IFC to support Haiti in revamping garment sector

Although the pandemic has yielded to the cancelling of orders and closures of factories, IFC, with the backing of the Korea-IFC Partnership Program (KIPP) and the Facility for Investment Climate Advisory Services (FIAS), will bring together key players from the public and private sectors, seeking opportunities to increase production. Leveraging its potential, Haiti can also aspire to attract high-priced and high-quality garment manufacturers.

In the first phase, IFC will focus on a targeted response to help manufacturers quickly convert to produce personal protective equipment (PPE) and expand apparel production to meet a shifting global demand to navigate the COVID-19 crisis retaining jobs and investment.

In the medium term, IFC will support the sector to keep existing producers in the market by improving government services, developing operational guidance and continuity plans, and enhancing the business environment and the sector competitiveness by improving business regulations.

The third phase will focus on attracting investors, facilitating expansions, developing a new value proposition for bringing production closer to the US market, taking advantage of nearshoring, and mobilising investments.

"We are looking to develop a renewed value proposition for Haiti that can push sector growth. IFC will play an integrator role, bringing together institutions, companies, industry associations, as well as local and international investors who are paying attention to Haiti's potential. From our track record in the last decade, I am confident we can help Haiti succeed," said Judith Green, IFC manager for the Caribbean, in a statement.

A public-private Technical Secretariat will work with IFC and Haiti's ministry of finance and economy as the counterpart in this project to strengthen the public and private sector capacities and ensure a collaborative effort. This Secretariat includes the Center for Investment Facilitation, the Industry Association of Haiti (ADIH), the ministry of commerce and industry, the Textile Ombudsperson Office, and Better Work Haiti, the statement said.

"IFC is a long-term partner to Haiti, particularly the textile industry, and we are pleased to be working together once again to help the sector achieve all its potential and keep creating jobs for Haitians," said Haiti's minister of economy and finance.

"ADIH has been working together with IFC in the past months to identify the challenges of the export-oriented garment industry, and this work has facilitated dialogue within the companies in the sector as well as the institutions involved. I am certain that we will be able to leverage this experience to make the sector more competitive," said ADIH president Wilhelm Lemke.

IFC's analysis estimates over $70 million in investment potential in a favourable scenario, with thousands of new jobs for the next few years within the garment industry.
 

Fibre2Fashion News Desk (RKS)