1. PromoCapital Overseas Haitians and Portfolio Investments Patrice Backer Westin Harbour Castle Toronto, Canada May 30, 2005

2. PromoCapital 2 Haitian Diaspora Remittances & Investments The PromoCapital Strategy Agenda

3. PromoCapital 3 Migration Patterns 1930s, 40s and 50s Cuba, French Guyana, Dominican Republic Primarily rural population, field laborers & sugar cane cutters 1960s and early 1970s US (Northeast), Canada, French-speaking Africa, France (later to US or Canada), Bahamas Professionals  “brain drain” Late 1970s and early 80s US (Florida), Bahamas, Turks and Caicos Economic migrants primarily from the North (Cap-Haitien, Port-de-Paix, La Tortue) and vicinities Late 1990s/Early 2000s Siphoning off by Canada of our “best and brightest” Age range: between 25 and 40 Professionals  “brain drain” Middle management in private sector affected

4. PromoCapital 4 Geographic Distribution TOTAL – SELECTED LOCATIONS: 1,267,000

5. PromoCapital 5 Haitian Diaspora Remittances & Investments The PromoCapital Strategy Agenda

6. PromoCapital 6 Remittances are Critical to Haitian Economy … 28% of GDP (Est. 2004)  17% in 1999 More than USD 1 billion annually (formal and informal)  mostly from the US Primarily geared towards consumption 1.Living Expenses (groceries, clothing, rent/mortgage) 2.Education 3.Gifts for special occasion 4.Medical expenses 5.New home constructions

7. PromoCapital 7 Comparative Data (millions of USD)20002001200220032004 Remittances578624649811931 y-o-y growth (%)8.0%4.0%25.0%14.8% Exports (FOB)331305273330373 Service exports172137164131132 Total Exports503442437461505 Comparison (%)115%141%149%176%184% Dev. Assistance221161135137113 Comparison (%)262%388%481%592%824% Source: SOGEBANK

8. PromoCapital 8 … But There Are Issues Large percentage goes right back to “donor countries” due to purchase of imported products Remittances/Investments are sometimes counter-productive or mismanaged “Assisted” mentality Waste/theft by family members or recipients Long-term: Haitian migration has slowed to a trickle Expected tapering-off of remittances in 15-20 years

9. PromoCapital 9 Overseas Haitians Also Invest Through SMEs … Lack of products and services provides opportunities, especially in food exports Trade conducted primarily out of Florida Proximity Entrepreneurial spirit of local Haitian community Businesses are small and face same challenges as their US counterparts Lack of financing Deficient management skills Competition and lack of growth opportunities Haiti bureaucracy / corruption

10. PromoCapital 10 Initiatives from the Diaspora: Numerous but Small

11. PromoCapital 11 … But Portfolio Investments Are Not Common Priority is supporting family or community through remittances “Trust” factor  past scams, 2001-2002 “cooperative” scandal Securities laws in the US  major issue !!! No securities markets – liquidity issues PromoCapital  new approach at the issue

12. PromoCapital 12 Haitian Diaspora Remittances & Investments The PromoCapital Strategy Agenda

13. PromoCapital 13 PromoCapital Overview Structure PromoCapital Haiti S.A. – SFD PromoCapital USA, Inc. – Wholly owned subsidiary Capital Structure 50% owned by Haitian Americans and US residents 50% owned by Haitians and Haiti residents There are 67 shareholders: 36 in the US 31 in Haiti Focus on larger investments: Infrastructure Real Estate – Large scale residential and commercial National production / Export oriented

14. PromoCapital 14 PromoCapital: US Partners

15. PromoCapital 15 Channeling Diaspora Investments Differently

16. PromoCapital 16 What Is the PromoCapital USA Fund? A collective investment vehicle to increase efficiency of capital raising process Initial Fund Target: USD 5 million

17. PromoCapital 17 Why the PromoCapital USA Fund? Offer to non-entrepreneurs based abroad the opportunity to invest efficiently in Haiti Facilitate the capital raising process: Either raise funds for clients on a case-by- case basis Pool investors’ assets into a legal vehicle ready to invest Improve the investment profile of the country

18. PromoCapital 18 How Is It Structured? Florida Limited Liability Limited Partnership (LLLP) General Partner: PromoCapital Advisors LLC Investors are Limited Partners “Accredited” investors Limits on who can be invited to invest

19. PromoCapital 19 Investment Policies Maximum of 20% invested in any one company Maximum of 30% of assets invested in any one industry (as defined by NAIC or SIC major code) Strong cash flow generation potential

20. PromoCapital 20 Targeted Industries Infrastructure Electricity Telecom Manufacturing Textile Food processing Real Estate Commercial

21. PromoCapital MèsiAnpil ThankYou MerciBeaucoup