Opportunities must not remain among those who already have assets, networks – Ally

As the Government prepares for the official launch of the Guyana Development Bank, Minister of Public Service, Government Efficiency and Implementation, Zulfikar Ally, is encouraging Guyanese with viable business ideas to form consortiums so they can access cluster loans and accelerate the growth and development of their ventures.

“For example, a group of 10 individuals can come together with a consistent and worthwhile business model and benefit from up to $30 million in loans,” Minister Ally highlighted during an interview with this publication.

“One can easily imagine a scenario where five Guyanese form a consortium, apply for a loan through the Development Bank, and benefit from a loan of $15 million to set up eco-lodges in the Rupununi or the Pakaraimas to cater to our rapidly increasing eco-tourism sector,” he further suggested.

Opportunities

According to the Public Service Minister, as the country’s economy continues to expand, “we must be intentional about making sure that growth is inclusive, productive, and broad-based.”

He posited that growth cannot be concentrated among a small number of firms, sectors, or individuals.

“We are committed to building an economy where opportunity is broad-based, where citizens can become entrepreneurs, and where citizens of every region and community can participate in national development. We aim to ensure that opportunity does not remain concentrated among those who already have assets, networks, and collateral. But rather, that opportunity is available to each and every Guyanese,” Minister Ally emphasised.

Enterprise growth

Through the Guyana Development Bank, eligible applicants will be able to access zero-interest, zero-collateral loans of up to $3 million to start or expand their businesses. Additionally, the Government has secured agreements with commercial banks to leverage those funds, allowing small business owners an additional $7 million in financing, at subsidised interest rates as low as 3.5 per cent.

Minister Ally underscored the importance of this initiative, highlighting that the greatest barrier to enterprise development in Guyana is not the absence of ideas or ambition, but the lack of affordable financing options.

“Across Guyana, there are thousands of people with innovative business concepts, practical skills, market knowledge, and entrepreneurial drive. They know how to farm, manufacture, provide services, develop software, create products, and solve problems. Yet many remain unable to expand and capitalise on their ideas because they cannot access the capital necessary to move from concept to commercial success,” he outlined.

In fact, the Minister revealed that between, 2020 and 2025, 137,713 businesses were registered – an encouraging reality. He further disclosed that between 2020 and 2025, the Deeds and Commercial Registry saw 7842 companies filed.

“These metrics demonstrate that the landscape of business in Guyana today is vastly different from what it was just five to six years ago. This further exemplifies the need for additional and accommodating financing options,” the Public Service Minister posited.

Moreover, he highlighted that in 2025, Private Sector credit expanded significantly, reaching more than $531 billion. This growth, he said, was not confined to a single industry; rather, it occurred across several productive sectors of the economy, including agriculture, manufacturing, mining and quarrying, and services.

“The expansion of credit in agriculture indicates growing confidence in food production, value-added agriculture, and related activities. Increased lending within manufacturing suggests that businesses are investing in production capacity, processing facilities, and industrial activities. Growth in services reflects the expansion of commercial activity across a broad range of enterprises,” he noted.

“These trends are encouraging because they demonstrate that businesses are willing to invest and financial institutions are willing to lend. However, they also reveal an important policy challenge. While larger and more established businesses may be benefiting from existing financing mechanisms, many smaller enterprises continue to face barriers. This SME Development Bank is designed to address precisely this gap,” the Minister explained.

He further noted that while traditional financial institutions have played a critical role in supporting business development in Guyana, their lending models are often designed around risk management, which can make it difficult for first-time entrepreneurs to qualify for loans.

He added that there are other considerations that often present significant challenges for those at the beginning stages of their entrepreneurial journey, such as requirements for collateral, credit history, and onerously high interest rates.

“The consequence is that many potentially productive businesses remain undercapitalised. They operate below their potential. They employ fewer people than they could, and they invest less than they would like. In some cases, they never move beyond the informal sector. But worse of all, some never get off the ground,” he lamented.

This situation represents a loss for the entrepreneur as well as the economy, the Minister said, expressing that “unrealised business growth means unrealised employment, unrealised production, and unrealised tax revenues.”

Support

The Minister said what positions the Guyana Development Bank model for success is that it not only provides accessible financing options but also incorporates mechanisms to support and guide entrepreneurs through every stage of their journey.

“This is a very important point, because finance alone does not guarantee success. Many entrepreneurs have strong ideas and real potential, but they may lack access to formal business training, accounting systems, marketing knowledge, digital tools, or operational guidance. In other words, they may know how to produce or sell, but not always how to structure a business for long-term sustainability. The inclusion of financial literacy training, mentorship, and technical guidance reflects a deeper understanding of what small business growth actually requires. A business cannot grow sustainably if the owner does not know how to manage cash flow, separate personal and business finances, prepare basic records, price products appropriately, or plan for growth. By providing this kind of support, the Bank helps to close the gap between access to money and the ability to use that money effectively,” he explained.

Minister Ally added that the entrepreneur’s journey to success is also supported by the Government’s larger investments in the economy.

“We are building stronger links with Brazil. We are strengthening trade and commercial relationships with Suriname. We continue to benefit from access to CARICOM markets. We are improving linkages across our own Administrative Regions. We are creating opportunities for Guyanese businesses to serve markets that extend far beyond our borders and to expand inter-regional trade,” he highlighted.

For instance, the Minister pointed out that the farmer who starts a small agro-processing juice company is not necessarily producing only for a village, a town, or even a region.

“Through modern transportation networks, digital commerce, regional integration and expanding international connections, that entrepreneur can potentially serve customers across the Caribbean and beyond,” he remarked.

He also pointed to the Gas-to-Energy project, which, once operationalised, will cut electricity costs by 50 per cent, noting that lower energy costs will further support entrepreneurship.

“When energy costs are reduced, businesses become more competitive, production becomes more affordable, and investment becomes more attractive,” the Minister explained.

“The reality is that access to finance alone cannot transform an economy. Access to finance must be combined with affordable energy, reliable infrastructure, improved logistics, digital connectivity and access to markets. This Government is delivering on all of these fronts simultaneously,” he emphasised.

Sectors

Moreover, Minister Ally explained that the Bank will be targeting business ideas in sectors that support the development of key industries in Guyana.

These sectors include agriculture and agro-processing to ensure the country continues to strengthen food security, reduce import dependence, and build value-added production around what is grown locally.

He said another sector is tourism and hospitality in light of the country’s unprecedented level of visitor arrivals. The creative and digital industries are other priority areas, according to Minister Ally, who noted that “this is an untapped market for Guyana and Guyanese to excel in”.

The Guyana Development Bank Bill was on Monday passed in the National Assembly, paving the way for the establishment of the state-backed financial institution. The Government is in the process of establishing regional offices and recruiting the necessary personnel who can support prospective borrowers at every stage of their entrepreneurial journey.