Guyana secures US$5M boost for micro, small enterprises through IPED

Micro and small enterprises (MSEs) in Guyana will soon benefit from additional financial support following a US$5 million loan agreement signed on Thursday between the Institute of Private Enterprise Development (IPED) and the Inter-American Development Bank (IDB). The signing ceremony, held at the Finance Ministry, was attended by officials from both institutions and overseen by the Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh.

The loan package consists of US$2.5 million from IDB-Invest, the private sector support arm of IDB, and US$2.5 million from the Japan International Cooperation Agency (JICA) Trust Fund (TADAC), administered by IDB. The funds will allow IPED to expand its support for women, youth, and rural entrepreneurs while diversifying its funding sources.

Speaking at the ceremony, Dr Singh highlighted IPED’s four decades of service to Guyana’s private sector. “Over its forty years of service, IPED has disbursed more than 147,000 microcredit 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,” he said.

He noted that IPED currently serves about 5000 clients, with around 40 per cent of borrowers being women and five per cent under the age of twenty-five. “They 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,” Singh added.

Singh also recognised the contributions of IPED’s founders and leadership. “The Government considers IPED to be a very important and special institution. It was established when Guyana was in a difficult place economically and politically and when there was virtually no private sector. I want to recognise the contributions of its founder, the late Dr Yesu Persaud, and current Chairman Komal Samaroo,” he said.

He also thanked the Japan International Cooperation Agency (JICA) and the IDB team, noting their support for Guyana’s private sector over the years. “Since I assumed office in 2020, the IDB-Invest has partnered with Guyana’s private sector in financing to the tune of over US$250 million,” Dr Singh stated, citing projects including the soon-to-be-opened Four Points by Sheraton Hotel.

IDB Country Representative Lorena Solórzano-Salazar said the project would strengthen Guyana’s financial sector and help local entrepreneurs. “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. By supporting IPED, IDB-Invest would be supporting micro and small enterprises,” she said.

Speaking virtually, IDB Invest CEO James Scriven expressed enthusiasm for the agreement. “We are pleased that this agreement is being signed. The bank continues to appreciate witnessing the diverse benefits of the oil and gas industry trickling down to the entire country in all its different layers,” he said.

IPED Chairman Komal Samaroo expressed gratitude to the Government, IDB Invest, and JICA for the initiative. “It is significant that this agreement coincides with IPED’s fortieth anniversary. Over the last forty years, the organisation has made significant contributions to the development of micro and small businesses in Guyana,” he said.

The Government has supported MSEs through multiple initiatives over the past five years, working with international institutions such as IDB-Invest. In its 2025 manifesto, the administration also committed to establishing a zero-interest development bank that will provide zero-collateral loans to small and medium enterprises, particularly benefiting youth, women, persons with disabilities, and small-scale businesses.

President Dr Irfaan Ali only recently announced that the Government has begun discussions with major companies, including Banks DIH, to create new avenues for small and medium enterprises through the Development Bank. This forms part of a broader vision to empower local entrepreneurs, stimulate innovation, and remove long-standing barriers to financing.