–GMSA says, commends effort

THE recent signing of the $900 million revolving fund by the Ministry of Finance and Demerara Bank Limited is commendable as it will create many opportunities for those in the forestry sector, the Guyana Manufacturing and Services Association (GMSA) said on Friday.

“The establishment of this fund is opportune and will undoubtedly close the gap in financing, which is necessary to boost the forestry sector, improve production capacity and meet the increased demand for forestry products domestically, regionally and internationally”, the Association said in a press release while noting that the development was commendable.

The release added that the GMSA’s forestry subsector has been working diligently over the past years for an alternative access to affordable finance.

It was noted that collectively, the Ministry of Natural Resources through the Guyana Forestry Commission (GFC) has been working with the GMSA to help identify causes for low production of logs and wood processing.

Subsequent to several weeks of consultation with all stakeholders, it was identified that the
existing and direct hindrance is lack of adequate financial resources.

“Many operators only have sufficient funds to produce limited stock of raw materials and finished products which can have a negative impact on the availability of finished goods for market consumption,” the release said.

The stakeholders consulted include loggers, sawmillers and manufacturers who are all part of the growing value chain.

According to GMSA, this economic incentive is “an excellent opportunity for business growth and development, especially for companies that are pursuing more downstream processing of value-added products.”

It was noted that recently, GMSA has witnessed major interest in finished goods, especially in the construction and housing sectors in the Caribbean, coupled with the rapid increase of housing construction in Guyana.

The GMSA said it will continue to advocate for expansion of this financial model into other key sectors such as agro-processing.

Demerara Bank Limited was commended for its role in funding the development and promotion of the forestry sector with its injection of $600 million and according to the release, “The success of this financing programme can be a catalyst for other financial institutions to follow, to provide assistance to local entrepreneurs and small and medium-sized businesses.”

The GMSA emphasised that it is “extremely pleased” with the government’s swift response to the urgent need within the forestry sector and anticipates its ongoing collaboration with the private sector.

“Further, the Association encourages all members of the forestry sector to consider this financing opportunity for business growth,” the release added.