RECOGNISING the scale of Guyana’s economic transformation, the local private sector is now adopting new technologies, fostering innovation, and moving from a culture of complaints to one centred on results, complementing the People’s Progressive Party/ Civic (PPP/C) government’s vison of building a dynamic economy.

“I am so pleased with the pace at which the private sector is changing its culture,” the President said on Friday while addressing the Guyana Oil and Gas Energy Chamber’s Annual Awards Presentation Dinner at the Marriott Hotel.

“I believe the private sector has unlocked historic nuances that capture the thinking of the private sector in a mode of complaining. Today the private sector is innovative, driven, results-focused and highly motivated,” he added.

Most notable, the President highlighted the efforts being made by the local commercial banks, pushing more competitiveness and special incentives to support growth.

“And I congratulate the private sector, and this is because of the infusion of wider membership; the infusion of younger membership and the infusion of clarity of vision, of where the country is going; and that is the most important aspect for development, when there is great clarity in the direction in which the country is heading.”

Guyana’s Mid-Year Report, presented recently to the National Assembly, reflected robust growth across key sectors of the economy. According to the report, credit to the private sector increased by 7.7 per cent to $485.4 billion during the first half of the year.

Lending to the services sector grew by 4.9 percent to $165.6 billion, while manufacturing and agriculture recorded growth rates of 12.4 percent and 1.1 percent, respectively. Expansion in the manufacturing sector was driven by lending for construction and engineering, which rose by 76.9 percent and 8.9 percent, while telecommunications saw a 24.7 per cent increase.

Additionally, credit to households grew by 7.3 per cent to $51.8 billion, with a 20.3 per cent rise in lending for motor vehicles. Real-estate mortgages expanded by 11.4 percent to $173.5 billion, reflecting higher demand for private dwellings as well as industrial and commercial properties.

The PPP/C government has reaffirmed its commitment to deepening financial inclusion and literacy across Guyana. According to its 2025 Manifesto, several new initiatives will be implemented over the next five years, including a National Financial Literacy and Financial Inclusion Strategy to increase citizens’ understanding of financial services and promote participation in the formal economy.

Other key commitments include collaborating with commercial banks to simplify online banking services and facilitate account openings and loan applications; expanding agent banking networks to reach remote and hinterland communities currently underserved by traditional banks and promoting digital payment systems, including mobile wallets and online platforms, to reduce cash dependency and enhance access to financial services nationwide.

DEVELOPMENT BANK

Meanwhile, the government is advancing plans to establish a development bank aimed at providing micro-credit loans to small and medium-sized enterprises (SMEs).

Earlier last month President Ali said the forthcoming Guyana Development Bank will be capitalised with a minimum of US$200 million and is expected to become operational before the end of the first quarter of 2026.

While speaking at the opening of GuyExpo 2025, the President noted that the bank will operate in close integration with commercial banks, with the goal of unlocking greater access to capital.

According to the President, a special incentive regime will be introduced to encourage commercial banks to expand lending to small and medium-sized enterprises (SMEs), mirroring the incentives offered to banks in the housing sector.

In return, commercial banks will be required to lower interest rates to below four per cent and reduce collateral requirements for SME borrowers.

The Guyana Development Bank will also offer loans with no collateral requirement and a zero per cent interest rate up to a predetermined threshold, which will be unveiled in the 2026 National Budget.