– Special facilities also announced for youths, non-traditional agri sector

By Rabindra Rooplall
THE Institute of Private Enterprise Development (IPED) has announced that it has set aside $50M in loan financing to provide support for the creative industries, and $150M for the support of business ideas and ventures of young persons below the age of 30.

In addition, $300 million in funds have also been allotted to support non-traditional agriculture.

This is the first time that a lending facility of this kind is being made available for the development of the arts.

The announcement was made by IPED’s Chief Executive Officer Ramesh Persaud during the institution’s 30th anniversary celebrations at the Pegasus Hotel on Friday evening.

In attendance at that occasion were President David Granger, First Lady Sandra Granger, IPED Chairman Yesu Persaud, Minister of Business Dominic Gaskin, Cultural Policy Advisor Ruel Johnson, and special invitees from the business sector, among others.

Persaud said IPED is determined to forge ahead in pioneering new ground and developing small businesses to fulfill their potential.

SUPPORT
The IPED CEO explained that in 30 years, IPED disbursed 100,000 loans valued at $30 billion, with a repayment rate of 97 percent. Currently, IPED is supporting 4,500 micro and small businesses which employ in excess of 10,000 persons.

The CEO underscored that for every $1000 being loaned by commercial banks, IPED lends about $2. “This can be deemed small in value, but we have seen the

impact it has on the economy. Based on the loans disbursed in 2015, 50% were in agriculture sector, 70% did not require real estate collateral, 90% were rural barrowers from in excess of 700 villages countrywide, with 12% being for youth barrowers,” he said.

“IPED supports approximately 1000 rice farmers annually. These farmers plant 20% of the total acreage under cultivation per crop,” he added.

Persaud said IPED is recognized as being an institution of good governance and transparency, which can be modelled and followed by many other organisations.

Since the institution’s inception, Persaud said, accounts have been audited, all of which are published online. Detailed information on products and loan portfolios are also reported to the Bank of Guyana for statistical purposes, and to the IDB microfinance information exchange.

He added that the Credit Reporting Act, which was amended by the Government in January 2016, was very bold and innovative. The Act will transform the financial landscape of lending while benefiting the small business borrowers significantly.

“Small business borrowers, as a result, can now monetize their usual good repayment track record. IPED has already started to reap the benefits of the credit bureau,” he said.

The CEO noted that IPED is focused on improving livelihoods through sustainable micro and small business development, which are supported through finance, technology, mentoring and training.

Johnson said the announcement of the specialt facility for creative industries was expected, as the funding was discussed previously with Chairman Yesu Persaud.

He noted that this is the first time something has been structured for the creative industries with the ideals that the arts are a viable sector for business and private enterprise.

He explained that the intention going forward is for the Education Ministry and IPED to work together in coming up with terms of reference under which viable creative industries’ projects can be developed, submitted and assessed.

Describing the investment as breaking new ground for the creative industries in Guyana, Johnson said the Education Ministry has already held consultations with players in the creative industries sector, to inquire of their pressing concerns and how these can be addressed by Government.

Whether funding is derived from Government or from the private sector, Johnson said, those involved in creative industries can now challenge themselves in transforming the creative industries’ sector.

The cultural advisor said issues of copyright which affect the sector heavily will have to be addressed, while practical ways to develop the industry will have to be adopted.

“From the Ministry’s perspective, we will be working hard towards providing technical support for them to develop their projects. So by the time the project gets to IPED, it will fit certain basic criteria so there are higher chances of funding.” Johnson explained.

Creative industries advocate and columnist Barrington Braithwaite said the development of the sector locally dates back to the time of former President Forbes Burnham, who had a clear understanding of the necessity of creativity.

Burnham, he said, had insisted on local artistic development, brought international professionals to train post-colonial Guyana, then insisted on creative space being provided in the newspapers, on stage and radio for local talent to express itself, and be paid.

“Cultural industries essentially point to persons who live by the practise of the arts, can chart directions for expansion beyond Guyana as ambassadorial products which will lead to the justification of training for export production, though some training to even lure the external market is currently important,” Braithwaite said.