Tactics for Rallying the Diaspora Community in National Economic Development /

Propose solution to Attract Investment from the Diaspora

Develop by:

NOAHA NOT-FOR-PROFIT ORGANIZATION DEDICATED TO THE

WELFARE OF THE HAITIAN PEOPLE IN HAITI AND ABROAD

Objectives: Meet with a Diversity of Stakeholders: Engage the leadership of

Haitian organizations across the Americas

Generate Input: Listen to your perspective and insights. Critical inputs from Haitian community to better define and address challenges and opportunities ahead are needed.

Build Bridges: Work with various Haitian organizations in the Americas to better organize the community and realize shared opportunities in home country, as well as host countries.

Invite Others: Work to increase interest and participation, and build a critical mass of support among Profession professionals.

Process Introduction of Discussion Topic: Moderators frame topic, and

open up interactive discussion among participants. Discuss Challenges: Articulate and define challenges and issues

related to forum topic. These represent opportunities for action. Propose Actions and Prioritize Focus: How can WE respond to

the challenges identified? What are the most practical solutions to address them? Which are the most important among these?

Identify Opportunities for Collaboration: What actions are YOU willing to commit to and champion with the Embassy, and Haitian organizations?

Mission and Objectives Accelerate Knowledge and Skills Repatriation: Harness

Diaspora skills and expertise for Haiti’s development to turn “Brain Drain” into “Brain Gain”

Build “Info”structure for Skills Pipeline: Build and operate database of skilled Haitians for benefit of public and private sectors in Haiti

Strengthen Collectiveness: Mobilize vast support, and promote cooperation and networking among Haitian in Diaspora

Promote Opportunities in Haiti: Enhance image of Haiti to strengthen business, travel, and investment opportunities

Tactics for Mobilizing the Diaspora Community in National Economic Development

Definition of DIASPORA: “Modern Diasporas are ethnic minority groups of migrant

origins residing and acting in host countries but maintaining strong sentimental and material links with their countries of origin-their HOMELANDS.”

The term Diaspora comes from the Greek words “to sow” and “over”, as in the scattering of seed, and for them it meant the “seeding” of Greek colonies in distant lands.

Diaspora implies a settled community, rather than a group of temporary immigrants with the intention and ability to return to their country of origin.

8 Major Impacts of Diaspora on Home Countries Identified Remittances Foreign Direct Investment Market Development (including outsourcing production) Technology Transfer Philanthropy Tourism Political Contributions Intangible Flows:

Knowledge New attitudes Cultural Influence

Propose solution to Attract Investment from the Diaspora by creating a reliable investment methodology

Investing in Haiti can be challenging and worrisome due to political instability and uncertainty of return on investment. to help mitigate this issue and give the diaspora the level of comfort to invest in Haiti. We should propose an Investment Confidence Program “ICP”We need to determine the plan for the “ICP”We need to put in place a performance monitoring system.

Investment Confidence Program “ICP” Definition and structure An ICP is a program that is set to attract the diaspora

investors; Such program should serve as the conduit or pathway of

confidence. It should provide a piece of mine to the investors It should be constructed in a manner to minimize investment

risk It should be constructed in a manner to minimize political risk It should be constructed in a manner to minimize repatriation

risk.

Proposal to establish and “ICP” To establish an ICP in Haiti:

The US Government- should have a legislature allowing the Overseas Private Investment Corporation “OPIC” to serve as a conduit for Diaspora fund investment methodology:

Process:OPIC/ Receive FUND, via an Established and Approved Fund Management Institution (FMI)

Diasporas invest with FMI

FMI- should be Required to Declare All Funds, and Investors to OPIC

US Legislation can put a Diaspora Investment ACT in place that will allows:* OPIC – to provide Insurance Coverage of the Investments Which shall provide some protection level

To the investments. Such process will encourage investment to Haiti

FMI Responsibilities:FMI - comprehensive toolkit covering both subjective and quantitative attributes

Fund Allocated

Project Review Analysis FMI

Evaluation AnalysisProjects

FMI - Assessment ToolkitProjects assessed and scored on the criteria below.

BusinessAssessment

EntrepreneurAssessment

- Profitability / Social Impact- Marketing / Distribution- Product Strength- Operations- Management / Governance- Financial Management

- Character- Commitment- Competence- Connection to Community

Initial Assessment / qualification

No

YesProject getFunded

END

The FMI Support document validation assessment package should include:

Business appraisals Business and strategic planning Financial management and

accounting Product development Operations improvements Governance support Managerial assistance & training Access to improved technology technical assistance Fixed capital Working capital Quality assurance

Market studies Marketing strategies Market linkages Business performance

measurement Monitoring and remediation Evaluation & impact Assessments Audits

How FMI Measures the company Performance (1)1. Revenue Growth

Cumulative increase in the sales of enterprise development projects over their extrapolated baseline levels during the project period and the 3 years following the grant expiration date

2. Investment MultiplierFor every dollar disbursed to enterprise development projects that were active or have closed within the past 3 years, the cumulative increase in their gross revenues (sales) over the extrapolated baseline level during the project period and the 3 years following the grant expiration date

3. Profitability Percent of active enterprise development projects that have achieved a positive net income before income taxes, depreciation, and contributions in the reporting year by the end of their third year or earlier

How FMI Measures the companies Performance (2)4. Community Reinvestment Percent of active enterprise development projects that are current in

meeting their cumulative contribution pledges from the end of their third year and onward

5. Sustainability Percent of completed enterprise development projects or social

development projects that are still operating during the 3 years following expiration of the FMI investment

6. Partnership Contributions Funds received from strategic partnerships during the year as a percentage of new FMI obligations for development projects

How FMI Measures the companies Performance (3)

7. Follow-on Financing Cumulative non-FMI loans, grants, or equity investments received by active

and closed projects from the FMI start date through the 3 years following the grant expiration date

8. Overhead Rate FMI’s non-program costs as a percentage of (return appropriations + non-

and funding contributions received).

9. Disbursement Efficiency Median time required between the FMI Country Representative’s receipt of a return disbursement request from the partner organization and FMI transmittal of the funds to the Diaspora investors.

Investment Methodology

1. Investment Strategy

2. SME Development

3. Link Company to FMI

4. Ensure Company Performance

Analyze Companies supply requirements

Survey community priorities

Prioritize sectors / spend categories

Assess companies capabilities in each sector / spend category

Define sector strategy:− Link only− Invest and link− Insource / spin off later

Formulate company Investment and Linkage Roadmap to FMI program

Company screening

Business plan development

Determine financing need− Capacity building

−Pre-commercial expansion loan −Commercial loan / link to Haiti financial institution Execute financing agreements / fund investments

Implement business plans

Supplier training in doing business w/ MNCs

Request for Proposal (RFP) response facilitation− Costing / pricing− Capacity planning− Working capital needs

Contracting support− Commitments / penalties− Link to legal assistance

Contract implementation− Production planning− Customer relationship management

Track company performance− Quarterly financial reports− Measure against growth targets

Track supplier performance− Self reporting − company reporting

Intervene as necessary using proven turnaround capability

Facilitate additional market linkages