PSC urges business sector to explore new funding sources

Apr 19, 2023 News

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…says access to financing remains major challenge

Kaieteur News – The Private Sector Commission (PSC) has urged its members to explore new funding sources, even as it laments the lack of access to financing here.

Speaking at the PSC’s Annual General Meeting on Tuesday, outgoing chairman, Paul Cheong access to financing continues to be a challenge in the private sector and government has asked the commission to identify specific legal impediments to the law and regulatory framework with regard to the issue, so said outgoing chairman of the Private Sector Commission, Paul Cheong.

“We have had discussions with the Government on this matter. The Senior Minister with Responsibility for Finance, Dr. Ashni Singh has since asked the private sector to identify specific legal impediments to the law and regulatory framework with regard to access to financing and is awaiting feedback,” Cheong told the AGM.

He said the commission is pleased with the efforts to address this matter, “but we have to also focus on raising finances outside of Guyana. Indeed, there are a number of banks outside of Guyana with the legal latitude to do business here. With due diligence, the Government is granting the necessary permission. The World Bank and the Inter-American Development Bank have a menu of financial instruments including lending for private sector expansion. Let us expand our horizons and explore other sources of financing,” Cheong told the business sector.

Oil and gas

Meanwhile, Cheong said the PSC has recognised the commitment shown by the Government to ensure that Guyanese benefit from the oil and gas industry, but said the onus is also on the business community to support the implementation of the Local Content Law. He said In November 2022, the PSC hosted a Local Content Forum where feedback was garnered on the first schedule of the law. “The PSC further followed up with businesses to get a better understanding of the challenges they are facing and their general feedback on changes they would like to see in the law. These were documented and presented to the Ministry of Natural Resources Local Content Secretariat and we look forward to the recommendations included in the revised schedule of the Local Content Law.”

Cheong said as Chairman of the PSC, he has been continuously advocating for win-win partnerships in keeping with the Local Content Law. He said in the private sector, they are cognizant that foreign investment allows for resource transfers and the exchange of knowledge, technologies, and skills. “We welcome these as an opportunity to build capacity locally, as these will lead to increased income and more purchasing power for households, which in turn will lead to an overall boost in our economy.”

According to Cheong over the past year, the Commission has been working to strengthen relations with stakeholders – locally, regionally, and internationally. “We have been pursuing public-private partnerships with the Government of Guyana in order to move developmental initiatives forward. The government is an important partner in private sector growth as we rely on it to provide good policies, strong institutions, and efficient public goods and services to ensure the private sector thrives.”

Pleased with strides

Assessing his tenure at the helm of the organisation, Cheong said he was pleased with the strides the commission has made to push private sector growth. “Specifically, I am pleased with the partnerships we have formed with key stakeholders, our progress in getting more women involved in the work of the Private Sector, our progress in resuscitating and forming new chambers across the region, our success in addressing the concerns of businesses as it relates to local content. These are just to mention a few,” Cheong said.

He added: “as I prepare to pass the baton on, I hope that the next Chairman will continue to push for more local businesses to go public. We have started some groundwork on this matter. I wish to take this opportunity to thank the executives, members, and the entire business community for the confidence they have bestowed in me during my time as Chairman of the Private Sector Commission. As a member of the Private Sector, I will continue to passionately push for the growth and development of our local private sector. We will continue to grow in this expanding economy.  Last but not least, I wish to thank the staff of the PSC Secretariat for their exceptional work over the years. Keep up the good work. Guyana is developing at a fast pace and, as the engine of growth, the private sector remains an integral partner in this process. Let us continue to take a leading role in advocating the interests of businesses with the view to fostering socioeconomic growth and development in Guyana,” Cheong said.

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• Annual General Meeting, Dr. Ashni Singh, Paul Cheong, Private Sector Commission (PSC), Sources

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