IDB’s Private Sector financing in Guyana soars to US$58M

– Country Director says IDB committed to increasing financing

From the inception of its operation in Guyana, the Inter-American Development Bank (IDB) has provided financing to the Guyana Private Sector totalling more than US$50 million, and ranging from agriculture to the energy sector. And while the IDB is well known for providing loans to governments, its investment arm also provides loans to the Private Sector.
During a recent investment workshop, IDB Country Director Lorena Solórzano Salazar revealed that loans to the Private Sector total approximately US$58 million.
Appointed Country Director in April 2023, she also revealed the sectors in which this financing to the Private Sector was provided include transport and logistics, and energy.
“To date, we have approved in Guyana eight transactions to tally approximately US$58 million in agri-business, transports and logistics, financial and energy sector. And we’re committed to keep growing those numbers. And as Minister Singh said, I would like (to approve) a loan with the Private Sector every week,” she revealed.

Salazar has assured that, contrary to perceptions, the process of applying for such loans has become more flexible. According to Salazar, the IDB is open to hearing feedback from the local Private Sector on how it can improve its assistance to them.
“I know that you may think at the beginning that (our requirements) are a lot; but later, it’s easy and has been very flexible. I trust that you will find today the activity very resourceful; that (you) will share your ideas so we, as the IDB invest, can better serve you and support you and your growing needs, as the Private Sector.”
Access to financing has long been identified as a hindrance to Private Sector growth and investment.
The Government has, meanwhile, been pushing for the ramping up of IDB’s financing of Private Sector projects. 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.
During the workshop, Finance Minister Dr. Ashni Singh pointed out that the People’s Progressive Party/Civic (PPP/C) Government has been advocating for the IDB’s partnerships with the Private Sector to be ramped up.
“Even before oil, we, in Guyana, realized the critical, indispensable role to be played by the Private Sector in any lasting economic growth and sustainable socioeconomic development. We have always viewed the 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, and persons can capitalize on those: such as logistics, hospitality, financial services, and 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,” Minister Singh has said.
The Guyanese economy has grown at an average of more than 40 percent over the last three years. It is projected to grow at an average of 25 percent 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 in Government’s 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. (G-3)