Since returning to office in 2020, one of the policies of the People’s Progressive Party/Civic (PPP/C) government is fostering a climate for investment so that the private sector, inclusive of both large and small businesses would thrive thereby allowing for more job creation and opportunities for citizens as well as supporting growth in the non-oil sectors and the economy as a whole. The banking and financial sectors have also been undergoing major transformation as well. Only last week, Citi- a leading global financial institution announced that it will be establishing a representative office in Guyana. This announcement was a clear indication that global financial institutions now also have confidence in the country’s economy and are willing to partner with government to invest and be part of Guyana’s continuing growth and development.
The developments have been noted to also be as a direct result of the strong leadership of His Excellency President Dr. Mohamed Irfaan Ali in positioning Guyana as a premier and stable destination for international investment and underscore the PPP/C’s Government’s efforts to engage with the global community and build a resilient, modern, and diversified economy.
In a statement on Friday last, the United States (US)-based multinational financial services company attributed its decision to set up an office in Guyana to the country’s exponential economic growth and pointed to its increasingly attractive investment climate.
Guyana’s Mid-Year Report presented to the National Assembly recently highlighted that overall, credit to the private sector grew by 7.7 percent to $485.4 billion at the end of the first half of the year. Specific to business enterprises, credit to the services, manufacturing, and agriculture sectors increased by 4.9 percent, 12.4 percent, and 1.1 percent to $165.6 billion, $48.7 billion, and $31.9 billion, respectively. Growth in the services sector resulted largely from credit to other services and telecommunications growing by 5.7 percent and 24.7 percent, respectively. Moreover, the report noted that expansion in the manufacturing sector was supported primarily by lending for other manufacturing and other construction and that engineering increased by 76.9 percent and 8.9 percent respectively.
In addition, credit to households rose by 7.3 percent to $51.8 billion, with notable growth of 20.3 percent observed in lending for motor cars.
Moreover, real estate mortgages expanded by 11.4 percent to $173.5 billion, driven by increases in mortgages granted for private dwellings and industrial and commercial properties.
The PPP/C government has indicated its intention to remain on the path of fostering a climate for investment as the economy continues to thrive. Its 2025 Manifesto states that as part of Financial Literacy and Inclusion, the administration will over the next five years:
- Implement a comprehensive National Financial Literacy and Financial Inclusion Strategy aimed at deepening understanding of basic financial and investment concepts, banking and financial services and widening participation in the formal financial system
- Work with commercial banks to expand banking services to those who are currently unbanked by improving the ease with which persons can open a bank account, apply for a loan and process transactions, all online
- Promote the use of agent banking networks to facilitate easy access to banking services in smaller, more remote, and hard-to-reach communities especially in the hinterland which are currently unserved or underserved by the banking system
- Promote the use of digital payment systems and financial technology solutions, including digital banking and mobile wallets, to improve the ease of access to financial services nationwide, bring more people into the formal financial system, and reduce cash dependency across the economy.
Meanwhile, also in keeping with another of its 2025 Manifesto commitments to establish a development bank to provide micro-credit loans to small and medium enterprises (SMEs), President Ali, in early October assured that the establishment of this development bank is moving forward. As part of the commitment, government will also be providing training and support to build capacity amongst the private sector, especially SMEs so that they can prepare credible business plans and successful loan applications to help them to graduate to the formal financial system.
