Port- au- Prince, April 29, 2021.- The International Finance Corporation (IFC), a member of the World Bank Group, partnered with Société Généralede Solidarité (Sogesol), a leading microfinance institution (MFI) in Haiti, to increase its support Micro, Small and Medium Enterprises (MSMEs), including agribusinesses, which represent 22 percent of the country's GDP.
The $2.5 million dollar commitment – the second part of a risk sharing facility – will allow Sogesol to expand its MSME portfolio across the country, fostering economic growth and job creation. The first tranche of this risk sharing facility enabled this microfinance institution to provide 354 loans, 30 percent directed at very small enterprises, 19 percent to the agricultural sector, and 33 percent to women-owned companies.
The project is part of IFC's Small Loan Guarantee Program (SLGP), a partnership with the International Development Association's Private Sector Window (IDA-PSW), aimed at enhancing and strengthening the capacity of financial institutions for risk taking and financing. IFC is also providing operational and technical support to help Sogesol tailor their products to these segments.
"We are proud to see that this innovative financing structure continues to play a key role in increasing access to finance to small enterprises in Haiti, as this is typically difficult for a number of reasons including lack of collateral, poor financial track record or because these businesses are perceived as too risky," said Judith Green, IFC Country Manager for the Caribbean.
The MSME credit gap in Haiti is estimated to reach US$2.5 billion and 49% of small firms report to underserved, while only 28 percent of farmers have bank accounts. This is a serious constraint to private sector growth in Haiti, as MSMEs employ about 80% of the total workforce and almost half of the population depends on the agricultural sector.
"Our business model seeks to help small companies overcome barriers and we tailor products to the needs of each enterprise, particularly farmers," said Daphné Louissaint, General Manager at Sogesol. "We are also prioritizing digitalization to reach more clients in remote areas and become more efficient," Louissaint added.
Sogesol is a leading MFI in Haiti with strong reach in urban and rural areas. This risk sharing facility represented IFC's first investment in Latin America and the Caribbean under the SLGP program.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About the IDA Private Sector Window
As part of the record $75 billion IDA18 replenishment, the World Bank Group created the $2.5 billion IDA Private Sector Window to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA18 objectives and the Sustainable Development Goals, the window provides concessional funds for co-investment alongside IFC and Multilateral Investment Guarantee Agency (MIGA) private investments. Concessional funds help to mitigate risk and reduce barriers, which unlocks and crowds in private investment in emerging markets. For more information, visit: http://ida.worldbank.org/psw
About Sogesol
Sogebank Group, Societe Generale de Solidarite SA (SOGESOL) launched its operations in November 2000. Its shareholding is 51% owned by Sogebank; other outstanding shares are owned by other investors. SOGESOL's mission is to promote Haitian entrepreneurship by adapting traditional banking services to the needs of micro and small entrepreneurs, small private sector employees and agricultural producers while also obtaining profitability and efficiency. SOGESOL offers financial products on the Haitian market to mostly low-income and informal clients. It is present in the metropolitan areas and in several provinces.
Stay Connected:
www.ifc.org/lac
www.twitter.com/IFC_LAC
www.linkedin.com/company/ifc-américa-latina-y-el-caribe
www.facebook.com/IFCwbg
www.instagram.com/ifc_org/
www.youtube.com/IFCvideocasts
www.twitter.com/IFC_org
The $2.5 million dollar commitment – the second part of a risk sharing facility – will allow Sogesol to expand its MSME portfolio across the country, fostering economic growth and job creation. The first tranche of this risk sharing facility enabled this microfinance institution to provide 354 loans, 30 percent directed at very small enterprises, 19 percent to the agricultural sector, and 33 percent to women-owned companies.
The project is part of IFC's Small Loan Guarantee Program (SLGP), a partnership with the International Development Association's Private Sector Window (IDA-PSW), aimed at enhancing and strengthening the capacity of financial institutions for risk taking and financing. IFC is also providing operational and technical support to help Sogesol tailor their products to these segments.
"We are proud to see that this innovative financing structure continues to play a key role in increasing access to finance to small enterprises in Haiti, as this is typically difficult for a number of reasons including lack of collateral, poor financial track record or because these businesses are perceived as too risky," said Judith Green, IFC Country Manager for the Caribbean.
The MSME credit gap in Haiti is estimated to reach US$2.5 billion and 49% of small firms report to underserved, while only 28 percent of farmers have bank accounts. This is a serious constraint to private sector growth in Haiti, as MSMEs employ about 80% of the total workforce and almost half of the population depends on the agricultural sector.
"Our business model seeks to help small companies overcome barriers and we tailor products to the needs of each enterprise, particularly farmers," said Daphné Louissaint, General Manager at Sogesol. "We are also prioritizing digitalization to reach more clients in remote areas and become more efficient," Louissaint added.
Sogesol is a leading MFI in Haiti with strong reach in urban and rural areas. This risk sharing facility represented IFC's first investment in Latin America and the Caribbean under the SLGP program.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About the IDA Private Sector Window
As part of the record $75 billion IDA18 replenishment, the World Bank Group created the $2.5 billion IDA Private Sector Window to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA18 objectives and the Sustainable Development Goals, the window provides concessional funds for co-investment alongside IFC and Multilateral Investment Guarantee Agency (MIGA) private investments. Concessional funds help to mitigate risk and reduce barriers, which unlocks and crowds in private investment in emerging markets. For more information, visit: http://ida.worldbank.org/psw
About Sogesol
Sogebank Group, Societe Generale de Solidarite SA (SOGESOL) launched its operations in November 2000. Its shareholding is 51% owned by Sogebank; other outstanding shares are owned by other investors. SOGESOL's mission is to promote Haitian entrepreneurship by adapting traditional banking services to the needs of micro and small entrepreneurs, small private sector employees and agricultural producers while also obtaining profitability and efficiency. SOGESOL offers financial products on the Haitian market to mostly low-income and informal clients. It is present in the metropolitan areas and in several provinces.
Stay Connected:
www.ifc.org/lac
www.twitter.com/IFC_LAC
www.linkedin.com/company/ifc-américa-latina-y-el-caribe
www.facebook.com/IFCwbg
www.instagram.com/ifc_org/
www.youtube.com/IFCvideocasts
www.twitter.com/IFC_org
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