Already negotiating US$500M loan with Afreximbank 

Guyana has turned to Africa for infrastructure financing to fund its ambitious line-up of transformative infrastructure initiatives.

Already the fastest growing economy in the Caribbean and the fasted growing economy in the world in 2022 is now negotiating US$500 million loan from the African Export-Import Bank (Afreximbank). The announcement was made by Guyanese President, Dr. Irfaan Ali during his keynote address at the just concluded AfriCaribbean Trade and Investment Forum at the Marriott Hotel in the capital of Georgetown. 

He pointed to the significant collaborations with African financial entities that are opening doors for development in Guyana making reference to Guyanese businessman and accountant, Floyd Haynes, the founder of New Hayven Merchant Bank, which was launched just last year, whom he said has been a bridge between Africa and Guyana.

Securing financing from Afreximbank

Haynes has been undertaking multiple trips to foster discussions that bolster financial opportunities for the Guyanese market with President Ali adding, “just like the government, they (New Hayven Merchant Bank) are in final stages of negotiating a US$15 million facility to support local businesses, that is, small and medium-scale enterprises here in Guyana. His bank is also working with the Exim Bank, I am advised, in support of one of the first local group of women (Sispro Inc.), who would have won two of the oil blocks here in Guyana.”

In a call to action, the Guyanese President urged the regional private sector to seize the moment and partner with institutions such as Afreximbank, emphasizing the importance of engaging with Afreximbank officials present at the forum. His challenge to them was clear – to put forth proposals that could definitively address the region’s recurring transport issues. 

According to President Ali, “I would be furious…I will even consider it a severe missed opportunity by the regional private sector if they cannot form a consortium and use this opportunity that the Exim Bank is offering to end our regional transport system failure and I speak specifically about our maritime transport infrastructure.”

Afreximbank ready to receive proposals

Ali told the gathering that he has received assurances from Afreximbank that it is ready to examine a proposal from the regional private sector that offers a pragmatic solution. He said, “every single state in CARICOM has made it clear that we will give all the incentives necessary to facilitate the building of a regional transport infrastructure system to solve the problem of regional transport. It is in your hands now and we will champion it. We are too small to think and act in silos.” 

Dr. Ali was also keen to highlight that Afreximbank has an asset base totalling US$35B urging the regional private sector to take advantage of this pointing that financial services sector account for more than 50% of the bank’s loan portfolio with oil and gas only accounting for 15% with manufacturing third with 4.5%, power generation 4.2% and construction with 3.5%.

 “This tells you that the bank has a diversified portfolio of opportunities you can tackle,” Ali said, charging the regional private sector to be proactive and embark on a new chapter of development for the African-Caribbean relations.

In concluding the Guyanese Head of State articulated some of the challenges faced by African and Caribbean nations to tackle key issues ranging from food to energy insecurity whilst spotlighting the crucial role of institutions like Afreximbank. Such organizations he said provide essential financing that can enable nations to tackle and surmount their various challenges.