Guyana was recently highlighted in a report by the US State Department for its reputation as an attractive destination for foreign investment. The report praised the country’s improved investment climate, noting significant strides in simplifying business operations for international investors.
One of the standout achievements is the reduction in business registration times.
Previously, registering a business in Guyana could take up to three weeks, but recent reforms have streamlined this process to less than a week. This development is part of the Government of Guyana (GoG)’s broader initiative to enhance its business environment.
“Business registration times have reduced from three weeks to less than one week, and the GoG is developing a single window programme for permits,” it noted.
The GoG’s commitment to fostering a conducive investment climate is evident in its open stance towards foreign direct investment (FDI) according to the report. It said the administration views FDI as essential for the growth and diversification of the Guyanese economy. This openness is supported by Guyanese law, which treats foreign investors on an equal footing with domestic ones. Foreigners are allowed to participate in the local stock market, although this market remains relatively underdeveloped with few listed companies and trading occurring only once a week.
It also noted the government’s prioritization of several key sectors for investment. These include agriculture, tourism, agro-processing, light manufacturing, renewable energy, and information and communications technology (ICT). These sectors are seen as pivotal for driving the country’s economic development and offer promising opportunities for investors.
The Guyana Office for Investment (GoInvest) plays a crucial role in promoting FDI opportunities. It assists foreign corporations with business registrations and applications for tax concessions. Prospective investors are encouraged to conduct thorough due diligence and prepare robust business plans before engaging with GoInvest to ensure successful ventures.
It was also keen to note that legal protections for foreign investors are well-established in Guyana. The constitution guarantees the rights of foreigners to own property and establish business enterprises. The Investment Act of 2004 further reinforces this by providing legal protection and ensuring that no discrimination occurs between foreign and domestic investors. However, there are restrictions on certain oil and gas services, which are safeguarded under the Local Content Act.
Despite these advancements, the local stock market faces challenges. Guyana has not seen a successful initial public offering in over a decade. Nonetheless, the country has experienced a rise in business registrations since 2021, with several U.S. firms making significant investments in agriculture, energy, and manufacturing support sectors.