$900M revolving forestry fund: Small villages to produce furniture for schools in Guyana – Bharrat

…as fund helping communities boost value-added production

With Guyana having more than 18 million hectares of forest, a portion of which provides climate services, the Natural Resources Ministry is intent on facilitating the growth of value-added industries around the forestry sector whenever logging does occur.

Natural Resources Minister Vickram Bharrat explained recently that even as they work to keep the deforestation rate low, there is also a need to ensure that the viability of the sector is maintained for those who depend on the forest for a livelihood. He said this is where the $900 million revolving fund is significant.
“That is why you would hear us speak a lot about value-added, moving towards value-added. It’s simply cutting less trees, but keeping the sector viable. Keeping the jobs going. Keeping the economic activities, especially in the hinterland regions, going. Moving towards value-added. And we have had significant movements towards achieving this,” Bharrat said.
“Soon, we will see some of the small villages like Ituni in Northwest, they’ll be producing furniture for our schools in Guyana. And this is something that should be happening. When we realised that we actually have to send furniture into Region 10, we realised that this should not be. When most of our produce in the forestry sector, is coming from Region 10.”
Describing it as the Government’s new project, Bharrat explained that there are many benefits to promoting value-added industries around the forestry sector. High among those benefits is adding to the overall appeal of the sector.
“We’re working with those communities. That’s our new project that we’re working on, to ensure that we help the communities too. Because it is expensive and the revolving fund would go a long way in helping those communities, along with Government incentives and assistance, to ensure we can move towards value-added in the forestry sector.”
“Which is our aim, because it means we don’t have to harvest more trees, to keep the sector viable. It can become more valuable by moving towards value-added,” Minister Bharrat further explained.
Last year, with assistance from Demerara Bank Limited, the Guyana Government set up a $900 million revolving fund that is aimed at boosting the forestry sector to meet market demands. President Dr Irfaan Ali had announced that some $300 million from the State’s coffers has been set aside for this revolving fund.

This sum will be further supplemented by $600 million more provided by Demerara Bank Limited.
It had been explained that this $900 million revolving fund will carry a low interest rate of four per cent. According to the Head of State, through a partnership with the Guyana Forestry Commission under the Ministry of Natural Resources, a committee will be established to ensure that persons are adhering to and abiding by what is expected of them, that is, the sector itself and its various associations.
The Government, through the GFC, has committed to continue working with all forest stakeholders to increase productivity in keeping with sustainable forest management practices. When the People’s Progressive Party/Civic (PPP/C) Administration took office in August 2020, it inherited a “grossly mismanaged” forestry sector that was on the “verge of collapse. However, through various interventions and initiatives implemented by the Government, this industry has made a turnaround.
In 2020 alone, the Ali-led Administration injected $350 million into the then cash-strapped Guyana Forestry Commission to cover operational costs and wages for staff for the remainder of the year.
Strategies aimed at boosting the financial performance and management capabilities of the GFC were undertaken and in 2021, the forestry sector was able to make a positive turnover and manage on its own.
One achievement of the sector in 2021 included getting stakeholders, particularly small-scale loggers back into the business which resulted in the construction boom, and an increase in log production, with over 400,000 cubic feet declared.
Meanwhile, the GFC’s monthly revenue collection was increased from $70 million in 2019 to over $90 million in 2021 while over 100 new concessions were issued to small loggers.
Additionally, monitoring capabilities were advanced with the procurement of more off-terrain vehicles to venture into the hinterland for exercises.
Further, roads crucial to the development of the forestry sector were rehabilitated and new hinterland roads were constructed in Regions One (Barima-Waini), Two (Pomeroon-Supenaam), Eight (Potaro-Siparuni), Nine (Upper Takutu-Upper Essequibo) and 10 (Upper Demerara-Berbice) to the tune of over $3 billion. (G3)