Micro and small enterprises in Guyana are set to access new financing after the Institute of Private Enterprise Development (IPED) signed a US$5 million loan agreement with IDB-Invest, backed in part by funding from the Japan International Cooperation Agency (JICA).
The agreement was signed at the Ministry of Finance by IDB Country Representative Lorena Solórzano-Salazar and IPED CEO Jagdesh Haripershad, with Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, in attendance.
The facility comprises US$2.5 million from IDB-Invest, the private-sector arm of the Inter-American Development Bank, and US$2.5 million from JICA’s Trust Fund Achieving Development of Latin America and the Caribbean (TADAC Fund), which is administered by the IDB.
IPED said the financing will help it scale support for women, youth and rural entrepreneurs, while also diversifying the institution’s funding base, an important factor for any lender seeking steady, longer-term access to capital for on-lending.
In remarks at the signing, Dr. Singh described IPED as a cornerstone institution for entrepreneurship financing, noting it has strengthened over the decades and crediting the late Dr. Yesu Persaud and current Chairman Komal Samaroo for its development.
He pointed to IPED’s reported track record over 40 years, saying the institution has disbursed more than 147,000 microcredit loans valued at over GYD$64 billion, now serves about 5,000 clients, and has reached more than 700 villages nationwide.
Singh added that approximately 40 per cent of IPED’s borrowers are women and about five per cent are under 25 years old, which he said underscores the organisation’s role in supporting women, youth and rural communities.
Solórzano-Salazar said strengthening access to finance for micro and small businesses remains critical as Guyana pushes economic diversification, arguing that supporting IPED is a direct way to widen credit access for local entrepreneurs.
IDB-Invest CEO James Scriven, speaking virtually, welcomed the deal and said the institution continues to see broad-based opportunities emerging as Guyana’s economy expands, including through downstream activity linked to oil and gas.
Singh also referenced IDB-Invest’s broader engagement with Guyana’s private sector, noting that since 2020, IDB-Invest has partnered on financing totalling over US$250 million, including support for projects such as the Four Points by Sheraton hotel.
Beyond this facility, the Guyana government has signalled plans to deepen small-business financing through a proposed zero-interest Development Bank that would offer zero-collateral loans and is expected to target youth, women, persons with disabilities and SMEs, with US$200 million earmarked for the initiative.
