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Service Quality Suffers as Haiti’s Water Market Struggles

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Background

Port-au-Prince, Haiti - Despite an estimated $66.3 million market value for residential and commercial consumers in 2016, Haiti’s water service quality remains a concern. Only 10% of the market is served by the public utility, with the majority coming from private providers who deliver untreated water by truck.

Challenges

Experts point to several cross-cutting constraints that hinder private participation in the water sector, including:

  • Uncertain land access
  • Poor contract enforcement
  • Weak institutional capabilities at the national and municipal levels

Moreover, social acceptance of tariffs, metering, and private operators remains low despite high out-of-pocket payments for alternative commercial solutions.

The Situation is Not Unique to Water

Haiti’s apparel industry, which employs nearly 53,000 people and accounts for 82% of the country’s goods exports, faces its own set of challenges. The sector has the potential to drive structural transformation and formal job creation, but requires:

  • Sustained political stability
  • Improved security
  • Renewed trade preference programs

Recommendations

To address these challenges, a recent report by international experts recommends a range of measures to improve service quality and private investment in key sectors. These include:

Key Recommendations

  • Reforming policy and institutional frameworks to clarify tax incentives and improve predictability
  • Streamlining customs procedures to reduce import and export times and uncertainty
  • Developing rule-based decision making and transparency in business regulation
  • Informing entrepreneurs outside Port-au-Prince about administrative processes and promoting their participation in public programs

The Bottom Line

Haiti’s service quality struggles are a critical issue that requires urgent attention. By addressing these constraints, the country can unlock private investment and drive economic growth, creating opportunities for its citizens and driving development.

Sources

  • World Bank (2018)
  • Haiti Country Private Sector Diagnostic Report