The Overseas Private Investment Corporation (OPIC), a development finance institution of the US government, recently signed an agreement to loan USD 17 million to the US-based for-profit organization Development Innovations Group (DIG) to establish a housing finance facility in Haiti. The US Agency for International Development (AID), a US government agency that manages international aid, and the Clinton Bush Haiti Fund (CBHF), a US-based nonprofit organization, will co-finance the project through grants of USD 6 million and USD 3 million, respectively. The funding from CBHF was announced in March 2011.
The project reportedly will establish three loan programs for low-income borrowers: housing microloans starting at USD 1,000, micromortgages starting at USD 5,000, and loans to businesses for repair and construction starting at USD 3,000. These loans are to be made available through unspecified local banks and microfinance institutions (MFIs).
The Development Innovations Group (DIG) is a US-based private firm that initiates locally-managed financial and development activities in transitioning and developing economies, including financial services for low-income clients; urban, water and infrastructure services; and fund management. DIG has operated in approximately 40 countries.
By Nicole Boyd, Research Associate
About Development Innovations Group (DIG)
The Development Innovations Group (DIG) is a US-based private firm that initiates locally-managed financial and development activities in transitioning and developing economies. DIG has worked in approximately 40 countries on projects including financial services for low-income clients; urban, water and infrastructure services; and fund management. Financial information for the organization is not available.
About Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of 2011, OPIC is active in 107 countries and reports a total portfolio of USD 14.5 billion.
About United States Agency for International Development (USAID)
The United States Agency for International Development (USAID) is a government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides credit guarantees that cover up to 50 percent of defaults on wholesale loans made by private financial institutions to institutions that lend on a retail basis to underserved borrowers. USAID had a total of USD 23.2 billion in budgetary resources in 2012.
About Clinton Bush Haiti Fund
The Clinton Bush Haiti Fund (CBHF) is a US-based nonprofit organization. Shortly after a major earthquake struck Haiti on January 12, 2010, US President Barack Obama asked former US presidents Bill Clinton and George W Bush to lead a fundraising effort to assist the people of Haiti in rebuilding. Although the initial efforts focused on emergency relief, as of 2011, its focus shifted towards job creation and the promotion of economic opportunity. As of May 15, 2011, CBHF had received USD 53.8 million in donations. The fund ceased operations on December 31, 2012.
Sources and Additional Resources:
Haiti Libre. “Haiti – Economy : $17 million for microfinance loans and micro-mortgages,” http://www.haitilibre.com/en/news-7978-haiti-economy-$17-million-for-microfinance-loans-and-micro-mortgages.html
Clinton Bush Haiti Fund. “Programs: Development Innovations Group ,” http://www.clintonbushhaitifund.org/programs/entry/development-innovations-group/
MicroCapital. October 27, 2012, “MICROCAPITAL BRIEF: Yunus Social Business Fund Begins Financing Small and Medium-Sized (SMEs) in Haiti,” https://www.microcapital.org/microcapital-brief-yunus-social-business-fund-begins-financing-small-and-medium-sized-smes-in-haiti/
MicroCapital. August 2, 2011, “MICROCAPITAL BRIEF: Clinton Bush Haiti Fund (CBHF) to Grant $850k to Rebuild Microfinance Institution Fonds Haïtien d’Aide à la Femme (FHAF),” https://www.microcapital.org/microcapital-brief-clinton-bush-haiti-fund-cbhf-to-grant-850k-to-rebuild-microfinance-institution-fonds-haitien-d’aide-a-la-femme-fhaf/
MicroCapital Universe Profile: United States Agency for International Development (USAID) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+States+Agency+for+International+Development+%28USAID%29
MicroCapital Universe Profile: Clinton Bush Haiti Fund (CBHF) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Clinton+Bush+Haiti+Fund+%28CBHF%29
MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29
MicroCapital Universe Profile: Development Innovations Group (DIG) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Development+Innovations+Group+%28DIG%29
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