…Pres. Ali says new financing push will target medium- and large-scale farmers
Farmers seeking to expand into medium- and large-scale production could soon access bank loans at preferential interest rates, with Republic Bank committing resources to support agricultural financing.
President Dr. Mohamed Irfaan Ali announced the initiative on Monday at the inaugural Farmers’ Conference at the Arthur Chung Conference Centre (ACCC), Liliendaal, Greater Georgetown.
President Dr. Mohamed Irfaan Ali delivers the keynote address.
Ali said the government is negotiating with commercial banks to provide agricultural loans with incentives similar to those offered under low-income housing financing. Republic Bank has already committed to setting aside funds for the initiative, although the interest rate is still being negotiated.
“Already, we have the commitment from Republic Bank that they are going to set aside resources for agricultural loans at a preferential rate, and we are negotiating that rate, which I hope can be announced even before the end of the conference, at the end of this week,” the President said.
The government is also seeking to bring existing agricultural financing arrangements under the new incentive structure. Ali pointed to Demerara Bank’s poultry loans, which already carry an interest rate of five per cent.
“That is what we do every single day for farmers. We work hard. We try to bring the private sector along. We improve the financial sector so that we can tackle the challenges farmers face in a multidimensional way,” he said.
The financing push comes amid growing interest in agricultural investment. According to Ali, almost 30 per cent of the applications received by the Guyana Development Bank (GDB) since its launch just over a week ago are from the agriculture sector.
“If there is one indication as to how the policy direction is leading to a new wave of excitement, a new wave in agriculture, it is this fact, that almost 30 per cent of all the applications so far in the development bank is in the agricultural sector,” he said.
Ali contrasted the current interest with conditions in 2020, when large farmers and producers were scaling back investments, while many medium-sized operators, particularly in rice and poultry, were exiting the sector. He said production has since recovered, with young people now forming consortiums to invest in poultry and other agricultural enterprises.
The President also cited the International Monetary Fund’s latest report on Guyana, which found that agriculture has grown by an average of 10 per cent annually since 2022. The sector now accounts for six per cent of the country’s gross domestic product (GDP) and one-fifth of non-oil GDP.
Ali attributed the growth to government investments, subsidies and policies aimed at supporting farmers, adding that increased investment in production would help sustain the sector’s expansion. “Once we have people interested in the production of goods, especially in the agricultural sector, then what the IMF report is saying about us today will continue to expand and continue to grow,” he said. The Farmers’ Conference forms part of activities for Agriculture Month, being held under the theme, “Innovate, Nourish, Grow: Building a Strong and Sustainable Guyana.” (DPI)
Source: Kaieteur News
