Guyana gets US$9mn IDB loan to diversify exports

Guyana has secured a US$9mn loan from the IDB in an effort to diversify the economy and move the country beyond its focus on mineral and agricultural exports.

The multilateral said that given Guyana's small domestic market, it relies heavily on exports, 82% of which consist of fewer than 10 products, mostly from the mining and agriculture sectors.

According to IDB documents, Guyana's exports in 2015 were 45% gold, 18% rice, 6.6% raw sugar and 3.5% crustaceans.

The loan seeks to accredit labs in non-traditional export certification capabilities as a tool to help reduce market access costs for non-traditional exporters.

The country currently has only two accredited laboratories, neither of which has non-traditional export certification capabilities, IDB said.

Additionally, the loan will help establish a trade and investment framework, as well as a training program for small- and mid-size enterprises on quality and regulation issues.

Half of the US$9mn project cost is coming from IDB's ordinary capital and the remaining US$4.5mn from its fund for special operations (FOE). The ordinary capital tranche is for a 30-year term with a six-year grace period, while the FOE component is for 40 years with a 40-year grace period and a 0.25% fixed interest rate.