When one considers the economic boom unfolding in Guyana, the astute leadership of its President, Dr. Irfaan Ali, along with key components of its business-friendly legislative and regulatory framework, it is truly well positioned to serve as an investor’s paradise. This notion was recently expressed by Senior Director of Investment at the Guyana Office of Investment (Go-Invest), John Edghill.
He was at the time engaged in an insightful discussion on Guyana’s investment climate on the Energy Perspectives Podcast, a programme powered by the Guyana Energy Conference and Supply Chain Expo.
Edghill noted that Guyana is indeed experiencing unprecedented growth as it is set to remain as the world’s fastest growing economy for six years straight. “That alone has really captivated the interest as well as the minds of people all around the world,” Edghill said.
But complementary to the magnetic pull of this rapid development he said, is the legislative framework that supports a pro-business environment. In this regard, Edghill cited the Investment Act that has been in place since 1994.
“That law says a few critical things, the first being that foreign and local investors are treated equally,” he said.
While there is a special carve out for 40 categories of work within the oil and gas industry where Guyanese must be given varying degrees of preference, as mandated by the Local Content Act, Edghill said there is no bias for all other legal economic activity.
“This means for example, that a foreigner can own land in Guyana which does not occur in many other destinations…”
Turning to Guyana’s location at the tip of South America, Edghill said this provides another distinct advantage for investors who are able to benefit from strategic access routes to the rest of the world.
Additionally, the Senior Investment Officer noted that Guyana’s ability to leverage its relationships with the US, China, Europe, and other key territories have also increased the competitiveness of its investment climate. The leadership of President Ali is another key factor Edghill raised.
“Not enough is said about the Head of State, Dr. Irfaan Ali…Our president has received several accolades and awards for his leadership…Through his stable and firm leadership of our economy, especially on matters such as climate and food security, he adds to the strength of the investment climate with the vision and energy that he brings,” said Edghill.
The Senior Investment Official also noted the immense incentives available across varying industries. With respect to energy, Edghill reiterated the President’s intention for Guyana to become a regional energy hub and a net exporter of energy.
“When we look at the energy mix, we aren’t talking alone about use of the oil and gas resources from the Stabroek block but we also want to lead with renewable energy solutions as outlined in the Low Carbon Development Strategy (LCDS) 2030.”
Turning to agriculture, which Guyanese authorities have vowed to invest in to ensure a diversified economy, Edghill said: “… we are very concerned as a business agency in fostering investment outside of oil and gas. We don’t want a country that suffers the perils of the Dutch disease or the resource curse.”
Edghill is of the view that Guyana, given its extensive track record in supporting agricultural development, can even be viewed as the Ministry of Agriculture for the Caribbean region. “We have said since 2020 we want to reduce our food import bill by 25 percent by 2025…Guyana is well on its way to accomplishing this,” he said.
As it pertains to specific incentives for the agriculture sector, these include the removal of Value Added Tax (VAT) on electricity, water, and construction materials, which drastically lowers operational costs for businesses. Additionally, the government is improving infrastructure by constructing farm-to-market roads in key agricultural regions, specifically Regions 5 and 6. Notably, 40% of Guyana’s land is available for agricultural investments, offering extensive opportunities for expansion and innovation.
In the forestry sector, the incentives are similarly substantial. The government’s revised log export policy simplifies the purchase and export of logs and lumber. Investors also benefit from the absence of VAT on logs, sawn lumber, and machinery, which reduces costs significantly.
Additionally, duty and VAT exemptions are provided for most machinery and equipment used in logging and processing operations, as well as on fuel, which is crucial for cost-effective operations. Exemptions also extend to various categories of 4×4 vehicles, ATVs, and haulage vehicles, essential for efficient transportation and operations in forested areas.
With these comprehensive incentives in place, Edghill categorically states that Guyana is well-positioned to leverage its natural resources and foster diversified economic growth.
