Consider IDB as viable option for financing – Singh tells local Private Sector

From the standpoint that Guyana today is ‘ripe with opportunities’ for investments, the local private sector was encouraged to consider the Inter-American Development Bank (IDB) as a mechanism for financing.
Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh shared this position at the launch of the IDB Invest, Caribbean- Suriname and Guyana Edition Workshop, at the Marriott Hotel, as he highlighted the economic wave which is currently passing through the country.
The workshop falls under the “IDB Invest Caribbean Series,” and is designed to match the local private sector needs with the IDB’s private sector in various areas including energy, modernisation of the agriculture sector, and strengthening the transportation system among others.

Singh underscored that IDB has facilitated transactions as small as US$5 million. While the standards may be higher, it will allow them to prepare for such environments.
“I would say to the private sector of Guyana, I urge you to consider the IDB Invest a viable option for raising financing. It might seem like the barriers to entry are a little high, a lot of standards and studies that you have to do…but the reality is in today’s world, even if you don’t meet those standards to raise financing with the IDB, if you want to do business with major companies around the world, chances are you are going to have to comply with those standards anyhow,” he urged.
Equally, he called on the IDB to work with the private sector in sharpening their abilities to do business in a modern world.
“I would urge the IDB Invest to work with as many Guyanese companies as you can to bring them up to a point where they’re able to access financing not only in the interest of concluding a transaction but also in the interest of them being able to participate in the modern world.”
For a long time, the IDB has been the single source of development financing for Guyana and its public sector portfolio remains the same to date. Even in the pre-oil Guyana, Minister Singh said Government has been advocating for the IDB’s operations with the private sector to ramp up.
“Even before oil, we in Guyana realised the critical, indispensable role to be played by the private sector in any lasting economic growth and sustainable socioeconomic development. We have always viewed Government’s role as one where we provide the critical prerequisites to economic development and appropriate policies and legislative framework, critical infrastructure to facilitate private investment and job creation. But that environment, we have always expected would be responded to by the private sector,” he detailed.
According to the Minister, there are opportunities for growth and expansion in every single sector of economic endeavour. Oil has opened up doors in several areas which persons can capitalise on, such as logistics, hospitality, financial services, supplies among others.
“There has never been a time as ripe as today for the private sector of Guyana to invest in good, bankable projects. It doesn’t matter what you’re doing. Today there are people buying a fleet of buses and taxis and getting a contract with ExxonMobil.”
The Guyanese economy has grown at an average of more than 40 per cent over the last three years. It is projected to grow at an average of 25 per cent over the next three to five years. And with this economic boom, Government has reiterated that Guyana is open for business.
Back in March, the Georgetown Chamber of Commerce and Industry (GCCI) had said that continued bureaucracy at commercial banks in making access to financing easily available was putting local businesses at risk of becoming unable to compete in Guyana’s oil and gas sector, as well as losing out on Government projects.
As such, the body had called on the local banks to be proactive and outline the hindrances – whether legislative, economic, social, or environmental – that are restricting better access to finance for the local private sector. (G12)