Durrant Pate/Contributor

Jamaica seems to be making a pitch as a new financial partner for Guyana in the development of its capital markets.

To this extent, the Jamaica Stock Exchange (JSE) just hosted in Guyana its regional investments and capital markets conference, having held the Jamaican leg back in January this year. The JSE has extended its help in developing the South American/Caribbean territory’s financial market.

A capital market involves raising funds by dealing in shares, bonds and other long-term investments. It allows companies to raise money in ways other than applying for traditional loans where assets, be it a land title or heavy-duty machinery, are used as collateral.

Guyana currently requires finances and lots of it to fund the sustained expansion of its productive sectors, particularly its booming oil sector, which has resulted in the country being cited by the International Monetary Fund as the fastest growing economy in the world in recent years. Guyana is also seeking much capital to develop its agricultural sector.

Jamaica to the rescue

Jamaica, one of the more advanced financial hubs in the Caribbean, is keen on supporting the growth of Guyana’s embryonic financial market. The hosting of its JSE regional investments and capital markets conference in Guyana is evidence of Jamaica’s willingness in this regard.

This is the first time the conference, which focuses on capital markets, is being held outside of Jamaica. JSE Managing Director Marlene Street Forrest told Guyana’s capital market and business leaders on Tuesday night that the Jamaican equities regulator is available to help Guyana develop its capital market.

Developing this market, she said, can be done through collaboration, good governance and technology.

Guyana’s Finance Minister Dr Ashni Singh emphasised the importance of developing Guyana’s local financial market.

He argued that Guyana’s financial needs, which are growing every day, is due to the rapid expansion of the economy, which cannot solely be met through traditional credit instruments.

Meeting Guyana’s growing financial needs

He promised that legislative, technological and cultural shifts will take place in response to the growing financial sector. Beyond support for the financial sector, the Finance Minister noted that there are abundant investment opportunities here and encouraged Jamaican businesses to seek opportunities here.

Angus Young, the new chief executive officer of NCB Capital Markets, regarded as the biggest capital market player in Jamaica, argued in favour of developing the capital market in Guyana, which he stated will benefit ordinary Guyanese.

According to him, “Developing the domestic capital market in Guyana will ensure that the Guyanese citizens have the opportunity to participate in the fastest growing economy in the world…. The traditional banking sector plays an important role but it is really an access to the capital markets, and every layer of the capital structure, that will make a difference.”