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TaiwanICDF and PADF to co-create a credit guarantee facility to promote women’s economic empowerment in Haiti
Published Fri July 7, 2023
The International Cooperation and Development Fund (TaiwanICDF) signed a cooperation agreement with the Pan American Development Foundation (PADF) on July 6th in Port-au-Prince, Haiti. Taiwan’s ambassador to Haiti, Wen-jiann Ku, witnessed the event.
Per the agreement, the TaiwanICDF and PADF are establishing a credit guarantee fund dedicated to women’s micro-, small-, and medium-sized enterprises (W-MSMEs) in Haiti, which will help local women entrepreneurs and W-MSMEs access financing. This cooperative project responds to the internationally acknowledged need for supporting gender equality. Katie Taylor, CEO of PADF, made a special trip from Washington D.C. to Haiti to sign this agreement in a symbol of its importance.
Haiti’s economy has stagnated for several decades. Due to income inequality and a lack of resources for education, healthcare, social services, and finance, 76% of the population lives below the poverty line. Furthermore, the majority of single-parent families in Haiti are headed by women. Even though women like these play a vital role in commercial and trade activities, they can only engage in the informal economy. As a result, women are generally perceived as high-risk and local financial institutions are reluctant to provide loans to them. The recent pandemic has further exacerbated this economic vulnerability.
Accordingly, the TaiwanICDF and PADF are tailoring a women’s credit guarantee facility to address the key needs of Haitian women. These include changing the lending behavior of local financial institutions, reducing the financing gap for W-MSMEs, and increasing women’s opportunities to obtain the capital needed for starting and sustaining businesses. The facility will support female employment and income generation, helping Haitian women overcome their economic hardships.
Ambassador Ku highlighted Taiwan’s extensive history of supporting Haiti through the TaiwanICDF. He said that the organization has helped approximately 5,000 vulnerable Haitian women to date by implementing 33 capacity-building projects for individuals and institutions in the country. Regarding Taiwan’s aid in Haiti, Ambassador Ku said: “The Haitian people have always demonstrated courage, motivation, and resilience even in the face of difficulties. This is why the Taiwanese government is committed to continuing its support for Haiti and working with PADF, a long-standing and capable partner, on this program to gradually achieve social and economic progress in Haiti.”
Katie Taylor, CEO of PADF, emphasized that the signing of this partnership marked Taiwan and PADF’s strong commitment to supporting Haitian women in their entrepreneurial journey and strengthening their essential role in society—a significant step toward promoting gender equality and women’s economic empowerment in Haiti.
The project will primarily benefit the areas of Cité Soleil and Delmas 32 of the capital city of Port-au-Prince, where the situation is particularly challenging. Women entrepreneurs in these places face complex issues such as insufficient capital, unemployment, gender-based violence, and food insecurity, which directly impact the livelihoods of them and their families. However, increased financing would create a chain reaction in the area, not only increasing the household income for these women but also revitalizing the local informal economy. In other words, financing W-MSMEs improves women’s lives and rejuvenates their communities.
Women’s empowerment is a priority issue on the global agenda for which the TaiwanICDF has been doing its part. Over the past two years, the organization has successfully rolled out several technical assistance and financial service projects for women in Latin America and the Caribbean. Beyond empowering women, these programs have facilitated social stability and post-Covid economic recovery in the region. The TaiwanICDF and PADF’s joint effort to launch a women’s credit guarantee facility for Haiti’s informal sector is another step in this direction. This agreement is of remarkable significance, as it is expected to provide strong support for Haitian society.
PADF is a nonprofit organization established by the Organization of American States (OAS) in 1962. Being an affiliate of the OAS with 60 years of experience across Latin America and the Caribbean, its mission is to assist the people in the region with improving their living standards, strengthening resilience to natural disasters, advancing human rights and justice, and promoting sustainable development.
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- Update: 2023/07/07
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