Hypothetical Portfolio Investment STrategy for the edX course "Unlocking Finance Investment in EMDEs" by the World Bank Group

1. Investment Strategy in
the Dominican Republic
INVESTMENT & STRATEGY PLAN
I N V E S T M E N T S T R A T E G Y & P L A N U N L O C K I N G I N V E S T M E N T A N D F I N A N C E I N E M E R G I N G
M A R K E T S A N D D E V E L O P I N G E C O N O M I E S ( E M D E S ) W O R L D B A N K / M O O C 2 0 1 9

2. Context 1/3
The Dominican Republic is the second-largest
economy and third-largest country in terms of
population within the Caribbean region.
Population: 10,298,756 (July 2018 est.)
Currency: Dominican Peso RD$
GDP (official exchange rate): $76.09
billion (2017 est.)
Economic Growth: 4.6% (2017 est.)
Unemployement Rate: 5.1% (2017 est.)
Population Below Poverty Line: 30.5% (2016
est.)

3. Context 2/3
In 2017 the Dominican Republic exported
$8.73B, making it the 88th largest exporter in
the world
During the last five years the exports of the
Dominican Republic have decreased at an
annualized rate of -0.5%, from $8.77B in 2012
to $8.73B in 2017
The most recent exports are led by Gold
(17.2%) of the total exports of the Dominican
Republic, followed by Rolled Tobacco (8.69%)
Primary Export Destinations: U.S., Canada,
Haiti, India

4. Context 3/3
During the last five years the
imports of the Dominican Republic
have decreased at an annualized
rate of -0.4%, from $13.6B in 2012
to $16.7B in 2017
The most recent imports are led
by Refined Petroleum (10%),
followed by Cars (4.88%)

5. Investment Opportunities
SECTORS
Real Estate
Natural Resources
Energy
Animal Health
INCENTIVES
Available Tax Incentives
World Bank (IBRD – IDA) funded Distribution
Grid Modernization and Loss Reduction
Project
STDF Project of Accreditation of Diagnostic
Tests for Animal Disease by OIRSA, WTO, FAO,
OIE, PAHO

6. Impact
Working towards the achievement of SDGs 1,
5, 10 and 15
Reduce poverty
Reduce gender gap
Reduce inequalities
Improve environmental conditions
Contribute to biodiversity
Long-term prospects of growth within both
sectors
It is set to achieve its goal of becoming a high-
income country by 2030
Fastest growing economy of the LAC region in
the past 5 years

7. Challenges & Solutions
PROBLEMS
Natural Disasters
Transparency and
Accountability
Development of human capital
SOLUTIONS
Commitments and guarantees
from the IBRD & IDA
Governmental reforms
Investment in education and
training

8. Strategy
OBJECTIVES
Produce a total annual
return of 25%+ over a five
year holding period
Distribute income during
holding period
THE REQUESTS
$400-800,000 in equity
contributions from limited
partners
(Fictional Company) will
invest $100-200,000
alongside other limited
partners
Purchase underutilized land
inside the island
Convert the land into land for
forage/for construction to
maximize income
Hire professional (local)
management company to
operate
Apply innovative and effective
marketing programs
May leverage up to 23% of
purchase price
HOW

9. Thank you for your time

10. Sources
DATA
https://www.state.gov/u-s-relations-with-the-
dominican-republic/
https://www.cia.gov/library/publications/the-world-
factbook/geos/dr.html
https://atlas.media.mit.edu/en/profile/country/dom/
https://www.worldbank.org/en/country/dominicanre
public
http://projects.worldbank.org/P147277?lang=en
https://unctad.org/en/Docs/iteipc20079_en.pdf
https://www.worldbank.org/en/country/dominicanre
public/overview
IMAGES & MAPS
ohttps://www.worldatlas.com/webimage/coun
trys/namerica/caribb/do.htm
ohttps://atlas.media.mit.edu/en/profile/countr
y/dom/
ohttps://www.un.org/sustainabledevelopment
/blog/2016/07/17goals17days-progress-made-
on-sustainable-development-goals/
ohttps://www.worldbank.org/en/country/domi
nicanrepublic/overview