The African Export-Import Bank (Afreximbank) on Wednesday launched its US$1 billion oil services financing facility to support local businesses in the petroleum sector with Minister of Finance Dr. Ashni Singh urging locals to capitalize on the opportunity to compete better with foreign counterparts.
“I see a Guyanese private sector that has dramatically upped their game. One that has recognized that this is a whole new work that this cannot be business as usual; that we have to operate at a complete level of sophistication, ambition and boldness and reliability. Nobody is going to do business with you just for sentimental reasons,” Singh told attendees at the Marriott Hotel where the event is being held.
Singh said that “there are also remarkable economic opportunities that have remained untapped and under tapped for far too long, and we need, in this generation to move the relationship beyond historic, cultural and emotional times, and instead, capitalize and leverage resources to realize the vast economic and commercial opportunities that exist between our economies.”
He urged the private sector to interrogate and analyze the products offered by the Bank in detail to fully understand their potential and benefits, and to take advantage of the opportunities they present. The Minister of Finance further also called on other international and regional agencies to do more with the Guyanese private sector, given the vast opportunities and exponential economic growth in the country today.
“We are committed as a government to providing all of the support that we possibly can to facilitate and encourage easier and more competitively priced access to financing,” Dr. Singh assured.
Held in collaboration with government and under the theme ‘Empowering Local Content Participation for Sustainable Prosperity through the Implementation of Afreximbank Mandate”, the objective of the roadshow is to strengthen economic trade and partnership between Caribbean countries and Africa.
The initiative follows bilateral discussions between President Irfaan Ali and the Bank’s President Benedict O. Oramah, earlier this year.
Later, the Finance Minister told Stabroek News that he was pleased with the attendance and it shows that locals want to participate. “What I saw was a wide spectrum of people attending. I saw people who are large investors. I saw medium and small scale companies as well so there a good cross section…,” he said.
Dr. Singh said that that he encouraged the Afreximbank’s team to have smaller discussions with businesses here and private sector organisations here “to try to keep the conversation” as the bank’s plan holds potential to boost entrepreneurship in this country.
On disbursement of the funds, he explained that that it depends on the product, but was quick to point out that government is merely a facilitator and that the bank would have to do their due diligence to determine who qualifies and for how much. But once Afreximbank is satisfied, government would be happy to support local businesses here.
“I can say that a government guarantee is not required and is not involved in any of these products,” Singh explained.
On the bank’s side, it’s Regional Chief Operating Officer Okechukwu Ihejirika underscored that Wednesday’s launch marked a partnership with this country that is rooted in a commitment to ensure that citizens prosper, as local content is built and entrepreneurship is driven.
“Today we just want to reassure that it was not just a statement. It was not just a promise. It is something we mean to implement. This business roadshow is for us to now discuss the details how we can put into practice that promise, how we can implement this on a step by step basis,” he said. Afreximbank, Ihejirika related, has from analysis found that “the capacity of some of the local players is hampered because of lack of access to finance” and thus they “may not be able to compete” in the development of a resource that is theirs. He said that many times, contracts “go to international companies and sometimes that has an impact on the development of countries”, and it is why the bank wants to assist.
“We’re here to listen, to engage, and to start implementation,” he stressed.
In a statement this week, the bank outlined that the event “will underscore our commitment to advancing the US$1 billion oil service financing facility to Guyanese businesses by showcasing our key programmes, financial and non-financial solutions to support local participation through the oil and gas value chain.
The roadshow will also provide an opportunity to demystify Afreximbank’s mandate as a pan-African institution that is driving impactful transformation across the continent.”
Afreximbank said that its team has identified some strategic projects and initiatives that could serve as levers of boosting intra-regional trade in Guyana and therefore elevate the social and economic status of the Guyanese citizens. It is for this reason it wants locals to participate in the roadshow and maximize on the opportunities it will provide.
Established in 1993 with a broad objective of promoting intra and extra-African trade, the bank has a full membership of 54 African states and 12 Caribbean states. Afreximbank has seven regional offices across Africa and the Caribbean in key markets covering operations in the respective sub-regions, namely Egypt, Uganda, Zimbabwe, Cameroon, Nigeria, Abidjan and Barbados.
This year, the bank recorded that for 2024 there was a total income of some US$3.3 billion while its net income rose 29% year-on-year to US$973.5 million. Net interest income had climbed 25% to $1.8 billion for the same period.
It stated that this country signed a partnership agreement with it in September 2022.
To date, Afreximbank says that it has undertaken some strategic initiatives in Guyana. It successfully hosted the AfriCaribbean Trade and Investment Forum 2023; it signed a US$100 million trade finance facility with JE Energy for crude oil exports and has given the US$1 billion commitment to promote local participation in the oil and gas sector.
When Afreximbank’s President Oramah had announced the US$1 billion envelope to this country, the bank had said that the initiative aimed to enhance local participation in the country’s fast growing oil industry, in alignment with the government’s local content policies.
The bank will deploy the US$1 billion facility directly to qualifying corporate clients or through a factoring line via local banks, enabling them to finance invoices from local contractors.
