09/28/2021 | Press release | Distributed by Public on 09/28/2021 16:43
WASHINGTON, September 28, 2021 - The World Bank's Board of Executive Directors approved today a US$75 million grant from the International Development Association (IDA) for the Private Sector Jobs and Economic Transformation Project in Haiti. This project aims to encourage labor demand by supporting micro, small and medium enterprises (MSMEs). The project aims to foster economic recovery and create sustainable and resilient jobs. It will impact 4,000 businesses, and key outcomes include increased resilience of 51,000 jobs and the creation of approximately 10,000 jobs.
"Haiti has been experiencing a cycle of low growth and limited poverty reduction due to frequent economic contractions. The COVID-19 pandemic has deepened an already challenging situation," said Laurent Msellati, World Bank Country Managerfor Haiti. "The grant will help to spur growth in Haiti's private sector, with an emphasis on firms owned by women. The main aim of the initiative is to create jobs by enhancing MSME's access to finance and business development services. Encouraging growth in these Haitian small enterprises is essential to helping the country reduce poverty, stem violence and create a more positive future for the Haitian people."
In recent years, the private sector has been affected by successive socio-political crises. The COVID-19 pandemic and the August 2021 earthquake exacerbated the already difficult business environment. The Private Sector Jobs and Economic TransformationProject will improve the capacity of viable micro, small and medium sized enterprises to grow, contribute to economic diversification and strengthen the economy's resilience to climate change and natural hazard shocks.
"By focusing on private sector employment and economic transformation, the project is part of the post-COVID-19 economic recovery plan which aims to give a strong incentive to growth and the creation of jobs", said Michel Patrick Boisvert, Haiti's Minister of the Economy and Finance. "At the start of the project, special attention will be paid to micro, small and medium enterprises, in the areas affected by the earthquake, in order to enable them to benefit from improved access to finance and support services ".
The project will also support the resilience and growth of value chains through improved business development services and greater access to financial resources.
For more information, please visit: www.worldbank.org/haiti