Diagnostic of Savings and Credit Cooperatives and Non-Mutualist Microfinance Institutions - Final Report

This comprehensive diagnostic report examines the current state of Haiti's microfinance sector, specifically focusing on Savings and Credit Cooperatives (CEC) and non-mutualist Microfinance Institutions (IMF). The study was conducted as part of technical assistance to the Central Bank of Haiti (BRH) under the Private Sector Employment and Economic Transformation Project (PSJET) funded by the World Bank and the Haitian Ministry of Economy and Finance. The analysis covers performance evaluation, governance structures, regulatory compliance, and operational challenges facing these institutions.

The report reveals that Micro, Small and Medium Enterprises (MSMEs) constitute a major pillar of Haiti's economy, providing approximately 80% of employment and playing a central role in the country's economic development. However, limited access to financing represents an enormous challenge for these enterprises, which CEC and non-mutualist IMF have validly addressed. The diagnostic was conducted nationally during February and March 2024, examining various aspects including financial performance, organizational structure, service offerings, and risk management.

Key areas of analysis include the historical evolution and supervision of the Haitian microfinance sector, identification and categorization of institutions, governance and organizational structures, role of federations and associations, financial situation analysis, performance evaluation using prudential ratios, and identification of difficulties and risks affecting the sector. The study also includes a benchmark comparison with microfinance sectors in Ukraine and Myanmar.

The report provides crucial insights for strengthening the regulatory framework and supervision capabilities of the BRH, with the ultimate goal of improving the microfinance sector's contribution to Haiti's economic development and financial inclusion efforts.