-govt measures praised, economy poised for significant development
Guyana has been once again dubbed as a prime investment destination with the multitude of sustainable investment opportunities that are available for investors in the oil and gas sector, housing, construction, agriculture and other key sectors.
With an economy poised for tremendous development, the government received positive reviews in the 2024 Investment Climate Report.
The report said that the government continues to execute strategic initiatives in agriculture, oil and gas, health, education, housing and water sectors, aimed at enhancing the livelihoods of every Guyanese citizen.
In 2023, Guyana recorded a gross domestic product (GDP) growth rate of 33 per cent making it one of the fastest-growing economies globally.
According to the CIF report, the government launched the electronic planning and development single window system to reduce the processing time for planning and building permits and improve customer service.
This is yet another initiative by President Dr Mohamed Irfaan Ali to diminish bureaucracy, remove barriers to conducting business, and contribute to an enhanced business environment.
In the tourism sector, Guyana copped the Destination of the Year award in the Ecological Tourism group.
With more hotels coming on stream in 2025, over 500 hotel rooms are expected to be added by the end of 2024.
The CIF report noted that Guyana’s undertaking of the gas-to-energy project will significantly reduce the cost of electricity.
It stated as part of its road enhancement project, several four-lane highways are currently under construction in various parts of the country, to provide improved access to commuters and more socio-economic opportunities.
The report also said that Guyana has a welcoming business environment that has so far proven to be extremely successful for everyone.
Foreign investors do not have to worry about restrictions when conducting business in the country.
In essence, the report said this has been made possible with the passage of the Local Content Act in December 2021, which establishes baseline necessities for foreign and local businesses to operate in the country’s oil and gas industry to employ Guyanese and source local supplies.
Additionally, the CIF report said, that under the LCA, foreign and local businesses have the right to create and own business enterprises and engage in all forms of commerce.
The passage of the revised Natural Resource Fund (NRF) and the selection of a board of directors, paved the way for the government to invest a percentage of its oil revenues and royalties in international markets.
CIF report said that Guyana’s NRF is expected to exceed $3 billion by the end of this year.
There are also many investment incentives for both foreign and local investors such as exemption from numerous taxes, tax holidays, enhanced devaluation rates, full and unobstructed repatriation of capital, returns and surpluses.
It noted that although Guyana does not have free trade zones, the government is looking to establish free trade zones in Lethem in Region Nine.
Further to that, the country intends to establish an industrial zone in Wales in Region Three.
In the financial sector, the report said Guyana possesses its own stock market, that is supervised by a self-regulated organisation – Guyana Association of Securities Companies and Intermediaries (GASCI).
According to the report, the influx of investments in the oil and gas industry has created several job opportunities, driving more economic growth development in numerous sectors.
Guyana has endorsed major international anti-corruption instruments such as the United Nations Convention Against Corruption, demonstrating a commitment to global standards.
The report also highlighted that Guyana has no known instances of policymaking interference in the court system that have unfavourably affected foreign investors.
The United States Department of State’s climate investment statements provide comprehensive information climate of over 160 economies. They analysed several economies that could be markets for U.S. businesses.
The report covers a myriad of matters including openness to investment, legal and regulatory systems, protection of real and intellectual property rights, responsible business conduct, corruption, labour policies and practices, and foreign exchange and remittances.