“It is for all of Guyana” – Pres. Ali on new development bank app

As Government gears for the operationalisation of the Guyana Development Bank (GDB) come next month, President Dr Irfaan Ali has announced that an application (app) is being created to allow citizens across the country easier access to the services being offered by the agency.

The Head of State made this revelation on Sunday during a discussion with local business leaders on the highly anticipated GDB and how this transformative initiative stands to unlock new opportunities for entrepreneurs, expand access to financing and support the growth of businesses across Guyana.

With an initial capital of US$100 million, the state-backed financial institution will come on stream on October 5, offering loans of up to G$3 million to citizens as well as small and medium-sized enterprises (SMEs) across a wide spectrum of sectors, with no collateral required and free of any interest. Over the past few months, the Government has been ramping up its education programme to sensitise citizens across the country about the financial institution that is seeking to target young people, women and vulnerable groups. In addition to zero-interest and zero-collateral loans, the bank will also offer business support and mentorship services. According to President Ali, the Development Bank will begin receiving applications immediately when it comes into operation on October 5.

He assured that citizens all across the country would be able to access the services. “What we are doing also is creating an app, so the bank is accessible through technology,” the Guyanese Leader noted. “That’s a big plus with this bank. It is really operating in the grassroot level. [There would be] hinterland opportunities, the riverine areas, [and] tourism, agriculture, every sector will be covered. So, when the bank is launched on October 5, it is for all of Guyana,” he asserted.

In addition, the Government is developing a facilitation system. This will see officials and experts working with groups from communities across the country and assist them in coming with business ideas and putting together the necessary proposals to get financing through the Development Bank. “We have consultants that we will have working with groups on just developing the ideas. Someone may come in with a great idea, but we can make the idea stronger. So that’s the whole intention; it’s to use this opportunity to build something that is long-lasting [and] strategic,” he noted.

The Government has partnered with the local commercial banks to have a ‘Guyana Development Bank desk’ set up in branches across the country, where they will operate from. This presence in the commercial bank would be key since the Government will work with the small borrowers to unlock large-scale opportunities with larger financing from the commercial banks. Already, a lot of interest have been expressed by persons and groups to access financing from the Development Bank. But President Ali says the preference is to have persons coming together in groups to execute a venture, rather than having individual applicants. He cited initiatives such as Government’s Poultry Tunnel project and the shade house project as successful models for partnership.

In addition, the President further indicated that they would have to work with the applicants to ensure that the proposed business ventures span across various, and more important, support productivity in Guyana. “Over the next two to three weeks, we’ll see very, very strong education programme, and outreaches across the country. And then we’ll come down to mapping what are the sectors, because you don’t want everybody to come and ask for a loan to buy a taxi. So, mapping and heavy focus on the productive sector, productivity,” Dr Ali stated. He also used the opportunity to remind persons that the Development Bank is offering loans and not grants.

He stressed that successful applicants would not only be able to access financing but also build their credit portfolio thus positioning them to unlock much larger opportunities through the traditional lending system. Under a co-financing arrangement between Government and commercial banks, borrowers would be able to unlock additional financing of up to $7 million from traditional lending institutions, at favourable interest rates. The GDB Act was passed in the National Assembly back in July and was subsequently assented to by President Ali. Just last week, Senior Minister with Responsibility for Finance Dr Ashni Singh signed and Gazetted the Commencement Order to operationalise the Development Bank next month. During an interview with the Guyana Times, Dr Singh called on Guyanese to be prepared to tap into the financing opportunities from the Development Bank.

“The opening of the Guyana Development Bank will represent a quantum leap in the world of financing for SMEs… I want to urge every potential applicant for them to do their preparatory work, thinking about what can I do, what am I good at? Because you can’t just have an idea, you have to know that it’s something you’re capable of doing, that you have experience on track record and competence of doing, that you’re going to be committed to doing because it’s a loan, you’re going to have to pay back the loan,” the Finance Minister stated. While an initial capital of US$100 million (G$20 billion) was injected into this bank, the Government has noted that plans are being mulled to expand to at least US$200 million, recognising that the bank will help unlock entrepreneurial potential, particularly among young people and community-based enterprises that have traditionally struggled to access credit.
Establishment of the GDB is a 2025 Elections Manifesto promise of the People’s Progressive Party/Civic (PPP/C) Administration, and is part of a broader effort to promote financial inclusion for all Guyanese and improve citizens’ access to financing.