Managing Director calls for framework to support micro-finance institutions
– members’ resilient spirit lauded
“ONE SMALL LOAN can change a family, thousands can transform our society” was the underlying message of the Chairman and Managing Director of the Small Business Development Finance Trust Incorporated (SBDF) at that entity’s 9th Annual General Meeting held at Hotel Tower on Tuesday. The trust will mark its 10th anniversary in October of this year, and it credits its responsible business conduct, positive financial performance, and delivery of quality service to its clients to the resilient spirit of its members. It also honoured several of its clients for their commitment to and development of their individual enterprises.
Mr. Sattaur Gafoor, Chairman of SBDF, said in his report that: “2011 had many challenges and uncertainties on account of its being an election year; but despite this, SBDF remained focused on its mission ‘to strengthen the economic base of the micro and small-scale business sector of Guyana through increased access to lending, technical support, and non–traditional financial facilities; so that small enterprises could position themselves to be competitive, and take advantage of their size to participate in world markets in an era of intense global competition”.
His report stated that the SBDF has performed creditably, and had increased its financial assistance to micro and medium enterprises substantially over the previous year, by providing a total of 710 loans valued at Gy$409 million dollars. Its loan portfolio has also expanded to include areas outside of central Georgetown, like Sophia, the Railway Embankment, West Coast Berbice, Linden Highway and Parika. This expansion also resulted in substantial creation of jobs.
Randy Ramotar, a credit officer responsible for the Berbice area, said in brief remarks to the gathering: “The potential of the region is massive, but realization only marginal”. He listed the high rate of youth unemployment, lack of direction, and migration as factors that are undermining the capacity of Berbice to grow and to better contribute to national development.
He also made a stirring plea to national and international agencies, financial institutions, policy makers and private citizens to support SBDF in its drive to create a Green Revolution in Guyana.
One institution already contributing to the Green Revolution is Republic Bank, whose Managing Director, John Alves, was the guest speaker at the event. In his speech, he dealt with the SME (small and medium scale enterprises) sector of Guyana, with particular focus on agriculture, and what is needed to develop this critical sector of the economy.
He underscored government’s outline of its support for agricultural diversification and food security, and acknowledged that there was still “tremendous potential for further growth”.
According to Alves, public perception of the challenges facing small and medium scale enterprises is “framed within and limited to the context of the need for access to financing for farmers and other stakeholders.” He believes there is a need to create a general framework under which “private sector and SME development in the agriculture sector can become embedded, self-sustaining and expansionary”.
In addition, he deemed SMEs’ contribution to GDP and economic development as relatively limited, despite performing a crucial role in job creation and income generation; and he highlighted the importance of identifying what business models may be suitable for SMEs in the agriculture sector.
According to Alves, “The choice of a suitable business model is important, because it will impact how values and rewards within the sector can be created and shared among small farmers and SMEs”. He also noted that while “central government has the responsibility for creating conditions for the development of SMEs in agriculture; it is SMEs themselves, in partnership with the private sector, which must take up the role of establishing an effective support infrastructure within which their operations can thrive”.
Mrs. Manjula Brijmohan, Managing Director of SBDF, in her report, expressed satisfaction with President Ramotar’s announcement of his commitment to the development of village economies, and to growth, at the 46th Independence Anniversary observance of Guyana. Nevertheless, she called on Finance Minister, Dr. Ashni Singh to “put some framework to support micro–finance institutions, and stimulate private and public institutions to devote resources for R&D activities in productive and service sectors”.
Mrs. Brijmohan also read the auditors’ report produced by Nizam Ali and Company.
The 9th Annual General Meeting of SBDF was well attended by both clients and well-wishers alike.