Guyana becoming more attractive for foreign investments

Former chairman of the Private Sector Commission (PSC), Ramesh Dookhoo believes that Guyana has the potential of becoming a major player among Caribbean economies.
In the 2012 edition of Business Guyana, Dookhoo said that this fact has been increasing recognised by investors, many of whom are now discovering Guyana.

The former PSC chair pointed out that the private sector has also recognised government’s efforts towards instituting policies designed to encourage foreign investment.
“The Investment Act of 2004, for example, has made it possible for both local and foreign investors to operate on a level playing field with no differentiation between them under the law.”
Dookhoo, who is a manager at Banks DIH Limited, remarked that foreign investors are also allowed to own land and to repatriate their profits.
He said government has been redoubling efforts to produce a more conducive environment for investors with the creation of several industrial estates.
More recently, government has been actively targeting investors who are intent on taking advantage of Guyana’s tremendous agricultural potential by making 200,000 hectares of non-forested land available for agro-industrial projects.
The earmarking of non-forested lands is in keeping with the country’s Low Carbon Development Strategy (LCDS) under which there is a clearly outlined policy to foster development without the sacrifice of the country’s forested resources.
Dookhoo stated that while the country has long been dependent on a small number of traditional exports such as rice, sugar, bauxite and gold, there is now a defined policy of economic diversification and the services sector is growing exponentially.
He noted that the proliferation of call centres is a relatively recent development largely attributed to Guyana’s educated, easily trainable and affordable workforce. “Also increasing in importance is investment in agro-processing and aquaculture and agro- processing exports have grown by an annual average of nine per cent since 2000.” Guyana’s economy grew by 5.4 per cent in 2011 and foreign investment, particularly in the petroleum sector, promises to yield even higher growth in the medium and long term.
Dookhoo mentioned that there is also growing interest in investments for alternative energy projects. He said while government continues to invest in infrastructure for development, there is growing interest in public/ private partnerships in infrastructure.
The private sector, Dookhoo said, has been responding to the opportunities available for such partnerships, a recent example being the successful construction of the Berbice River Bridge.
Dookhoo added that Guyana is also a party to several trade agreements which allow for special entry of its exports to markets abroad. Most notable of these is the Economic Partnership Agreement (EPA) with the European Union (EU) which allows for entry into the European market of many of Guyana’s export.
Dookhoo is of the view that the market-oriented policies of the Guyana government has meant that most of the increasing growth of the economy is being driven by the private sector, which has accepted its role as the engine of growth.
Through the National Competitiveness Strategy, the PSC since 2006, has had a formative role in government policy and has been influencing the creation of policies designed to foster the growth and development of the country.
Dookhoo is confident that the new parliamentary dispensation will result in a more open and accountable political culture, which will create a favourable economic environment conducive to the country’s development.
Georgetown Chamber of Commerce and Industry President Clinton Urling said that two significant events last year inspired confidence and bode well for the business environment in Guyana. The economy recorded a 5.4 per cent annual growth rate, representing six consecutive years of positive growth.
Urling said the nation also presided over calm and peaceful national and regional elections, from which emerged a new political landscape that will have implications on the business environment.
“While Guyana continues to aggressively pursue oil and gas exploration activities, there also has been a slowdown in the quest to tap into the country’s alternative energy potential.”
He pointed to the opportunities available in bio-energy development and the various energy projects being pursued by the Institute of Applied Science and Technology (IAST). The chamber has been exploring some of the initiatives aimed at providing reliable and cheaper electricity and the role renewable energy can play in the overall scenario.
It is also examining the prospects and opportunities in the vast Essequibo region, which is known to have tremendous opportunities in a diverse range of sectors, including forest products, crops and livestock, eco-tourism, aquaculture and entertainment.
In a 2011 U. S. State Department report, the Guyana government was given credit for publicly encouraging foreign direct investment.
The report stated that while government’s track record in attracting government-to- government development assistance is strong, its long-term record in attracting private sector investment is poor.
It added though that recent developments could lead to large investments in coming years in the hydroelectric and oil and gas sectors.