Guyana’s Prospects Have Never Been Brighter – President Ali
15th of October, 2020. Georgetown, Guyana, South America
His Excellency, Dr Irfaan Ali, has proclaimed that Guyana is set to become the region’s most exciting investment destination despite the economic problems caused by the coronavirus pandemic.
The Head of State delivered the keynote address via zoom to the Forecast on Latin America and the Caribbean Conference hosted by the Association of American Chambers of Commerce and Latin America and the Caribbean (AACCLA) earlier today regarding the current state of the economy, the impact of the pandemic in Guyana and the outlook of the U.S.- Guyana bilateral economic relationship.
The “Forecast” conference is an outstanding platform from which to advance our shared goals for promoting economic growth, the rule of law and closer cooperation throughout the hemisphere. In his address, the Head of State pointed to a plethora of comparative advantages that support Guyana’s economic take-off including oil production, access to markets and the country’s fiscal investment framework which creates an investment-friendly environment.
“Guyana is about to become the investment colossus of the Caribbean. It will become the region’s most exciting investment destination. Now, therefore, is the right time to be doing business in Guyana. Despite the economic problems caused by the Coronavirus pandemic, our country’s prospects have never been brighter or more promising.”
The President emphasized that despite the growth in the oil sector, the country will not “hitch all of its wagons on oil,” but rather use the resources derived from the sector to revive the traditional economic sectors thereby ensuring a more diversified and resilient economy. “Guyana’s impending economic transformation will see a rapid increase in the rate of growth and aggregate national output. It will also set in train the modernization of the country’s infrastructure and foster increased technological transfers and promote innovation. New poles of economic growth will emerge to balance and diversify the economy including in manufacturing and services.”
This rapid economic growth is expected to spawn significant investment opportunities in oil and gas, infrastructural development, energy, agriculture, forestry, manufacturing, services, information communications technology and tourism. On this note, the President pointed to the importance of not only public investment but foreign direct investment (FDI) towards driving growth and accelerating Guyana’s transformative agenda. “We welcome foreign investment. We are eager to do business with the rest of the world, including with the United States. We are enthusiastic about attracting investment, including through public-private partnerships and through the partnerships between foreign and local companies,” President Ali added.
He also points to his government’s efforts in pursuing policies and plans contained in the recently passed 2020 Budget which lays the groundwork for enhancing investment promotion. Several key budget measures include tax concessions on agro-processing, cold storage and packaging, the removal of VAT on exports and allowing exporters, including those in the fishing, rice and timber industries, to reclaim input VAT.
Measures to reduce investment and production costs include the removal of VAT on building and construction materials, electricity and water, the removal of VAT on fertilizers, agro-chemicals, pesticides and key inputs into the poultry sector and the zero-rating of the poultry industry. “Guyana is on the move. We are accelerating development…. My message to you today, therefore, is that Guyana is ready to do business. Guyana will become the investment capital of the region. We assure you that when you come here, you will not want to leave. I invite all of you therefore to explore the business opportunities which abound in Guyana.”
Guyana Investment and Transformation
Trade & Investment
A new era is dawning for Guyana as it rises to the challenges of a rapidly changing world. The Guyana-Brazil Highway will become one of the major gateways for products and services to move between South America and the rest of the world. Guyana with its diversified natural resources, developed human resources and its strategic location providing access to the Caribbean and the Americas, holds enormous potential for investors, both domestic and foreign. The Government welcomes investors. Since 1989, Guyana has implemented wide-ranging reforms to improve the business and economic environment for private sector investment. In particular, the Government has maintained a sound macroeconomic framework, which has resulted in price and exchange rate stability, lower fiscal deficit and sustainable balance of payments. Further, the Government has introduced far-reaching regulatory reforms.
With a small population, export growth is essential. Guyana is looking outward. That means moving the economy toward those products and sectors which have the brightest future. Innovation, new product lines and new levels of product quality are being aggressively stimulated so that Guyanese products can achieve greater competitiveness in the higher-earning segments of the global market.
Accordingly, in an attempt to provide a level of comfort to investors, the Government prepared an Investment Code which, in addition, to the existing Investment Guide brings together the incentives, the regulations, the facilitation and the protection of private capital, both domestic and foreign. (see Go-Invest website, www.goinvest.gov.gy)
OBJECTIVES
The objectives of the Code are to further the socio-economic development of Guyana by attracting and facilitating investment through:
A) Providing legal protection for investment
B) Increasing the predictability, stability and transparency of the legal regime for investment
C) Promoting the development of international best practices regarding investment; and
D) Providing a framework for fiscal incentives for investors.
Based on its location and its natural and human resources, the Government is developing competitive advantages and seeking to encourage investment by local and foreign investors in the following areas:
1- Agriculture and Agri-Business – processed foods: fish factories, fish, shrimp, poultry, cattle farms, milk plants, and canning factories
2- Fishing and Shrimping including aquaculture
3- Fresh Food – citrus and greens, organic fruits and vegetables
4- Garments and Textiles – fabric and clothing
5- Wood Processing – furniture, logging, saw-milling
6- Minerals and Energy – gold, diamonds, sand, bauxite, kaolin, crude oil, hydro- power
7- Eco-Tourism and hotel development sector – lodges, hotels, marinas, entertainment parks
8- Travel and Hospitality
9- Manufacturing Sector – pharmaceuticals, fiberglass, concrete blocks, packaging, paper, metal windows, and vehicles
10- Infrastructure – roads, ports, bridges, buildings and houses
11- The Housing Sector – Information and Communications Technology – call centers, data processing and Internet Providers.
AGRICULTURE AND AGRI-BUSINESS SECTOR:The main crops are sugar and rice, grown on the coast lands. Coconuts, the third most important crop, have vast potential for investment. The government is developing the Intermediate Savannahs comprising 600,000 acres of virgin lands with good agricultural potential and excellent investment opportunities for the production of beef, milk, mutton, citrus, legumes, dairy products, orchard crops and any combination of these. There has been an expansion in orchard crop production including avocados, citrus fruits such as oranges, grapefruit, tangerines, limes and exotic fruits such as mangoes, sapodillas, papayas, pineapples, and passion fruit. Organic crops are gradually being introduced and the Essequibo region has been earmarked for the development of this sector. There is potential for exporting small farmer root crops such as yams, sweet potatoes, cassava and eddoes, herbs and spices such as hot peppers, eshallots, celery; fresh vegetables such as cucumber, pumpkin, sweet potatoes, melon, plantain, same, bora, calaloo, etc. In addition, efforts are being put in place for increased production for the exportation of jams, jellies, sauces, processed spices and fruit puree blends. There is also potential for the production of meat (beef and mutton), poultry products, milk and milk products including cheese.
Guyana’s vast tracts of productive land present enormous opportunities for growth. Indeed, agriculture already represents a significant proportion of Guyana’s domestic production (approximately 19.4 percent of GDP in 2016).
Fish and Shrimp:
With the 200-mile coastal zone, deep-sea fishing provides species such as gillbacker, snapper, trout, cavalli, shrimp, prawns, etc. There is tremendous potential for freshwater fish and prawns of the Malaysian type. The development of aquaculture is also being encouraged since there is great scope for rearing of species such as hassar and tilapia for local and export markets.
Rice and Sugar:
Good opportunities exist for joint-venture arrangements in the export of rice. Potential exists for rice to be used to manufacture items such as breakfast cereals for export. Opportunities exist for processing of sugarcane to crystallised sugar.
Rice fields being harvested
Sugar punts
Ornamental Horticulture:
Species include anthuriums, orchids, calla lilies and heliconias; and foliage items such as croton, ficus and leather leaf ferns.
MANUFACTURING SECTOR:
A broad classification of the sub-sectors in this sector includes wood and wood-related products, food and food processing, beverages (alcoholic and non-alcoholic), livestock-related, textiles, chemicals, paper and paper-related, leather, fabricated metals, and refrigerators and stoves; and agriculture and manufacturing incentives for projects in Linden and surrounding areas. Investment opportunities in this sector for manufacture include high-quality wooden furniture in both finished and knock-down forms; fitted kitchen furniture; standard size doors, windows, panels (groove & tongue), and other household fittings; plywood veneers; wooden garden furniture; prefabricated wooden houses; and parquet material and floor tiles.
Agro-Industries:
Opportunities exist for processing, canning and bottling of agricultural products; manufacture of chemical products; packaging, jewelry, leather craft, ceramics and non-metallic minerals, textiles, etc. Investment opportunities exist for the manufacturing of packaging materials and containers for transporting of finished products; of jewelry and ornaments based on gold, diamond and semi-precious stones; leather products and souvenirs, articles based on clay, kaolin and silica sand; garments and textiles for local and export markets; and production of building materials such as stone, cement, clay blocks and tiles, and the manufacture of glass.
FORESTRY SECTOR:
Guyana’s principal wealth is the natural resources both inland and offshore along with its forest and the assets therein. Guyana’s vast forest resources cover over three-quarters of the 83,000 sq miles landmass and consist in excess of 1,000 species of trees. The species which are intensely exploited include greenheart, mora, baromalli, purpleheart, crabwood, kabakalli and womara. Opportunities exist for the production of furniture, plywood and veneers, parquet, floor tiles, kiln drying and wood preservation activities. The Government has been able to sustainably manage Guyana’s forest to derive economic benefits for the economy and create livelihood opportunities for the people while at the same time maintaining one of the lowest rates of deforestation in the world. In doing so a new economic opportunity has been created through avoided deforestation (REDD+) for which Guyana is one of the first countries to be paid.
Potaro River and the “endless” rainforest, which looks like broccoli from the air. Photo: Erica Gies.
MINING SECTOR:
Several economic minerals are exploited in the Guiana Shield. The main minerals or those with potential are gold, diamonds and bauxite. Other mineral resources include laterite, manganese, kaolin, sand resources, radioactive minerals, copper, molybdenum, tungsten, iron, nickel, etc. There are prospects for oil in the Takutu Basin.
TOURISM SECTOR: Guyana offers a distinct product that tourists can enjoy; vast open spaces, savannahs, virgin rain forests, mountains, huge rivers and waterfalls, the most famous of which is the Kaieteur Falls known to be the highest single drop waterfall in the world. There is scope for investment in accommodation (particularly in the hinterland); recreational facilities (could include rafting, boating, tennis, horseback riding and golf), transport (international airlines, charter services, boat and car rental services), restaurants, craft shops, and integrated project (development of the Kaieteur Park area as a major tourist destination.
OXFORD BUSINESS GROUP. THE REPORT ON GUYANA 2020
GO-Invest Website
Summary and Status update of Guyana’s Trade and Investment Agreements
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A new Global Player
Barrels Oil Reserves in 2018
Guyana Reserves would Make it OPEC’S 12th Largest Member
Source: OPECM Exxon Mobil
The Global Discoveries 2019 – (Jan-Sep) – Conventional Resources
US Fulbright Scholar pursues accreditation for UG’s engineering programme, research in oil pipeline corrosion
Dr. Norman Munroe, Professor, Mechanical & Materials Engineering
Fulbright Scholar, Dr. Norman Munroe will begin research in Guyana on preventing corrosion of pipelines in the oil and gas industry and facilitate accrediting engineering programmes at the University of Guyana, the United States (U.S.) embassy in Guyana said.
That research is currently underway at Florida International University’s (FIU) laboratory.
The U.S. embassy says Dr. Munroe, who is an FIU Professor of Mechanical & Materials Engineering, will pursue the Accreditation Board for Engineering & Technology (ABET) for the recently introduced Petroleum and Geological Engineering programme at the Faculty of Engineering & Technology at the University of Guyana.
The embassy says that’s part of a project to transition the Faculty of Engineering & Technology along a path of global excellence in engineering ahead of Guyana’s anticipated oil-infused economic boom. “In line with the U.S. commitment to help Guyana efficiently manage the anticipated oil revenues for the benefit of the Guyanese people,” the American Embassy said. Ambassador Sarah-Ann Lynch welcomed Professor Munroe to Guyana.
ABET accreditation is recognized worldwide through international agreements and it provides assurance that programs meet the global quality standards of the engineering profession.
Graduates from an ABET-accredited program have a solid educational foundation and are capable of leading the way in innovation, emerging technologies, and in anticipating the environmental and safety needs of the public.
Professor Munroe is one of over 800 U.S. citizens globally who will teach, conduct research, and/or provide expertise abroad for the 2019-2020 academic year through the Fulbright U.S. Scholar Program. Recipients of Fulbright awards are selected on the basis of academic and professional achievement, as well as record of service and demonstrated leadership in their respective fields.
Professor Munroe is the 5th Fulbright Scholar to work in Guyana since 2015.
The Fulbright Program is the U.S. government’s flagship international educational exchange program and is designed to build lasting connections between the people of the United States and the people of other countries.