon arrival, customs procedures in Miami are expedited by Hai�’s par�cipa�on in the electronic visa informa�on system (ELVIS) of the U.S. Customs and Border Protec�on, • permi�ng quick dispatch to retail distribu�on centers within • the United States. • QUOTA USED PREFERENCE REGIME EXPORT COVERED • 2015/2016 CBTPA Knit apparel ar�cles 4.57% CBTPA Non-underwear T-shirts 22.65% • Value-Added Tariff Rate Quota: Exported HOPE / HOPE II / HELP value sourced from Hai� and/or qualifying 7.7% • countries must be at least 50-60% Woven Apparel TPL: May use fabric from HOPE / HOPE II / HELP any source; apparel must be wholly assem- 45.26% bled in Hai� Knit Apparel TPL: May use fabric from any HOPE / HOPE II / HELP source; apparel must be wholly assembled 30.94% or knit-to-shape in Hai� Specific Apparel (brassieres, certain head- HOPE / HOPE II / HELP wear, certain sleepwear, and certain knit NO LIMIT apparel) Bolstered by the Caribbean Basin Partnership Act (CBTPA) and the HOPE, HOPE II and HELP source:otexa.trade.gov acts which provide duty-free entry for certain !"#$%&'$"& %())$%%$% Haitian products to U.S. markets, apparel production in Haiti is growing. In early 2019, it *!++,!$% - )./ +&0 employed 53,000 workers and accounted for nearly one tenth of GDP. Expansions are %1234 5667/ *18894: - );</ +=>/ ? :@9:1>1?AB ;C ? 84?>12D %;@=E !"#$%& '# expected as additional investment is planned "()*$# "+ #$%(,-.%($ %''%#$/0 1%2 3$$& operating 6& 7%6482 9:;<=> ?$ from current manufacturers such as Hansae @#"'"/64%& >&()2@#6%/ =%#A0 '#"()*6&5 %&( $B'"#4&5 A&6@ '#"()*@2 @" .%C Haiti and Wilbes & Co. Ltd as well as the establishment of RSI, a Taiwanese "# DE9E #$@%6/$#2 2)*1 %2 .8> Navy, Hanes, Champion and Khol’s< T1$ manufacturer planning to set up operations in *".'%&, '/%&2 @" *".'/$@$ %n $B'%&26"& "+ 6@2 $B624&5 2$L6&5 +%*6/6@ies 6 the Lafito Free Zone by early 2020. With & MNO9 @1%@ L6// %(( one building to its existing 10 and up to @" OM '# exports hitting $926 million USD in 2018, they "()*4"& /6&$2/ L1=E ?2 ?22@?8 3?M?31=B ;C ?9;@= 5K F1881;2 M1434:< &E4 4 are expected to cross the $1 billion mark in OM?2:1;2 MA;P43= 1: 4OM43=4> =; ?>> ?2;=E4A N66 8;3?8 4FM8;B44: =; 1=: 3@ 2019. There is considerable room for AA42= L;AQC;A34< additional growth. In particular, untapped opportunities for preferential access to the U. S. market exist within the framework of HOPE, HOPEII and HELP acts BUSINESS OPPORTUNITIES | 15  By virtue of duty-free treatment under the HOPE II and HELP Acts, we can offer attractive prices for synthetic and stripe apparels. We feel confident of our future through Haitian government support and increasing demand from U.S. retailers. » HANSAE !"# $%&'&%( %))%*#+ ,#-'.* -.('&(/#, '. 0*.1 1&'" '"# #,'%2+&,"3#(' .4 $%(,%# $%&'& &( 56789 : ,/2,&;&%*< .4 .(# .4 '"# +%*0#,' =./'" >.*#%( %))%*#+ -.3)%(&#,? $%(,%# $%&'& "%, @/&-A+< 0*.1( '. #3)+.< %))*.B&3%'#+< 7?C66 1.*A#*,? as of April 2019, &( '1. ,#1&(0 4%-'.*&#, %(; .(# )*&('&(0 4%-&+&'<9 !"#< %*# 1.*A&(0 .( %;;&'&.(%+ )+%(, '. #B)%(; '"#&* )*.;/-'&.( &( $%&'& ,#1&(0 4.* 2*%(;, ,/-" %, '"# D"&+;*#(E, F+%-# %(; G%+H%*'9 » MAS AKANSYEL !"# sector continues to evolve with the establishment of Sri Lankan 2%&34%+.31#1 5%) 6-,*/&0)7 Their Haiti factory, Mas Akansyel, was establsihed in Caracol Industrial Park (PIC) in April 2017. 8#9/&0 "/0" #&* %+./:#9#%1 )3+" %) $3,3 L#2-&; 5%) akansyel (1/&0) ."#/1 (#,/#4 -4 “)3).%/&%(,# 2%&34%+.31/&0 ."%. .1%&)4-12) +-223&/./#) %&* #2<-9#1) <#-<,#” .- 6%/./7 !"#= 9-1' +,-)#,= .- #&)31# ."#/1 ).1-&0 +-1<-1%.# :%,3#) %1# /&.#01%.#* /& ."#/1 6%/./ -<#1%./-&; <1-:/*/&0 extensive .1%/&/&0 %) 9#,, %) )-+/%, /2<%+. <1-01%2)7 16 | BUSINESS OPPORTUNITIES  BUSINESS PROCESS OUTSOURCING (BPO) AND INFORMATION TECHNOLOGY (IT) Why invest in Hai�’s BPO and Informa�on Technology Industry ? • Large and mul�lingual labor force; • Geographical and cultural proximity to major North American markets; • Recent investments in crucial infrastructure, including two undersea fiber op�c cables providing high speed connec�vity; and • A�rac�ve labor costs as salaries and mandatory contribu�ons are one of the most compe��ve in the nearshore region. SKILLED AND COMPETITIVE LABOR FORCE With a labor pool of French, English and Spanish speakers, Hai� is well placed to serve the mul�lingual needs of the call center market. Hai� is uniquely posi�oned to serve the French- speaking popula�ons in Canada, Europe and Africa. Indeed, Hai� is North America’s only nearshore loca�on with a significant French popula�on, providing the country with a core advantage for investments in BPO services. Recruiters have shown sa�sfac�on with the availability and trainability of job seekers, which includes Hai�ans educated in the United States, Canada and the Dominican Republic. Strong affinity to North American culture and the large Hai�an diaspora in the U.S. and Canada contribute to high levels of service and quality. A low staff a�ri�on rate is also a factor helping Hai� be one of the most effec�ve call center loca�ons in La�n America and the Caribbean. Wages in Hai� are also extremely compe��ve, enhancing the a�rac�veness of the country for BPO services. Annual Median Income US$ 1,200 Source: wageindicator.com 18 | BUSINESS OPPORTUNITIES BUSINESS OPPORTUNITIES | 19  © Diego Cervo / Dollar Photo Club GEOGRAPHICAL PROXIMITY Hai�’s geographic loca�on is par�cularly convenient for companies and customers in prime U.S. and Canadian markets. Managers can reach Hai� via direct (2 to 5 -hour) flights from various ci�es in the U.S. and Canada. Hai� is also located in the same �me zone as Eastern zones of the United States and Canada, easing interna�onal opera�ons. UPGRADED INFRASTRUCTURE Since the 2010 earthquake, public and private actors have invested extensive resources in upgrading the country’s infrastructure, including its telecommunica!ons and internet networks and connec!vity. The country’s conn"#!vity needs are met by two undersea $ber op!# cables. Two large telecom providers provide E1 connec!vity at compe!!ve rates. There are numerous loca!ons in Ha%! where an IT or BPO center could be established. These include the Caracol Industrial Park and the La$to Global Business Park, both of which have abundant bandwidth connec!vity op!ons. EXISTING SUCCESSES !"# $%&& $#"'#( )*+,"#++ ," -%!" ,+ '.# 'wo hundred %1#"' 23#(%" 2" (*" )4 5,1,$#&6 '.# 7%(,))#%"8+ 9%," '#&#$29 +#(:,$# 3(2:,;#(< =.,+ $*+'29#( +#(:,$# 23#(%"2" 3(2:,;#+ +*332(' '2 %&& 5,1,$#& )*+,"#++#+ ," '.# >"1&,+. %"; ?3%",+. +3#%@,"1 $2*"'(,#+ ," 7#"'(%& A9#(,$% %"; '.# 7%(,))#%" B%+,"< !'.#( (#$#"'&4 #+'%)&,+.#; BC! $#"'#(+ 3(2:,;# $*+'29#( $%(#6 ),&&,"16 ,"+*(%"$#6 %"; .#%&'.$%(# +#(:,$#+ D2( '.# E",'#; ?'%'#+6 '.# 529,",$%" F#3*)&,$ %"; 7%"%;%< The CFI, in collabora�on with the Ecole Supérieure d’Infotronique d’Hai� (ESIH), is helping to increase the country’s pool of skilled female programmers through the “PowerToFly” programme (powertofly.com). PowerToFly aims to find women jobs wherever they are by allowing firms “that recognize how diversity and flexible work fuel innova�on” to outsource their technology projects. This ini�a�ve, an innova�ve approach to job crea�on, demonstrates that Hai�an workers have the skills demanded by today’s employers. BUSINESS OPPORTUNITIES | 21 20 | BUSINESS OPPORTUNITIES © Airmaria / Dollar Photo Club TOURISM Reasons to Invest in Hai�’s Tourism Industry: • Gorgeous, undeveloped natural landscapes including pris�ne beaches, coral reefs, underground caves and mountains; • Convenient des�na�on for North American tourists; • Increasing awareness of Hai� as a vaca�on des�na�on; and • Growing presence of tourism infrastructure. HIGH GROWTH AND VAST POTENTIAL Hai�’s considerable tourism assets range from natural to cultural assets and history that make it a highly desirable des�na�on in the Caribbean. The 1,700 km long coastline is defined by beau�ful, pris�ne beaches and offshore coral reefs. Other a�rac�ons include rugged mountains, colonial architecture and cultural treasures, including La Citadelle, a UNESCO World Heritage site. Known as ‘The Pearl of the West Indies” during its heyday as a tourism des�na�on a�er WWII, Hai� is eager and ready to re-establish itself as one of the region’s prime tourist loca�ons. Both Hai�’s private and public sectors are commi�ed to achieving this goal. !"#$%&' ($$%)(*& +(), -,,. %./$,(&%.0 &%./, 12324 5. 12367 3418 '%**%". 9"#$%&9& )%&%9,: ;(%9%4 <),$ =227222 /$#%&, &+%> >(&&,.0,$ 9"#$%&9& )%&%9%.0 ;(%9% %. 1236 /"'>($,: 9" 6?@7222 %. 123A4 !+%& &9,(:B %./$,(&, %& :#, 9" (99$(/9%". 9" ;(%9%C& -,(#9D#* -,(/+,& (& E,** (& 9+, &9$(9,0%/ *"/(9%". ".*B F2 '%.#9,& D$"' G%('% (.: H94 I(#:,$:(*, Source: Ministry of Tourism !" #$%&'!"" # " ( #)* +" %),$ -#. )/0-#$1" # " ( )/1$" #2 +"%),$ 1$ 0&"2&)$$1#2 -% - 3&1$4 0-5)6 67 Ba&&1#$ #%&'&( )' 20156 <&" 0)&" )$ "( " %+)& 1#%)&#-"" #-, +"%), 5+-1#$ 1# ;-1"* $'5+ -$ %+) C; D, E-#5+"F +-G) 3))# &)5)#%,H &)#" G-%).F -$ +-G) ,"5-, +" %),$F *1%+ %+) I-&13) ;"%), )/0-#.1#2 (&" J KL %" @KL &" "J$F %+) I1#-J ;"%), 5" #$%&'5%). -#. -..)"" #-, KM &"" J$ E)5)#%,H 5" J0,)%). 3)-5+ &)$"&% 1#G)$%J)#%$ " '%$1.) "( <"&%=-'=<&1#5) 1#5,'.) %+) E"H-, N)5-J)&"# O#.12" 8)-5+ E)$"&% -#. P0- 1# !Q%) .)$ 7&5-.1#$F Port Morgan, S.A., in southern Haiti’s Île-à-Vache -$ *),, -$ %+) ;"%), P-%-J- 1# !-0 ;-1%1)#6 22 BUSINESS OPPORTUNITIES | 23  © Rafaelle Castera / www.imagineayi�.com In tandem with expansion and upgrading of hotel offerings, there is a growing and varied selec�on of restaurants and bars in Port-au-Prince, as well as other towns around the country. These first class facili�es not only indicate increasing foreign and domes�c investor confidence in Hai� but can also be the launch pad for Hai�’s emergence as a preferred conven�on des�na�on, only 90 minutes from Miami. KEY DEVELOPMENT PRIORITIES AND OPPORTUNITIES The Ministry of Tourism has iden�fied a number of priori�es for private investment and public- private partnerships in tourist des�na�ons. Opportuni�es exist in various regions of the country (see Figure) and include: • Construc�on of an in�mate (40-100 rooms) beachfront hotel and larger conference hotel (150 rooms) at the city’s pier in Jacmel, a unique historic des�na�on with 700 meters of shoreline. 24 | BUSINESS OPPORTUNITIES 25  © Rafaelle Castera / www.imagineayi�.com GOVERNMENT SUPPORT !" #$%%"&' '()#) %&"*)+'#, '() -".)&/0)/' 1# %&".121/- #)+'"&3#%)+1!+ 1/+)/".)# 4/2 1# 45#" 6$1521/- 4/2 )/(4/+1/- '() ($04/ &)#"$&+)# 4/2 %(7#1+45 1/8&4#'&$+'$&) '(4' 9155 )/(4/+) '() '"$&1#0 ):%)&1)/+) 4/2 84+151'4') %&1.4') 1/.)#'0)/'; 041/ 4++)## &"42# 1/ '"$&1#0 +5$#')&# 4&) 6)1/- 10%&".)2< 4/2 '() -".)&/0)/' 1# )#'4651#(1/- ("#%1'451'7 '&41/1/- +)/')&# 1/ '() +"$/'&7H# '"$&1#0 2).)5"%0)/' &)-1"/#I HAITIAN ARTISANS Haiti has a rich cultural heritage and is rightly famed worldwide for its artistic creativity, innovative design and the quality of its artisan crafts. The imagination, use of color and subject mat ter explored in Haitian painting has been lauded for over seven decades. The same imagination, color and technical quality is found in wood sculptures, furniture, home decoration articles in metal, wood and straw, metal wall hangings, papier-mâché masks and animals, and quilts. The demand for such “global style” craft products in international markets is significant and growing. Described as a blend of contemporary design and functionality with native elements, products in this style are popular in higher-end retailers such as Pottery Barn, Macy’s and Crate & Barrel, as well as independent retailers. Tourists visiting Haiti have a chance to visit artists’ ateliers and artisans’ workshops to experience first hand these treasures in the making. SHOWCASING HAITIAN HOSPITALITY Opera�ng in Hai� since 2002, Port Morgan, S.A., is a high-quality resort in southern Hai�’s Île-à- Vache. When the resort first opened, Village Touris�que Morgan S.A had only eight rooms. Today, the resort has 23 rooms with an investment of nearly US$ 2.8 million in a joint venture that is 35 percent Hai�an-owned. The company has created 440 direct and indirect jobs. The company also provides assistance to small local organiza�ons on Île-à-Vache by suppor�ng reforesta�on projects. We wish to grow even bigger. We are ready and would be glad to build partnerships with other foreign investors. Didier Boulard, Port Morgan CEO 26 | BUSINESS OPPORTUNITIES 27  © Hamik / Dollar Photo Club • • • • • The Hai�an government has iden�fied the revival and expansion of agricultural investments as key for rural local development, thus opening up new business opportuni�es in both produc�on and processing for domes�c and export markets. The CFI works in close collabora�on with the Unité de Promo�on de l’Inves�ssement Privé dans le Secteur Agricole (Unit for the Promo�on of Investment in the Agricultural Sector - UPISA) within the Ministry of Agriculture to provide relevant technical informa�on and support to investors interested in engaging in agriculture and agribusiness in Hai�. In addi�on to bananas, cocoa, coffee, mangos, and sisal, which are highlighted in more detail below, priori�es for private investment include: • Sugar cane and deriva�ve products; • Roots and tubers; • Cereals (maize, sorghum, rice); • Garden produce such as pigeon peas, tomatoes, cucumbers, peppers, aubergines, and okra; • Fruits such as avocados, citrus fruits, cashews, tamarinds, and coconuts; • Beekeeping; • Chickens (with an internal demand of US$ 200 million per year); • Eggs (with an internal demand of 400 million eggs per year); and • Aquaculture. Hai� enjoys several advantages as a pla�orm for exports: Its proximity to the United States enables producers to get agricultural products to U.S. markets quickly. Moreover, as one of the ACP (African, Caribbean and Pacific) countries, Hai� enjoys duty-free and quota-free preferen�al access to the European Union markets for most products. Under the Generalized System of Preferences (GSP), Hai� also enjoys interna�onal trade benefits under WTO rules, including for agricultural goods. The Bali Accord further supports the increase of Hai�’s duty-free and quota-free access alongside other least-developed countries worldwide. 28 | BUSINESS OPPORTUNITIES 29  !" #$$ition &o '()*"+)) opportunities *" +,-ort enterprises are ge�ng Hai�an coffee into fine and aroma�c cocoa, niche markets that ESSENTIAL OILS markets, there is also significant potential to serve an expanding new markets, including Walmart, a major U.S. Hai�’s organic cocoa can serve will con�nue to domestic market6 72+ natioanal population of over 88 /*33*on *) retailer. expand. Essen!al oils, one of Hai!"# most important 4rowing and the country is urbanizing. As economic growth takes hold agricultural exports, were worth an es!mated and leads to greather employment #" $ (-'#" ,(rchasing power, MANGOS Currently, most beans grown in Hai� are US$ 47.9 Millions USD in 2017. demand for more and better quality food stuffs and agricultural products sold and exported in a raw, unprocessed Hai� has favorable clima�c and land will only rise. Hai� is one of the largest mango producers in and unfermented state that does not meet condi�ons in the north department for the the world, with about 10 million mango trees. the volumes or standards needed to connect produc�on of bi�er oranges used for Grand Yet there is s�ll vast poten�al for addi�onal meaningfully with brokers and their markets. Marnier and Cointreau produc�on. growth in produc�on of fresh and dried The low volumes and quality have meant low Ve�ver oil, extracted from the ve�ver mangos in Hai�, par�cularly given the steadily returns for producers and their coopera�ves. perennial grass, is used for medicinal Other Hai!an advantages are the country’s increasing global demand for the products. purposes, cosme�cs and perfumes. Hai� is topography and climate, which combine to Currently, only around 10 percent of But this is changing. FECCANO (a federa�on the largest exporter of ve�ver oil in the world, create a variety of microclimates. This means, produc�on is the export-quality Madame of six coopera�ves in the north) and one with Agri-Supply Co. SA in Les Cayes being for example, that Hai!an export mango Francis variety. To overcome this limita�on coopera�ve in Grand-Anse are producing and Hai�’s largest producer. cul!va!on extends over a "ve-month season and help serve the interna�onal market, expor�ng fermented cocoa beans to specialty compared to the two or three month mango ini�a�ves are under way to upgrade exis�ng buyers, as well as selling to powerhouse SISAL harvest seasons in compe!ng countries. Hai�an mango trees through gra�ing as REBO. As this accounts for less than 5 percent well as the introduc�on of new varie�es of of na�onal exports, working with farmers to Sisal was an important commercial crop commercial trees. Improved transporta�on get processed and fermented cocoa to market throughout World War II and un�l the 1970s condi�ons also help facilitate access to cons�tutes an area of significant opportunity. when Hai� lost its compe��ve edge due to markets. the introduc�on of synthe�c fibers. Projects BANANAS are now underway to reignite the country’s MANGO EXPORTS, FRESH AND DRIED - TONS 12000 produc�on of sisal and sisal products. The Léogane region, just south of Port-au- SISALCO, a Hai�an company, is one example, 11000 Prince, and the Arcadins Coast in the west are working to increase output from the Côtes- 10000 COFFEE trad!"onal areas of banana produc"on with de-Fer, in the south, where most sisal is 9000 well-watered fer"le soils and a good climate. currently produced, and to expand produc�on Hai! has a 200-year tradi!on of growing 8000 Hai" exported bananas un"l the late 1940s, in new regions in north and northeast Hai�. mainly Arabica co"ee under agro-ecological 7000 a#er which "me all produc"on has supplied the Its US$ 5 million project envisages up to 4,000 condi!ons well suited for producing quality 6000 local market. Today, the government is working hectares under sisal produc�on, with 1,000 organic c#"ee that commands premium 5000 to increase produc"on for dome$"% hectares worked by the company and another 2014 2015 2016 2017 interna!onal prices. Much, if not all, of Hai!$% Mango exports - tons consump"on and, in par"cular, for export. 3,000 hectares by small producers receiving co"ee is grown without use of chemical technical assistance and selling their semi- inputs. COCOA A number of investments are already processed product to SISALCO. With its new underway. One development is the US$ 27 factory in the Caracol Industrial Park, SISALCO The country currently produces roughly Hai�an criollo cocoa beans are cul�vated million project in the Trou-du-Nord commune, will use sisal fibers to produce coffee sacks 18 million kilograms annually, but aims to without chemical addi�ves (there are no which will bring together over 3,000 Hai!an for REBO as well as other sisal products for a increase that amount, both to serve the in-country cocoa pests or diseases) and are farmers from di"erent associa!ons to produce strong and growing export market. domes�c market – which currently absorbs highly prized for their excep�onal flavor by organic bananas for export. 65% of the country’s produc�on – and to pastry companies and high-end chocola�ers increase exports. of luxury chocolate brands. As leading food companies are commi�ed to sourcing their While REBO and Geo Wiener are the cocoa from sustainable producers, and cra� major coffee expor�ng firms, other smaller chocolate makers are seeking new sources of 30 | BUSINESS OPPORTUNITIES BUSINESS OPPORTUNITIES | 31  The government of Hai! has launched a new ini!a!ve with the help of the World Bank Group and local partners to dra" a law on public-private partnerships (PPPs). At present there is no uni#ed PPP law, the aim of the ini!a!ve is therefore to build on exis!ng regula!ons and to systema!ze the legal framework governing PPPs to improve the transparency, predictability and ease of the PPP process. It is hoped that this new law will facilitate signi#cant investment in such key areas as infrastructure, energy and transporta!on. The Commission Na�onale des Marchés Publics (The Na�onal Commission for Public Markets - CNMP) under the Prime Minister’s Office is currently overseeing PPP projects in Hai�. With the adop�on of a new law, however, responsibility for PPPs will move to the Unité Centrale de Ges�on de PPP (Central Unit for the Management of PPP - UCG/PPP) under the Ministry of Finance. 6()*&"%"+ ,,,- .$ /0.! .$#&1+" 20%#() 3%"&"#())1$.#0!($-4 0$+ %5" 6070#(& 8$+1-%7.0& ,079: 32 | BUSINESS OPPORTUNITIES © Airmaria / Dollar Photo Club INVESTMENT CLIMATE INTRODUCTION Con!nuing to improve the business and investment climate is one of Ha"!#s premier obj$%!ves. The success so far is clearly represented by the increase in FDI in recent years (see the graph below) as well as the major &rms that are choosing to invest in Ha"!' Heineken, Marrio( and Digicel are just a selec!on of the &rms that see the opportunity that Ha"! represents. The Centre for the Facilita�on of Investments (CFI) provides support to investors throughout the investment process: from ini�al interest to any concerns arising a�er the project is established. Significant support from the Inter-American Development Bank, Caribbean Export and the European Union is bringing the CFI rapidly up to best prac�ces in all areas of its work. Similarly, the Doing Business Unit within the Prime Minister’s Office is focusing on con�nuing to improve Hai�’s World Bank Doing Business rankings, as is the Presiden�al Commission for the Reform of Business Law. This sec�on provides a basic overview of the investment climate in Hai� and highlights some of the government ini�a�ves aimed at making the country an increasingly a�rac�ve des�na�on for firms. Source:World Bank 34 INVESTMENT CLIMATE | 35  INDUSTRIAL PARKS AND FREE TRADE ZONES The government of Hai� recognizes that the transi�on from earthquake emergency relief to sustainable recovery and growth will take �me. It is commi�ed to accomplishing this transi�on through a comprehensive set of measures to foster long-term growth and reduce poverty. These measures are set forth in its post-earthquake Ac�on Plan for Na�onal Recovery and Development of Hai�, which was agreed with the interna�onal community of donor agencies and financial ins�tu�ons. It is clear that a vibrant and produc�ve private sector is vital to achieving this economic growth. The Ac�on Plan complements the government’s aim to achieve substan�ve progress on five priority issues (or the five “E”s), namely: (1) rule of law (état de droit) with improved enforcement achieved through increased capacity of public administra�on; (2) educa�on for all; (3) employment, through the construc�on of key basic infrastructure and crea�on of a business-friendly environment; (4) environment, including environmental rehabilita�on and land tenure; and (5) electricity, emphasizing the need for measures to improve genera�on and distribu�on. In addi�on to those five issues, the government has iden�fied four priority regions or development poles to diversify and decentralize economic ac�vity from the Port-au-Prince area. These are: (1) north of Port-au-Prince in the area around Cabaret; (2) Cap-Haï�en and the northern region; (3) Hinche and the Central Plateau, Gonaives, St. Marc, and the Ar�bonite Plain; and (4) Les Cayes, Jacmel, and surrounding areas in the south. As one means of advancing development in those regions, as well as in Port-au-Prince, the Hai� has embraced the development of government- and privately-owned industrial parks and free government supports the crea�on and expansion of industrial parks and provides incen�ves for the trade zones as a means of enabling enterprises to realize bo�om-line benefits through investment crea�on of free trade zones. These parks and zones aim to help catalyze economic growth in the in the country. Businesses located in these parks and zones can op�mize opera�onal costs by taking country by increasing the availability of factory space and appropriate infrastructure necessary to advantage of various benefits, including expedited customs clearance, reduced transporta�on support business ac�vi�es. costs when zones and parks are proximate to ports and airports, cheaper and more reliable access to energy and water services, the availability of standard factory buildings for sale or lease, and Alongside these ini!a!ves, Ha"! has created several ins!tu!ons dedicated to improving the climate access to storage and warehouse facili�es. The specialized legal frameworks that apply in free trade for private sector investment. Then, in 2012, President Martelly created a Presiden!al zones and the business services available in a number of the parks and zones further streamline the Commission for the Reform of Business Law and tasked it with enhancing the legal framework to processes for establishing and opera�ng businesses in Hai�. This sec�on highlights some of Hai�’s boost domes!# and foreign investment. Also in 2012, the prime minister created an Economic and parks and zones, illustra�ng the ac�vi�es they support and features they offer. Social Development Council (CDES) to provide advice on how to simplify administra!ve procedures and promote private investment. IND USTRIAL PA RKS » CARACOL INDUSTRIAL PARK The Caracol Industrial Park (PIC), the largest industrial park in the Caribbean, is a 250-hectare facility for mixed use and light manufacturing situated in the north eastern region of Hai!" Inaugurated in October 2012, the PIC has been widely applauded by the interna!onal investor community as a landmark project opening up new opportuni!es for investment in Ha#!" The park is government-owned, managed by SONAPI and built with donor funds from the IDB. At the end of 2018 the PIC employed 13,500 people and approximately 30% of the total area was built. Plenty of room remains for expansion. 36 | INVESTMENT CLIMATE INVESTMENT CLIMATE | 37  © Rafaelle Castera / www.imagineayi�.com The PIC provides crucial infrastructure and services for enterprises, boas!ng a 10 MW opera!onal power plant, cellular and broadband services provided by na!onal operators, access to an aquifer, wastewater treatment facili!"#$ and solid waste disposal. The PIC also has state -of-the-art industrial buildings and provides on-site extended stay accommoda!%n for execu!ves and management. Other business services include on-site customs clearance and a &eet of nearly 50 buses managed by SONAPI to transport workers between the PIC and surrounding communi!es. The PIC’s loca�on is prime for both export-oriented firms and domes�c consump�on- focused enterprises. Employers benefit from the park’s: • Proximity to major popula�on centers in the northern corridor extending from Cap-Haï�en to Ouanaminthe; • Loca�on less than three miles from the new University of Limonade with a pool of 4,000 mul�lingual university-educated Hai�ans; • Easy access to and from Cap-Haï�en airport, which is less than 30 minutes from the park and which has six daily flights to Port-au-Prince (25 minutes) and two to Miami (90-minute flying �me); and • Loca�on less than 30 minutes from the port of Cap-Haï�en, which has twice-weekly sailings to Port Everglades (Miami, Florida), a three-day journey. A good road network enhances the PIC’s connec�vity within the region and to Port-au-Prince and the Dominican Republic. (For more on transporta�on infrastructure at Cap-Haï�en, see the Infrastructure sec�on of this Guide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uildings for rent in the PIC are available at US$ 3.90 per square meter per month.. Land can also be leased and developed by self-!nanced investors with speci!c requirements who wish to customize their premises while taking advantage of the infrastructure available at the PIC. » PARC INDUSTRIEL MÉTROPOLITAIN (PIM) The government-owned Parc Industriel Métropolitain (PIM), located adjacent to Port-au-Prince’s interna�onal airport, was established in the early 1970s. A�er a recent expansion, the PIM now has more than 50 buildings occupying a total of 206,000 square meters and has plans for addi�onal growth. 39 38 | INVESTMENT CLIMATE  The priority of the PIM is to rent space to authoriza�on of the Na�onal Council of Free access to the port of Puerto Plata, factories in CODEVI produce garments for Levi’s, JC Penney and export-oriented, labor-intensive industries, Zones in accordance with the Free Trade Zone American Eagle, among others. The park now employs over 10,000 workers. There is su!cient which means the main businesses loca�ng at Law. Fiscal incen�ves exist for promoters or space at CODEVI to con"nue to expand the number of factory units. the PIM have been apparel manufacturers. operators of a free trade zone. » SHODECOSA » LAFITO INDUSTRIAL FREE ZONE » PARK HISPANIOLA SHODECOSA (Superior Housing Development La!to Industrial Free Zone, a privately owned and Corpora�on) has a business park with over operated zone which opened in 2015, it provides Park Hispaniola (HINSA), located in the metropolitan area of Port-au-Prince, enjoys the benefits of 186,000 square meters of covered space, 100,000 square meters of manufacturing space a free trade zone and an industrial park. The park contains a 30 MW power plant (E-Power) that conveniently located between Port-au-Prince’s and associated infrastructure that includes a !ber opened in 2011. The power plant was developed by a consor�um of Hai�an and South Korean airport and port. Opera�ng in Port-au-Prince op"# network, a secure data warehousing facility investors and backed by the IFC and FMO. The resul�ng reliable power supply is a significant since 1979, it is currently home to apparel and and 25 MW of compe""vely-priced and reliable advantage for energy-intensive industries that require proximity to Port-au-Prince. other manufacturers such as Caribbean Island power. Located within one kilometer of the new Apparel, whose factory now employs 1,700 privately owned and operated Port La!$o near » LES PALMIERS workers producing goods for the U.S. market. Port-au-Prince (see the Infrastructure se#"on for more details), the modern L%!$o Industrial Free Les Palmiers Free Trade Zone in Carrefour, Port-au-Prince, was developed in 2012 by a group of SHODECOSA offers its tenants extensive Zone will provide exporters a compe""ve base in local investors at a cost of US$8 million. Its tenant is SG Corporation of Korea, which makes storage infrastructure and ample room for which to apparel for WalMart, The Children’s Place and Mondetta presently employs around 3,000 workers. labor-intensive manufacturing. The park operate. also seeks to minimize the start-up costs of » SIDSA (SOCIETE IMMOBILIERE DE DEVELOPPEMENT S.A) new business ventures and fixed costs for manufacturing by ensuring low property » COMPAGNIE DU DÉVELOPPEMENT The SIDSA Free Zone, located in Tabarre, is a recently constructed free trade zone that is home to acquisi�on and building construc�on costs. INDUSTRIEL Val D’Or Apparel Manufacturing, !"#$% 4 Haiti and Tex&les Youm Kwang. The zone has SHODECOSA addi�onally offers services such approximately 19,000 square meters of factory space across two buildings and employment as as integrated and efficient security, legal The Compagnie du Développement Industriel reached approximately 2,000 workers. advice for incorpora�on, and administra�ve (CODEVI), a free trade zone established in services suited to individual client needs. 2002, is owned and operated by Grupo M, Other zones, such as WIN Free Zone are under development. These free trade zones are also a ver�cally-integrated Dominican apparel regulated under the Free Trade Zone Law. Other industrial parks include the Unibank manufacturer. The park, in Ouanaminthe, a Parc, the Fa�ma Group’s Park and the WIN town on Hai�’s border with the Dominican » Digneron Free Zone Industrial Park. Republic, has over 371,600 square meters of space, of which around 41,800 square meters Launched in 2015, Digneron Free Zone has 20.5 ha of land area. Upon » FREE TRADE ZONES has been developed as industrial buildings. completion it will have 100,000 sq meter of manufacturing space, 2,500 sq meter of housing for international staff, 2,150 sq meter for administrative CODEVI provides tenants with electricity, voice and other park services. Digneron Free Zone is a professionally zoned, Free trade zones, which are governed by the and data services, a recruitment and training landscaped and managed free zone designed to attract high value-added Free Trade Zone Law of 2002, are geographic center, a cafeteria, and a recrea�onal space. industrial and manufacturing projects which will help create quality local areas in which benefits such as special employment and wealth. This free zone has established an eco friendly infrastructure with extensive use of green and renewable energy and a customs, taxa�on and immigra�on regimes CODEVI was ini�ally financed by the IFC. dedicated waste management system. apply to ease business for firms opera�ng A�er the earthquake, the Soros Economic within the zones. Development Fund (SEDF) invested US$3 The government welcomes and supports million. SEDF also partnered with Ci� on the crea�on of new free trade zones. These a grant to provide professional training to can be established by private investors or factory line workers and management. With by public-private partnerships with the excellent road transport as well as good 40 | INVESTMENT CLIMATE INVESTMENT CLIMATE | 41 © www.iadb.org WORKFORCE DEDICATION TO IMPROVEMENT One of Hai�’s greatest assets is its people. The government is currently engaged in a mul!-year process to ensure there is a publicly The country’s popula�on of over 10 million is -"nanced, tui!on-free, well-managed educa!on system open to all children that provides very young, with approximately 65% percent quality educa!onal services as well as social services. The plan covers the #$!%e educa!on under the age of 30. With a reputa�on for being energe�c, flexible, hard-working, and system, from early childhood development to higher educa!on, and includes public and trainable, this mul�lingual labor force can be non-public schools. Speci"c targets include providing free, universal educa!on from grade rapidly mobilized to meet the demands of 1 through 6 by the end of 2019, and from grades 1 through 9 by 2021. high-growth sectors, such as BPO, tourism, apparel manufacturing, agribusiness, and electronics manufacturing. Of par�cular interest to investors, the plan also calls for the crea�on of an integrated management system of the sector with strong private sector par�cipa�on, and an The demand for jobs and desire for work increase in technical and voca�onal educa�on and training programs to meet labor is strong. There is a stable labor force, market demands. with factory managers repor�ng low levels of absenteeism (2 percent) and turnover VOCATIONAL TRAINING (between 4 to 6 percent per year). Low absenteeism is a factor helping to realize To further improve the skills of the workforce in various sectors, both the public and output targets and low turnover rates are private sectors are inves�ng in voca�onal skills training. an incen�ve to invest in workers’ training programs. !"#"$%&' ()* '+" '",'-#" ."/')*0 '+" 1*%-&-&2 3"&'"* -& 455%*"# 1"/+&)#)26 )( 7&89.'*-%# :%*; 3%*%/)# is % <)-&' -&-'-%'-$" )( '+" =)$"*&>"&' )( ?%-'- %&8 '+%' )( @)9'+ A)*"%B EDUCATION 1+" A)*"%& 7&'"*&%'-)&%# 3))5"*%'-)& 42"&/6 CAD734E -&$".'"8 F@GHBI >-##-)& ()* '+" /)&.'*9/'-)& )( '+" J9-#8-&2 %&8 %/K9-.-'-)& )( "K9-5>"&' )( '+" /"&'"*B 1+" /"&'"* By the Cons�tu�on of 1987, the State '*%-&. 9&.;-##"8 L)*;"*. ') >""' '+" L)*;()*/" 8">%&8. )( '+" 2%*>"&' -&89.'*6 %&8 guarantees Hai�ans the right to free and ') +"#5 "&.9*" '+" %$%-#%J-#-'6 )( %8"K9%'"#6 '*%-&"8 +9>%& *".)9*/".B adequate primary educa�on. However, Hai�’s educa�on system is currently dominated by private schools, most of which are operated as )" >?@A- #(.) n* 9&'nB +%" ."4 <&+%" C&( ,.( %%(* )" #$% $ &*8)#./)#9 )"4'*#(9D With for-profit organiza�ons. tourism =%)"B &"% &C #$% 8()&()#9 *%,#&(*- #$% F)")*#(9 &C 7&'()*+ )* %G8."4)"B )#* %ff&r#* A�er the pre-school level, students have &" H&,.#)&"./ #(.)ningD 7$% !"*#)#'# L.#)&"./ 4% M&(+.#)&" %" 12#%//%()% %# 7&'()*+% nine years of basic educa�on and receive a 67$% L.#)&"./ 1&#%/ ."4 7&'()*+ 7(.)")" B !"*#)#'#% N!LMOP 17; )" #$% *&'#$ &8%"%4 )#* Brevet Diploma. Secondary educa�on consists 4&&(*D of four years of schooling, followed by the comple�on of the Baccalauréat. A�er their basic educa�on, students have the op�on to follow a professional or voca�onal training. Some of the most recognized universi�es in Hai� are Université d’Etat d’Hai�, École Supérieure d’Infotronique d’Hai�, Université Notre Dame d’Hai�, and Université Quisqueya. 42 | INVESTMENT CLIMATE INVESTMENT CLIMATE | 43  Cap-Haï�en Interna�onal Airport has also To date, much of Cap Haï!en cargo is been upgraded. The inaugura�on was held dispatched through ports in the Dominican A significant infrastructure investment program, financed by na�onal and interna�onal resources, on October 2, 2014, with the first arrival Republic. is underway to improve Hai�’s connec�vity, both internally and externally. This program seeks not being an American Airlines flight from Miami. only to replace infrastructure destroyed as a result of the 2010 earthquake and other recent natural The construc�on of a new runway and The newest add!"on to Hai"’s port facili"es is disasters, but also to create new infrastructure that will meet the needs of this growing economy. terminal building, a US$ 60 million project, the privately-owned Port La#$%, which has was a strategic interven�on transforming the been operational since 2015. A subsidiary of ROADS prospects for northern Hai�’s interna�onal Gilbert Bigio Group and managed by accessibility and connec�vity to the United SSA Marine, Port La#$% is a green#eld Ground transport is the main internal mode of transporta�on for passengers and goods as well as States and beyond. The airport grants mul"purpose panamax port and terminal for trade with the Dominican Republic. The na�onal road network comprises 3,608 km, consis�ng quick access to the CARACOL and CODEVI handling containerized and loose-bulk cargo. of 950 km of primary or trunk roads linking major ci�es (Routes Na�onales (Na�onal Routes) industrial parks located in the free trade zone - RN), 1,315 km of departmental or secondary roads and 1,343 km of ter�ary or rural roads. in the northeastern region. It also improves Major shipping companies such as Crowley More than 700 km of roads have been constructed and renovated since the start of the Martelly access for tourists visi�ng La Citadelle and <Maritime, Maersk Sealand, Seaboard Marine, administra�on with the major towns and ci�es now connected by a strong paved road network. Sans Souci, as well as other tourism hotspots. An!"lean Marine, and Evergreen already serve Hai!# Air cargo carriers such as FedEx, DHL, There are several major ini�a�ves underway to further improve crucial road networks. For example, Other airports are under construc�on or UPS, and Amerijet are also present. recent improvements have been made to the RN1, which links Port-au-Prince to Hai�’s second- currently being upgraded, including Les Cayes largest city, Cap-Haï�en. A full upgrade of RN1 is expected to be completed by 2018. Another and Île-à-Vache. These form part of the tourist ELECTRICITY major project is the upgrade and paving of the RN7 between the southern departmental capitals infrastructure that will allow interna�onal of Ley Cayes and Jérémie and their respec�ve agricultural regions in the south and Grande Anse travelers to go directly to the tourism facili�es There is a huge need for both public and departments. under development in the southern region. private sector investment in Hai�’s electricity sector, par�cularly in renewable energy. Hai� In addi�on to those specific projects, the government is placing significant emphasis on SEAPORTS currently suffers from an insufficient installed strengthening the road maintenance capacity of the Ministry of Public Works, Transport, Energy, capacity of just 313 MW with only 60% of and Communica�ons (Ministère des Travaux Publics, Transports et Communica�ons - MTPTC). Hai�’s main interna�onal seaports are located that electricity stable. The current electricity in Port-au-Prince and Cap- Haï�en. demand in Hai� is es�mated to be around AIRPORTS 500 MW throughout the country. The port of Port-au-Prince is currently the Hai�’s main interna�onal airport, Toussaint Louverture Interna�onal Airport (TLIA) in Port-au-Prince, main port for container traffic and general There is no na�onal grid, with electricity being has direct interna�onal flights to four U.S. ci�es (Miami, Fort Lauderdale, New York, and Atlanta), frac�oned freight, with specialized docks provided by both the na�onal electricity Canada, Panama City, and Paris via the Dominican Republic and Guadeloupe. There is also an and warehouses. The Port-au-Prince seaport company (Electricité d’Haïte (Hai� Electricity) extensive network of flights to other ci�es in La�n America and the Caribbean. Approximately 20 moves nearly one million tons of freight - EDH) and private producers on nine grids airlines operate out of TLIA with over 230 interna�onal flights to 16 ci�es per month. annually. An interna�onal firm is currently around the country. In addi�on to the EDH undertaking a US$ 69 million renova�on of produc�on, there are three Independent With its Class II classifica�on, TLIA is able to accommodate large transport aircra�. The number of one of the main docks, including a new 410m Power Producers (E-Power, Sogener and passengers arriving in TLIA has close to doubled since 2005, now totaling well over 1 million per wharf. Haytrac) which together generate 82 MW. year. Caracol generates its own electricity on-site, while each of the free trade zones also has A recent decision to update the seaport at the op�on to self-generate. Most of the Cap-Haïtien means Haiti will soon have an upgraded power generated is currently from heavy port on the northern coast to serve the manufacturing fuel oil or diesel, though, in the absence facilities located at the Caracol Industrial Park. of a centralized grid, there is considerable poten�al for renewable solar, wind, hydro-, and biomass power genera�on. 44 | INVESTMENT CLIMATE INVESTMENT CLIMATE | 45  TRADE AND INVESTMENT AGREEMENTS Opportuni�es exist to invest in the electricity sector, par�cularly in rela�on to renewable e nergy Hai� is a party to various international agreements on trade and investment that provide firms projects, given Hai�’s considerable solar, wind and biomass power poten�al. In terms of solar doing business in the country with key advantages. These include: power, Hai�’s solar resources are par�cularly strong and consistent throughout the year. Major energy consumers such as the University Hospital Mirebalais predominantly source their power • Agreements enhancing the availability of poli�cal risk insurance and other financial products from solar panels, and are even able to feed excess power into the local grid. The solar energy and services; sector should be seeing a significant boost in investment in the coming years. Similarly, several • The WTO agreements, including the Bali Package suppor!ng duty-free quota-free access loca�ons in Hai�, including Lac Azuéi to the east of Port-au-Prince, are par�cularly suited to wind for LDCs to export to developed countries; energy projects. • Other trade agreements facilita�ng trade and investment both within the Caribbean Basin region and between the Caribbean Basin region and other countries and regions; In add!"on to promo"ng investment in renewable energy, the government is also seeking to • Bilateral investment trea�es; and modernize EDH and improve its performance. • Agreements for se�lement of disputes between investors and states and for enforcement of arbitral awards. AGREEMENTS FACILITATING POLITICAL RISK INSURANCE AND OTHER FINANCIAL SERVICES COMMUNICATIONS » MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA) Internet and telecommunica�on connec�vity in Hai� has been expanding significantly with considerable private investment. In 2010 the na�onal telecoms provider, Telecommunica�ons Hai� is a member of the World Bank’s Mul�lateral Investment Guarantee Agency (MIGA). MIGA d’Hai� S.A.M. (Teleco) was priva�zed (and renamed Natcom), with the Vietnamese company Vie�el guarantees investments against non-commercial risks, which can help investors obtain access to acquiring a 60% share of the company from the Hai�an government. funding sources with improved financial terms and condi�ons. Since its crea�on in 1988 MIGA has issued more than US$24 billion in poli�cal risk insurance for projects in a wide variety of sectors in Hai! has rapidly expanded its mobile phone penetra!on rate over the past decade to roughly all parts of the world. 70 percent of the popula!on in 2019. The predominant mobile provider is Digicel, which is also Natcom’s main compe!"or in the provision of both phone and internet services. » UNITED STATES OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) !"# $%&'()'* !+'( #,"# -*+.') '/0'%& 0# 1*2"$ 34 -#%%%#"5206 2) ,(#52&'& *0 -#7,'""5' (*0')8 In 2013, the Hai!an government signed an Investment Incen!ve Agreement with the United States 1*&" ;*) *% ')"7*0'& <8@ 72..2#% 2%0'(%'0 $)'() ";2-; -#5'() <A ,'(-'%0 #: 0;' ,#,$.*"#%8 B% 0;' Overseas Private Investment Corpora!on (OPIC) in order to help catalyze U.S. investment in Ha"!# 7#+2.' +(#*&+*%& ),*-'? 1*&" ;*) #5'( 48A 72..2#% )$+)-(2+'() #( *+#$0 4A ,'(-'%0 #: 0;' Similar to MIGA, OPIC provides investors with access to poli!cal risk insurance. It also o$ers loans ,#,$.*"#%8 !;'(' *(' )'5'(*. 2%0'(%'0 )'(52-' ,(#52&'() )'(52%C 0;' -#$%0(6 DE2C2-'.? 1*2%'0? and loan guarantees, and supports private investment funds. OPIC’s current portfolio includes H*0-#7? *%& 9--')) 1*2" I8 nearly $35 million USD in Haiti accross a variety of projects in sectors ranging from housing and construction to food production. » THE WORLD TRADE ORGANIZATION Hai� was a founding member of the GATT (General Agreement on Tariffs and Trade) and joined the World Trade Organiza�on (WTO) in 1996. WTO agreements govern a range of trade- and investment-related issues, including protec�on of intellectual property, non-discrimina�on against foreign goods, technical barriers to trade, and sanitary regula�ons. 46 | INVESTMENT CLIMATE INVESTMENT CLIMATE | 47  Importantly, as a result of decisions at the 5th Ministerial Conference of the WTO in 2005 in Hong BILATERAL INVESTMENT TREATIES Kong and the Bali mee�ng of 2013 concerning Duty Free Quota Free (DFQF) access to developed country markets for least developed countries (LDCs), Hai� is the beneficiary of preferen�al and Hai� has concluded several bilateral investment trea�es (BITs) regarding the promo�on and unilateral access to many markets. Exonera�on of tariff lines from custom du�es i s 98.6 percent for protec�on of foreign investment. Agreements are currently in force with: Canada and 98.3 percent for the European Union, for example. With respect to the United States, while other LDCs benefit from 82.5 percent of tariff lines, Hai� is the only country benefi�ng from » France; almost complete exemp�on from American tariff lines. » Germany; and » The United Kingdom. The WTO decisions together with the flexible rules of origin under HOPE II and HELP (see below under U.S. Trade Preferences), offer a very favorable trade environment for investors. AGREEMENTS FOR SETTLEMENT OF DISPUTES AND ENFORCEMENT OF ARBITRAL AWARDS REGIONAL AGREEMENTS -- CARICOM AND CARIFORUM » INTERNATIONAL CENTER FOR SETTLEMENT OF INVESTMENT DISPUTES (ICSID) Hai� has been a full member of the Caribbean Community (CARICOM) since 2002 and is working ICSID is an interna�onal ins�tu�on established by the Conven�on on the Se�lement of Investment towards fulfilling the requirements to integrate fully with the CARICOM Single Market, which Disputes between States and Na�onals of other States (the ICSID or the Washington Conven�on). would allow tariff and quota free access to the other CARICOM economies. ICSID facilitates concilia�on and arbitra�on of interna�onal investment disputes between states Hai� is also a member of the Caribbean Forum (CARIFORUM), which consists of the 15 CARICOM and foreign investors. The ICSID Conven�on also helps ensure the recogni�on and enforcement of members plus the Dominican Republic. arbitral awards issued to resolve disputes between investors and states. CARICOM AND CARIFORUM AGREEMENTS WITH OTHER COUNTRIES Hai� ra�fied the ICSID Conven�on on November 26, 2009. CARICOM has entered into several agreements with third states, including the: » THE NEW YORK CONVENTION ON RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS (NEW YORK CONVENTION) • Trade and Investment Framework Agreement with the United States; • Trade Agreement with Costa Rica; The New York Conven�on is a treaty that helps ensure the effec�veness and enforceability of • Trade Agreement with Venezuela; and awards issued in interna�onal commercial arbitra�on whether between private par�es or between • Coopera�on Agreement with Cuba. investors and states. Hai� became a party to the New York Conven�on in 1983. CARIFORUM has nego�ated an Economic Partnership Agreement (EPA) with the European Union. In 2009, Hai� signed the CARIFORUM-EU EPA. The treaty is pending ra�fica�on by Hai�’s Parliament. COTONOU AGREEMENT WITH THE EUROPEAN UNION As a member of the African, Caribbean and Pacific (ACP) Group of States, Hai� is also a party to the Cotonou Agreement between the European Union and the ACP countries. The Cotonou Agreement proves a framework for the European Union’s coopera�on with Hai� and other ACP states on economic, social and development issues, including coopera�on on the development of infrastructure and promo�on of private investment. 48 | INVESTMENT CLIMATE INVESTMENT CLIMATE | 49  COUNTRIES AND BLOCKS WITH FREE TRADE AGREEMENT, OR PREFERENTIAL TRADE ARRANGEMENT, WITH HAITI Canada: Switzerland: Norway: Russia: 731 (Agro) and 1.983 (Agro) and 918 (Agro) and 273 1.707 (Agro) and 1.698 (Non-agro) 5.005 (Non-agro) (Non-agro) 975 (Non-agro) Pre- Duty-free tariī lines Duty-free tariī lines Duty-free tariī lines ferenƟal Tariī lines European Union (28): United States: 1.603 (Agro) and 5.333 Japan: 1.229 (Agro) and (Non-agro) Duty-free 1.383 (Agro) and 3.752 (Non-agro) tariī lines 4.037 (Non-agro) Duty-free tariī lines Duty-free tariī lines 257 (TĞdžƟůĞ & Appa- Republic of Korea: rel) Duty-free tariī 939 (Agro) and lines 8.165 (Non-agro) Duty-free tariī lines Highly Ňexible Rules of Origin Taiwan, China: 11 (Agro) and 125 (Non-agro) Duty- free tariī lines Chile: Turkey: Kyrgyz Republic: 1.229 (Agro) and 298 (Agro) and 1.948 (Agro) and 3.752 (Non-agro) 6.327 (Non-agro) 3.948 (Non-agro) Duty-free tariī lines Duty-free tariī lines Duty-free tariī lines Australia: CARICOM: 229 (Agro) and Increasing Integra on with CSME: 3.015 (Non-agro) Duty-free tariī lines AnƟgue and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, HaŝƟ, Jamaica, Montserrat, Saint Kits and Nevis, Santa Lucia, Sant Vicente and The Grenadines, New Zealand: Suriname, Trinidad and Tobago. 380 (Agro) and 2.751 (Non-agro) Plus Trade Agreements with Venezuela, Colombia, Costa Duty-free tariī lines Rica, Cuba and Dominican Republic. Plus European Partnership Agreement with European Union. © Nightman1965 / Dollar Photo Club U.S. TRADE PREFERENCES The United States has enacted four laws that provide Hai� with an immense advantage over its compe�tors in the apparel industry. These are the Caribbean Basin Trade Preference Act (CBTPA), the Hai�an Hemispheric Opportunity through Partnership Encouragement (HOPE) Act of 2006, the HOPE Act of 2008 (HOPE II Act), and the Hai� Economic Li� Program of 2010 (HELP). !"#$#"#%&#' (")*+,#, -%,#" ./!01./!0221.03! 4"# &-""#%567 '#5 5) "-% 58")-98 :;:<= ?@A!B &)%5+%-#' +% #$$#&5 -%5+6 C#(5#DE#" F;G :;:; Under these programs, Hai�an apparel exports to the United States have been growing steadily, and will likely con�nue to expand to take advantage of duty-free access to the U.S. market. CBTPA The CBTPA, originally enacted in 2000, provides duty-free access to the U.S. market for certain apparel goods manufactured in Hai�. To qualify for preferences, yarns or fabrics have to be from the United States or covered Caribbean Basin countries. HOPE The HOPE Act established preferences for apparel beyond those covered by the CBTPA. Importantly, it created the first preference program for Hai�an apparel that allows duty-free treatment for certain apparel wholly assembled, knit, or knit-to-shape in Hai�, using yarns and fabrics from any country. HOPE II HOPE II further expanded preferences for apparel and certain non-apparel tex�le goods, and extended the dura�on of pre-exis�ng preference programs. 52 INVESTMENT CLIMATE | 53  VISAS AND PERMITS HELP Most visitors do not need a visa to enter Hai� and receive a tourist visa upon arrival. Certain holders The HELP Act again expanded and extended most preferences available under the CBTPA/HOPE/ of foreign passports do need a visa, including ci�zens of the Dominican Republic, Colombia and HOPE II Acts to 2025. Panama, but only if they are not also holders of a U.S., Canadian, or European visa or residence CURRENT PREFERENCE HIGHLIGHTS card. • Duty-free access, with some exclusions, for up to 70 million square meter equivalents (SME) of Tourists can stay in Hai� for up to 90 days. Those who stay longer must obtain a residence permit knit apparel and 70 million SMEs of woven apparel without regard to the country of origin of from the Immigra�on and Emigra�on Services. the yarn, fabric or components, as long as the apparel is wholly assembled or knit-to-shape in Hai�; once the 70 million SME limits for knit and woven apparel are hit, the limits increase up Foreigners that work more than three months or 90 days must obtain a work permit. The CFI can to 200 million SMEs; assist investors with these processes if needed. • Duty-free treatment for apparel wholly assembled or knit-to-shape in Ha!" with between 50 and 60 percent value from Ha!"# the United States, a U.S. free trade agreement partner or ACCOMMODATIONS IN HAITI preference program bene$ciary, or a combina"on thereof; this preference is currently set to » HOUSING expire in 2025; • Duty-free treatment of knit or woven apparel under a “two for one” earned import allowance Foreigners and investors have a wide selec�on of housing to choose from. Rent can range from program: for every two SMEs of qualifying fabric (sourced from the United States or certain US$200 per month to as high as US$ 5,000 per month. Rental prices vary depending on the area trade partner countries) used to produce exports for the U.S. in Hai�, one SME of non- and ameni�es. The most common areas for rentals in Port-au-Prince are Bourdon, Delmas, Pacot, qualifying fabric can also be used; Freres, Pe�on-Ville, Pelerin, Peguy-Ville, Juvenat, Laboule, Thomassin, Kenscoff, and Montagne • Duty-free treatment for certain brassieres, luggage, headgear, and certain sleepwear; and Noire. • Permission for Hai�an goods to enter the United States duty-free if shipped either directly from Hai� or through the Dominican Republic. » HOTELS The Hai�an Manufacturers Associa�on and the government of Hai� are working with members of As highlighted in the Tourism sec!on of this guide, there is a wide range of hotels in the Port - the U.S. Congress to extend and expand the HOPE and HELP Laws. au-Prince area, including interna!onal chains and local bou!que op!ons. Ameni!es such as mee!ng rooms, outdoor pools and "tness centers and spas are available in many hotels. Ministry More informa�on on these programs is available from the U.S. Department of Commerce, Office of of Tourism applies its Hibiscus ra!ng, awarding from one to "ve Hibiscus #$wers depending on the Tex�les and Apparel (OTEXA), h�p://www.otexa.ita.gov/. quality and ameni!es of the hotel. Many hotels are also represented on websites such as TripAdviser.com with ra!ngs, pictures and reviews. TELECOMMUNICATION/ INTERNET The country code for Hai� is 509, and the first digit of the telephone number indicates whether it is a cellular (3, 4) or landline (2). Investors can obtain cell phones for short stays. The two largest companies are Natcom and Digicel. Most hotels offer free wi-fi. Internet access is also available in a number of restaurants, coffee shops and bars. Addi�onal informa�on on telephone and internet connec�vity in Hai� is contained in the Infrastructure sec�on of this guide. 54 | INVESTMENT CLIMATE VISITING, WORKING AND LIVING IN HAITI | 55 © Bitter / Dollar Photo Club unit (ICU) beds. The hospital’s long- term moves from cultural event to cultural rela!onship with the University of Miami and event throughout the year. Although the Project Medishare engages numerous foreign February carnival is the main a�rac�on, other sta" in training and residency programs to popular annual events like Hai� Fashion It is recommended to use Hai�an Gourdes further build capacity of specialty sta" in Week and patronal fes�vals such as Fête rather than U.S. dollars to obtain the best Hai!# Gelée similarly mark visitors’ and residents’ exchange rate. ATMs are located in various calendars. Addi�onal music, art, and dance loca�ons in Port-au-Prince and Pe�on- Na�onal cri�cal care and trauma hospital in performances happen throughout the year, Ville. Sogebank has ATMs in some hotels, Port-au-Prince: and combine to keep life in Hai� extremely supermarkets and gas sta�ons. The ATMs rich and ac�ve. accept Visa and Mastercard for debit cards. Once opera�onal, this new project will American Express is also widely accepted. provide cri�cal care and trauma services with Myriad op�ons for more ac�ve pursuits equipment and services not yet available in also exist: Within an hour and a half drive the Hai�. It has received funding from the from the capital, one can be hiking in the Hai�an government and the private sector, refreshingly cool mountains, sunbathing Investors can rent cars from several rental and will be located near the airport in Port-au- on pris�ne beaches, diving in coral reefs, or car companies at the airport in Port-au- Prince. swimming under Saut-d’Eau (a large waterfall Prince. Companies include Hertz, Thri�y, !"#$# %$# %&'( ($)%*+,%-+(*' './" %' 0123 -"# 4$(5+6#' and important loca�on for Voodoo pilgrims). Avis, Europcar, Budget, Secom, Dollar Rent- 7($&6 /&%'' #8#$)#*/9 $#'/.# : %8;.&%*/# '#$5+/#' %*6 Over a weekend, one can visit the city of a-Car, and other smaller local companies. <#6#5%/ -"$(.)"(.- 0%+-+ =$(8 +-' ;%'# +* >($-?%.?>$+*/#: Jacmel, Hai�’s ar�s�c capital, the historic Taxis are available from the airport, and cost %*6 0%+-+ @+$ @8;.&%*/# -"%- /%* -$%*'4($- 4%-+#*-' +* sites surrounding Cap-Haïtien, or even the approximately US$ 50 for a one-way trip to a /$+-+/%& condition ;9 "#&+/(4-#$ -( -"# 8('- %44$(4$+%-# Dominican Republic or Miami. hotel in Pe�on-Ville. =%/+&+-+#' %5%+&%;&# +* 0%+-+B !"#9 %&'( %$$%*)# -$%*'=#$' -( ABCB ($ D(8+*+/%* "('4+-%&' =($ /%$# 7"#* $#E.+$#6 %*6 Numerous gyms, pools and sports facili�es Regular and charter flights are available from =#%'+;&#B are also available, as are hiking and running Port-au-Prince to other domes�c des�na�ons Hospitals and doctors offer care to all groups, and even an Ul�mate Frisbee group. such as Cap-Haï�en, Les Cayes, Jacmel, pa�ents; while all services are paid in cash, Jérémie, and Port-de-Paix. many international insurance plans will For dining, there is a wide variety of reimburse expenses. restaurants available, ranging from Hai�an food to high-end European and Asian INTERNATIONAL SCHOOLS op�ons. For cooking at home, the modern A number of healthcare op�ons are supermarket facili�es conveniently offer a very available in Hai�. Hospital facili�es are being Hai� offers a range of interna�onal school wide range of local and imported products. upgraded to bring Hai� up to high standards op�ons in both English and French. Examples interna�onally. Two examples include: include: Union School, Quisqueya Chris�an As these examples illustrate, Hai� can School, Morning Star Chris�an Academy, The offer a high quality of life, providing those Bernard Mevs: New American School, The New Victorian who live and work in the country with School, The Hai�an Academy, and Lycée diverse opportuni�es to engage in rich Hospital Bernard Mevs is a 50-bed hospital Alexandre-Dumas. cultural experiences and enjoy some of the in Port-au-Prince offering a series of specialty Caribbean’s best natural assets. services including adult and pediatric intensive LIFE IN HAITI care units, a 24/7 emergency room and three state-of-the-art opera�ng theatres. Hai� offers diverse cultural and leisure !"# "$%&'()* '% +)&',*- #.&)/,'/0 ($ 1##( ("# ac�vi�es for individuals and families living ,#1)/, $2 ("# 1$+# (")/ 345666 &)!#/(% and working in Hai� to enjoy. The country 7"$ 8$1# ("+$90" '(% ,$$+% #:#+- -#)+5 ) &+':)(# 7)+, 7)% ),,#, '/ ;6<4 )% well as 1$+# '/(#/%':# 8)+# VISITING, WORKING AND LIVING IN HAITI | 57 © Rafaelle Castera / www.imagineayiti.com LEGAL AND REGULATORY FRAMEWORK Hai!’s legal system is based on the French Napoleonic Code and consists of na!onal laws, rules, and regula!ons, as well as all interna!onal and bilateral trea!es that have been signed and ra!"ed by the government. The Commercial Code regulates the general business environment, while a number of other laws more speci"cally govern the promo!on, facilita!on and prot#$!on of investment, including the 2002 Investment Code (see page 64) and the Free Trade Zone Law. Other laws that have more recently been implemented to enhance Hai!’s investment climate include an an!-money laundering law and an an!-corrup!on law passed in 2014 to harmonize Hai!’s an!-corrup!on laws with interna!onal standards. LAND OWNERSHIP BY NON-HAITIAN NATIONALS Non-Hai�an na�onals are permi�ed to acquire property in Hai� under certain circumstances, for which the assistance of a Hai�an lawyer is required by law. There are also possibili�es to lease na�onal land for up to 50 years, which generally applies to tourism projects, and economic and agro-industrial free zones. Proper�es (including areas within free trade zones and industrial parks) can be rented by both na�onal and foreign firms equally. REGULATORY INSTITUTIONS Hai� has a number of regulatory ins�tu�ons supervising business prac�ces. Some examples are included below. A full list relevant to a par�cular investor’s needs can be provided by the CFI. BANKING REGULATION AND SUPERVISION AGENCY The Central Bank of Hai� (Banque de la République d’Haï� - BRH) is responsible for managing monetary policy and the system of payments and ensuring financial stability in Hai�. It oversees the func�ons of the commercial banks, insurance companies, coopera�ves, and other financial ins�tu�ons opera�ng in Hai�. BUREAU INFORMATION DE CREDIT (BIC) The newly created Credit Informa�on Bureau (Bureau d’Informa�on sur le Credit - BIC) was launched in 2014 by the BRH to help strengthen the financial system and expand the number of credit products and services. It will play an invaluable role by suppor�ng financial ins�tu�ons’ risk management and helping them to expand their lending to retail as well as micro-, small- and medium-sized enterprises. 58 LEGAL AND REGULATORY FRAMEWORK | 59  NATIONAL COUNCIL OF TELECOMMUNICATION BRANCH OF A FOREIGN COMPANY The Na�onal Council of Telecommunica�on (Conseil Na�onal des Télécommunica�ons - CONATEL) Where a foreign investor wishes to set up a branch of a foreign company in Hai�, the foreign is responsible for the regula�on, authoriza�on, reconcilia�on, and supervision of ac�vi�es within branch will share the legal personality of the foreign company, but must be registered with the the telecommunica�ons sector. fiscal and social authori�es in Hai�. The services of a Hai�an lawyer must be used to establish a foreign branch. The registra�on process takes around 15 days. UNITE DE LUTTE CONTRE LA CORRUPTION (ULCC) PARTNERSHIPS The Unit for Comba�ng Corrup�on (Unité de Lu�e Contre la Corrup�on - ULCC) was established by the government in April 2004 to prosecute cases of corrup�on. The government is acutely The establishment of a partnership requires a minimum of two partners. In a general partnership aware that corrup�on s�fles economic growth and development, distorts prices and weakens the (société en nom collec�f) all the partners are jointly and indefinitely liable for the debts of rule of law. It has been taking ac�ve steps to limit it. Hai� seeks to level the playing field by being a the business. In a limited partnership (société en commandite simple), managing partners party to the 1996 Inter-American Conven�on against Corrup�on (OAS Conven�on) and the 2000 have unlimited, joint and collec�ve liability, but the liability of inves�ng partners without any UN Conven�on against Corrup�on. In November 2013, Hai� passed an an�-money laundering management role is limited to the amount of their direct total investment in the limited partnership. law and, in March 2014, enacted an an�-corrup�on law that harmonizes Hai�’s legisla�on with Registra�on procedures for general partnerships and limited partnerships are nearly iden�cal. interna�onal standards. The ULCC’s work is supported by the L’Unité Centrale de Renseignements Financiers (The Central Unit for Financial Informa�on - UCREF) whose focus is on financial crimes SOLE PROPRIETORSHIP more broadly. A sole proprietorship is an individual trader with unlimited liability for the ac�ons of his/her business and debts incurred. The registra�on process takes 1-2 days. Hai�an law recognizes different types of corporate structures and business forms. These include COOPERATIVE limited liability companies, branches of a foreign company, general and limited partnerships, sole proprietorships, and coopera�ve socie�es. Limited liability companies are the most common A coopera�ve is an autonomous associa�on of individuals as partners in a collec�vely owned business structure in Hai�. A brief descrip�on of each is provided below. company. Coopera�ves are subject to the same administra�ve requirements as other en��es and must act in compliance with their bylaws. Coopera�ves are o�en used for savings and credit unions The CFI welcome any ques�ons and is available to assist investors throughout the business (Coopera�ve d’Epargne et de Credit), which can be registered for an indefinite period of �me. establishment and registra�on process. Coopera�ves that are not savings and credit unions may be registered for a renewable period of three years. The responsible authority is the Na�onal Coopera�ves Board (Conseil Na�onal des LIMITED LIABILITY COMPANY Coopera�ves). The limited liability company (société anonyme - S.A.) is the most common business structure in CUSTOMS REGULATIONS AND PROCEDURES Hai� and is almost exclusively used for substantial investments. It requires a minimum of three shareholders, one of which must be a Hai�an na�onal. Where non-na�onals own more than 50 !"#$%&'%( )*+ ',#$%&'%( "-(& $.&)/* ) #%$0'((/$*)1 /+'*!"# 2)%+ /((-'+ .3 &4' 5/*/(&%3 $0 6%)+' )*+ percent of the shares, the limited liability company is treated as a foreign company. The services of !*+-(&%3 75/*/(&8%' +- 9$""'%2' '& +' 1:!*+-(&%/' ; 59!< 0$% ) *$"/*)1 )**-)1 0'' $0 => ?)/!)* a Hai�an lawyer must be used to establish a limited liability company. Registra�on generally takes @$-%+'( 7?6@< A B'0$%' &4' #%$0'((/$*)1 /+'*!"3 2)%+ /( /((-'+C /"#$%&'%( )*+ 1$2)1 #%$+-2'%( "-(& up to 90 days. $.&)/* ) &), %'D/(&%)!$* 2)%+ )*+ )* $22-#)!$* &), 2'%!$2)&' 7#)&'*&'< 0%$" &4' E/%'2&$%)&'; @'*'%)1 $0 6),'( 7E/%%&!$* @F*F%)1' +'( !"#G&( ; E@!<A 64' &), %'D/(&%)!$* 2)%+ The sale and purchase of company shares are regulated by the state. Entrepreneurs are free to /( /((-'+ 0$% )* )**-)1 0'' $0 H>> ?6@ 0$% /*+/I/+-)1( )*+ J>> ?6@ 0$% 1'D)1 '*!!'( $% 2$"#)*/'(A dispose of proper�es and assets and to organize produc�on and marke�ng ac�vi�es in accordance 64' )"$-*& $0 $22-#)!$* &), #)3).1' I)%/'( +'#'*+/*D $* &4' ('2&$% )*+ &4' 1$2)!$* K4'%' &4' with local laws. )2!I/&3 /( 2)%%/'+ $-&A L11 /"#$%&( %'M-/%' ) 2-(&$"( +'21)%)!$* (4$K/*D &4' 2-(&$"( %'D/"' &$ K4/24 &4' D$$+( )%' (-.N'2&A SGS can provide further informa�on on and assistance with the customs procedure and documenta�on process for imports to and exports from Hai�. 60 | LEGAL AND REGULATORY FRAMEWORK LEGAL AND REGULATORY FRAMEWORK | 61  MINIMUM SALARY of their choice. The law prohibits employers, management and anyone who represents the Commercial contract-related li�ga�on can be submi�ed to the Hai�an Court system. Hai�an law establishes a minimum wage, interests of employers from joining a union. which varies depending on the industry. Arbitra�on is also available to resolve commercial disputes. The Hai�an Chamber of Concilia�on Hai�an workers receive a bonus in the last LABOR INITIATIVES and Arbitra�on (CCAH), created in 2007, can help to facilitate business rela�ons by providing week of December equivalent to 1/12 of their companies with a set of fast and inexpensive dispute resolu�on mechanisms. Every business annual salary earned; however this is only There are a number of programs underway in can get CCAH’s support with the inser�on of a specific arbitra�on clause for cases of private applicable to full �me employees, not contract Hai� to upgrade labor skills and employment commercial disputes in the relevant contract. workers. rela�ons. For instance, to benefit from the HOPE and HOPE II Acts, Hai� has established Because Hai� is party to the New York Conven�on on the Recogni�on and Enforcement of Foreign EMPLOYEE INCOME TAX AND SOCIAL the CTMO-HOPE Commission, a tripar�te Arbitral Awards, foreign investors have addi�onal security regarding the enforceability of arbitra�on SECURITY commission with representa�ves from the outcomes. government, factory owners and unions. The The employer is responsible for deduc�ng commission’s role is to improve public-private Hai� is also a party to the Conven�on on the Se�lement of Investment Disputes between States employee income taxes and social security dialogue on issues for the development of the and Na�onals of Other States (the ICSID Conven�on), which is available to govern certain disputes contribu�ons and submi�ng them to the tex�le and apparel industries. An independent between foreign investors and the government as well as to help facilitate enforcement of arbitral Re�rement Insurance Office (Office Na�onal labor ombudsman under CTMO-HOPE helps awards. d’Assurance - ONA) and the Insurance to resolves conflicts between workers and Office for Occupa�onal Injury, Sickness, and management. Maternity (Office d’Assurance Accidents du Travail, Maladie et Maternité - OFATMA). Similarly, Be�er Work Hai�, which is EMPLOYMENT RELATIONS A company must register with ONA and funded by the IFC and the Interna�onal OFATMA within 15 days of star�ng opera�ons Labour Organisa�on (ILO), oversees factory Employment rela�ons are defined and regulated by the 1984 Labor Code. The Ministry of Labor and provide the names of all its employees, compliance with core labor standards, and Social Affairs (Ministère des Affaires Sociales et du Travail -MAST) is responsible for enforcing upda�ng this informa�on as changes occur. working condi�ons, occupa�onal health and the Code and overseeing the rela�onship between employers and employees. Up to 6% of monthly salary is contributed by safety issues and training, including financial the employer, and up to 6% by the employee, literacy, maternity protec�on and supervisory HOURS, HOLIDAYS, MATERNITY AND SICK LEAVE for social security and re�rement insurance. skills. Be�er Work Hai� covers all factories expor�ng to the U.S. market under HOPE. It In all agricultural, industrial and commercial establishments, the normal working day is eight hours MINIMUM AGE FOR EMPLOYMENT publishes biannual reports and regular bulle�n and the working week is 48 hours. However, the par�es can agree to arrange an alterna�ve weekly updates on its training and other ac�vi�es. schedule. Over�me hours are paid at �me and a half. The weekly rest period consists of 24 hours The minimum age for work in industrial, The Be�er Work Hai� ini�a�ve represents a of paid rest (Sundays) a�er a period of working six consecu�ve days in a week. Night shi�s are agricultural, or commercial enterprises in Hai� fundamentally important development, as it worked between six o’clock in the evening and six o’clock in the morning and are paid at �me and is 15 years. Youths aged 15 to 18 years old brings tangible benefits to all stakeholders in a half. must obtain a work authoriza�on from the the apparel sector. Ministry of Labor and Social Affairs. Employing The Labor Code provides for an annual leave of at least 15 days as well as 15 days of paid sick youths without a work authoriza�on is leave per year. To obtain sick leave benefits, the employee must submit a medical cer�ficate from punishable by fines. Youths are prohibited a doctor or the Public Health Service. Sick leave and annual leave are not cumula�ve, meaning from night work in industrial enterprises and one cannot carry over unused days from one year to another. Pregnant women are en�tled in hazardous work. to a maternity leave of six paid weeks, which can increase to three paid months under certain condi�ons. LABOR UNIONS There are also 12 legal na�onal holidays in a year. If an employee works during a na�onal holiday, The law allows workers, excluding public the pay is double �me. sector employees, to form and join unions 62 | LEGAL AND REGULATORY FRAMEWORK LEGAL AND REGULATORY FRAMEWORK | 63  than the Patent for up to 15 years. Certain ACCESS TO FINANCE capital investments also qualify for accelerated INTRODUCTION deprecia�on for tax purposes. Financial ins�tu�ons with presence in Hai� include Sogebank, Unibank, the Banque Na�onal de Credit (BNC), Capital Bank, Ci�bank, Sco�abank, and the Banque de l’Union Hai�enne Hai� offers a favorable fiscal regime for There are addi�onal advantages a�ached to (BUH). These ins�tu�ons offer bank accounts, mortgages, commercial loans, lines of credit, and investors, providing a range of compe��ve certain sectors. interna�onal le�ers of credit among other financing op�ons (up-to-date average interest rates for investment incen�ves across sectors to loans can be found on the central bank website: www.brh.net). Other local funding ins�tu�ons, encourage investments. Business en��es The CFI website and the CFI investment which provide underwri�ng services, long-term loans, venture capital, contract financing, etc., opera�ng in free trade zones are exempt from facilita�on guide provide further informa�on as well as business advisory services, include the Société Financière Hai�enne de Dévelopment Hai�’s fiscal laws. on the availability of incen�ves. (Hai�an Society for Development Finance - SOFIHDES) and the Fonds de Développement Industriel (Industrial Development Fund - FDI). In addi�on to those locally-based ins�tu�ons there are a FISCAL FRAMEWORK ELIGIBILITY AND APPLICATION number of interna�onal ins�tu�ons that provide financial services: the IFC, the FMO (the Dutch development bank), the Inter-American Investment Coopera�on (IIC) and the European Investment Bank (EIB) among others. Foreign companies opera�ng in Hai� are Incen�ves are available to registered start- subject to the same tax regula�ons as Hai�an up companies, companies that are already companies regardless of their line of business. registered and opera�ng in Hai�, and companies launching a new project or new Hai�’s tax framework comprises the Income branch of ac�vity. Companies that have Tax Law (2005), Payroll Tax Act (1988), Decree previously benefited from the incen�ves on Customs Code (1987), Decree on Tax ID offered in the Investment Code are eligible for Cards (2005), Decree on License (Patente) incen�ves for expansion or moderniza�on of (1987), Law on Stamp Duty (1978), and the their business or purchase of new equipment. Turnover Tax Law (2005). The fiscal year runs from October 1 through September The Inter-Departmental Commission on 30. Important provisions rela�ng to taxes, Investments (Commission Interministérielle including investment incen�ves are also set des Inves�ssements - CII), made up of out in the 2002 Investment Code. representa�ves of various ministries, is responsible for gran�ng fiscal incen�ves, CORPORATION TAX ranging from tax holidays to customs exemp�ons. The corporate tax on profits is 30 percent, unless exempted under the Investment Investors seeking to benefit from investment Code. While a Hai�an limited liability incen�ves must submit requests to the CFI. company can accrue profits for five years, a The CFI also welcomes requests to guide foreign company’s profits are deemed to be investors through the investment process or to distributed every year and are taxed at 20 answer any ques�ons investors may have. percent unless reinvested in the country. For more informa�on on the applicability and eligibility of incen�ves, please see the CFI INVESTMENT CODE 2002 AND THE website or investment facilita�on guide. INCENTIVE REGIME Under the 2002 Investment Code, qualifying businesses may benefit from a tax holiday on the corpora�on tax and all local taxes other 64 | LEGAL AND REGULATORY FRAMEWORK LEGAL AND REGULATORY FRAMEWORK | 65  © Airmaria / Dollar Photo Club Hai�, dubbed the Pearl of the Caribbean, is unique in its posi�on in both the Caribbean and on The U.S. occupa�on lasted un�l 1934, and the world stage. Its history is one of pirates, discovery, and warring na�ons, as well as the se�ng was followed by a succession of presidents for the world’s only successful slave revolt resul�ng in the establishment of a Republic. The Tainos who struggled to establish na�onal unity. In (Arawaks), were disrupted in 1492 when Christopher Columbus mistakenly landed on the island’s 1957, Francois Duvalier (known as Papa northern shore. A�er claiming the land for Spain, a ba�le for dominance soon ensued and within Doc due to his work as country doctor) decades most of Hai�’s na�ve popula�on had been wiped out. won the presiden�al elec�on. Declaring himself “President for Life”, he established In 1625, French buccaneers, along with English and Dutch privateers and privates, established a dictatorship which passed to his son, Jean themselves on Hai�’s famed island of Tortuga, off of the northern shore. The Spanish fought the Claude Duvalier (Baby Doc) upon his death in se�lement, but were unable to establish permanent victory, despite razing the pirate se�lement 1971. at least four �mes. As Spanish influence dwindled, first England, then France took over the colony, with France assuming complete control by 1660. The Spanish were le� with the eastern Jean Claude Duvalier le� Hai� in 1986, and five-eighths of Hispaniola (the modern-day Dominican Republic), and the 1697 Treaty of Ryswick was followed by a series of governments that codified the French’s right to the western three-eighths of the island. struggled to stabilize and revitalize Hai�’s posi�on as a key economic player in the France renamed the colony Saint-Domingue, and ac�vely recruited planters, who began to Caribbean. However, important gains were outnumber pirates. Due to its large size and fer�le soil, Hai� became a sizable producer of tobacco, made, and by 2000, Rene Préval became indigo, co�on, and cacao, and at one point, produced half the world’s c offee. However, all these the first president to complete his term crops were labor intensive, and to replace the fallen na�ves, Hai� began to import slaves from and peacefully transfer power to the next Africa. Once in Hai�, the slaves rebelled frequently, yet it was not un�l the outbreak of the French president, Jean-Bertrand Aris�de. revolu�on in 1789 that the first successful opportunity for independence presented itself. !"#$# #% 67,,'-$&* &'( )* +,'%#('-$ ./0'-'& By 1789, there were about 500,000 slaves in the colony, along with 25,000 gens de couleur (free 1/2%'3 45' 6/7-$,* 5"% 6/-!-7'( $/ 8/%$ people of color, of which Hai� had the largest and wealthiest in the Caribbean). As the French #98,'%%#0' '6/-/9#6 :,/;$5 -79)',%< "-( revolu�on began to claim the rights of all men to be free, the slaves rose to revolt. On August 22, 5"% %$,'-:$5'-'( ,'&"!/-%5#8% ;#$5 )/$5 1791, the revolu�on was launched. Led by the Founding Fathers of Hai� - including Toussaint =/,'#:- "-( &/6"& #-0'%$/,%< 8,/0#(#-: " Louverture and Jean-Jaques Dessaline - Hai� officially gained independence on January 1, 1804. 8&""/,9 =/, #--/0"!/- "-( '>8"-%#/- #- " -79)', /= ?'* Following independence, Hai� struggled for worldwide recogni�on. Many countries, fearful %'6$/,%3 of their own slave popula�ons, refused to recognize the young republic, which closed off the country economically from its most viable trade partners and hampered the development of the nascent economy. This, combined with internal strife between leaders who desired a planta�on economy and those who wanted individual shareholder plots, hindered Hai�’s con�nuing economic development. Hai� con�nued to struggle un�l the Cons�tu�on of 1867, which ushered in a period of stability and economic growth. Rum and sugar prospered and the country surged ahead of economic growth in La�n America. However in 1911, disturbances once again erupted, and by 1915, the country had become a United States protectorate. 68 | HISTORY OF HAITI 70