-Investments to be announced soon, says CEO of U.S Investment Agency
By Navendra Seoraj
ECONOMIC advancement on all fronts is expected in the near future, as several United States (US) agencies have offered, collectively, US$200 billion (approximately G$42 trillion) in financing for businesses interested in investing in Guyana.
Guyana, a fledging oil state which sits on the edge of South America, is anticipating massive development in the coming years, with the bridging of Suriname and Guyana; a deep water harbour; a new Demerara Harbour Bridge across the Demerara River and consistent revenue from a growing oil and gas sector.
To aid in Guyana’s progression, the United States of America (U.S.A) has sent a team of persons representing six agencies including the Department of Treasury, the Export-Import Bank of the United States, the U.S. International Development Finance Corporation, the Department of State, the Department of National Security and the Department of Homeland Security.
Members of the U.S. team met with representatives of the local Private Sector Commission (PSC) and other stakeholders in the commercial sector, on Tuesday, during their one-day visit here. They also met with President Irfaan Ali, the Prime Minister, Brigadier (ret’d) Mark Phillips, Vice-President Bharrat Jagdeo and other Government officials at State House late Tuesday night.
“We looked at the quantum of funds they can lend…and from all the agencies in the room, we would be able to access US$200 billion,” said Chairman of PSC, Nicholas Boyer, in an invited comment on Tuesday following a joint press conference with the U.S officials held at the Pegasus Hotel in Georgetown.
These funds, he said, will be made available in the form of loans, but from all indications the interest rates will be different from those already available to local investors.
“Based on what they were saying, we would assume the interest rates and lending terms would be different from what we have available…we are hoping that the cost of capital will be different,” said Boyer.
A member of the U.S. delegation, Chief Executive Officer (CEO) of the U.S. International Development Finance Corporation (DFC), Adam Boehler, during the press conference, said that, from his end, they are able to back both US-based and Guyanese companies with financing.
Based on discussions with the private sector, Boehler said areas of focus include reducing the cost of electricity; investments in small and medium size businesses and investments in agriculture and farmers.
The agency, through these projects, will be looking to increase the amount of jobs and improve the livelihood of every Guyanese, while at the same time focusing on major infrastructural development.
Although the agency has a general cap of US$60 billion, Boehler said no specific amount has been identified for Guyana from their end.
“We do not have a specific amount…we look at large infrastructural projects, but we also look at every mortgage that goes to individual persons…it is not about the amount for us, but the impact…we look at projects from the billions down to projects that get US$500,” said the CEO.
When asked about the agency’s capacity and whether only US-based companies will benefit from financing, Boehler said: “We have the ability to back US-based and other Guyanese companies…We are American, we like them and there are great American-Guyanese companies, but we can back Guyanese companies in some of these efforts.”
INVESTMENTS SOON
Already, the CEO foresees a strong partnership with the local private sector and even said that investments will be announced soon.
“This is exciting for Guyana…I think it is a great time because we can grow in partnership with the US, which we clearly have affinity for and a large diaspora in, and target market for, agricultural exports,” said Boyer.
He said it is great to have a partner to provide access to capital and help Guyana to unlock its full potential in all sectors. This initiative comes just one month after a visit from US Secretary of State, Mike Pompeo, who signed several agreements with Guyana.
The framework agreement to strengthen cooperation between the two countries in the Growth in the Americas Initiative is expected to help them to identify specific ways to advance their joint interest.
The MoU aims to provide a platform for US private sector investment to build Guyana’s physical infrastructure, energy sector, and digital economy transparently. Guyana is the second Caribbean country to sign the MoU, joining Jamaica.
This agreement, President Irfaan Ali had said, will boost the business environment for U.S. private sector investment in Guyana, particularly in the fields of energy, both non-renewables and renewables, along with infrastructure.
Further, he said the agreement will also pave the way for the U.S. private sector to expand its investment portfolio and partner with Guyana’s private sector.
President Ali had also noted that these partnerships will help to meet Guyana’s broader infrastructural and downstream development needs and, by extension, drive economic growth and development as well as job creation.
The Secretary of State had said the U.S. was ready to partner with Guyana, especially when big decisions are faced on moving forward in future prosperity.
“That’s how Americans will help produce local jobs and sustainable growth for the people of your country. You should know that the United States AID that works as part of the State Department is on the same page too. I’m proud to announce this morning that the agency has committed $3M for a locally-led programme for citizens’ involvement in their government, and a million and a half so that the youth of Guyana will be involved in democracy as well,” Pompeo had explained in September.
Private-sector investments are expected to increase, stretching from the construction of new shore bases to service the oil-and-gas sector, to new office complexes and other private development projects.
