IDB Invest approved US$173M for Guyana’s Private Sector since 2020

…no financing to Guyana approved by investment arm between 2015&2020

As the 2024 Annual Meetings of the Boards of Governors of the Inter-American Development Bank (IDB) and IDB Invest wrap up, it has emerged that the investment arm of the Bank approved some US$173 million for Guyana’s Private Sector over an almost four-year period.
This is particularly significant since, according to the Ministry of Finance, no such approvals were granted to Guyana by IDB Invest between 2015 and 2020, coinciding with the time when the former A Partnership for National Unity/Alliance For Change (APNU/AFC) Government was in power.
Finance Minister, Dr Ashni Singh participated in the discussions and informed the attendees that during the 2020-2024 period, 14 such transactions were approved by IDB Invest in Guyana – all valued at US$173 million. The Minister lauded IDB Invest and the President of the Bank, Ilan Goldfajn, also expressing optimism that this money would lead to significant increases in economic activities.

“Guyana is going through a period of rapid economic transformation and our economic growth will be driven heavily by investment in the Private Sector, and there is an abundance of opportunity for institutions like IDB Invest to participate in and support that transformation, and we see IDB Invest answering that call and responding to those opportunities and indeed, leading the way in that regard,” the Finance Minister said.

Accelerated funding
In a statement on Sunday, which is the final day for the annual meetings being held in Punta Canta, Dominican Republic, the Finance Ministry revealed that after the People’s Progressive Party/Civic (PPP/C) assumed office in 2020, approvals of Private Sector projects rapidly accelerated.
“Post 2020, we have seen a rapid increase in approvals granted under the current Administration culminating a few weeks ago when three agreements were signed between Private Sector companies in Guyana and IDB Invest on the margins of the IDB’s XII Consultations with Caribbean Governors hosted by Guyana,” the Ministry said.
The Ministry explained that the first such agreement signed, was under the transport and logistics category for the sum of US$14 million. This was for Muneshwers Limited to purchase two new gantry cranes for multipurpose cargo activities and to build a logistics warehouse.
“The amount included a senior loan of US$10 million from IDB Invest and US$4 million from the Guyana Bank for Trade and Industry.  It will allow for an increase in port terminal capacity and productivity in Guyana and berth movements for cargo including from Suriname, Trinidad, Colombia, and Panama,” the Ministry explained.

Meanwhile, a second agreement was signed under the purview of education and social investment to the tune of US$9 million, between IDB Invest, Republic Bank (Guyana) Limited and Texila American University. The money was aimed at enhancing the University’s drive to enhance its services in Guyana, by expanding its accommodation facilities for staff and students. The US$9 million includes a senior loan of US$5 million from IDB Invest and US$4 million from Republic Bank. Further, this project is the first Private Sector education project IDB Invest has funded in the Caribbean.
“The third agreement in the area of sustainable tourism and valued at US$22 million is slated to assist in the continued construction of the 172-room Four Points by Sheraton Hotel, which is currently moving apace at Houston, East Bank Demerara, just off the new four-lane highway.”
“For this, IDB Invest partnered with Caribbean Green Building Inc for the financing to develop a sustainable mixed-use tourism project. The hotel is one of several internationally-branded ones being constructed across the country to boost the tourism sector in keeping with the Government’s quest to develop the non-oil economy,” the Ministry said.

Regional leadership
Dr Singh’s comments on the good work being done by the Bank were not limited to Guyana either, for the Finance Minister also welcomed the IDB Group’s contributions to the Region. He pointed out that the 2024-2030 Institutional Strategy being implemented by the Bank is aimed at addressing the main issues affecting the Region – climate change, poverty and inequality, and sustainable growth.
“We welcome the Group’s leadership in supporting our countries and the Region as we innovate to address climate change through mitigation and adaptation. The seven operational areas of focus provide sufficient opportunity for targeted and enhanced engagement to improve well-being and expand opportunities in our Region.
“These areas not only enable the group to support countries in addressing our development challenges, but to leverage our comparative advantages to improve lives and livelihoods,” Dr Singh added.
Meanwhile, alluding to the One Caribbean Strategy recently launched by the IDB Group, Dr Singh was optimistic that this would help the Region better confront the challenges they face. Further, he welcomed the emphasis on regional integration, given Guyana’s strategic geographical position.
The IDB Annual Meetings take place every year in a designated member country. This year, as a prelude to the Annual Meetings, Guyana hosted the Twelfth Annual IDB consultation with Caribbean Governors in February.