Successful support for the structuring of the haitian agricultural financial sector

March 27, 2019

In 2011, with the aim of boosting Haiti's agricultural sector and promoting the country's food self-sufficiency in a context of strong demographic growth, the Haitian Government entrusted the consortium formed by Développement international Desjardins (DID), the Inter-American Institute for Cooperation on Agriculture (IICA) and Financière agricole du Québec – Développement international  (FADQDI, whose activities are now integrated into SOCODEVI) with the mandate to provide the country with a national financing and insurance system that would be able to mitigate the weaknesses observed in access to finance, technical advice and insurance protections required by farmers.

This support was made possible through the commitment of Global Affairs Canada (a Canadian Government Agency), which provided the project with a budget of CAN $19 million. In November 2014, the Swiss cooperation injected an additional amount of CAN $6.4 million into the initiative. It was followed by the French Development Agency (DDAS/AFD), which in turn injected the equivalent of CAN $2.2 million in September 2015. This external financial effort was completed with a contribution from the Haitian Government amounting to CAN $1.5 million, for a total financial contribution amounting to CAN $29 million (or HTG 1.74 billion).

As this important project concludes, a ceremony is being held today to highlight the realization of the Haitian agricultural financing and insurance systems in the presence of its main actors. With the establishment of a Haitian Governance Council to manage the important risk management mechanism that has been put in place as part of the project, we are witnessing a successful demonstration of appropriation which led the Canadian Government to formally transfer the CAN $3.3 million fund to the Industrial Development Fund (Fonds de développement industriel, FDI), the Haitian organization which will be responsible for the future of this protection mechanism, in conjunction with the Governance Council.

Positive results!

In addition to this success, the SYFAAH project has generated several positive results, including the following:

  • Improved supply of agricultural credit throughout the Haitian territory by dedicated and professionalised financial institutions (more than 85,000 loans granted);
  • Better management of agricultural production risks thanks to the technical support offered and the crop insurance implemented to support of farmers (more than 3,600 rice gowers insured in Artibonite);
  • Adoption of efficient while environmentally friendly production practices (more than 4,000 farmers benefited from technical support);
  • Improved food security through increased and quality local production;
  • Improved living conditions for agro-entrepreneurs: overall, 63% of SYFAAH beneficiaries report that they have seen the living conditions of their families improve.

Nap di yon gwo mèsi ak tout enstitisyon finansyè yo, enstitisyon asirans yo ki te swiv developman pwogram nan. Nap di yon gwo mèsi ak tout asosiasyon pèyizan yo, yon gwo mèsi tou ak tout ofisyèl Gouvènman Ayisyen yo tankou; Ministè Lagrikilti Resous Natirèl ak Devlopman Riral, Bank Repiplik Ayiti, Fon Developman Endistriyèl ak Ministè Ekonomi ak Finans.

Thank you to the participating financial and insurance institutions, the farmer associations and the Haitian Government representatives, the Ministry of Agriculture, Natural resources and Rural development, the Bank of the Republic of Haiti, the Industrial Development Fund and the Ministry of Economy and Finance.