Guyana is the place of many investment opportunities – Private Sector head

Private Sector Commission (PSC) Chairman Ronald Webster said Guyana is blooming with investment opportunities and must immediately begin finding creative ways to market itself. Webster, who was addressing the gathering at the recently-held investment seminar, listed some of the strategies to strengthen Guyana’s investment potential, including the development of the Guyana-Brazil road and trade links with South America.

He noted that Guyana must build a strong trading relationship with adjacent markets, tap its hydropower potential and export energy, as well as develop a strong nature tourism industry, with supporting infrastructure.

Tax reform
Guyanese must embrace the development of the country as an air services hub and a base for oil and gas and shipping support services, Webster said. He pointed to the crucial need for tax reform and simplification and the promotion of a quality tertiary education system as part of a tourism drive.
The PCS chairman hinted that encouraging local and foreign companies to become listed on the local stock exchange, and encouraging family-owned businesses to go public through the employment of professional management are positive steps.

Economic strength
Webster said in order to attract investment, Guyana must promote and encourage value-added industries and broaden the economic base. Pointing out Guyana’s strengths, Webster said the country has recorded seven years of consecutive growth and the International Monetary Fund (IMF) has predicted similar growth rates for 2013 and 2014.
Guyana has also managed to sustain its exchange, inflation, and interest rates which have resulted in an exponential increase in commercial lending, a manageable debt-to- Gross Domestic Product (GDP) ratio, and healthy international reserves.
Webster said continued focus must be placed on prudent fiscal management in order to promote a rich nature tourism product, agricultural opportunities, and exploration of untapped mineral resources and renewable energy sources, such as hydro, solar and biomass.
According to Webster, the Low Carbon Development Strategy (LCDS) and joint government and private sector focus on improving national competitiveness have seen success on several fronts as Guyana utilises its forest potential.
Preferential access
He underscored that Guyana stands to benefit from its favourable access to export markets owing to the number of preferential agreements with neighbouring countries. “Two key considerations of any serious investor, or any CEO for that matter, are having the right number of people in the right place at the right time and ensuring that the quality of those people is suited to their roles and responsibilities,” Webster said.
He stated that Guyana’s demographics are crucial considerations for both domestic and foreign investors.
Webster stressed on the youthfulness of the population with a median age of 24.2, which is 26 per cent lower than its neighbours’, and a literacy rate of 92 per cent, which is still better than adjacent countries.
“Regrettably, the population growth rate until recently has been negative, not due to low birth rates which are slightly above the regional average, or abnormal mortality rates, but due to migration, which is much higher than the rest of the region,” the PSC executive remarked.
He added that due to a strong, cultivated work ethic, Guyanese have little difficulty finding employment anywhere in the world. However, the rate of migration, although still high, has begun to slow due to increased domestic economic activity.
“But probably the greatest impact has come from the new housing programmes supported by home purchase mortgages from the commercial banks that have enabled young married couples to acquire their own assets and establish an independent base – an important facet of the new Guyana psyche,” Webster said.

Investment opportunities
“Guyana is the place of investment opportunities. The risks are manageable and the weaknesses are being corrected. In many instances, Foreign Direct Investment is needed to turn the opportunities into reality. The Private Sector Commission strongly supports and encourages Domestic and Foreign Investment that will result in job creation and positive long-term economic growth and development,” he said.