– Direct foreign investments skyrocket to US$18.1B
Lending to Guyana’s private sector has increased by an impressive 62 per cent between 2019 and 2024, reflecting a period of robust economic growth and heightened confidence in the country’s financial and investment landscape.
This was revealed by President Dr Irfaan Ali during the opening of GuyExpo 2024 on Thursday at the Sophia Exhibition Centre while emphasising the Government’s commitment to fostering an environment conducive to private sector expansion.
According to the Head of State, this access to credit has been instrumental in business growth across major economic sectors, with notable credit increases in mining charting to staggering a 25.8 per cent, agriculture to 95.6 per cent, manufacturing to 57.9 per cent and services increased to 60.9 per cent.
Additionally, Ali noted due to the “Government’s economic stabilisation efforts and the strengthening of private sector capacity” non-conforming loans have dropped from 11.1 per cent in 2019 to 2.7 per cent in 2024.
“With supportive monetary policies, the Government has encouraged a rapid expansion of credit to the private sector, contributing to a 62 per cent increase in private sector lending between 2019 and 2024 and I believe we should give the banking sector a resounding round of applause… This diversified increase in portfolio tells you that our policy-making matrix of diversification is working and yielding the results that we wanted to yield.”
The Guyanese leader added that the local private sector has been a critical driver of the country’s economic diversification, with increased financing fueling growth in key industries such as agriculture, construction, manufacturing, and technology.
Foreign investment
Meanwhile, Ali also revealed that foreign direct investment surged to US $18.1 billion from 2020 to 2023, which he noted is four times more than the foreign capital curated during the coalition Government’s tenure in office.
On this point, he explained that foreign investment is vital for Guyana’s economic transformation, especially in boosting local industries.
“With COVID, after the end of 2023, FDI (foreign direct investment) is four times the entire period of the APNU/AFC Government. The energy sector, every single sector has seen remarkable expansion of FDI. In the Information and Communication Technology (ICT) Sector, when we speak about digitisation of the economy, we are seeing already that the world is embracing this. Mining and borrowing attracted $7.1 billion, a 44 per cent increase in investment. Manufacturing and distribution attracted investment of $123 million”.
“This increase in FDI reflects the confidence international investors have in a country’s stable and promising economic environment” he added.
The Head of State highlighted that Guyana is positioning itself as a hub for enterprise and innovation, welcoming both local and foreign investments to fuel sustainable economic development.
This forward-thinking strategy he said aligns with the Government’s vision to diversify the economy and harness the nation’s resources for long-term prosperity.
The strategy includes initiatives to empower local businesses through access to financing, training, and infrastructure development while streamlining processes to attract foreign investors.
Major sectors like oil and gas, agriculture, tourism, and technology are at the forefront of this initiative.
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