IDB Invest partners with Redstart to boost retail and MSMEs supply chains in Guyana

Apr 16, 2024 News

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Kaieteur News – IDB Invest signed an agreement to finance $25 million to Unicomer Guyana Inc, through its real estate division, Redstart Guyana, the hemispheric lender said in a release on Monday.

The funds will be used to build a commercial complex and megastore named “River Place,” located at Farm East Bank Demerara. The Unicomer Group of companies is a subsidiary of Milady Group and Liverpool Group, and it is one of the largest retail companies in the Caribbean, Central America, and South America, the IDB said.

With this financing, IDB Invest will play an important role in supporting Unicomer Guyana Inc.’s  sustainable growth, and expanding business opportunities for local micro, small and medium enterprises (MSMEs). The number of suppliers is expected to increase as well as the value of purchases from local MSME. “Our commitment is to support investment to promote improved productivity to boost development in the region,” said Lorena Solorzano, IDB Group Country Representative. “With this partnership, we are expanding business opportunities for local MSMEs while responding to an increasing demand of middle and low-socioeconomic segments for retail products in Guyana.”

With the construction of the commercial complex, the company is expected to employ approximately 100 new persons during construction and provide 30 spaces for businesses to operate, which will generate more local employment. Additionally, the construction includes a strong focus on sustainability by using LED Energy, solar panels, and local materials to leverage the local construction supply chain. “The Unicomer Group has had a presence in Guyana for more than 30 years, starting with its flagship brand Courts. This multi-million-dollar investment demonstrates the company’s commitment to the economic development, growth and most importantly the people of Guyana,” expressed Errol Le Blanc, Caribbean Vice President, Unicomer Group.  The project’s Environmental and Management Plan will also focus on continuous improvement of the company’s Environmental and Social Management Systems (ESMS), alongside emergency response, and occupational health and safety policies and procedures.  The project is also expected to contribute to the Sustainable Development Goals (SDGs): SDG 8: Decent Work and Economic Growth; SDG 9: Industry, Innovation and Infrastructure; SDG 10 Reduced Inequalities and SDG 17 Partnerships for the Goals.

Delivering remarks at the signing ceremony, Finance Minister Dr. Ashni Singh congratulated the IDB Group and Unicomer for its forged partnership, noting that it sends a very clear signal to the rest of the private sector operating in Guyana that financing raised through IDB-Invest is a very viable and doable prospect for them. The finance minister noted too that from 2020 to date, the value of financing approvals by IDB-Invest for development projects in the country’s private sector totals US$173 million. He added that Government welcomes this significant investment by Unicomer, pointing out that it is a tangible and visible demonstration of confidence in Guyana’s economy. The finance minister then also lauded the IDB for its continued demonstrated confidence in Guyana and commitment to supporting the country’s private sector to expand and invest in several projects as Guyana continues on its rapid economic development trajectory.  ‘This investment comes at yet another key juncture in Guyana’s economic history, at a time when our economy is growing more rapidly than almost any other economy around the world, at a time when more Guyanese are in work from any other time previously in our country’s history, at a time when more Guyanese are earning higher levels of disposable income and acquiring their own homes through our Government Housing Programme and seeking to furnish those homes, and therefore are in a position to even more fully avail themselves of the goods and services that will be provided by companies like Unicomer,” Dr. Singh said.

Redstart Guyana, a wholly owned subsidiary of Redstart Limited, jointly owned by Milady Group and Liverpool Group, was incorporated in Guyana in 1991. Redstart Guyana serves as the real estate arm of Unicomer in Guyana, responsible for developing real estate assets including offices, distribution centers, key stores, and service centers and operating Unicomer Group’s real estate assets.  The Unicomer Group operates in 26 countries from its headquarters in El Salvador and has over 13,700 staff members. The company offers its customers the widest and most modern line of products and financial services across the countries of operations. The retail brands of the Unicomer Group include Courts, Courts Optical, Ashley Furniture HomeStore, RadioShack, Lucky Dollar and Servitech.

IDB Invest, on the other hand is a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the social and economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

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• Guyana, IDB Invest, MSMEs, partners, Redstart

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