Prestigious ‘Fortune Magazine’ sheds spotlight on Guyana’s development
Guyana has been featured in Fortune Magazine, one of the most popular global business publications in the United States. It has been describes as the “next frontier” with an expanding international presence, thriving exports, and potential oil and gas discoveries on the horizon.
Economic Stability and Investments
The article stated that the nation has come a long way since its debt-ridden 1990s and spoke of the decades of prudent fiscal management, which have laid the base for new growth.
It highlighted that because of its unique geographical position, and ongoing infrastructure projects that are linking this booming nation with its neighbours, the government sees a new role for this country of fewer than 800,000 people: as a regional hub and a bridge between South American and global markets.
President Donald Ramotar, who was interviewed by the Magazine, was quoted as saying that, “we are a very open society and ready to partner with the international community. Also, there is a strong movement in South America to unify infrastructure between nations, and we are part of that. Guyana has observer status in Mercosur and we are part of UNASUR so we have a unique position geographically to act as a link between the Caribbean and South America.”
Mention was made of Guyana’s steady growth since 2006, which, along with stable exchange rate and domestic prices and single-digit inflation, have helped the country re-establish credibility and lure new investments.
Minister of Finance, Dr. Ashni Singh was quoted as saying, “ten years ago the fiscal deficit would have been almost 13% to 15% of GDP. Today it is around 4.5% and our total debt to GDP ratio is in the vicinity of 60%. In today’s world that is a significant achievement.”
Minister Singh spoke of the large investments that are being made by the Government, particularly in the mining sector and successful public-private partnerships, which led to the realisation of several ground-breaking projects, such as the Berbice Bridge.
President Ramotar believes that Guyana, with its budding export sector, is on the right track to play an increasingly significant role in the region.
He said that, “the U.S.A. and Europe are our biggest markets, but we are selling increasingly more products in the Caribbean. The Caribbean imports food products to the value of $4B each year,” he said. “Guyana has large tracts of land and fresh water, so we also are promoting investments in our agriculture sector to take advantage of that huge market.”
Strong Footing
Governor of the Bank of Guyana, Lawrence Williams, in his interview with the Magazine said that, “By 2006 our productive sectors were on a strong footing. Export receipts were improving because of the performance of various sectors of the economy. The increase in foreign exchange earnings and the liberalisation that took place ensured that there was adequate foreign exchange flowing into the system. We have managed to keep things on an even keel.”
Meanwhile, Demerara Distillers Limited’s Chairman, Yesu Persaud said that the country has the potential to be transformed into the most prosperous in South America.
Prospective Oil and Gas
In terms of oil and gas, the Guyana Suriname basin has the second highest resource potential among unexplored oil basins in the world, with potential oil reserves of 15 billion barrels and gas reserves of 42 trillion cubic feet.
Minister of Natural Resources and Environment, Robert Persaud said that, “…there is real potential of finding substantial discoveries and then there will be further opportunities as they come on stream.”
Liberalisation of the Telecommunications Sector
Government is currently working closely with telecommunication giants GT&T and DIGICEL to open up this sector. In this regard, a Bill has been tabled in the National Assembly.
Chief Executive Officer of DIGICEL Guyana, Gregory Dean was quoted saying that, “the passage of the new telecommunications bill, which will open the international voice and data market, is critical not only for DIGICEL’s full roll-out but also for the country’s development.
Profitable Financial Sector
Guyana’s export-based economy provides a lucrative counterbalance to the current instability in global financial markets. This is according to Demerara Bank’s CEO, Pravin Dave.
“With so much money being printed by governments around the world, commodity prices, including gold, should continue to go up. Mining, forestry, and agriculture offer the best opportunities for growth here,” he said.
In 2012, Demerara Bank broke the billion-dollar mark, in Guyanese dollars, for the first time in its 20-year existence, setting a record for the sector and boosting its net worth by 30%. This year, the bank is anticipating doing even better.
Commerce and Trade
Being a member of the Caricom Single Market and Economy has boosted trade levels for Guyana since January 2006. Coupled with the Caribbean Basin Trade Partnership Act agreement and the duty-free Economic Partnership Agreement (EPA) with the EU, a number of Guyanese agricultural products are now allowed duty-free access to the U.S. market. The EPA agreement has been extended to 2020.
“Guyana is on the cusp of accelerated economic growth, but in five years most of today’s opportunities will be taken. The people who will benefit are the ones who invest now in our future,” Commerce Minister Irfaan Ali said.
With regards to food security, Agriculture Minister Dr Leslie Ramsammy said, “We are heavily investing in research, and we have begun to produce what we used to import. My aim is to ensure that if we can produce it and grow it in Guyana, then we should do so. If not, then the food import bill will become unsustainable.”
Production of rice which has been particularly successful is expected to reach 600,000 tons this year, up from 400,000 tons in 2012, and much of the increase is due to the introduction of better strains for the Guyanese climate following research on the issue. There are more than 12 different varieties of rice, and last year it introduced aromatic rice-the first in the Caribbean-to compete with the Basmati and Jasmine brands.
Increasing value-added production is also a priority, according to Dr Ramsammy. Guyana is now packaging its rice and sugar products and is expanding into other agro-industries, such as the production of fruit juices, pepper sauce, and condiments. “We have also established the New Guyana Marketing Corporation where we work with agro-processors to improve presentation, packaging, and marketing,” he concludes.
Tourism and LCDS
Work began on Guyana’s first large branded hotel in August of 2011. According to Minister of Tourism, Industry and Commerce (ag) Irfaan Ali, it is a major step for Guyana’s tourism sector and for President Ramotar’s goal of gaining prominence on par with the rest of the Caribbean.
“We have some exciting signature projects. The Marriott, one example, will be one of the largest Marriott projects of its kind in the Caribbean,” said Ali.
Prime Minister Samuel A. Hinds added that this public-private partnership is as important as those undertaken for the construction of the Berbice River Bridge and the Amaila Falls Hydropower Project. “Our government is ready to take initial risks. Our goal is to kick-start key projects such as this one. We expect that once the hotel is built, it will be attractive enough for us to sell the equity portion to our co-partners,” he explained.
Guyana’s Low Carbon Development Strategy (LCDS) also offers opportunities to invest in tourism projects associated with sustainability. Launched in 2009, the LCDS is a plan to transform Guyana’s economy, conserve its forests, which cover 80% of the country, and adapt to global warming while reducing carbon emissions. Consequently, the government plans to channel forest conservation payments into strategic investments in low-carbon economic sectors like adventure and ecotourism.
“We are also enhancing growth in tourism through a series of initiatives, for example, the Rediscover Home packages, community-based tourism, the Essequibo River circuit, Sail Guyana, and the marketing of Destination Guyana as a sports fishing and bird watchers’ hot spot. These initiatives utilize the tourism potential of Guyana-The Amazon Adventure in a prudent manner, which ensures sustainability,” Ali explained. He warned, however, that interested investors must act soon.
While many Caribbean nations have already reached much of their tourism potential, Guyana still offers a plethora of opportunities in the sector, as evidenced by Marriott International’s decision to join forces for a $52 million hotel in Georgetown. Slated for completion in April of 2014, the 10-story, 192-room hotel overlooking the Atlantic Ocean will feature a boardwalk, ballroom, entertainment complex, restaurants, and sports facilities, and provide employment for hundreds of Guyanese.
With 80% of Guyana still covered by tropical jungle, the government is committed to a future of high-quality, sustainable ecotourism. The diverse wildlife wealth includes more than 800 species of birds with exotic treats such as the rufous-winged ground-cuckoo, the crimson fruitcrow, and the endangered sun parakeet.
The pristine Iwokrama rain forest offers an eco-lodge and the state-of-the-art Iwokrama Canopy Walkway where visitors experience the jungle from the treetops.
Whereas most Caribbean nations offer sand and blue seas, it is Guyana’s rivers that pulse with the identity of this tropical nation. On these unforgettable journeys one can see monkeys, giant river otters, turtles, toucans, capybara, and black caiman, and welcoming indigenous settlements.
Guyana’s vibrant indigenous culture forms the basis for the community tourism campaign. Travellers can spend days immersing themselves in the traditional culture of the Makushis and Patamonas in the Rupununi and the Arawaks of Santa Mission enjoying folklore under the stars and guided trekking, canoeing, and fishing by day. Many of these communities, which depend entirely on nature for their subsistence and hold land titles for more than 2.4 million hectares, are joining the ecotourism initiative.
Creating new avenues for investment
Given the pace of development that has been taking place, the Guyana Office for Investment (Go-Invest) has gained new attention as a critical element in channelling investments into the country, and the government has unveiled new modernisation plans for the investment agency to boost its effectiveness.
Presidential Adviser and Go-Invest Chairman Keith Burrowes said that, in addition to capacity strengthening, the reforms, which will be carried out with the support of the International Development Bank and the World Bank’s Competitiveness Commission, will also convert Go-Invest into a center of innovation and information aimed at achieving the goals set out in Guyana’s development agenda. The reforms will also include the creation of a new database to streamline critical information for investors from all the government agencies concerned.
A new report showing significant growth in Guyana’s investment levels between 2010 and 2011, when inward flows increased by 142% in agro-processing, 52% in light manufacturing, 29% in the services sector, 371% in tourism and 57% in wood products.
