Let's get down to business

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Leonel JB

Let's get down to business

Post by Leonel JB » Fri Sep 24, 2004 3:34 am

Ok, now that everything is over...

Let's get down to business. Revenons a nos moutons.

This is for everyone of us, and especially HENRI:

How do we invest in Haiti? What would be wise to put Haiti in the global market?

How can Haiti be back to "HAITI CHERIE"?

Remember, no politics, or anything in that matter.
We are at ZERO, we need to start by one, two etc...

A lot of us living overseas would love to go back to our land and contribute somehow.

We are very fortunate to have someone like Henri and we all know it.

Blows after blows, Haiti needs to be reborn. We can do it, WE WILL DO IT!


What can we do to at least trust each other?

Can we start putting money on HAITI's account? We can put 100 Dollars or more every year in the name of Haiti. I am willing to start today.

We need to start with infrastructure or education, I don't know. We can do it, about 2 millions overseas.

Do I sound like a dreamer, or stupid or naive?

Guys, let me know...

I won't even care about my money...



Re: Investing In Haiti

Post by Isabelle_ » Fri Sep 24, 2004 8:42 am

A few road blocks to investing in Haiti:

** The laws governing investments are not publicized.
** It takes too long to open a company due to a lot of red tape and to a corrupt system.

I did some research using Google on this topic and was able to find the following link concerning the "investing in Haiti" topic (in French):

http://www.ccife.org/haiti/infos_pays/p ... otinv.html

I believe this was put together by the Union des Chambres de Commerce et d' Industrie Françaises à l' Etranger, and I do not know how dated the documents are but at least it is a start.



Investing in Haiti (Continued)

Post by Isabelle_ » Fri Sep 24, 2004 9:58 am


Most countries which wish to encourage investment, especially foreign investment, have a law or group of laws designed to provide certain advantages to investor. Competition for the foreign investor's money is fierce. Many governments run advertisements in magazines circulated internationally such as The Economist, to encourage investors simply to look at their area or country.

Due Diligence
Most people who want to invest in Haiti, speak to people who have been down that road, people who are there or locales. These potential investors are frustated by the rudeness, inefficiency, indifference and corruption which they see as the standard practice of the govenment.

The process of opening a company is bureacratic in the worst sense of the word (officials who do no know what to do, who mislead charities
/people, who are not in their offices, who take weeks or months to make the simplest decisions, and who are frequently personally unpleasant)

An important consideration in any investment is the infrastructure of the location in which the investment may be made. There is also the very low literacy rate in Haiti. The infrastructure being poor or almost non-existent is a result and a cause of the poverty of Haiti. Telephone, electricity, water and sewerage services in Haiti are all government owned. The percentage of the population who has telephone lines and electricity is among the lowest in the world, (last I remembered the number of phone lines was slightly in excess of 100,000, correct me if I am wrong). What is the amont of people on the waiting list and how many people are served by the cellular industry? People who have phonesand/or cell phone report that they have frequent service outage, for periods of a few hours to weeks. Let us now even discuss
electricity which is completely unreliable. The current fluctuates radically, there are frequent unscheduled blackouts and interruptions of service.
What is the percentage of the population that has safe drinking water in Haiti? Even in PAP, water is frequently off for hours or days at times (if not existent at all in some neighborhoods).

What is the road net in Haiti? (We probably have of one the smallest per square kilometer of any country in the world). When were most of the existing routes laid out? Does the government offer assistance to people who plan projects in areas that are not accessible by road?

The almost non- :arrow: :arrow: existent or poor quality of infrastructure is one of the major road blocks to investment in Haiti. There are very few investments which do not require electricity, telephones and roads to be successful. I am not sure if the ONE-STOP INVESTMENT OFFICE promised by the provisional government of Haiti has become a reality.

In general the climate (re
ad government) does not assist an investor in overcoming these obstacles. What about the business community of Haiti? I will not speak for them, let one of their own speak for themselves.

Healthcare in Haiti is a disgrace and probably puts Haiti at the bottom of the list. In severe emergencies, Foreigners who become ill or injured need to be evacuated to wards the US (usually Florida, sometimes Cuba or DR). Thus investors who decide to live in Haiti or send their employees there are very concerned about the health risk they incur.


P.S. In my next post I will speak about the topic of a)Investment Exclusions and Prohibitions and b) Minimum Capital Requirements.


Post by HenriD » Fri Sep 24, 2004 10:21 am

Hello Leonel,

From what I seem to read in the postings which led to this one, my feeling is that what people seek is what is called a "Double Bottom Line Mutual Fund".

A Mutual Fund, as you know, is simply a vehicle that permits individuals to pool their funds to invest for a targeted return.

A "Double Bottom Line Mutual Fund" is the same thing but where the investment objectives are defined to assure that all funds are invested in socially responsive or responsible areas: things which bring benefits both to the investors and to the community. The criteria are quite specific and the fund managers have to respect them of face the music. Example a large scale windmill project, a business incubator, small business loans, small scale low-cost housing construction with proper drainage. Funds can have any objectives the founders elaborate for both bottom lines. That is what gives a fund its unique properties and also attracts a cer
tain kind of investor which shares the objectives.

That sounds simple enough, but the realities are that creating a mutual fund cost anywhere between 300-500 thousand dollars to respect legal, fiscal and SEC Registration requirements and takes about 6 months. Maintenance varies between 75-125 thousand a year. And quite frankly well it should.

The object of those obstacles is to assure that things stay on the up-and-up. They help assure that the people doing it are legitimate, that the proper governance and financial accountability needs have been respected.

That is required if one is to market his funds to the general public. Meaning to what the SEC defines as "the general public" or in other regulations "unsophisticated investors"

As you see, the criteria and constraints for creating a fund are extremely constraining as well they should be.

A wealth of incredibly complex information is available on the SEC website, but quite frankly attorneys are needed to set those things

The setup, legal, fiscal and registration fees for PromoCapital cost upwards of 250,000 US dollars.

Our bank and funds are both designed to have the double bottom line we spoke of earlier because that is what the founders of PromoCapital desired and it is expressed in the mission statement.

We expect at some point to have a mutual fund like this but do not have it today. Why? Simply because the costs would eat up investor funds.

What we decided to do in order both to enable a fund and respect the SEC Regulations is create what is in effect a venture capital fund called the PromoCapital Fund. That is seperate from the Bank and is a free-standing unit, in which the bank invests alongside other investors. The good news is that it can do what is necessary respecting all the rules, the bad news is that it is only available to what is called "sophisticated investors". We do not even present the fund to the general public or unsophisticated investors. Why? Because it is against the la
w to do so. Before we send anyone a prospectus we first qualify them as being suited to receiving it by having them fill out a 12 page questionnaire.

That means that a modest investor has no place at the table.

There are a lot of ways to accomplish the same objectives, and create a place at the table, including more modest investors in a double botton line mutual fund type of structure and I will get that info and be back, as will or Managing Director Patrice Backer, so we can explore the solutions.

I warn you get ready for a headache because there are mighty complex criteria to respect to get one of those up.

The good news is that it can be done, and up and running 3-6 months from now if there is a real demand.

As you know, talk is cheap, but doing is often expensive in time, energy and funds. We are perfectly ready, willing and able to accompany others if they are willing. Like I said, free of charge and excluded from the offering.

As a matter of fact, we would like
nothing more than for people to let us have their feedback on what we should be doing at PromoCapital. The challenge obviously is can we do it without the cliches. How creative and solution oriented can we be? I will add below my posting a bit of food for thought.

I believe that what Haiti needs is concrete, tangible, measurable new solutions to old and new problems, not new problems.

I also believe that when those solutions come they will come from Haitians, and most probably from the Haitians Overseas in close partnership, business and social, with Haitians in Haiti, toutes sauces co-fondues.

Best Regards,


Que ferais-tu?

Tu roules dans ta voiture deux places par une terrible soirée orageuse, et tu passes devant un arrêt de bus où se trouvent trois personnes attendant le bus.

1er Personne: une dame très âgée, qui paraît sur le point de mo

2e Personne: un vieil ami, qui t'a précédemment sauvé la vie...

3e Personne: (L'homme) ou (la femme) idéal(e) de tes rêves.

Laquelle de ces trois personnes prendrais-tu dans ton véhicule, sachant que tu n'as qu'une place disponible?

Réfléchis bien avant de répondre, et de continuer à lire ce texte. Ceci est une question tirée d'un test d'éthique morale qui a été utilisé pour un entretien d'embauche.

Tu pourrais prendre la dame âgée parce qu'elle va bientôt mourir et donc tu devrais essayer de la sauver,

ou bien tu pourrais prendre ton ami , puisqu'il t'a sauvé la vie et que tu as cette dette envers lui,

et pourtant, ne retrouveras-tu peut-être jamais (l'homme) ou (la femme) de tes rêves.

Sur 200 personnes qui ont répondu à cette entrevue, une seule a été retenue pour la magnifique réponse. Veux-tu savoir laquelle?

Tout simplement, "je donnerai les clefs de la voiture à mon meilleur ami pour qu'il accompagne la dame âgée
à l'hôpital, et je resterai a attendre le bus avec (l'homme) ou (la femme) de mes rêves."

On peut en tirer la réflexion suivante, à savoir que l'on trouve toujours une solution à un problème lorsque l'on prend le temps d'y réfléchir.


Leonel JB

Post by Leonel JB » Fri Sep 24, 2004 10:47 am

Thanks to Isabelle and Henri for their input...

Henri, I was gonna take "La femme de mes reves". But, great lesson and funny too.

You got me!

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Post by admin » Fri Sep 24, 2004 11:14 am

Leonel, based on your answer (take "La femme de mes rêves"), you don't need a "Double Bottom Line Mutual Fund" or a "social mutual fund". You just need the Red Ferrari and a "Tyra Banks/Naomi Campbell" type of body to go along with it. And here I thought you were serious...get out of here, man!

You would let the old lady die, man! Shame on you... And your old friend who previously saved your life, you would sell him down the river, wouldn't you? What you don't know is that I have already spread several gourdes of sharp nails at the intersection, and your Ferrarri's tires are going to blow up. And I'll be waiting for "la femme de mes rêves" to bail out on you and join me in my Volkswagen Beetle.

See you down the road, partner. Go back to the bus stop and wait along in the "friendly" company of that old lady and "former friend". I'll check on you sometime tomorrow, if I am able.

Leonel JB

Post by Leonel JB » Fri Sep 24, 2004 2:46 pm

Well Guy,

It's not easy to find "La femme de mes reves". I wouldn't want to be in someone else's dreams or "beetle" if I don't pick her up. Isabelle, Nekita, Marilyn, Caroline and all the ladies gonna help me on this!!!

Just kidding, guys.

Instinct is bad most of the time in decision making...

I needed some jokes this week. Guy, get also a joke section, people can laugh a little!!!


Post by » Fri Sep 24, 2004 4:05 pm

The Editor has just suspended Leonel and Guysanto from further input in this thread. Leonel, for his lasciviousness and Guysanto for stealing Leonel's dreams (and according to the Sheriff's Office, a Volkswagen Beetle as well).

"La femme de mes rêves" will be released in Henri's custody.

The Editor also implores IsabelleF and Henrid to ignore to ignore those adolescent outbursts from Leonel and Guysanto, and to please get back to the business of providing investing information to the grown-ups in this group. Some of them do have real money to invest and can afford to turn their dreams into any reality they please.

Please, let's get back to the business of getting down to business.



Post by HenriD » Fri Sep 24, 2004 4:07 pm

Shame on you Guys, Mostly you Guy, As a "fils authentique de la patrie" personally I am outraged you did not mention Garcelle Beauvais and am going to tell Jean on you. And we know how serious he is. I would like to recommend you put him and me jointly in charge of the humor section. We are always good for a few laughs.

All kidding aside, I saw a documentary on her and she is really a remarkable person. As cute as she is, she is even smarter.

Well, so much for the recreational portion of our afternoon.

Post by » Fri Sep 24, 2004 4:33 pm

Sorry, folks, The Editor has to suspend superpatriot Henrid as well, for the same reason he suspended Leonel, as cited above. All the males in this group seem to be suffering from a condition called "lust in the heart", which previously affected only U.S. Democratic presidents. This leaves only IsabelleF to continue her generous efforts to educate the rest of us about what was supposed to be the subject matter of this thread, I-N-V-E-S-T-I-N-G.

Since Henrid abdicated his responsibility by being the last person seen in the stolen Beetle in the company of Garcelle Beauvais, "la femme de mes rêves" will have to be released to someone else's custody. Any takers?

The editing staff can only hope that IsabelleF will not fail us.


Investingin Haiti (continued)

Post by Isabelle_ » Fri Sep 24, 2004 10:42 pm


I am back and it is good to see that many on this forum have a good sense of humor.

Let us get back to the topic at hand!

Foreign Investment - Exclusions & Prohibitions

After investigating the business opportunities and infrastructures, the next step in a proposed investment is to determine if the investment is permitted, prohibited or restricted by the laws of the Haiti.

We need the help of the Haitian jurisprudence expert(s) or the Investment Bankers who reside in Haiti and know the system.
In Haiti as in any other country there are restrictions on foreign investments.

I will post some references from:
http://www.ccife.org/haiti/infos_pays/p ... estir.html
Le Code des Investissements : Introduction

Le Code des
Investissements a été établi par le décret du 30 octobre 1989.

Le Titre III du Code établit les types d'investissements qualifiés pour l'obtention des bénéfices spéciaux, des mesures d'incitation et d'exemption d'impôts sur le revenu, de droits de douane et autres droits et taxes accordés à ces investissements.
La Protection des Investissements : les lois importantes

Par décret du 30 mars 1983, Haiti a ratifié la Convention de Paris pour la protection industrielle du 20 mars 1883, révisée à Stockholm, le 14 juillet 1967, qui prévoit, par l'arrangement de Madrid du 14 avril 1891, la tenue d'un registre spécial des marques enregistrées au Bureau International de Genève.

Le droit de propriété des étrangers est réglementé tant par la Constitution que par la loi du 16 juin 1975.

D'après les Articles 55, 55.1, 55.2 de la Constitution, l'étranger peut être propriétaire d'immeubles en Haiti: pour ses besoins d'habitation, limités à une résidence pa
r arrondissement; pour ses activités commerciales et industrielles, de façon limitée; et pour ses activités d'agence immobilière dans des conditions spécifiquement établies.

La loi du 16 juin 1975 régissant la matière, soumet l'acquisition de la propriété immobilière à une autorisation, obtenue, au préalable, du Ministère de la Justice.

En plus des dispositions constitutionnelles et légales concernant la protection de l'investissement étranger, la République d'Haiti a conclu un certain nombre d'accords internationaux renforçant les garanties existantes, afin de favoriser et d'encourager le flux de capitaux privés vers le pays.

Plusieurs accords, traités et conventions ont été signés avec les principaux partenaires commerciaux d'Haiti ainsi qu'avec des institutions multilatérales.

It would really be great to get the experts on the forum to comment on the text I posted since I am not sure if these have been updated.

e21b7]Minimum Capital Requirements
Is there a minimum capital requirement imposed on foreign investors in Haiti?

This is another area where I do not have the facts yet. I will try to research this but would also appreciate it if the "experts" could contribute.

I hope to come back with more information soon and would appreciate contributions from all on these two topics.


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Post by admin » Thu Sep 30, 2004 11:52 am

Isabelle, have you gotten any answer as to the minimum capital requirement imposed on foreign investors in Haiti?



Post by HenriD » Fri Oct 01, 2004 11:08 pm

Sorry for our prolonged absence, one of those weeks. In response to:

Minimum Capital Requirements
Is there a minimum capital requirement imposed on foreign investors in Haiti?

The answer is no. A foreign investor can invest as little as one cent and as much as he wants. Some sectors have a % maximum. In other words in some rare sectors Haitian nationals must be majority shareholders. I do not have that list but it is a very short list. Will try to find next week to post.


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