Haiti’s construction industry is said to be facing an uncertain period as challenges arise from recent unrest in the country.
According to a new report by Fitch Solutions, a macroeconomic research company, recent unrest created by allegations of corruption and calls for the President, Jovenel Moïse, to resign will weaken already-low investor confidence in the market, negatively impacting investment across the infrastructure, residential and non-residential construction sectors.
Taiwan’s Ministry of Foreign Affairs has said that the inability of Haiti’s government to meet since the crisis began has stalled the start of construction on a Taiwanese-backed electricity grid project. The project is awaiting approval from the government for a US$145.9 million loan from a Taiwanese bank.
Haiti is heavily dependent on foreign aid and investment to drive building construction and infrastructure investment because of low domestic funding sources.
Of particular importance to the construction sector is the impact that this heightened uncertainty will have on tourism. In the wake of public protests, developed nations like the US, Canada and France have issued warnings to citizens not to visit Haiti.
A further blow has been delivered by airlines; Air Canada and Jet Blue are cutting flights to the country, while booking website Expedia prevented potential visitors from booking trips to the country altogether.
This weakened demand for tourism will limit investment into hotels and other related infrastructure, the report claims.