The Inter-American Development Bank (IDB) is one of the agencies supporting Guyana’s local content efforts. In fact, it has committed about US$400,000 to this end. But upon doing its own assessment of the state of affairs, the financial institution found that Guyana needs a truly comprehensive initiative that would help local businesses access more opportunities in the oil sector.
The financial institution said that indeed, there has been increased access to business with the establishment of the Exxon-financed Centre for Local Business Development (CLBD). It noted however that there is a need for a broader initiative to increase the number of firms which can meet pre-qualification requirements along with improving the competitiveness of small and medium sized companies across the various sectors.
It further stated that such an initiative is needed to identify and communicate supply gaps, while promoting the start-up and growth of businesses to fill the observed gaps, particularly for support/indirect services.
Significantly, the IDB said that such an initiative would also be needed to increase local firms’ access to financing.
In essence, the bank said there is a need for a more comprehensive and coordinated approach to supporting local businesses at the various stages of development.
