THE announcement by Afreximbank of its willingness to provide a US$1 billion oil-service financing facility to Guyanese-owned businesses marks another transformative moment for the nation’s burgeoning oil sector.
Guyana boasts over 12 billion in proven reserves and is experiencing economic transformation never witnessed before in the country’s history.
But the true test continues to be using this prosperity for the benefit of its citizens.

Professor Benedict Oramah’s “drill, baby, drill” is one for pragmatic exploitation. Putting the country’s reserves towards infrastructural development, upgrading the pool of skills, and diversifying the country’s economy is not only strategy—necessity.
Guyanese authorities set the right starting block by enacting the Local Content Act, the aim being the entrenchment of the country building its own wealth.
The financing facility under consideration adds value by granting the access local players require for them to compete much stronger along the value chain for the country’s oil.

Lessons from the Nigerian petroleum sector reinforce the potential for the transfer of technology and the empowerment of individuals through the creation of their own wealth when local stakeholders are empowered.
Guyana can grasp this by cultivating collaborations between local business and Africa’s business, the Afreximbank has advised. Guyana’s financial environment is also ready for this rise through the recent launch of innovative financial products like GBTI’s invoice-financing facility, the recent initiative shows.

Yet, caution is needed. Dependance on the revenues from oil, however, can leave the country vulnerable to international market shocks.

President Ali’s emphasis thus becomes essential for the building of a multi-pillar economy. Investments need to run parallel in the agricultural sector, the tech sector and manufacturing sector for the country’s long-term survivability.
This US$1 billion facility would not only be one for the nation’s economic future, but one for Guyana’s destiny. Once strategic investments continue to be supported by sound policy frameworks, the nation can transform its oil windfall into prosperity and longevity for the next few generations.