October 1, 2021
The Board of Directors of the World Bank on Tuesday approved a donation of US $ 75 million from the International Development Association (IDA) for the Private Sector Jobs and Economic Transformation Project (PSJET ) in Haiti. This project aims to contribute to the demand for labor by supporting micro, small and medium enterprises (MSMEs). The main results expected under this project include support provided to 4,000 businesses, increased resilience of 51,000 jobs and the creation of around 10,000 jobs.
“Haiti has experienced a cycle of low growth and limited poverty reduction due to frequent economic contractions. The COVID-19 pandemic has worsened an already difficult situation, ”said Laurent Msellati, head of World Bank operations in Haiti . “This donation will help stimulate the growth of the Haitian private sector, with a focus on women-led businesses. The main objective of this project is to create jobs by improving the access of MSMEs to finance and business development services. Encouraging the growth of these small Haitian businesses is essential to help the country emerge from the ‘poverty trap’ it finds itself in, stem the 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 earthquake of August 14, 2021 have exacerbated the already difficult business environment. The Private Sector Jobs and Economic Transformation Project will improve the growth capacity of viable micro, small and medium enterprises, contribute to economic diversification and strengthen the resilience of the economic sector to climate change and shocks generated by natural hazards.
“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 impetus to growth and the creation of ‘jobs over the period 2020-2023,’ said Michel Patrick Boisvert, Haitian Minister of the Economy and Finance . “At the start of the project, special attention will be paid to micro, small and medium-sized enterprises in the areas affected by the earthquake in order to enable them to benefit more quickly from improved access to financing and support services” .
The project should contribute to economic recovery and the creation of sustainable and resilient jobs. It will also support the resilience and growth of value chains, through improved business development services and better access to financial resources.