Guyana is poised to soon see the disbursement of the US$500 million loan facility extended last year by the African Export-Import Bank (Afreximbank) to assist this country in hastening its infrastructural development agenda, even as the bank looks at another initiative targeting small- and medium-size businesses (SMEs).
“We have disbursed a couple of other loan facilities for other countries in the region and the one for Guyana is within the ones that are nearing completion for actual disbursement to take place. That is something we are working very closely with the Government of Guyana on,” Okechukwu Ihejirika, Acting Regional Chief Operating Officer, Afreximbank CARICOM Office located in Barbados, told the Stabroek News via a telephone interview last week.
“Another one of the banks’ deals we signed was with the New Hayven [Merchant Bank] in Guyana. We want them to pilot our intervention which is supporting SMEs, especially in the oil and gas sector and the Guyanese policy it has for local content. Through this bank, we will find a way to reach out to them, the SMEs. We are working the fine details on the proposal we have with them for execution. So that we will be able to reach out to local SMEs, through them, and they can play a role in the intervention within the Guyanese economy,” he added.
The Afreximbank official was quick to point out that the bank sees investment in SMEs here as helping to support his country’s economy since they have the potential to trigger overall economic growth and job creation.
He noted that while the public should be aware that Afreximbank is like other import and export banks in terms of providing financial assistance and support to facilitate the export and import of goods and services between countries, he wants citizens to know they are “not here to compete with your commercial banks.”
With Africa being one of the largest export markets, he said that the partnership between the bank and Guyana, as with CARICOM, is to boost exports by providing financing to those importers so that they can easily trade and compete.
Last year the bank’s president, Dr Benedict Oramah, made the announcement at the opening of the 2nd AfriCaribbean Trade and Investment Forum (ACTIF), held here.
“For Guyana, here, we have agreed to conclude a US$500 million transaction to support accelerated infrastructure development… We also expect to sign a document evidencing the arrangements we’ve reached with the Government of Guyana for the US$500 million investment bridge financing facility,” he said.
Government and the Bank had said that they would finalise the terms of the interest on the lending amount, if accepted.
President Irfaan Ali has already said that this country will not accept interest rates higher than 4 per cent.
With hundreds of delegates from Africa and the Caribbean in attendance, Dr Oramah said that the bank has an agenda to ensure it supports the development of CARICOM countries, and had pointed to support given to Barbados, Grenada and The Bahamas for tourism and St. Lucia for climate adaptation, among other initiatives.
In addition, local oil and gas support service businesses which currently endure long waiting periods for their cash, would be lent the owed sums in advance by the bank, President Ali had said, as he hailed the initiatives.
Last month, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Ashni Singh, yesterday joined President Ali and Prime Minister Mark Phillips at a meeting with a delegation from Afreximbank, led by Dr. Oramah. It is unclear if its purpose was to discuss the disbursement sums, as the release from Office of the President did not elaborate.
Oramah had been accompanied by the CEO and founder of Denote Group in Nigeria, Alhaji Aliko Dangote. It is also unclear if the billionaire businessman and industrialist was here scouting business or investment opportunities.
‘Same Room’
Last week, the bank’s Regional Head echoed most of what was said at last year’s ACTIF, as he encouraged small businesses and persons with investment proposals to go to Nassau, Bahamas this month where the 3rd ACTIF will be held from June 12.
“We want to bring people with business opportunities together, in the same room and be able to sign deals. Not only sign deals but see those deals through the end and watch those partnerships grow. It’s an event that will bring together like-minded business persons to showcase what you have with the larger community,” he said.
Expecting some 25 heads of government and with more than 2,000 registrants from the diaspora and 200 from the Caribbean, he posited, “You won’t have another event where persons on the government and policy side are together with persons from commercial side, in this large scope.”
He noted too that a lot of Caribbean countries have looked at attending trade events to Africa and the Nassau event can cut their travel and time as they will see the same potential business partners and hear about business opportunities across Africa.
To persons in the region, he said, “We in the Caribbean now have to showcase what we have. The theme this year is ‘Owning Our Destiny: Economic Prosperity on the Platform of Global Africa’ and there is no better way to capture it. For we are not talking about Africa on the global Africa space but overall…”
He added, “We in the Caribbean don’t have to travel that long for one of the greatest opportunities to interact with the wider business community and find investment partners and find persons who can pitch opportunities as well.”
‘Not just corporate’
To locals, especially in Guyana, he urged that they take advantage and invest in attending the trade event as there will be a sidebar event especially targeted for SMEs.
“In Guyana they found oil. There are a couple of countries in Africa that have advanced the industry who have experience they can share and business interests that they can explore. With this event we want to see the sharing of ideas and networking of opportunities. They should make use of this. The event is not just for big corporate,” he said.
“We have a wide range of events and there is a roundtable for SMEs slated on the program. This brings them, from around this region, an opportunity to showcase what they are doing or what want they want to do to make them bigger or hear from a potential partner how to grow bigger. Nobody should look at it as something only for the big companies. The event shouldn’t take a lot of time. Registration is free and you can come and be part of this big event. It is the coming together of Africa and the Caribbean in one space,” he added.
Both Africa and the Caribbean have much to gain for sending to the rest of the international community a message that signals a preparedness by the two regions, whose growth and development had long been retarded by the burden of slavery, that they are now moving to enhance their socio-economic bona fides as part of the international community through the strengthening of economic ties.
