success of small
and resilient economy.
Another crucial aspect of the government's economic strategy is the Wales Gas-to-Energy project, aimed at reducing the cost of electricity across the nation.
The initiative leverages Guyana's significant natural gas reserves, tapping into sustainable and clean energy sources. By implementing this project, the government seeks to alleviate the burden of high energy costs on small businesses, which often struggle to compete with larger counterparts.
The reduction in energy expenses will not only increase the competitiveness of small businesses but also stimulate investment in energy-intensive sectors, spurring economic growth in regions that
opment, the Guyanese government is channeling substantial investments into upgrading critical infrastructure. The development of modern transportation networks, including roads, bridges, and ports, will improve connectivity and accessibility throughout the country. Enhanced infrastructure will facilitate the movement of goods and services, opening up new markets and creating opportunities for small businesses to expand their reach and customer base. Additionally, investments in digital infrastructure and technology will promote e-commerce, enabling small businesses to tap into the global market and increase competitiveness on an international scale.
GUYANA'S remarkable economic growth is generating exciting opportunities for small businesses and potential entrepreneurs, igniting optimism for a flourishing business landscape in the South American nation.
The government's proactive measures to support small businesses through increased grants, cost reduction initiatives, and substantial infrastructure investments are set to stimulate entrepreneurship and bolster the country's economic prosperity.
As Guyana's economy continues to surge, small businesses are positioned to be significant contributors to the nation's development.
The fast-growing economy has created a conducive environment for small enterprises to thrive and innovate. With increased consumer spending and rising demand for goods and services, small businesses are poised to cap-
italise on the expanding market.
Further, the country's improved business climate, streamlined regulatory processes, and growing foreign investments provide additional support for small businesses to establish and scale their operations.
The combination of a burgeoning sector and a government committed to fostering a business-friendly environment sets the stage for small businesses to flourish and contribute to job creation and economic diversification.
Recognising the importance of small businesses in driving economic growth and employment, the Guyanese government has unveiled plans to boost financial support for small business owners.
By increasing the distribution of small business grants, the government aims to empower entrepreneurs and encourage innovation across various
sectors.
Through these grants, budding entrepreneurs and existing small business owners can access much-needed capital to initiate new ventures, expand existing operations,
invest in technology, and enhance product or service offerings.
This injection of financial assistance is expected to propel the growth of small businesses and contribute to a more dynamic
may have previously faced challenges due to high electricity costs.
Recognising the pivotal role that infrastructure plays in economic devel-
Guyana's fast-growing economy has laid the foundation for a thriving small business ecosystem, and the government's un-
Continued on page 4
THE Guyana Telephone and Telegraph Company (GTT) Business Solutions has announced its partnership with the Georgetown Chambers of Commerce & Industry (GCCI) on the second edition of National Small Business Week (NSBW) slated for July 21-29 at the Arthur Chung Conference Centre.
The NSBW aims to celebrate the invaluable contributions of small businesses in driving economic growth and fostering innovation in Guyana.
As such, GTT will carefully select 30 businesses that currently benefit from its Connex Suite of Services and GTT’s Business Plan, providing a platform for
them to showcase their products, services and connect with potential customers.
The company remains committed to providing dependable and value-for-money telecommunications and internet services for small businesses and continuously works to cultivate an environment where business relationships can flourish in the long run.
It is on this ground that the company has delivered on its pledges made during the last NSBW to improve international communication with stakeholders, offer greater value, and promote entrepreneurship countrywide.
Small businesses are encouraged to take advantage of our plans
or speak with one of our agents to find a plan that best suits their business needs.
Last year’s NSBW expo witnessed the participation of more than 40 businesses, all leveraging the platform to showcase their products and services.
“This year, GTT Business Solutions is excited to once again collaborate with GCCI to provide small businesses a platform that not only enables them to effectively promote their business, but also facilitates knowledge sharing among participants regarding the latest business trends and strategies for expanding their consumer base,” the company said.
From page 3
wavering commitment to supporting entrepreneurship is set to further fuel this growth.
The increased distribution of small business grants will empower entrepreneurs, while the Wales Gas-to-Energy project will reduce energy costs, making businesses more competitive.
Critical investments in infrastructure are poised to enhance connectivity and accessibility, providing small businesses with new growth opportunities. As the nation embraces its economic potential, small businesses stand at the forefront of Guyana's journey towards sustainable prosperity and inclusive development.
ALMOST three years ago, Adaiah Fyffe was inspired to create a clean, healthy snacking option for Guyanese, and thus opened “Wild Rupununi.”
His company specialises in dried fruits that do not include preservatives and additives like many packaged food items.
Fyffe sought to make something that would promote a better lifestyle for Guyanese with his all-natural fruits grown in Guyana.
“The whole premise of Wild Rupununi is to provide health-conscious people with a health alternative,” he told Quarterly Magazine.
Wild Rupununi produces a wide assortment of dried fruits, but Fyffe related that a major difficulty was getting consumers to see the importance of his product.
“Some people would say why buy this when they could
cut up fruits themselves. But overtime, more people began to see it as convenient and good for those on the go,” he said.
He went on to say that getting customers to see the relevance of his product is just one of the issues he faced as a small business owner, noting that: “When I first started, the numbers were bad but after keeping at it, I found things improved.”
This steadfast attitude is what led “Wild Rupununi” to create partnerships with larger companies like Mattai’s and Bounty Supermarkets.
Additionally, Fyffe aims to change the perception that many Guyanese may have of local products.
“Because of a somewhat high-quality packaging and storage, some people couldn’t believe that it was from Guyana,” he related.
And although his product is attractive, Fyffe said
Continued on page 8
NATASHA Profeiro is a woman with a flair for creativity. One year ago, she founded “Craft-A-Holic” which she believes stands out among similar businesses as a place to find personalised hand-made products.
“Craft-A-Holic specialises in individually made wood and resin pieces; mostly home decor pieces,” Profeiro outlined.
Her establishment is as unique as her custom made products, but with a different type of business comes a different host of challenges.
Her business depends largely on the preference of customers. She creates everything from keychains to t-shirts with whatever name, word or quote the customer requests. Adamant on facilitating her customers the best way she can, Profeiro offers delivery.
And as much as it aids her business, she says logistics is an issue she is facing. “I have a challenge with delivery. I offer delivery but it’s difficult. Most customers want the product within a day or two, but because they are handmade and then I need to deliver them, it doesn’t always work out,” she explained.
As a “one-womanshow,” Profeiro, like many other small business owners in Guyana, is having issues finding time to adequately market her products.
“It’s difficult for me to advertise and work. And to be on my phone and take pictures to post on social media is time consuming,” she said.
Looking at small businesses as a whole, the entrepreneur shed some light on areas that could be improved.
Profeiro told the Quarterly Magazine that more training for small business owners would be beneficial to everyone.
“I think we need help in marketing and finance and also in the way business owners approach their customers. We need training in customer service. I think we need to learn how to approach our customers because they are the ones we depend on,” she related.
On the topic of reception from the public, she said that
the Guyanese people have been welcoming of her products. They have been so welcoming, in fact, that a large percentage of her products go beyond Guyana.
“I do get a good reception. Most of my customers are Guyanese but most of my products go overseas. About 90 per cent of my work goes overseas,” she said.
The international market is something Profeiro believes that more Guyanese businesses should get involved in, since she believes: “If you are doing person -
alised items, the international market is good. People would more appreciate hand-made things.”
Every small business has its strengths and their weaknesses, and international appeal is one of Craft-AHoilc’s strengths.
Offering a word of advice to other entrepreneurs and potential ones, she said: “Do a lot of research before you begin and ensure you are well rounded with your products and market.”
From page 7
“space in the market” is another hurdle to the growth of small businesses in Guyana.
He explained: “We need more presence in order for local products to compete with international ones. We need to be valued and represented the same way foreign companies are.”
Fyffe said that although more could be done, the entrepreneurial field is still an excellent one to be a part of right now.
“In the last couple of years, local small businesses
have gained a lot of traction. And I think that has to do with the help of outsiders realising that local products are of really high quality. We may just not have the fancy packaging or branding but the quality is off the charts,” the entrepreneur boasted.
In terms of his business, he said that another one of the challenges he is facing exists is marketing.
“I’m not too good at the marketing side of things, but with some finance, I believe I could raise more awareness,” Fyffe shared.
“Advertising plays an
important role in having your product reach its consumers. This difficulty is intensified when the consumers call for small business to compete on an international level. Small businesses don’t have the finance to compete on an international level…they need the time and chance to do so. And that has been the case in recent times.”
“From the last decade to now, small businesses have grown a lot. And I believe they will continue to. But I know Wild Rupununi will be around for a long time,” he added.
CRAFTY Guy GY, led by Berbician youth Shazam Somwar, in May held its first one-day ‘Pop-up Shop’ to aid five small businesses to market their products and services, and network with customers and potential clients.
The Lot 20 Sheriff Street location (opposite Dolce which is formerly Club Monaco), was effective in accommodating the businesses, each of which brought its own unique services, ranging from locally made crafts, skincare products, candles, food, etc.
“That’s the only way we feel small businesses can grow; you work together, you network,
you connect and you promote,” Somwar, who has spent several years in the field of volunteerism and humanitarian services,
had said.
One of the small business owners, Lisa Deolall-Sahadeo started up ‘Scented Touch’ in 2018
in Trinidad and Tobago, and started business in Guyana last year. To her, the pop-up shop was a great experience enabling
her to find new customers.
She believes that such an initiative is great for small business owners and offers this piece of advice: “Advertising is key. Take advantage of pop-up shops offered as a way to get exposure for your business and build a clientele.”
Lisa’s business is all about skincare.
“We sell all the materials needed to make skincare products and candles. We also offer online courses that teach you to make these products such as candles, soaps, body scrubs, lotions, etc.,” she shared.
Quiniah McPherson was also there with her business ‘Amara’s
Choice’ which features pepper sauce, achar, juices, detergents, coconut oil, pastries, and other products. Omeiga ‘Esha’ Joseph showcased her business ‘Esha Ankara Collection’ which features African prints and other things that she sews.
Kya Bovell with ‘Kustom Box’ customising games for adults and children was on hand, along with Varshanie Singh who has Kids First Fund Guyana. Her goal is to help sick children, animals and adults. She also sells locally made crafts from the Rupununi, the proceeds of which go towards the NGO. (BY
TELESHA RAMNARINE)PRESIDENT, Dr. Irfaan
Ali has said that with numerous high-profile engagements on his agenda and a surge in Foreign Direct Investment (FDI), Guyana is solidifying its position as an emerging destination for global investors seeking sustainable growth and lucrative opportunities.
The Head of State, speaking at a recent press conference, highlighted the increasing interest and engagement of foreign investors in Guyana as a testament to the country’s stability and sound leadership.
The report of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) 2023 has listed Guyana as the leading FDI destination in the Caribbean for the second year running.
The report analysed FDI trends in the region and highlighted Guyana’s impressive growth and its pivotal role in attracting investments.
According to the ECLAC report, Latin America and the Caribbean experienced a surge in FDI in 2022, reaching a record-breaking value of $224.579 billion. This figure represents a significant increase of 55.2 per cent
compared to the previous year.
The President said that the influx of foreign direct investment serves as a resounding vote of confidence in Guyana’s leadership and the path the country has charted for economic prosperity. Highlighting the multiple benefits of FDI, including job creation, increased income, and enhanced economic stability, President Ali reiterated the growing interest and engagement from international investors.
“The direct and indirect benefit is the jobs and the spin-off. So, for example, we have eight hotels under construction right now where work would’ve started. On completion of those hotels, you’re talking about thousands of new jobs being created, that is, thousands of families who now have more disposable income,” President Ali said.
The Head of State related that the creation of new jobs through FDI would result in increased wealth at the individual, family, community, and national levels.
The economic growth, he said, stimulated by FDI would lead to additional spending in the economy, driving demand for services and subsequently increasing revenue.
“The fact that investors are streaming in and there is a greater level of interest in Guyana speaks to the level of awareness and confidence in Guyana,” President Ali said.
He pointed out that the perception of stability - social, economic, and political – and security are key factors that investors consider when making investment decisions.
President Ali further elaborated that investor confidence in Guyana’s leadership and direction was further evident in the numerous requests he received during his international travels.
“At every single major investment forum, I have been invited to give the keynote
address or lead the delegation; I have not been able to attend 10 per cent of it. That is because of the interests, and you’re seeing this every time we travel… the requests that are there…. So, the FDI is also an indication of confidence in the economy,” the President said.
He added that being the leading destination for FDI not only reflects investor confidence, but also demonstrates the trust and belief in Guyana’s leadership and its vision for a prosperous future.
The increased engagement with international investors and fora indicates the growing awareness of Guyana’s economic potential and the opportunities it offers, the Head of State said.
With eight hotels currently under construction and expanding call centres, President Ali singled out one of the tangible outcomes of FDI, citing the creation of thousands of new jobs.
He added that this surge in employment not only generates income for families but also fosters a ripple effect of increased disposable income and heightened consumer spending, contributing to national economic growth.
President Ali further elaborated on the correlation between FDI, economic stability, and investor confidence.
He added that FDI bolsters Guyana’s economy by stimulating demand for services, which, in turn, leads to revenue growth and subsequent investments.
This cycle of increased supply, revenue, and spending is instrumental in sustaining Guyana’s economic development. According to the ECLAC report, Guyana recorded the highest FDI inflows, which totalled US$4.389 billion in 2022.
Since the discovery of oil, Guyana has attracted significant attention from the international community and the government is harnessing this interest to showcase the country’s
Continued on page 13
THE Brazilian plane maker, Embraer, says a new factory will be built near Sao Paulo to produce electric flying taxis which it hopes will take to the skies from 2026.
The aircraft, to be made by its subsidiary Eve, will resemble a small helicopter with enough space for up to six customers.
It is envisaged a trip will cost $50-$100 (£39-£78) per person. Eve says it already has orders for almost 3,000 air taxis.
It hopes to assemble a prototype this year. US regulators recently
released a timeline for air taxis to be flying there as early as 2025.
The electric vertical take-off and landing
aircraft will not need a runway but can travel long distances like an airplane. Electric motors should reduce
noise and pollution compared with standard planes.
It has been argued the aircraft could help
reduce traffic congestion in crowded cities, without being too expensive for customers. They have also been
seen as an alternative for transporting cargo.
The factory will be built in the city of Taubate about 140km (87 miles) from Sao Paulo, Brazil's economic capital.
The drone-like passenger vehicles will initially be used in taxi fleets, AFP news agency reported.
The first flights will have a pilot but a later rollout of self-piloted vehicles is also in the company's plans. The vehicles will be 100 per cent electric, allowing for emission-free flights. (BBC)
From page 10
capabilities of addressing pressing global challenges.
President, Dr. Irfaan Ali has said that Guyana’s intention is to leverage its oil discoveries to foster strong global leadership in these critical areas. Of particular importance is Guyana’s commitment to forest conservation and its role in combating climate change.
He highlighted a historic deal in which Guyana will earn a minimum of US$750 million from the sale of internationally certified carbon credits to the Hess Corporation over the next decade, with at least 15 per cent of the funds being reinvested in Indigenous communities.
As part of this commitment, the government, in December 2021, introduced the Local Content Act. The law identifies 40 sectors or services and requires oil firms and their subcontractors to purchase a minimum percentage of their total expenditure on those services from Guyanese vendors.
As a result, the Act creates an enabling environment for the growth and expansion of Guyanese businesses, as well as business and job opportunities for Guyanese nationals. The LCA is expected to be updated soon.
THE $130 million state-ofthe-art call and business centre for Persons with Disabilities (PWD) in Palmyra, Region Six (East Berbice-Corentyne) is set to transform the lives of many persons who have faced various challenges because of their disability.
The initiative for the business centre came from First Lady Arya Ali, and upon completion, it will facilitate the manufacturing of products, and offer retail space, technical training, and therapy for persons living with disabilities.
The centre will have five workstations for production, a boardroom, a therapy room, a cafeteria, and washroom
facilities. The goal of the commercial space is to provide PWDs with a platform to market the goods they produce.
The Guyana National Bureau of Standards (GNBS) was approached to regulate and monitor the facility’s production, which will allow for the “Made in Guyana” certification to be applied to the products.
This certification will open up opportunities for the products to be marketed locally, regionally, and internationally.
The People’s Progressive Party Civic (PPP/C) Government has implemented several measures to assist persons with disabilities,
including a $25,000 cash grant for training, equipment, hearing aid and other medical supplies, and entrepreneurial development.
The government has also provided public assistance to approximately 8,000 Guyanese living with disabilities, and every child living with a permanent disability will receive a one-time cash grant of $100,000.
The government is projecting that an additional 7,700 persons with disabilities will benefit from public assistance, which will provide them with a combined disposable income of approximately $646 million to improve their livelihoods.
AS the business community in Guyana observes Small Business Week 2023 under the theme, “Strategic Collaboration for Success," Republic Bank (Guyana) Limited has said that it is cognisant of the significance of strong and meaningful partnerships in fueling the success of small businesses.
According to a press release from the bank, in a dynamic economy with expanding opportunities, particularly in the oil and gas exploration and production sector, it is important that small businesses understand the requirements for success, with specific emphasis on the key role of financing.
Navigating the challenges of seeking financing, whether for startups or expansion, can be daunting.
“As a result, Republic Bank (Guyana) Ltd. ensures readily available support through our experienced lending staff, wide range of lending products and services, free resource toolkit and programmes to support entrepreneurs, such as our Entrepreneurs Business Builder's Programme, tailored specifically for women in business,” the bank said.
It added: “We’re dedicated to helping your business achieve profitability and longevity as well as remain steadfast in our commitment to provide free financial guidance and practical advice to help your business at every stage of the journey.”
Recognising that
securing financing is crucial, we share some practical tips that can strengthen your access to financing.
Dos: Direct your earnings through a dedicated business account. This gives your bank an understanding of how you manage your money and your ability to repay loans.
Maintain accurate records of business expenses and income, even in the simplest form Establish and nurture a borrowing relationship with a trusted financial institution
Optimise the resources and services offered by your bank
Seek advice from your banker and always communicate any challenges that may affect your ability to make loan payments
Don'ts: Avoid mixing personal funds with busi -
ness finances. Separating personal and business expenses enables a transparent view of your business income and financial health.
Try not to allow debts to creditors and utilities to accumulate, as it will affect your credit score Avoid withholding important information about previous bad debts from the bank. Early disclosure enables your bank to assist effectively, much like a doctor diagnosing an ailment.
“By adhering to these simple guidelines, you will strengthen your request for financing and demonstrate your commitment to the development and growth of your business,” the company said.
In addition, entrepreneurs should also pay attention to key areas that will improve their chances of managing a successful business. Some of those include:
Maximise resources: Find creative ways to make the most of your limited financial and human resources.
Seek knowledge and support: Invest in learning about business management or consider consulting with experts to compensate for lack of experience.
Plan strategically: Create a comprehensive business plan to anticipate challenges and seize growth opportunities.
Embrace effective marketing: Prioritise targeted marketing efforts and develop a strong brand identity to attract customers.
Misunderstanding the competition: Never underestimate your competitors. Stay informed about the developments within your sector.
Neglecting 'Best Business Practices': Embrace established best practices rather than reinventing the wheel.
self as a small business owner is crucial and Republic Bank is dedicated to helping your business achieve profitability and longevity. We encourage you to take advantage of our free resource for small business owners, Republic Bank SMEToolkit (https://republicsmetoolkit.com),” the company said.
This resource offers information on startups, business growth, and a wide range of tools, including calculators for finance and digital measurements.
Even in niche markets, there are proven strategies to follow.
Find your niche: Identify unique selling points to differentiate from larger competitors and offer personalised experiences to customers e.g. amidst the recent COVID-19 pandemic, some small businesses thrived by offering delivery services when traditional operations were impacted.
Streamline operations: Identify and eliminate inefficiencies by making use of technology and adopting efficient processes.
Stay compliant: Stay updated on relevant regulations, seek professional advice if needed, and maintain meticulous records to ensure compliance.
Maintain organised records: Implement a systematic approach to record keeping
“Empowering your-
“You’ll also find podcasts and webinars covering various business topics which offer unique insights into the world of entrepreneurship,” Republic Bank related.
Additionally, Republic Bank provides support for the business’ vison through its services such as business accounts, automated payroll services, online banking, night depository services and point-ofsale service.
“As we celebrate Small Business Week 2023, we applaud the determination and resilience of small business owners. Your vision, dedication, and willingness to adapt are what fuel the success of our nation's economy. Republic Bank remains committed to being your ally, empowering you to achieve your goals and aspirations. Remember, we are here for you, every step of the way, as you chart your path towards lasting success,” the company said.
participated in a procurement training exercise sponsored by the Small Business Bureau (SBB) and Public Procurement Commission (PPC).
The one-day forum gave small business owners the information they needed to expand their operations.
THE Ministry of Tourism, Industry, and Commerce is actively developing ways to support small enterprises to improve the quality of life for
citizens and to boost the economy.
At the Arthur Chung Conference Centre (ACCC) in April, several small business owners
Subject Minister Oneidge Walrond stressed the significance of small and micro companies and emphasised the efforts made by the government to support small entrepreneurial endeavours under the Small Business Act.
Continued on page 25
GIVEN the success in the first half of 2023, the agriculture sector, one of Guyana’s largest and most productive industries, has the potential and is in the perfect position of once again becoming the ‘breadbasket’ of the Caribbean.
During a recent interview, Minister of Agriculture Zulfikar Mustapha reported that the first half of the year was a success in “every area” of the
agriculture sector.
“Guyana is leading in the agriculture agenda in CARICOM. The first half of the year was a very good one for us and we will continue on that trajectory.
“I am pleased to say that several projects have started this year and we are seeing a lot of progress with them, one such example is corn and soya crops. With the success of this crop, I am opti -
Continued on page 26
“We realised that the big businesses were crowding out small businesses. So, we made a carve-out in the Small Business Act for small businesses to be able to get incentives to be afforded grants. There is even a loan guarantee programme; all
of it to help and support and to bolster our small businesses,” Minister Walrond disclosed.
The act recognises the significance of small businesses as a source of employment and a driver of the economy, particularly in their respective communities.
It also provides a legal
and policy framework to support small businesses and ensure that they have the necessary tools to succeed.
Meanwhile, Minister Walrond highlighted another significant initiative implemented by the government through the Public Procurement Law, which ensures that con -
tracts are awarded on the basis of merit and not on any other considerations such as political affiliations or personal connections.
“Contracts are not handed out to people based on what you look like [and] who you voted for. There is a public procurement system that is open
and transparent, and there are a lot of laws that this government has instituted. What it does…it opens the playing field for every single Guyanese business to have the opportunity to be able to access all of these opportunities regardless of where you are,” she said.
Additionally, the government has developed a
procurement portal where businesses can access opportunities and submit bids.
Minister Walrond said the government is committed to strengthening small businesses by creating a conducive environment for their growth and development.
mistic that, going forward for the next half of the year, we will be able to produce over two or three thousand acres that we’ve spoken about,” he said.
He also noted that the ministry has done extremely well in the aquaculture department, noting:
“In this half of the year, we will install a number of fish cages that President Ali would have launched late last year and that will continue, and we will also involve stakeholders.
“I would also like to say that several of those stakeholders would be going to
China to be a part of training in cage culture. This is one of the many initiatives that we are hoping to accomplish at the end of the year……”
Mustapha also reported that the Guyana Sugar Corporation achieved the target of its first crop, and production increased in
marine catch.
“While I am happy to report that we have had a very good first half of the year, I am hoping that we can continue in the same manner so that we can accomplish and surpass all of our targets at the end of 2023.”
He added: “I am happy to say that the
Caribbean countries are seeking help from Guyana when it comes to helping them to develop agriculture and to be food secure. This was the objective when we started off in 2020 and I am elated that under the leadership of His Excellency we are seeing a number of new initiatives in agriculture and all the other sectors in Guyana.”
He said in Guyana, more young people are now becoming interested in agriculture.
“The young and not so young farmers are elated with their added incomes whether it is in the crop and livestock, coconuts or
aquaculture. Whatever field they may be in, they are seeing the benefits and that was something our President had always wanted.
“Poultry farmers are given small grants, and we are asking them to increase production as well. All of these things are happening because of the success that we have had in the agricultural field and more so for the first half of this year. We [are as] a government very optimistic; in going forward for the second half, I have no doubt that it will be a success,” Mustapha said.
IN Guyana, President Dr. Irfaan Ali and his government have been at the forefront of driving economic growth, particularly through the expansion of the oil industry as the International Monetary Fund (IMF) projects continued economic boom for Guyana with 37.2 per cent GDP Growth in 2023.
According to the IMF, the country’s GDP experienced unprecedented growth in 2022, reaching a record high of 62.3 per cent, with the non-oil sector expanding by 11.5 per cent.
The positive outlook continues, with projections of GDP growth at 37.2per cent and non-oil economy growth at 7.9 per cent in 2023, as oil production increases, with two additional floating, production, storage, and offload-
ing (FPSO) vessels expected to come online in 2023 and 2025, Guyana’s economic prospects have led the IMF to raise its GDP growth esti -
mates for the country from 18.5 per cent to 40.0 per cent for the period of 2022-2026.
Amidst this economic boom, IDB’s Caribbean Economics Quarterly highlights
the importance of private sector development in Guyana. The report indicates that there are significant opportunities for private sector growth, driven not only by
the positive spillovers from the oil and gas industry but also by increased government spending on infrastructure.
Sectors such as construction, transportation, logistics,
hospitality, technology, and business services are poised to benefit, necessitating a business-friendly environment to facilitate this growth.
However, the report also sheds light on the obstacles faced by businesses in Guyana. Based on the 2020 Firm Performance and Gender (IFPG) Survey conducted across 13 Caribbean countries, Guyana’s private sector identified several major challenges to doing business. Electricity, tax rates, skilled labour, collateral requirements for loans, interest rates on loans, and customs and trade regulations were among the top obstacles.
Notably, 64 per cent of firms cited electricity as a major or severe obstacle, while 47 per cent cited customs and trade regulations. In comparison, electricity
was a challenge for 49 per cent of firms in the broader Caribbean region.
The report reveals that some obstacles have become more pronounced in recent years. Comparing the 2020 survey results to those of 2014, a larger share of firms identified electricity, tax rates, skilled workers, collateral requirements, interest rates, customs and trade, and land as major and severe obstacles.
The surge in economic activity and capital inflows has increased the demand for credit and skilled workers, while access to land has become more challenging due to rising property values.
Connectivity services also play a crucial role in the business landscape. In terms of power interruptions, Guyana reported a higher share of firms experiencing such interruptions compared to the Caribbean average.
However, fewer firms in Guyana reported mobile and internet service interruptions compared to the regional average. While improvements have been made in the electricity supply, Guyana still faces the highest number of reported power outages per month across Caribbean countries. Nonetheless, the average length of outages in Guyana was relatively better than the regional average.
Recognising the impor-
tance of private sector development, the Guyanese government has outlined initiatives in its Low Carbon Development Strategy 2030 (LCDS). The strategy emphasises the need to diversify the energy matrix, transition to cleaner energy sources, and reduce electricity costs. Key projects, such as the gas-to-shore project, aim to lower electricity costs and support private sector growth by utilising natural gas and
renewable energy sources.
Additionally, plans are in place to construct solar power plants in various regions and develop hydroelectric power plants near the Brazilian border, funded in part by the Government of Norway.
As Guyana’s economy continues to thrive, private sector growth remains a crucial driver of sustainable development. Addressing the identified obstacles, such as electricity supply, tax rates,
and skilled labour, will be vital for creating a conducive environment that enables businesses to seize the growing opportunities in the country.
With the government’s commitment to infrastructure development and renewable energy projects, Guyana is positioning itself to further enhance the business climate and support the expansion of the private sector.
A stable political environment coupled with the protection of property rights, freedom of expression, the rule of law, and a skilled workforce are all essential elements of an environment that is conducive for businesses.
This was according to the Head of Region Three Private Sector Inc. (R3PSInc), Halim Khan, who reflected on March, 2020, and the notorious events that followed, resulting in a five-month-long process in
businesses have the freedom to express their opinions without fear of retaliation. This allows for open and constructive dialogue about business policies and practices, which can lead to innovation and improved business practices while democracy also ensures that the rule of law is upheld, which provides businesses with a predictable and transparent legal system. This allows businesses to operate with confidence, knowing that the legal system will protect their interests and enforce contracts.”
one of the most blatant attacks on democracy.
During those five months, Khan, an elections observer under the Private Sector Commission and a part of the recount process, said he witnessed the glaring attempts by the then APNU+AFC coalition government to snatch the elections and deny the will of the Guyanese people.
It was not until August 2020 that the true results of the elections were released and Dr. Irfaan Ali was sworn in as the ninth Executive President of Guyana.
Although he inherited a country with a tainted image, Dr. Ali was able to quickly repair the nation’s reputation on the international stage and rebuild confidence in Guyana, which is now one of the world’s fastest-growing economies, and a key investment and tourist destination.
Khan, in an exclusive in-
terview with this publication, said because of democracy, development can be seen throughout the length and breadth of Guyana.
“A democratic government provides a stable political environment that encourages investment and economic growth. Investors are more likely to invest in a country with a stable political environment because it reduces the risk of sudden policy changes and instability,” the R3PSInc head said.
Further, he related that in a democratic country, property rights are protected by the law, which encourages individuals and businesses to invest in the country.
“This provides an incentive for entrepreneurs to start businesses, knowing that their investments will be protected by the law,” Khan said.
He continued: “Democracy ensures that individuals and
Additionally, he said democracy also encourages investment in education and training, which creates a skilled workforce.
“A skilled workforce is essential for businesses to compete in a global market and to innovate and improve their products and services,” Khan related.
He said there must never again be a period in this country when a political party/ coalition tries to subvert the democratic process, and the government must ensure all the necessary laws are in place to ensure it never reoccurs.
Praising the assistance of the regional and international community, Khan called for a democratic monument to be built to ensure the past is never forgotten, and the future generation also understands Guyana’s crossroads.
