Increased access to small business loans through new project in Haiti

Increased access to small business loans through new project in Haiti
In this July 18, 2018 photo, vendors sell leeks at the Croix des Bossalles market in Port-au-Prince, Haiti. (Photo: AP)

PORT-AU-PRINCE, Haiti (CMC) — Haitians will have increased access to small business loans as the Caribbean Development Bank (CDB), Inter-American Development Bank, Global Affairs Canada and Desjardins International of Canada have partnered to increase services for micro and small enterprises (MSEs) in the French-speaking Caribbean nation.

The project entitled ‘Support for the Establishment of a Specialised Micro and Small Business Financing Assessment Unit, within the Le Levier Fédération (a network of savings and credit cooperatives)’ will support the federation in implementing a unit specialising in finance for MSEs.

The project provides for an investment of US$3.04 million, which includes a US$500,000 loan component for on-lending, to Le Levier’s first-rate credit and savings cooperatives, which use the centre’s model, Affiliate for Financial Entrepreneurs (CFE) for the financing of MSEs.

The remaining resources will be used to support the establishment and implementation of the CFE model in participating financial cooperatives.

The CBD will focus specifically on underserved and unserved MSEs in Haiti, committing up to US$500,000 for funding activities related to the establishment of CFE in northern and southern Haiti.

“Providing credit and savings support for MSEs will contribute to enterprise growth and sustainability, while improving the living and economic conditions of several rural householders in Haiti who otherwise would experience financial exclusion,” said Peter Blackman, portfolio manager, and Guillermo Aguilar Rios, operations officer of the Private Sector Development Unit at CDB.

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