SME support and agro-industrial development

President Dr Irfaan Ali has outlined a comprehensive strategy to strengthen Guyana’s small and medium-sized enterprises (SMEs) and expand the country’s agro-industrial economy. These initiatives, announced during the opening of GuyExpo, signal a targeted approach to economic diversification, value creation, and inclusive growth, and have the potential to reshape the business landscape for years to come.
Central to the Government’s plan is the introduction of incentives for commercial banks to provide more accessible financing to SMEs. Under the proposed measures, banks will be required to lower interest rates to below four per cent and reduce collateral requirements for small and medium-sized businesses. This initiative mirrors existing incentives offered to mortgage borrowers and demonstrates a commitment to making capital more affordable for entrepreneurs. By alleviating financial constraints, these measures are expected to stimulate investment, increase business activity, and ultimately create employment opportunities across multiple sectors.
Complementing this effort is the development of a dedicated national development bank. Capitalised with at least US$200 million and scheduled to begin operations in the first quarter of 2026, the institution will operate without collateral requirements and provide loans at zero per cent interest up to a predetermined value. The bank will primarily focus on the agriculture, tourism, and services sectors, with the objective of supporting enterprises that generate tangible value and stimulate economic growth. By partnering dynamically with commercial banks, the development bank will serve as a critical mechanism for unlocking capital, encouraging enterprise development, and expanding the country’s economic base.
The President also highlighted the importance of formalising SMEs within the agriculture sector. To incentivise registration, the Government plans to implement a graduated corporate tax system for agro-processing businesses, based on turnover. This system, outlined in Budget 2026, is designed to minimise or eliminate corporate tax for small- and medium-scale enterprises. By reducing tax barriers, this initiative encourages compliance, enhances standards, and facilitates access to regional and international markets. It represents a strategic approach to integrating informal producers into the formal economy while simultaneously promoting growth, efficiency, and competitiveness.
In addition to tax incentives, the Government will introduce measures to eliminate tariffs on agriculture, veterinary, and agro-processing inputs within the current trade framework. These policies aim to make inputs more affordable, reduce production costs, and enhance profitability for farmers and agro-processors. By lowering operational barriers, these reforms are expected to increase investment in value-added activities, expand productivity, and strengthen the entire agro-industrial ecosystem.
The broader objective of these measures is to position Guyana as a leading agro-processing hub in the hemisphere. Initiatives such as the creation of mega food parks, investments in research and development, and the establishment of value chains with market access are all designed to modernise the sector. The Government plans to implement pilot projects using blockchain-based traceability for commodity exports and establish a food innovation fund targeting youth participation. These measures collectively aim to boost production efficiency, foster innovation, and enhance the country’s export potential.
Moreover, the administration has emphasised diversification within agriculture. Plans to convert portions of existing farmland into livestock, swine, small ruminant, and aquaculture operations will provide farmers with new revenue streams while reducing dependence on single-crop production. Coupled with incentives for large-scale livestock farming, cold storage facilities, and sustainable land conversion, these measures are intended to enhance resilience, profitability, and long-term sustainability for the agricultural sector.
The Government’s approach also extends to social development initiatives, including support for over 1000 women trained under the WIIN programme to establish their own enterprises. By fostering female entrepreneurship, these initiatives strengthen economic participation and also contribute to broader social equity and community development.
The combination of financial support, tax incentives, regulatory facilitation, and targeted investment initiatives establishes a strategic commitment to empowering SMEs and modernising Guyana’s agro-industrial sector. These policies are expected to create thousands of business opportunities, stimulate employment, and drive long-term economic growth. By facilitating access to capital, promoting formalisation, and supporting value-added production, the Government is laying the foundation for a more inclusive and resilient economy, capable of competing in regional and global markets.