Energy sector continues to blossom!
US EXIM Bank approves $526M financing for Guyana’s landmark Gas-to-Energy Project
— despite region’s goal being affected by recent hurricane — region still working on dismantling trade barriers PG 2
Development bank, similar options being considered for more sources of finance
Guyana’s exports to rise by 77 per cent this year New bill promises easier access to loans for small businesses in Guyana —
— despite region’s goal being affected by recent hurricane — region still working on
President Dr Irfaan Ali has announced that Guyana is ahead of the regional food security goal of reducing the food import bill by 25 per cent by 2025, despite the Caribbean region’s goal being affected by the recent hurricane.
The Head of State made these remarks during the second edition of his “In the Seat” show, during which he answered questions from five women journalists on pressing issues.
When asked about the food security goal for the Caribbean Community (CARICOM) which Guyana is spearheading, President Ali noted that there have been some disruptions in this regard due to natural disasters however, Guyana remains on track.
President Ali said, “Fortunately for us, although we went through two major floods, we are way ahead of the plan.”
With this, he added that by next year, Guyana will be fully self-sufficient in corn and soya and fur-
ther in black eye and red beans to the extent that there will be an exportation of the same.
“And by the end of 2026, we will be exporting corn and soya out of the region,” he said.
Against this backdrop,
he noted that with the integration of Northern Brazil into the regional food hub, there is an opportunity to bring down the cost of food in the region, as imported inflation is having a tremendous effect on many countries in the region.
However, turning to CARICOM’s thrust towards the 25 by 2025 goal, he said that every Prime Minister from every country in the region has embraced the strategy with full determination and has
gone above and beyond.
These countries, he said, have made financial resources available and have been investing heavily towards achieving the target.
To this end, he noted that the recent damage done to several islands by Hurricane Beryl and other tropical storms has impacted the 25 by 2025 plans.
Giving an example, President Ali said that this has impacted spice cultivation, and banana cultivation and even caused the loss of assets for fisherfolks.
Meanwhile, as progress has been made in the region, the Head of State noted that he is somewhat disappointed at the pace at which some of the countries are moving in the removal of barriers and further some other Heads of State have also expressed disappointment.
While this is so, he noted that there have been some moves forward, “But we have had successes
too… our milk is now in Barbados… I know we are working now to have our ice cream in different countries.”
Dr Ali said that there have still been some major challenges with Trinidad and added that most of it is linked to the bureaucratic layers and archaic laws that must be addressed. These issues, he said, were raised with Trinidad’s Prime Minister Keith Rowley and with other regional leaders and he added that Rowley too expressed a desire to find a way forward.
Vision 25 by 2025 was officially implemented in 2021 and laid the groundwork for long-term social and economic partnerships among member states, private sector, regional organisations, development partners and civil society to invest in initiatives to address the region’s rising food import bill and further improve intra-regional trade.
IN a significant boost to Guyana’s energy sector, the Export-Import Bank of the United States (EXIM) has approved over $526 million in financing to support a transformative Gas-to-Energy project.
This initiative, spearheaded by the Ministry of Finance of the Cooperative Republic of Guyana, aims to construct a stateof-the-art natural gas separation plant, a 300 megawatt combined cycle gas turbine power plant, and the necessary gas supply pipeline located at Wales, West Bank Demerara.
The funding will enable Guyana to transition towards cleaner and more reliable energy sources, utilising natural gas for electricity generation.
This shift is expected
to double the country’s installed electric capacity, significantly enhancing energy security and unlocking substantial economic growth opportunities for local businesses.
President and Chair of EXIM, Reta Jo Lewis, expressed her satisfaction with the approval, emphasising the project’s alignment with US economic, energy, and national secu-
rity priorities.
“I am extremely pleased that the Board of Directors approved today’s Gas-to-Energy Project,” Lewis stated.
“This project will not only support US businesses but also create over 1,500 jobs across 11 states and territories” through a joint venture involving Texas-based Lindsayca and Puerto Rican small
business CH4 Systems, with services provided by ExxonMobil.
The project is anticipated to reduce greenhouse gas emissions by over 460,000 tonnes annually, equivalent to the carbon footprint of consuming more than one million barrels of oil.
This environmental benefit aligns with global efforts to combat climate change while providing a sustainable energy solution for Guyana.
A notable aspect of this initiative is its commitment to local employment; approximately 85% of the 500 workers currently involved in the project are Guyanese.
US Ambassador to Guyana, Nicole Theriot highlighted this partner-
ship’s significance: “By working with U.S. companies, Guyana will benefit from a first-in-class power plant where quality and safety are at the forefront.”
This landmark project represents the largest infrastructure loan in Caribbean history and is seen as a testament to growing confidence in Guyana’s economic prospects and its deepening partnership with the United States.
The American Chamber of Commerce in Guyana has praised this development as a pivotal step toward enhancing energy independence and attracting sustainable investments across various sectors.
The Government of Guyana has been proactive in advancing this
project, having allocated substantial resources from its budget to ensure progress continues while awaiting external funding.
Vice President Bharrat Jagdeo noted that despite initial requests for higher funding amounts, this approval marks a critical milestone in securing necessary financial backing
As construction progresses on the pipeline designed to transport natural gas from offshore fields to onshore facilities, stakeholders anticipate that once operational, this gas-to-Energy project will reduce electricity costs by up to 50 per cent, thus increasing competitiveness across industries in Guyana.
IN a significant announcement aimed at bolstering Guyana’s economic development, Vice President, Dr Bharrat Jagdeo, says the government is exploring the re-establishment of a development bank. This, he noted, will help in the areas of key financial gaps and provide long-term capital to support those transformational projects in tandem with the country’s strategic objectives.
Speaking at the Guyana Manufacturing and Services Association (GMSA) 29th Annual Awards and Dinner, he explained that the proposed institution would focus on providing financial support to small and medium-sized businesses.
The Vice President emphasised the government’s commitment to strengthening and modernising Guyana’s financial sector to meet the demands of a rapidly expand-
ing economy.
He noted that discussions are underway to introduce new institutions and innovative financial instruments to complement the offerings of existing financial entities. These advanced tools, he explained, are essential to addressing the evolving needs of businesses and industries.
Additionally, Jagdeo
highlighted a significant trend among major international banks, which are increasingly reluctant to engage in retail banking, further underscoring the necessity of these measures to ensure robust financial support for the economy.
“The discussions we have been having with companies from [a]broad. Most
of the big banks now they don’t want to get into retail banking,” he revealed. He explained that many major international banks are interested in setting up representative offices in Guyana, which would require amendments to existing laws to facilitate their establishment.
He cited Citibank as an example, noting that the bank has informed the Guyana government of its decision to exit operations in the Caribbean and Latin America, with plans to do the same in Mexico.
“This is part of the big institutions’ move to de-risk by getting out of small jurisdictions,” Jagdeo emphasised. Citibank, the primary banking subsidiary of the multinational financial services corporation Citigroup, ranks as the fourth-largest bank in the United States by assets as of 2023. The bank operates
branches across 19 countries, reflecting its global reach.
In this context, Jagdeo proposed that the government might consider revisiting the idea of establishing a development bank or similar mechanisms to provide financing for small and medium-sized businesses at competitive rates in the future.
He indicated that such an initiative could be considered during the next term of the People’s Progressive Party/ Civic (PPP/C) administration.
“At some point in time, we may return to provide some sort of financing for small- and medium-scale businesses at competitive rates. Possibly in the next PPP (People’s Progressive Party/C) term in office, we may get to that.” However, he acknowledged the challenges Guyana has faced with public sector-led financing in the
past, emphasising the need for a carefully structured approach to avoid repeating previous missteps.
He reminded: “Our historic experience with public-sector intermediated financing has been a bad one. When we [the PPP] assumed office in 1992, there were eight financial institutions that the government either had participation in or controlling interest in. And they were all tottering on the verge of bankruptcy and we have to exit all of them without recourse to the treasury. We managed to successfully do that without putting a burden on the treasury.”
The state-owned Guyana Co-operative Agricultural and Industrial Development Bank (GAIBANK) was closed in 1995, citing its bankruptcy despite a merger with the Guyana National
Continued on page 5
AS 2024 draws to a close, Guyana has emerged as the standout performer in Latin America and the Caribbean, with exports set to increase by an astounding 77 per-cent, largely driven by the country’s oil and gas, and agriculture sectors.
This was according to the Economic Commission for Latin America and the Caribbean (ECLAC)’s ‘International Trade Outlook for Latin America and the Caribbean, 2024’ which was released this month.
The report highlighted that following a contraction of 1.2 per cent in global goods trade in 2023, the world economy is tentatively rebounding in 2024, with global goods trade growing by one per cent.
In contrast, Latin America’s trade outlook is more optimistic, with regional goods exports projected to increase by four per cent in value for the year.
However, Guyana’s growth stands out in the region, fuelled by a significant rise in the volume of its oil exports and agricultural products like soybeans.
This exceptional performance positions Guyana ahead of other nations. Suriname, for example, is expected to see a more modest 12 per cent export growth.
Larger economies like Brazil and Mexico are forecast to experience more restrained growth, with export increases of just three per cent and two per cent, respectively.
In fact, the report found that
some nations are grappling with export declines, with Panama’s exports set to plummet by 71 per cent due to the closure of the Cobre Panamá mine.
Across the broader region, agricultural exports have experienced significant volume increases, including a rise of up to 100 per cent in certain products like maize and soybeans. However, the Caribbean continues to face challenges, particularly in food security. The region remains a net food importer, and the cost of accessing a healthy diet is the highest in Latin America and the Caribbean, surpassing the global average by 30 per cent.
This food insecurity is compounded by high import tariffs and logistical challenges. Services trade is also contributing to the region’s recovery.
In 2024, regional services exports are projected to grow by 12 per cent, with travel and modern services being the pri-
mary drivers.
This marks the fourth consecutive year of double-digit growth in services exports, signalling that while goods exports are important, services—particularly tourism and digitally delivered services—are becoming an increasingly significant contributor to the region’s economic activity.
Despite these positive export trends, the region’s economic growth remains weak.
With a projected 1.8 per-cent GDP growth for 2024, Latin America continues to face sluggish demand for imports, with regional imports expected to rise by only two per cent.
Nevertheless, the region’s trade balance is improving. Latin America and the Caribbean are set to move from a US$26 billion trade deficit in 2023 to a US$36 billion surplus in 2024, driven by strong export performance in countries like Guyana and Argentina.
From page 4
Cooperative Bank (GNCB), which ultimately failed to salvage its operations. Against this backdrop, he stated that the government remains “very cautious” about investing in public-sector financial institutions. However, he acknowledged that at some point, such investments might become necessary, particularly to support small and medium-sized businesses.
In the meantime, small and medium-sized busi -
nesses can access development grants from the Small Business Bureau (SBB) and loans from some commercial banks. The 2024 national budget includes an allocation of $450 million for replenishing the Small Business Development Fund and $331 million for the Small Business Bureau.
Regarding access to finance, Jagdeo stated that the government plans to amend the relevant legislation to allow commercial banks to
accept movable collateral for loans, thereby expanding access to financing for more people.
“Right now, before Parliament, we have tabled a piece of legislation to allow the bank to use movable collateral to make loans. So, in the future, that will ensure that more people can have access to financing because they would have a new class of collateral available to securitise their loans,” said the Vice President.
Guyana’s exceptional export growth is helping to boost the overall Caribbean trade performance, with export volumes in the subregion set to expand by 24 per cent.
This surge is largely attributed to oil exports, which have been the backbone of Guyana’s export growth. However, the Caribbean’s food trade deficit and high import costs remain persistent challenges, with food security continuing to be a critical issue, particularly in countries like Haiti.
While Latin America and the Caribbean are recovering from the global trade slump of 2023, this year’s trade figures emphasise the region’s continued reliance on commodities for export growth.
As of December 2024, Guyana’s remarkable 77 per cent export growth reflects its resource-rich economy and high-
lights the region’s uneven recovery, with some countries seeing strong growth while others face contraction.
The country had recorded export earnings of US$10.221 billion in the first half of 2024, according to the Mid-Year Report released recently by the Ministry of Finance.
According to the report, the merchandise trade balance registered a surplus of US$6.976 billion in the first half of the year, compared with the surplus of US$2.340 billion recorded in the corresponding period of last year.
This improvement was largely supported by a significant ramp up in crude oil production offshore, following the start-up of Guyana’s third FPSO – Prosperity
Importantly, outside of the oil and gas sector, growth was also seen in non-oil export earn-
ings in the first half of 2024 by some 23.4 per cent.
The earnings from rice and gold expanded by US$24.7 million and US$12.2 million, respectively, with the increase for gold reflecting favourable price developments.
At the start of 2024, Senior Minister in the Office of the President with responsibility for Finance and the Public Service, Dr. Ashni Singh had projected that Guyana’s total export receipts could grow by 41.9 per cent for 2024.
This growth, he added, was expected to be driven by a robust expansion in both oil and non-oil earnings.
At that time, Dr Singh said that the government would continue its focus on developing a conducive environment to boost the country’s trade in both the import and export of goods and services.
IN keeping with government’s commitment to revolutionising how credit is accessed in Guyana, Minister of Tourism, Industry and Commerce, Oneidge Walrond, recently presented the Security Interests in Movable Property Bill 2024 in the National Assembly.
This legislation introduces a framework to enable individuals and businesses to leverage movable assets— such as machinery, vehicles, inventory, accounts receivable, and intellectual property—as collateral for loans.
The bill is a response to longstanding concerns about the challenges Guyanese face in obtaining credit due to limited access to traditional forms of collateral, such as real estate.
For small businesses and startups, which often lack the financial heft to own fixed assets, this legislation could be a game changer.
WHAT THE BILL PROPOSES?
At its core, the bill establishes a modern, streamlined system to secure and enforce loans against movable property.
It introduces a national registry to record security interests, ensuring transpar-
ency and reducing risks for creditors. This digital database will allow banks and lenders to quickly verify if a movable asset has already been pledged as collateral.
The bill also provides a uniform legal framework for creating, registering, and enforcing security interests. It simplifies the process for both lenders and borrowers, making credit more accessible while mitigating potential disputes over ownership or claims on assets.
The ripple effects of this
legislation could be significant. Easier access to credit can stimulate entrepreneurship, innovation, and economic diversification.
Micro, small, and medium enterprises (MSMEs)— the backbone of Guyana’s economy—stand to benefit the most. Entrepreneurs will be able to invest in equipment, expand operations, and improve productivity without the burden of securing immovable assets.
This comes at a crucial time for Guyana, as the na-
tion seeks to channel its oil wealth into long-term sustainable development. By encouraging local business growth, the bill aligns with the government’s broader agenda to create an inclusive and diversified economy. Despite its promise, the bill has sparked debates. Some critics have raised concerns about potential risks to borrowers, such as repossession in cases of default. Others worry about the system’s implementation and whether lenders will be willing to
accept movable assets as sufficient security.
However, the bill will have robust safeguards in place to safe guard the public. The registry system is set to minimize fraudulent claims and disputes, while public awareness campaigns will educate borrowers on their rights and obligations under the new framework.
The concept of movable property as collateral is not new. Similar systems have been successfully implemented in countries like Jamaica, Kenya, and Canada, leading to increased credit flow and economic growth. Guyana’s adoption of this framework positions it as a forward-thinking nation, ready to embrace innovative financial tools.
WHAT’S NEXT?
The bill will now proceed to its second reading, where it will be debated by members of the National Assembly. If deemed necessary, it could be referred to a Select Committee for detailed review before the final reading and vote. Once approved, the bill requires presidential assent to become law.
For small business owners and aspiring entrepreneurs, this legislation could mark the beginning of a new era—one where their ideas and assets, no matter how modest, have the power to unlock their full potential.
The People’s Progressive Party Civic-led government has been actively enhancing access to loans for small businesses through several initiatives aimed at fostering entrepreneurship and economic growth.
This includes a loan agreement worth $100 million with the Small Business Development Finance Trust (SBDF).
Last year it was reported that the SBDF disbursed over 6,800 loans valued at approximately $4.5 billion since its inception, demonstrating its commitment to supporting micro and small enterprises.
In the 2024 budget, $450 million was allocated for the replenishment of the Small Business Development Fund and $331 million was allocated for the Small Business Bureau. The disbursement of 100 loans and 1,362 grants is the target for 2024.
When enacted, the Ministry of Tourism, Industry and Commerce plans to roll out the registry and begin stakeholder consultations to ensure a smooth transition.
— says Guyana is an ‘important’ energy
INDIA’S Prime Minister Shri Nahendra Modi has said his government views Guyana as the key to its energy security needs and that he will be encouraging more Indian businesses to pursue investment opportunities here.
He was at the time addressing a special sitting of the National Assembly at the Arthur Chung Conference Centre at Liliendaal, back in November.
PM Modi said he views Guyana as an important energy source and intends to lobby Indian businesses to invest in Guyana.
“[The] demand for energy is growing rapidly in India, and India is also diversifying its energy sources,” he said adding, “We view Guyana as an important energy source…We are also making continued efforts to ensure that our businesses invest more in them.”
Meanwhile, at a later press briefing, Jaideep Mazumdar, Secretary (East) in the Ministry of External Affairs noted that the prospects of exploration for the production of crude are promising.
“In the hydrocarbon sector, Guyana has proven…the estimated reserves of oil and gas which are very promis-
ing. We would be interested in the participation of exploration and production phase as well.”
He however noted
that while many Indian companies are eyeing investment opportunities, the government is hoping for a G to G
(Government to Government) partnership in the sector.
“Our oil companies are certainly looking at
this. If they do get an opportunity, they would be willing to invest as we have in many countries far from the shores of India,” Mazumdar told reporters.
Following the signing of a Memorandum of Understanding (MoU), it was disclosed that India was interested in securing an agreement for purchasing at least two million barrels of crude oil.
He noted that businesses in India would be interested and ‘willing’ to invest.
However, a final agreement for an oil deal with the two nations lies with the Government of Guyana.
Guyana’s Vice-President Dr. Jagdeo said no discussions on the direct transaction for the sale of our crude to India were held during the PM Modi’s state visit.
He noted that a government-to-government partnership to sell crude would have to be one that ‘makes sense’ to both nations.
He however alluded to the two nations’ agreement on hydrocarbons.
“We want to collaborate in several areas in oil and gas. [There are] enormous expertise in many areas, but also clean energy.”
He noted too that In-
dia is leading the world in solar power implementation and Guyana wants to harness these experiences and technologies.
The MoU establishes a framework for Guyana and India to enhance bilateral collaboration in the hydrocarbon sector. This MoU encompasses investment promotion, technology transfer, joint studies and capacity with a focus on fostering energy security and advancing mutual development.
“In the whole hydrocarbon sector, there are lots of areas that we can utilise Indian skills, Indian technology and also Indian investments.”
Earlier this year, it was reported that the trade of hydrocarbon between Guyana and India increased dramatically between 2021 and 2022, hitting an “alltime high” of US$149 million.
Dr. Jagdeo further reminded that Guyana has already secured agreements for its crude to be marketed for the next year.
UK-based BB Energy Trading Limited and JE Energy secured those contracts to market Guyana’s share of crude oil from the country’s three floating production storage and offloading (FPSO) vessels.
FOCUSING on a niche market, Guyana’s tourism sector is projected to experience rapid growth, with substantial increases in hotel capacity anticipated in the years ahead.
At a recent press conference, Minister of Tourism, Industry, and Commerce Oneidge Walrond announced that the nation currently has 3,300 hotel rooms; an additional 1,000 rooms are scheduled to become available in 2025, with a further 800 rooms to be added by 2026.
This expansion, she explained, is part of the government’s broader strategy to boost tourism and support the country’s growing appeal as an international destination.
“The idea is to keep our hotel rooms filled and so every month you will find that there is an activity, so you have the energy conference, international conferences, the FAO and we continue to invite more and more international conferences here,” she explained.
The new hotel rooms will help accommodate the influx of tourists drawn by Guyana’s expanding tourism offerings, including international conferences, sporting events, and entertainment shows.
Walrond highlighted that the government’s focus is on providing a diverse tourism product, ensuring that there is something for every type of traveler.
As such, in addition to the growing demand for business tourism, the government is also targeting high-value markets by positioning Guyana as a destination for eco-tourism, sports, and entertainment.
As the hotel industry expands, Walrond emphasised that Guyana’s tourism infrastructure will be tied closely to these.
Beyond the business and eco-tourism offerings, Walrond revealed a push for Guyana to become a hub for the film industry, with the government working to attract international film production companies.
“We have also made a push for Guyana to be open to more to the film industry…All of this this aimed to open up Guyana to for more people to come. The hotels have been tied into more activity in terms of international sports, entertainment, international shows that are coming here with international artiste.”
Ultimately, Guyana is preparing itself for the growth in its tourism industry with the development of seven new international hotels, which are set to materialise by 2025.
Only recently Aiden Hotel, by Best Western, officially opened its doors Oronoque and Robb Streets, Georgetown.
During the launch of the boutique luxury hotel, Guyana’s President, Dr. Irfaan Ali, highlighted the role of
high-quality investments like Aiden in boosting the country’s international image. He stressed that such de-
velopments are essential for Guyana to compete on the global stage and attract both investors and tourists, ensuring
that the nation is synonymous with excellence.
“We have welcomed to our shores the best in eco-tourism businesses [and] premier companies. What this allowed is for ‘Brand Guyana’ to be associated with the best brands in the world; the best markets in the world. It allows ‘Brand Guyana’ to be marketed in the top-tier tourism hub globally,” he emphasised.
According to Dr. Ali, the investment in the hotel is linked to the country’s vision of building a world-class economy by 2030, aiming for three million people to pass through the country annually.
He related that the hotel’s quality has led the brand own-
ers to adjust their model upwards.
The influx of international hotel brands is anticipated to bring global standards and practices to Guyana’s hospitality sector. This could lead to improved service quality across the industry and provide valuable training opportunities for local staff, enhancing the overall tourism experience in the country.
This development is also likely to have a positive effect on Guyana’s infrastructure.
The construction of these hotels could spur improvements in roads, utilities, and other public services to support the increased tourism activity. Additionally, it may encourage
the development of new tourist attractions and experiences to cater to the expected rise in visitors.
Minister Walrond pointed although Guyana’s oil-and- gas sector is growing, diversifying the economy through tourism development is a strategic move. It provides an alternative revenue stream and helps to create a more resilient economic structure.
“Tourism is a key pillar for Guyana’s sustained economic growth. We’ve seen that over and over… tourism. Is a key pillar for Guyana’s sustained economic growth. We’ve seen that over and over.”
