Tactics for Rallying the Diaspora Community in National Economic Development / Propose solution to Attract Investment from the Diaspora

1. Tactics for Rallying the Diaspora Community in
National Economic Development /
Propose solution to Attract Investment from the
Diaspora
Develop by:
NOAH
A NOT-FOR-PROFIT ORGANIZATION DEDICATED TO THE
WELFARE OF THE HAITIAN PEOPLE IN HAITI AND ABROAD

2. 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.

3. 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?

4. 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

5. 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.

6. 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

7. 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.

8. 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.

9. 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

10. FMI Responsibilities:
FMI - comprehensive toolkit covering both subjective and quantitative attributes
Fund
Allocated
Project
Review
Analysis
FMI
Evaluation
Analysis
Projects
FMI - Assessment Toolkit
Projects assessed and scored on the criteria below.
Business
Assessment
Entrepreneur
Assessment
- Profitability / Social Impact
- Marketing / Distribution
- Product Strength
- Operations
- Management / Governance
- Financial Management
- Character
- Commitment
- Competence
- Connection to Community
Initial Assessment / qualification
No
YesProject get
Funded
END

11. 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

12. 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 Multiplier
For 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

13. 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

14. 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.

15. 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