Micro and small enterprises (MSEs) across Guyana are set to benefit from expanded access to financing following the signing of a US$5 million loan agreement between IDB-Invest and the Institute of Private Enterprise Development (IPED). The deal marks another significant step towards strengthening financial support for local entrepreneurs, particularly women, youth, and businesses in rural communities.
The agreement was formally signed at the Ministry of Finance by IDB’s Country Representative, Lorena Solórzano-Salazar, and IPED’s Chief Executive Officer, Jagdesh Haripershad. The ceremony was attended by senior officials from both institutions and overseen by the Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh.
The fresh injection of funding is expected to enhance IPED’s capacity to expand its lending portfolio and help the institution diversify its funding sources. The financing will be channelled directly towards strengthening support for micro and small entrepreneurs, aligning with national priorities for inclusive economic growth.
In brief remarks at the ceremony, Dr Singh expressed gratitude to the Inter-American Development Bank for its continued partnership with the Government of Guyana and its sustained contributions to national development across multiple sectors. He described IPED as a critical institution in the country’s economic landscape, noting that it was established during a period when Guyana faced severe economic and political challenges and had a minimal private sector.
The minister highlighted IPED’s steady growth over the decades and acknowledged the vision of its founder, the late Dr Yesu Persaud, and the leadership of its current chairman, Komal Samaroo. He noted that over the past 40 years, IPED has disbursed more than 147,000 micro-credit loans valued at over G$64 billion, supporting thousands of small entrepreneurs nationwide.
Dr Singh further noted that IPED currently serves around 5,000 active clients, with women accounting for approximately 40 per cent of borrowers and young people under 25 accounting for about 5 per cent. He also emphasised the institution’s strong rural footprint, having served more than 700 villages across Guyana. On behalf of President Dr Mohamed Irfaan Ali and the government, he commended IPED for its four decades of dedicated service to the Guyanese people.
The senior minister also praised IPED’s innovative approach to mobilising financing and extended appreciation to the Japan International Cooperation Agency (JICA) for its support. He acknowledged IDB-Invest’s broader role in advancing private-sector development, citing several projects backed by the institution, including the soon-to-open Four Points by Sheraton Hotel. Since 2020, IDB-Invest has supported Guyana’s private sector with financing totalling more than US$250 million.
Explaining the agreement’s significance, Solórzano-Salazar said the IDB continues to deepen its collaboration with both the government and the private sector to stimulate economic activity. She noted that as Guyana experiences rapid economic growth, a strong financial sector is essential to ensure that local entrepreneurs, especially micro and small businesses, can access the resources needed to grow and compete. She added that supporting IPED directly contributes to this objective.
IDB-Invest’s Chief Executive Officer, James Scriven, also addressed the ceremony virtually. He welcomed the signing of the agreement and expressed optimism that Guyana’s oil and gas sector would spread its benefits throughout the broader economy, creating opportunities at multiple levels.
Chairman of IPED, Komal Samaroo, expressed appreciation to the Government of Guyana, IDB-Invest, and JICA for their collaboration. He noted that the agreement is particularly meaningful, as it coincides with IPED’s 40th anniversary this year, marking four decades of contributions to the development of Guyana’s micro and small business sector.
The US$5 million financing package comprises a US$2.5 million loan from IDB-Invest and an additional US$2.5 million from JICA’s Trust Fund for Achieving Development of Latin America and the Caribbean, administered by the IDB.
The initiative complements the government’s broader efforts to support micro, small, and medium-sized enterprises through partnerships with international financial institutions. Over the past five years, billions of dollars have been invested in the sector to assist thousands of businesses nationwide.
Looking ahead, the government has also committed to establishing a new zero-interest Development Bank, as outlined in its 2025 manifesto. The proposed institution will offer zero-collateral loans to small and medium enterprises, with a focus on supporting youth, women, persons with disabilities, and emerging businesses. The government plans to allocate US$200 million to capitalise the bank.
President Dr Mohamed Irfaan Ali recently announced that discussions are already underway with major local companies, including Banks DIH, to create new opportunities for SMEs through the upcoming development bank. The initiative forms part of a broader strategy to empower local entrepreneurs, encourage innovation, and remove long-standing barriers to access to finance in Guyana.