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

PromoCapital 2 Haitian Diaspora Remittances & Investments The PromoCapital Strategy Agenda

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

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

PromoCapital 5 Haitian Diaspora Remittances & Investments The PromoCapital Strategy Agenda

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

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

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 years

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

PromoCapital 10 Initiatives from the Diaspora: Numerous but Small

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

PromoCapital 12 Haitian Diaspora Remittances & Investments The PromoCapital Strategy Agenda

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

PromoCapital 14 PromoCapital: US Partners

PromoCapital 15 Channeling Diaspora Investments Differently

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

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

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

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

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

PromoCapital MèsiAnpil ThankYou MerciBeaucoup