Programs: SOFIHDES
Announced:
January 7, 2011
Category:
Providing Small & Growing Businesses with Access to Financing & Business Services
Fund Amount: $1,000,000 PRI
Disbursed to Date: $1,000,000
In this video, learn about two SOFIHDES clients receiving loans:
DAUPHIN, an outdoor advertising company, and
HENROPO, a construction firm.
See more in the SOFIHDES photo gallery.
SOFIHDES' core business is making short and medium-term loans to Haitian small and medium enterprises. Through its on-the-ground experience, SOFIHDES has a sophisticated understanding of this business sector in Haiti. Since SOFIHDES does not take deposits, it did not have sufficient funds to meet the borrowing requirements of current and new customers. This loan helped SOFIHDES support the credit needs of small and medium enterprises in Haiti.
Donors and Haitian authorities have struggled to find mechanisms to provide small to medium enterprises (SMEs) access to the capital they need to thrive. Efforts to create SME funds and facilities in Haiti and assist the transition from the informal to the formal economy are underway, including a large "Partial Credit Guarantee Fund" being organized by IDB, the World Bank, the IHRC and other donors (including the USG). However, many deserving SMEs have an immediate need for capital. Increasing the funding available for SOFIHDES lending has been an efficient way to meet the needs of these SMEs in a timely manner.
SOFIHDES management identified a pipeline of projects requiring $18M in financing, of which $3M represents immediate needs for the financing of Haitian companies. The Clinton Bush Haiti Fund's $1M program-related investment (PRI), structured as a two-year loan to SOFIHDES, has helped meet this need. Funding is rapidly reaching SMEs and infusing new capital into the Haitian economy.
SOFIHDES also provides business skills training. It is the Haitian implementing partner for the World Bank/IFC's "Business Edge" training program, branded as SOFITRAINING, providing expert assistance and training programs for SME managers in areas such as feasibility studies, business plan preparation, accounting, marketing, strategic development, and workforce training. Haitian SME owners pay for the training courses out of their own funds, demonstrating that they find them cost effective. In turn, trained owners and managers are less-risky borrowers for SOFIHDES.
Why We Invested in SOFIHDES
Our PRI loan to SOFHIDES reflects our commitment to long-term reconstruction and job creation, with a focus on supporting small and growing businesses.
Transforming Lives and Livelihoods
With support from the Clinton Bush Haiti Fund, SOFHIDES:
- Is focusing on longer-term reconstruction and job generation, and specifically addressing small and medium enterprises.
- Supplied immediate financing to SMEs while outsourcing the requisite due diligence to a reliable, well-regarded Haitian organization.
- Provided business skills traning to SME managers in areas such as feasibility studies, business plan preparation, accounting, marketing, strategic development, and workforce training.
About SOFIHDES
Originally established 27 years ago by USAID (but now independent), SOFIHDES' core business is making short- and medium-term loans to Haitian SMEs. Through its on-the-ground experience, SOFIHDES has a sophisticated understanding of the SME sector in Haiti. Its expertise lies in the extension of short and medium term loans to productive enterprises in such sectors as trade, services, construction, retail commerce, and agribusiness. SOFIHDES's existing credit portfolio stands at around $12M, and it is one of two Haitian financial institutions (the other is the public development bank - FDI) that are currently willing to finance start-ups. Learn more at www.sofihdes.com.
