Gov’t continues to boost private sector growth amidst economic boom – Finance Minister

Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh highlighted the crucial role of private sector involvement and competitiveness in driving economic growth in Guyana.

In an interview with the Adrienne Arsht Latin America Centre of the Atlantic Council on Monday, Dr Singh outlined several government initiatives aimed at creating a favourable environment for this growth.

Despite global challenges, Dr Singh stated that the government remains committed to a sustainable and resilient development. A key element of economic growth is the cultivation and support of a conducive environment for Guyana’s private sector to flourish.

Guyana’s GDP surged by an impressive 49.7 per cent in the first half of 2024, with the non-oil economic sector expanding by 12.6 per cent.

According to Dr Singh, this remarkable growth has stimulated a dynamic private sector, which continues to innovate and capitalise on emerging opportunities.

“Given the rate of growth and given the rapid emergence of new opportunities, including and in particular in the oil and gas sector, what you are seeing is several Guyanese companies entering or engaging in lines of activities that perhaps previously they might not have been engaged in,” Dr. Singh said.   

Recognising that Guyana may lack the experience to take advantage of opportunities within the oil and gas sector, the local private sector has been engaging in joint ventures and strategic partnerships.

“They might have the local knowledge, they might have local capital, they’ll have local personnel, but they might not have perhaps some industry-specific access to technology, for example. And bringing in international partners and entering partnerships, that also sometimes addresses the constraints on capital,” Dr Singh highlighted.  

Government support is also evident through the enactment and enforcement of the local content framework, which incentivises partnerships between Guyanese and international companies.

“[This is] for the specific purpose of ensuring that Guyanese companies are able to participate in, contribute to and benefit from the opportunities in the oil and gas sector, but also leverage global industry-specific experience,” the finance minister added.

The government is also addressing challenges related to the accessing of finance through international institutions and banks as well as exploring avenues within the domestic financial sector.

Targeted support is being extended to Small and Medium-Sized Enterprises (SMEs), including financing programmes and technical assistance.

Last year, a $100 million loan agreement was inked with Small Business Development Finance Trust Incorporated (SBDF) to promote the development and expansion of small and medium enterprises in its bid to improve access to financing.

Furthermore, the government plans to update the Financial Institutions Act (FIA) to modernise Guyana’s banking sector and align it with international banking standards, which will ease access to capital and increase lending flexibility.