Financial Institution Compliance Requirements in Haiti Unlock Access to Finance for Small Businesses
A New Era of Leasing in Haiti
Haiti, a country plagued by limited access to finance, has taken a significant step towards unlocking financial opportunities for small and medium-sized enterprises (SMEs) through the establishment of a leasing market. Despite SMEs accounting for 80 percent of employment in Haiti, lenders have traditionally been reluctant to provide financing due to limited credit history and lack of collateral.
Challenges Faced by SMEs
- Limited access to finance
- Reluctance from lenders due to lack of credit history and collateral
The Leasing Haiti Project
In an effort to address this challenge, the World Bank and International Finance Corporation joined forces with the Government of Haiti to establish a legal and regulatory framework for leasing. This project provided training to over 300 SMEs across the country and led the creation of Ayiti Leasing (AL), the first licensed entity in Haiti specializing in leasing.
Project Partners
- Spanish Fund for Latin America
- Netherlands-IFC Partnership Program
- USAID
- World Bank Group’s International Development Association and International Finance Corporation
The Importance of Leasing
Ayiti Leasing President Olivier Barrau emphasized the importance of leasing in addressing the lack of access to finance in Haiti, stating:
“Leasing offers an innovative solution to help small and medium businesses. Our goal is to become the strategic partner for a new generation of dynamic Haitian entrepreneurs, who are critical to transforming our economy.”
Success of Ayiti Leasing
The success of Ayiti Leasing has sparked interest from additional financial entities seeking assistance with developing leasing operations in Haiti. With strong demand from equipment suppliers expressing interest in partnering with AL, the company and the growth of Haiti’s leasing industry hold promising prospects.
Conclusion
The establishment of a leasing market in Haiti serves as a testament to the importance of regulatory frameworks and capacity building in supporting economic development. As the Haitian government continues to work towards improving access to finance for SMEs, the country is poised to unlock new opportunities for growth and job creation.