Government of Guyana and Afreximbank highlight opportunities under US$1-billion oil financing facility

The Cooperative Republic of Guyana and African Export-Import Bank (Afreximbank) have concluded a two-day roadshow to promote access to a US$1-billion oil services financing facility announced by the Bank in February this year during the Guyana Energy Conference. The roadshow which was held from 21 to 22 May in Georgetown, Guyana, brought together players in the oil and gas sector, finance sector and the government circles as it sought to encourage local participation in Guyana’s rapidly growing oil and gas sector.

Themed Empowering local content participation for sustainable prosperity through the implementation of Afreximbank mandate, it highlighted the nexus of Afreximbank’s mandate in the promotion of local participation in Global Africa and indeed in Guyana. Guyana’s economy has been growing rapidly and is expected to record a GDP growth rate of 14 per cent in the next five years^[1], supported primarily by the expanded activities in the oil and gas sector and other non-oil sectors. Driven by the growth prospects, the Government of Guyana introduced a Local Content Act in 2021 to optimize economic gains from the oil and gas industry by strengthening the local value chain and prioritizing the use of domestic labor, goods, and services. The policy is built on the pillars of local resource utilisation, capacity building, value retention, multi-stakeholder collaboration, and operational efficiency.

Several Guyanese companies, including business intermediaries, SMEs, and financial institutions, attended the Roadshow, engaging directly with the Bank on its strategic support for Guyana’s transformative development journey. Other notable persons participating in   the event included Ms. Kathy S. Smith, President of the Georgetown Chamber of Commerce and Industry and newly elected vice-Chairperson of the Private Sector Commission and Ms. Nafeeza Gaffoor, the Chairperson of the Guyana Association of Bankers. The Bank introduced a comprehensive suite of solutions, including funded products (loans and credits), non-funded instruments (letters of credit and guarantees), and key trade facilitation tools such as the Pan-African Payment and Settlement System (PAPSS) and the Afreximbank Trade Payment Services and Facilitation Programme. These offerings—alongside treasury and settlement services—are tailored to deploy the new financing facility effectively and catalyse greater private sector participation in high-growth sectors like oil and gas.

The two-day roadshow concluded with the identification of immediate projects and interventions for the Bank in Guyana. These include capacity building programmes, development of select national infrastructure projects and support to intermediaries in the oil and gas value chain.

Speaking at the roadshow, Dr. Ashni Singh, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, expressed appreciation to the Afreximbank leadership, on behalf of the Government of Guyana, for establishing the oil service financing facility and for hosting the successful roadshow. He encouraged the Bank to work closely with the private sector in Guyana to facilitate transactions.

“There is a deep and profound historic tie between Africa and the Caribbean, a tie that is rooted first and foremost in our people and our culture. But there are also remarkable economic opportunities between us that have remained untapped and under tapped for far too long. We need, in this generation, to move the relationship beyond historic, cultural, and emotional ties, and now capitalize and leverage resources to realize the vast economic and commercial opportunities that exist between our economies. I therefore urge you, members of the business community in Guyana to interrogate and analyze the products offered by the Bank in detail to fully understand their potential and benefits, and to take advantage of the opportunities they can unlock.” added Honorable Dr. Singh.

In his remarks, Mr. Okechukwu Ihejirika, Afreximbank’s Acting Regional Chief Operating Officer for the Caribbean said:

“Our US$ 1-billion oil servicing finance facility for local content players in Guyana is not just a promise; it is an initiative we intend to fully implement. Through it, we will empower local Guyanese businesses to participate in the transformative opportunities available in the Oil & Gas sector. We are therefore here to listen, to engage, and to chart a path towards sustainable and shared prosperity.” Mr. Iherjirika said that it was imperative that local businesses also benefit from Guyana’s oil wealth.