Micro-financing is a tool of human development -– President Granger

By Rabindra Rooplall
ECONOMIC empowerment has always been hindered by inadequate access to finance, and many have turned to traditional cooperative saving schemes, such as ‘box-hand’, in order to provide for their needs.But with the advent of the Institute of Private Enterprise Development (IPED) in 1986, there has been a new role for micro financing: reducing issues of unemployment, inequality and poverty in

Guyana’s transition to a market economy.

This sentiment was shared by President David Granger during his feature address at IPED’s 30th Anniversary Dinner at the Pegasus Hotel on Friday evening.

Among those in attendance at that occasion were First Lady Sandra Granger, IPED Chairman Yesu Persaud, and Minister of Business Dominic Gaskin.

A number of client awards were handed out. Best Miro Enterprise Project went to Mansram Ramsarran of D’Edward Village, West Coast Berbice, in the field of construction; Best Small Enterprise Project went to Mahendra Sukhoo of No 75 Village Corentyne, Berbice in the field of duck rearing; Best Medium Enterpise Project in trading went to Dindial and Sheline Narine of Richmond, Essequibo Coast; Best Managed Project in the

distribution of food and household products went to Puran Madho of Soesdyke, East Bank Demerara; Best Agriculture Project in rice cultivation went to Hemchandra Persaud of Corentyne, East Berbice; Best Woman Entrepreneur in distribution services went to Denise Greenidge of Mango Lane East Ruimveldt; and Best Manufacturing Project in the field of plastic bags went to Ganesh Bhagwandas of Success, East Coast Demerara.

Enterprising Micro Entrepreneur awards went to Barbara Dougan of Wismar, Linden; Paulette Bowen of Essequibo Coast; Richard

Delana Sanasie of Tuschen, East Bank Essequibo; and Dave Morrison of Kitty, Georgetown.

“IPED has been a success,” the President stated, noting that 100,000 loans valued at G$30 billion have been provided.

He said IPED provides an average of 12 loans a day, which went to the startup of many enterprises and creating some 10,000 jobs.

Women constitute 37% of IPED’s client base, with 90% of borrowers coming from rural areas.

President Granger said this has impacted on youth employment. He said micro financing has established itself as a tool of human development that has empowered women and young people by providing access to capital.

Emphasizing that IPED developed as a means of ending unemployment and boosting entrepreneurship, the Head of State said the Institute is present in all ten regions of Guyana, “and that is where IPED’s policy converges with that of Government,” he posited.

“In the first time in 40 years, we have created three new towns which are meant to propel and drive the development of the regions; and that’s why we call them capital towns, because our government believes every region must be guided not by a colonial compound with a police station and a magistrate’s court, but it must be guided by a business centre; a capital with banks and factories, restaurants and places of entertainment etc.,” the President disclosed.

Adding that Mahdia will eventually become a town, President Granger said every region should be administered by a capital town.

“Because we want to promote human development; we want to provide better public services, public security, better public administration to people of all the regions of Guyana. We also want to close the gap in income between rural and urban communities, between hinterland and coastland; and we expect to achieve this by stimulating businesses,” the President noted.

Further noting that the towns will become magnets for investments, the Head of State said micro-financing has already established itself and extended its reach into all of the regions; and in the new towns, this financing will continue to flourish.

Chairman of the Institute of Private Enterprise Development (IPED), Dr. Yesu Persaud, said despite challenges experienced, IPED’s overall performance has been satisfactory. He lauded the efforts of staff, management and the board of directors.

“IPED’s financial position continues to be strong and adequate to support its sustainability in the medium to long term,” the Chairman noted.