The African Export-Import Bank (Afreximbank) has made a substantial advancement toward meeting its pledge of US$1 billion in financing for Guyanese companies, following an introductory conference this week.
The two-day event, at the Guyana Marriott Hotel, represented a pivotal moment for the Government of Guyana’s initiatives to enhance local involvement in the nation’s oil and gas sector.
Guyana’s Minister of Finance, Dr. Ashni Singh, joined the Bank’s Regional Chief Operating Officer, Okechukwu Ihejirika, and his delegation on the inaugural day of the Roadshow. During his keynote address, Dr. Singh stated, “This facility directly supports our local content ambitions and facilitates the transformation of oil revenues into sustainable, long-term prosperity.”
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The event aimed to introduce local companies to the bank’s products and services and how they can benefit from them. This follows discussions between President Irfaan Ali and Bank President Benedict O. Oramah in February.
“I see that the Guyanese private sector has dramatically upped their game, they recognise that this is a whole new world they are operating in… it’s not business as usual,” Singh said. The opportunity being offered by the bank will further propel this growth.
Singh noted that while access to financing is a challenge for local businesses, efforts have been made to address this. “We have also been encouraging increasingly international institutions… to do more with the Guyanese private sector.”
The finance minister urged the private sector to evaluate the Bank’s products to understand their benefits and capitalize on opportunities. He also encouraged the Bank to work closely with the sector to facilitate “real transactions”.
The Bank’s Regional COO, Okechukwu Ihejirika, affirmed their commitment. “We want to reassure that it was not just a promise, it was something that we mean and want to implement.” He said this week’s events are for the bank’s representatives to discuss in detail “how we can put it into practice, implement it on a step-by-step basis.”
Afreximbank has already pledged a US$100 million trade financing facility to JE Energy for crude oil exports. In October, JE Energy – one of two British firms – secured contracts to market Guyana’s share of crude oil from the country’s three floating production, storage and offloading (FPSO) vessels.
