AFREXIMBANK to help fast-track payments to Guyanese oil sector contractors

Last Updated on Monday, 30 October 2023, 17:38 by Denis Chabrol

The Local Content Secretariat of the Ministry of Natural Resources, Cowan Street, Georgetown.

Guyanese suppliers to the oil and gas sector would soon no longer have to wait for long periods before they are paid monies by contractors after the Guyana government inks a trade facilitation agreement with the African Export–Import Bank (AFREXIMBANK), President Irfaan Ali said Monday.

“We’ve talked a lot about the payment gap for  the suppliers of services to the main oil companies; the time frame that it takes and that caused  a lot of hardship on the cash-flow for local suppliers,” he said.

He told participants at the 3rd African-Caribbean Trade and Investment Forum (ACTIF) that he and the President of AFREXIMBANK Professor Benedict Oramah have been working feverishly to get the Local Content Facilitation Fund signed off before the end of the conference.

The Guyanese leader said the Local Content Facilitation Fund was being replicated from models in Angola and Nigeria. “Before the end of this conference, we would have agreements on the establishment of a Local Content Facilitation Fund here in Guyana so we’re making meaningful progress, very strategic alliance, very strong alliance and showing confidence in the AFRIEXIMBANK and what you have to ofer this region,” he said.

At least 40 services have been set aside under the Local Content Act exclusively for Guyanese.