GEORGETOWN, Guyana — President Irfaan Ali announced Thursday that the government is accelerating the launch of a US$200 million Development Bank aimed at transforming access to credit for small and medium-sized businesses by 2026, describing the initiative as a major pillar of Guyana’s non-oil economic strategy.
Speaking before entrepreneurs, manufacturers and international exhibitors at the opening of GuyExpo 30, the country’s premier trade show, Ali said the bank will play a central role in “unlocking the next generation of local industry,” offering long-term, low-cost and even zero-interest financing in sectors that traditional banks consider high-risk.
Officials say the institution will focus on agro-processing, manufacturing, technology, tourism, value-addition and renewable-energy ventures — areas the government views as essential to economic diversification. Independent reporting by News Room and Kaieteur News confirms the bank’s design includes interest-free credit windows, partial equity support and specialised business-development services.
Ali told the audience that the new bank will “shift the financing culture” in Guyana by backing businesses that generate jobs and innovation but lack collateral to qualify for conventional loans. “We cannot build a globally competitive private sector if our businesses are starved of affordable capital,” he said.
Economists have warned that despite rapid GDP growth linked to oil production, Guyana’s domestic private sector remains constrained by limited credit and high borrowing costs. A Financial Times analysis this year said the country must “build the institutions of a modern economy as fast as it is pumping oil,” highlighting development finance as a pressing need.
The Development Bank will supplement existing structures such as the Small Business Bureau’s loan guarantee programme, but with far greater capital and wider national reach. Preparatory work on legislation, governance, and capitalization is underway, and the president said the project remains on schedule for launch next year.
Ali told exhibitors that GuyExpo 30 — themed around innovation, investment and regional integration — reflects the type of entrepreneurial ecosystem the new bank is meant to support. “We want Guyanese businesses to scale, export, and compete globally,” he said. “Access to finance is the foundation that will make that possible.”
While the model is ambitious, analysts say its success will depend on strong oversight and insulation from political influence, challenges that have troubled development banks across Latin America. Still, the announcement drew applause from business groups who view it as one of the most consequential reforms in decades.