The Association of Industries of Haiti (ADIH) presents the Strategic Industrial Policy Plan for the Republic of Haiti 2026-2050 (PSPI), a sectoral planning document submitted and discussed by ADIH in coordination with the Ministry of Commerce and Industry, resulting from extensive consultations among key stakeholders in the national industrial sector.

Current Situation :

The Republic of Haiti is facing a prolonged contraction of its economic activity, lasting more than six consecutive years, the effects of which extend beyond the cyclical realm to constitute a major structural challenge. The main available indicators highlight the magnitude of this extremely serious situation and the need for a coherent, ambitious, and sustainable public response :

• The contribution of industry to the Gross Domestic Product (GDP) has fallen from 18% in the 1980s to only 4.5% in 2026, according to the International Monetary Fund (IMF);

• Nearly 78% of the working-age population is underemployed or excluded from the formal labor market;

• The trade deficit reaches USD 4 billion annually, with the country importing more than 80% of its consumer goods;

• Cumulative inflation over the past six years has exceeded 30%, destroying companies' working capital even before the end of production cycles;

• The cost of electricity can exceed USD 0.52/kWh, several times the regional average, making any local production uncompetitive.

Without rapid structural change, these trends could permanently weaken the national productive base, jeopardize job creation, and increase the country's external dependence.

The PSPI proposes the establishment of a 25-year National Competitiveness Pact between the government and productive sectors, with the aim of sustainably restoring the country's industrial capacity and creating the conditions for more sustained, inclusive, and sovereign growth.

Vision 2050: To make Haiti an economy capable of competitive production, providing numerous jobs, reducing its vulnerability to imports, and consolidating its economic sovereignty on a sustainable basis.

Quantitative Objectives 2050 :

• 500,000 formal industrial jobs created (compared to 150,000 today);

• Industry's contribution to GDP increased to 20% (compared to 9% currently);

• Industrial exports quadrupled (from USD 1 billion to USD 4 billion);

• Trade deficit reduced by 30% through import substitution;

• Additional tax revenue of USD 250 million/year by 2050.

To sustainably revitalize Haitian industry, ADIH proposes replacing the current passive incentive system, primarily focused on profit-related tax breaks, with an active incentive system centered on the competitiveness of production factors. This model is inspired by successful experiences in several emerging and Caribbean economies and is based on a simple conviction: Haiti possesses real entrepreneurial potential, but requires a coherent and stable competitive framework to fully realize it.

Currently, local production remains hampered by a combination of structural constraints: high energy costs, a tax system poorly adapted to productive investment, input taxes, expensive logistics, and limited access to modern equipment. In such an environment, industrial competitiveness cannot be strengthened without proactive and coordinated public action.

In this context, the plan is structured around six complementary strategic pillars, each accompanied by concrete measures designed to remove the main obstacles to production, investment, and exports.

1. Unleashing Domestic Production :

The first pillar aims to sustainably reduce the cost of production factors through a stable and predictable exemption from duties and taxes applied to raw materials, equipment, machinery, spare parts, production technologies, and energy and storage systems. Such a measure would rapidly improve the competitiveness of businesses and promote their modernization.

This approach is based on a complete and guaranteed exemption from duties and taxes applied to raw materials, industrial equipment, and strategic spare parts.

The objective is clear: to structurally reduce production costs, lower the break-even point for businesses, and enable Haitian industries to regain competitiveness. In this model, industrialists will comply with tax obligations, particularly corporate income tax, after the State finally provides them with the necessary resources to produce, invest, grow, and generate sustainable profits.

This proposal represents a paradigm shift in the economy; a vision of productive sovereignty, a genuine national economic reconstruction plan, and a response through anticipated changes in the global economic system (globalization).

2. Make energy a national priority :

The second pillar establishes energy as the primary condition for any credible industrial policy, through a specific mechanism promoting productive uses, incentives for self-generation, the development of solar photovoltaics, and public-private partnerships that will lead to a substantial reduction in costs.

3. Critical Production Infrastructure :

The third area focuses on the development of critical production infrastructure, including the creation of industrial zones, the modernization of logistics and port facilities, and the rehabilitation of existing infrastructure, in order to streamline supply chains and reduce operational lead times.

4. Human Capital and Technical Training :

The fourth area is dedicated to human capital, with the creation of sector-specific technical centers, the development of apprenticeships, and the implementation of incentives for continuing education, with the aim of more closely aligning available skills with the needs of production sectors.

5. Access to Capital and Investment Promotion :

The fifth area concerns access to capital and investment promotion, through the creation of an Industrial Development Fund, a system of public guarantees, appropriate refinancing mechanisms, and a tax credit targeted at industrial employment.

6. Regional Integration and International Markets :

The sixth pillar aims to strengthen regional integration and access to international markets by fully operationalizing Haiti's participation in the CARICOM single market, consolidating existing preferential mechanisms, and opening new trade opportunities, with the support of a national export promotion agency.

Beyond its effects on production, this approach also has budgetary and macroeconomic implications for the State. International experience shows that a well-designed competitiveness policy broadens the tax base, supports formalization, and sustainably strengthens public financing capacity, particularly for the following reasons :

• The State waives input taxes (production costs) to secure a share of output profits (corporate taxes): companies will pay more taxes when they become truly profitable;

• Formalization of the economy: only formal, registered, and transparent businesses will benefit from the advantages, forcing the transition from the informal sector;

• Massive job creation: each job created generates consumption, social security contributions, monetary circulation, and greater social stability;

• National multiplier effect: a competitive industry supports agriculture, stimulates services, increases exports, reduces imports, strengthens the gourde, and stabilizes the national economy.

To ensure the credibility, continuity, and rigor of its implementation, the PSPI relies on an institutional framework designed to guarantee strategic guidance, technical execution, and transparent monitoring :

• National Industrial Policy Council (CNPI): co-chaired by the Prime Minister/Minister of Commerce and the President of ADIH, a strategic steering body with quarterly meetings;

• Permanent Technical Implementation Unit (UTE) attached to the Prime Minister's Office;

• Sectoral Committees: one per priority sector (agribusiness, construction, textiles, packaging, pharmaceuticals, renewable energy);

• Rigorous monitoring and evaluation system: quarterly dashboards, annual reports to Parliament, triennial external audits, and a transparency web portal publishing the list of beneficiaries, amounts, indicators, and minutes.

To this end, the plan provides for a phased implementation trajectory, structured around successive priorities and measurable objectives.

2026–2027:

Establishment of the legal and institutional framework (framework law, CNPI, UTE), initial tax instruments, and seed funding (USD 50 million). Target: 12,000 jobs, USD 120 million in investments. Budget: USD 170 million.

2027–2029:

Deployment of critical infrastructure—solar energy, industrial zones, technical training. Target: 90,000 cumulative jobs, exports +40%, industrial GDP 12%. Budget: USD 700 million.

2030–2050:

Consolidation, R&D, and regional positioning. Final target: 400,000 jobs, 20% of GDP, USD 4 billion in exports. Budget: USD 1.3 billion.

In this context, and to quickly translate this ambition into signals of confidence for both investors and technical and financial partners, five priority decisions could usefully be implemented in the short term for the 2025-2026 period :

1. Adoption of a decree on industrial policy (summer 2026);

2. Establishment of the National Industrial Policy Committee (summer 2026) and recruitment of the Technical Unit (summer 2026);

3. Launch of the 30% industrial employment tax credit (October 2026);

4. Installation of mobile scanners at ports and borders (December 2026 - June 2027);

5. Creation of the Industrial Development Fund with an initial endowment of USD 50 million (first quarter of 2027).

The Strategic Industrial Policy Plan for Haiti 2026-2050 is designed to foster recovery, productive transformation, and the consolidation of national economic sovereignty. It provides a structured framework for action, capable of uniting public efforts and the commitment of the productive sector around shared objectives of competitiveness, employment, and investment.

This proposal is based on a principle of shared responsibility: the State is responsible for creating an environment conducive to production and investment; the productive sector is responsible for a firm commitment to formalization, employment, and tax contributions.

The success of such an ambitious plan requires, over time, sustained political will, an effective partnership between the State and the private sector, budgetary discipline consistent with the agreed commitments, a significant improvement in security in production areas, and the gradual mobilization of international partners based on credible and verifiable results.

The challenge at this stage is not simply to respond to the immediate crisis, but to rebuild the sustainable foundations of a national productive capacity that meets the demands of development.

HL/ HaitiLibre