CFI - invest in Haiti
Haiti is open for Business
CENTER FOR FACILITATION OF INVESTMENTS - CFI-HAITI
Why Haiti

8 good reasons to invest in Haiti

1. Close.

Haiti is 72 hours by boat from the world biggest market, The United States of America: It has 300 million potential consumers and USD47, 400 GDP per Capita.

2. Competitive.

Haiti has the lowest labour costs in the region, 48 cents, which is less than the price of a cup of coffee. 4.3 millions Young labour force, 50% below the age of 24.

  • 88% lower compared to Dominican Republic
  • 2.88% lower than Mexico
  • 2 % lower than China
  • 15% less than Pakistan
Cost Comparison Matrix
Cost Category Notes Unit Haiti Dominican
Republic
Mexico India China Pakistan
Labor Cost   U.S.$/hour 0.48 0.90 1.86 0.83 1.44 0.55
Hours Worked Without overtime Normal hrs/
operator/day
8 8 8 8 8 8
  Without overtime Normal
hrs/operator/
week
48 44 44 48 48 49
  National holidays Days/year 16 13 14 17 11 18
  Without overtime, per year
(less holidays + assumed
10 days vacation)
Hours/
year/worker
2,288 2,104 2,096 2,280 2,328 2,324
Electricity Cost to industry U.S.$/KwH 0.23 0.14 0.15 0.086 0.065 0.071
Building Cost of industrial space
construction
U.S.$/square
meter
160 220 250 140 97 150
Transport From factory to source
port
U.S.$/40-ft
container
0 0 800 400 470 300
  From source port to Miami/
Long Beach
U.S.$/40-ft
container
800 800 0 2,100 1,800 2,000
Duty payable U.S. import duty, Chinos
(using Asian fabric)
% 0 16.6* 16.6* 16.6 16.6 16.6
 

U.S. import duty, T-shirts
(using Asian fabric)

% 0 16.5* 16.5* 16.5 16.5 16.5
Taxation Corporate tax on profits % 0 N/A 35 33.66 25 35
  Sales tax %           15
  Value-added tax % 0 0 0 12.5 17 15

NOTE: * Duties payable upon import are zero-rated if made from American, Mexican, or Dominican fabric.
SOURCE: Werner International, validated against Werner and international databases

3. Attractive :Two fast-growing sectors: Tourism and Garment.

Tourism: Growing interest in Haiti in the past few years has lead to an increase in cruise passengers grow by 19.5% from 2006 to reach on average of 500,000 people yearly. Meanwhile, air travel has more than triple since 2005. Overall outlook remains buoyant for the industry despite the earthquake.

Lodging capacity was tight prior to the quake. This has increased the supply gap thus creating vast potential in hotel construction attracting hotel chain such Marriot to invest $45 million in bridging the gap.

Garment:the construction of 269,097,76 ft² at Caracol is an indication of the increase investment opportunity in meeting US demand and shaving time of production schedule. Haiti has grown to be the 5th largest supplier of knit T-shirts, singlets, and tank tops (HTS 6109) in the US market.

4. Open.

  • Haiti has access to the U.S. $75 billion dollars apparel market. With the signing of the Hemispheric Opportunity for Partnership Encouragement Act of 2006 (HOPE), investors have unhindered access to the largest consumer of apparel. Haiti is positioned for growth due to its proximity and a new business climate.
  • Haiti has access to European markets with the recent signing of Economic partnership agreements relating to the suppression of tariff and non-tariff trade barriers.
  • Haiti has access to Caribbean markets through the creation of the Caricom common market of which Haiti is a permanent member since July 2007

5. Flexible.

Ranked 28th in Doing Business by the World Bank Group (WBG) in hiring Workers category vs. 26 average OECD rank, investors can be assured of relatively large and industrious labour to meet tight production schedule.

6. Investor friendly.

With a zero tax rate to an extended 15 years, Haiti is highly competitive worldwide. This is accompanied by an additional five years of a regressive tax rate.

7. Committed.

  • A member of WTO and co-signor of major treaties, Haiti has just ratified the International Convention for Settlement of Investment Disputes (ICSID). This is to provide investors added insurance of long term commitment to international business practice.

8. Virgin.

Haiti is the last bastion of unexplored territory in the Caribbean. From unlimited coastline, stunning mangroves and mountainous terrain, investors are faced with countless possibilities.