Press Release: Micro and small enterprises to get additional financial support

–as Finance Minister oversees signing of IDB-Invest US$5M private sector loan agreement to IPED  

Micro and small enterprises (MSEs) in Guyana will soon receive further financial support through the Institute of Private Enterprise Development (IPED) with a US$5 million loan agreement today signed by the Inter-American Development Bank’s (IDB) Country Representative Lorena Solórzano-Salazar and Chief Executive Officer (CEO) of IPED Jagdesh Haripershad. The signing ceremony was held at the Ministry of Finance in the presence of officials of both entities and overseen by Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh. The loan injection to IPED will assist that entity to further support women, youth and rural entrepreneurs and will also help IPED in diversifying the sources from which it receives funding.

Delivering brief remarks at the signing ceremony, Minister Singh, while expressing appreciation to the IDB for its continued partnership with government and support for the continuous development in various sectors taking place countrywide, explained that government considers  IPED to be a very important and special institution as he reminded that IPED was established when Guyana was in a difficult place economically and politically and when there was virtually no  private sector. He pointed out that IPED has grown from strength to strength since then as he recognized the contributions of its founder, the late Dr. Yesu Persaud and current Chairman Mr. Komal Samaroo.   

“Over its forty years of service, IPED has disbursed more than 147,000 micro credit loans valued at more than G$64 billion supporting thousands of Guyana’s smallest entrepreneurs. In a small environment like Guyana it is really a remarkable achievement,” Dr. Singh highlighted as he lauded the directors and others at the helm of the institution for this achievement.

“They currently have about 5,000 clients on their books and about 40 percent of IPED’s borrowers are women and about five percent are under twenty-five years of age so they (IPED) have a strong track record of supporting women and young entrepreneurs and working in rural communities having served more than 700 different villages across the length and breadth of Guyana,” Minister Singh said, adding that he was extremely pleased on behalf of President Ali and the entire government  to salute IPED for its forty years of remarkable service to the Guyanese people. Dr. Singh also lauded the institution for its continued innovative approach in mobilizing financing. 

Minister Singh also thanked the Japan International Cooperation Agency (JICA) and complimented the IDB team for all of its successful partnership work with government over the last years as he reminded the forum about some of the various projects and other initiatives that the IDB has assisted with in terms of Guyana’s private sector, including the soon to be opened Four Points by Sheraton Hotel. The Minister highlighted that since he assumed office in 2020, the IDB-Invest has partnered with Guyana’s private sector in terms of financing to the tune of over US$250 million.   

Ms. Solórzano-Salazar, who explained how the project will impact Guyana, pointed out that the IDB has been continuing to strengthen its partnership with the Government of Guyana and the private sector to drive business activities in the country. She noted that since Guyana is the fastest growing economy in the region, the role of the financial sector is critical to support local entrepreneurs, including micro and small enterprises in line with government’s strategy to diversify the economy and improving access to financing. Therefore, by supporting IPED, Ms. Solórzano-Salazar posited that the IDB-Invest would be supporting micro and small enterprises.         

Also delivering remarks virtually was Chief Executive Officer (CEO) of IDB-Invest Mr. James Scriven who expressed enthusiasm that the agreement was being signed as he indicated further that the bank continues to appreciate witnessing the diverse benefits of the oil and gas industry trickling down to the entire country in all of its different layers.

Meanwhile, Chairman of IPED Mr. Komal Samaroo expressed appreciation to the Government of Guyana, IDB-Invest and Japan International Cooperation Agency (JICA) for making the initiative possible. He highlighted that it is significant that the signing of the agreement coincides with IPED’s fortieth anniversary to be celebrated this year since its establishment in 1986.  Mr. Samaroo reminded that IPED has over the forty years, the organization has made significant contribution to the development in the micro and small business sectors in Guyana.      

The US$5million agreement signed today comprises a US$2.5 million loan through IDB-Invest the private sector support arm of the IDB and another US$2.5 million from the Japan International Cooperation Agency (JICA)’s Trust Fund Achieving Development of Latin America and the Caribbean (TADAC Fund) administered by IDB.    

Government has been supporting micro, small and medium enterprises through various initiatives. This has been done in partnership with international institutions such as IDB-Invest and other institutions, with the administration injecting billions to support thousands of micro, small and medium enterprises nationwide in the last five years.

Additionally, in its 2025 manifesto, government committed to the creation of a new zero-interest Development Bank (GDB) which will offer zero-collateral loans to small and medium enterprises (SMEs).The bank is expected to benefit youth, women, persons with disabilities, and small and medium-scale businesses and government will provide US$200 million for the initiative.

On Sunday last, President Dr Mohamed Irfaan Ali announced that government has initiated discussions with several major companies such as Banks DIH, to forge new avenues for small and medium enterprises (SMEs) through the new development bank expected to be launched soon. The bank forms part of government’s broader vision to empower local entrepreneurs, stimulate innovation, and dismantle long-standing barriers to financing.