IPED profits up 41 percent
Kaieteur News
July 27, 2004
THE Institute of Private Enterprise Development (IPED) Ltd has reported an increase of 41 percent in profits, up from $33M in 2002 to $41M last year.
The company held its eighteenth Annual General Meeting yesterday, at its Head Office on South Road.
IPED’s Chairman, Yesu Persaud, in the company’s Annual Report 2003 and in brief remarks to those at the AGM, said that despite the many constraints, IPED continues to play a major role in the development process, in addition to stimulating the entrepreneurial spirit in Guyanese creating wealth and jobs.
Noting the Government’s call for the private sector to be the engine of growth, Persaud said government must act as the facilitator of growth. “Government and the private sector cannot go in separate directions,” he said.
According to the IPED Chairman, there must be first a vision and then planning to realise that vision.
Persaud noted that one of the major concerns is the exodus of local skills and entrepreneurs. He said Guyana must be transformed to keep its people home.
Prime Minister Samuel Hinds, in his remarks, said IPED is important to Guyana ‘s growth and development.
The Prime Minister described IPED as not only a commercial success, but also as an agency that contributed to the social fabric of Guyana by encouraging people and showing them that society considers them to be important.
The Prime Minister also noted the importance of IPED in encouraging Foreign Direct Investment, observing that foreign investors are usually worried when investment comes only from foreigners.
He said foreign businesses, which are usually large scale, must work with local, usually small scale, businesses.
The Prime Minister recalled that not so long ago, he attended a similar event at another agency that provides assistance for entrepreneurs and small businesses.
“The competition in the field,” he said, is good for the country.
Congratulating IPED on its successes, the Prime Minister expressed confidence that Guyanese can achieve economic growth both for self and for country.
In a feature address, United States Ambassador to Guyana Roland Bullen described IPED as a “success story.”
He noted that IPED’s increases in loans, clients and profits have come during a year when there was negative economic growth in the country.
The Ambassador said that his country is proud to be partners with IPED and to have provided support over the past eighteen years.
The US, he said, is committed to helping to reduce poverty and improving the quality of life among Guyanese.
In 2002, IPED provided $525 million in small loans to 1417 persons. In 2003, there were increases in both the total amount loaned by the institution, $607 million, and in the number of loans given, 1769.
Clients under the micro-credit facility also went up, from $195M to 3367 clients in 2002 to $263M to 3401 clients in 2003.
According to the Chairman’s report, IPED has financed over the years, 39,862 loans valued at $7,038 billion and created thousands of jobs throughout the country.
The report noted that the Directors of IPED continue to pursue a prudent policy of providing for bad debts, since it is operating in areas that are subject to the vagaries of the weather and shifts in the economy.
IPED also offers managerial and technical training to all of its clients and in-house training for its staff.
IPED’s total number of clients increased to 4,647 or by 9.4 percent during 2003. New clients account for 25 percent of the institution’s total number of clients.
The number of hinterland clients in 2003 was 154, while the number of Amerindian clients increased from 43 to 189 during 2003.
Also, during last year, IPED extended its reach to all ten Administrative Regions in Guyana.
Yesterday’s event saw a number of awards being presented to outstanding clients and staff of IPED. (GINA)