Building Haiti’s Economy by Partnering with Local Businesses
How a women-owned transaction advisory firm helps Haitian businesses secure the financing they need to grow
After COVID-19 arrived in Haiti, La Perle S.A., a local cleaning product manufacturing company, needed to ramp up production to meet the rising demand for its cleaning supplies, since frequent washing and disinfecting are key to mitigating the spread of the disease.
Thanks to USAID’s partnership with the Haitian financial services and transaction advisory firm GECA, La Perle was able to raise the financing it needed. The support helped La Perle improve manufacturing processes, purchase new equipment to expand production, and increase efficiency. La Perle’s products now play a key role in preventing the spread of COVID-19 throughout Haiti.
“It’s important to help small businesses like La Perle get the capital they need to grow. Not only do they create jobs, they also produce locally the essential products the Haitian people need to stay healthy, and reduce Haiti’s reliance on imports.” — USAID Haiti Mission Director Chris Cushing
In Haiti, small, informal businesses generate up to 80 percent of new jobs. Although they are the backbone of the local economy, small businesses regularly face difficulty accessing financing from formal institutions and often need business development services and training.
From multinational corporations to local small businesses, USAID believes private sector enterprises are key to helping improve lives, strengthen communities, and promote a prosperous Caribbean.
“In order to help Haiti’s business sector grow, we must foster investment into local, small businesses. To do this, we recently launched Haiti INVEST, a new program that builds upon previous successful USAID economic growth activities,” Cushing said. “By giving small businesses access to finance and other tools, we can help them flourish and create more economic opportunities in Haiti.”
Through Haiti INVEST, USAID engages with transaction advisors to help local businesses improve their internal processes and access financing for growth.
USAID has partnered with GECA to increase the sustainability of USAID’s private sector engagement by helping develop the local financial sector. Founded in 2012 by a group of Haitian women, GECA matches local businesses seeking investment with the appropriate type of investor.
“We help our clients assess the strategic fit of a business by evaluating potential synergies, project-managing the transaction steps, assisting in negotiations and financial models, and measuring transaction implications,” explains GECA co-founder Béatrice Durel Gentil. “Our work is important because we want to help our clients in the following: sustainability, self-governance, and innovation.”
To help companies become investment ready, transaction advisors at GECA help determine management objectives, create financial models, identify marketing strategies, hone sales pitches, and more. Once they match an investor with a business, GECA helps conduct due diligence, advise on the deal structure, and follow through with its closing.
Building a Sustainable and Prosperous Local Economy
This upcoming year, GECA, through Haiti INVEST, will work with new clients specializing in agriculture, solar energy, and local production in Haiti.
By working with small and medium-sized enterprises in a variety of sectors, USAID’s Haiti INVEST program helps create jobs, diversify the local economy, and increase the amount and types of goods and services produced locally. Haiti INVEST has also been working to engage the diaspora to channel investment beyond remittances into the Haitian economy.
Strengthening local businesses’ ability to grow is critical to ensure long-term sustainability of USAID projects. By partnering with USAID and GECA, these firms have the opportunity to work with a variety of businesses and build their own capacity as financial intermediaries through these experiences. Establishing a community of local financial intermediaries is essential for developing the nation’s capital markets to create sustainable ways for Haitian businesses seeking access to financing.
About the Author
Emily Langhorne is a communications specialist for USAID’s INVEST initiative.
