Haiti: Investing
According to the UNCTAD's World Investment Report 2021, FDI inflows to Haiti fell from USD 75 million to USD 30 million between 2019 and 2020, in response not only to the COVID-19 pandemic crisis but also to civil unrest and the alarming worsening of the humanitarian crisis that has continued since 2018. The stock of FDI reached USD 2 billion in 2020. The transport, telecommunications and oil sectors attract the most FDI. More recently, construction, textile and manufacture of automotive components have also been drawing foreign investments. The United States and the countries of the European Union are Haiti's main investors, although China has grown in importance. Haiti has also partnered with its neighbour, the Dominican Republic, to attract more FDI.
Despite favourable policies and income tax incentives to attract FDI, Haiti's rates of FDI inflow reflect investor's assessment of the country's slow-growing economy and unstable political environment, corruption and bureaucracy. Resolving insolvency and starting a business are particularly complicated procedures, evidenced by the country's ranking (179th out of 190) in the last Doing Business report, issued by the World Bank in 2020. Transparency International ranks Haiti as the 164th out of 180 countries in its Corruption Perceptions Index 2021. The Government of Haiti has designated tourism, agriculture, construction, energy and manufacturing as key investment sectors, and supports sector-focused investment promotion, public spending, and special economic zones. In October 2020, the Haitian government and IFC held a consultation to reform and foster the establishment of special economic zones in order to attract more investments and to counter the negative effect of the COVID-19 pandemic on the FDI flows toward the country.
| Haiti | Latin America & Caribbean | United States | Germany | |
|---|---|---|---|---|
| Index of Transaction Transparency* | 2.0 | 4.1 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 3.0 | 5.2 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 4.0 | 6.7 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
| Foreign Direct Investment | 2019 | 2020 | 2021 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 75 | 23 | 50 |
| FDI Stock (million USD) | 1,925.0 | 1,950.0 | 2,001.0 |
| Number of Greenfield Investments* | 0.0 | 0.0 | 0.0 |
| Value of Greenfield Investments (million USD) | 0 | 0 | 0 |
Source: UNCTAD - Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
| Income tax | Progressive rates from 0% to 30% |
| From HTG 0 to 60,000 | 0% |
| From HTG 60,001 to 240,000 | 10% |
| From HTG 240,001 to 480,000 | 15% |
| From HTG 480,001 to 1,000,000 | 25% |
| Above HTG 1,000,000 | 30% |
| Haiti | Latin America & Caribbean | United States | Germany | |
|---|---|---|---|---|
| Number of Payments of Taxes per Year | 47.0 | 28.2 | 10.6 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 184.0 | 327.5 | 175.0 | 218.0 |
| Total Share of Taxes (% of Profit) | 42.7 | 46.8 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
| Setting Up a Company | Haiti | Latin America & Caribbean |
|---|---|---|
| Procedures (number) | 12.00 | 8.00 |
| Time (days) | 97.00 | 25.22 |
Source: Doing Business.
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Latest Update: February 2023
