…warns against negative energy, urges private sector to be more creative

TOO much negative energy is saturating national discourse at a time when Guyana’s future has never been better, Executive Chairman of Demerara Distillers Limited (DDL) Komal Samaroo said, as he called for sustainable expansion of the country’s export earnings.

Samaroo, a distinguished Guyanese, made the remarks while delivering the keynote address during the launch of the Georgetown Chamber of Commerce and Industry (GCCI)’s Business Guyana Magazine at the Pegasus Hotel on Thursday.

The magazine, themed ‘Guyana on the Rise,’ is an investors’ guide to doing business in Guyana. In addition to providing important facts on the country, the magazine provides a wealth of information on Guyana’s financial and commercial sectors, and investment opportunities here.

As he addressed the top business executives, ministers of government and members of the diplomatic community, Samaroo said the theme for the magazine – Guyana on the Rise – is most fitting. With Guyana on the rise, the DDL executive chairman said the private and public sectors must now rise to the occasion, and its export market.

According to the 2017 Annual Report of the Bank of Guyana, the country’s total export earnings in 2017 stood at US$1.435.9m (US$1.435B) with gold exports accounting for US$817.5m or 57 per cent of the total export receipts. Rice was second at US$201m OR 14 per cent followed by bauxite with US$102m or 7 per cent. Sugar, which was US$78.4m in 2015, declined to US48.5m in 2017, while rum and other spirits, which was US$30.3m in 2015, increased to US$43.1 in 2017.

Increase exports
Noting that most of Guyana’s export earnings come from commodities, the prices of which are fixed by international markets and influenced by demand and supply, Samaroo told those present that the situation will be no different in the upcoming oil and gas sector.
“In my view, this is a very vulnerable position to be in, and the nation’s prosperity could swing like a pendulum, as we have seen in some countries in the Region that depend solely on commodities,” he opined, while underscoring the need for a national strategy to avoid a commodity trap.

But in order to expand the export markets, capitalising on both regional and international markets, Samaroo said those operating within the private sector must keep abreast with changing technologies and systems.

“The international marketplace is very competitive, complex and constantly evolving, requiring [sic] depth knowledge and updated information if one is to be successful, particularly as you move higher up the value chain with branded products. Very often, we need to re-educate ourselves,” he explained.

Compliance with international standards and best practices is also key, especially at the production level, he said, noting that they are critical prerequisites for manufacturers to get into the global supply chain of major companies.

“Full traceability and documentation of adherence to international standards of safety, quality, environment, business ethics and social practices are areas on regular audits from suppliers. Our production systems must meet international standards at all times and this requires a high level of technical competence and discipline of the management of manufacturing companies,” he said.

Citing DDL an example, Samaroo pointed out that in 2017, Demerara Rum was the first product registered under the Geographical Indications Act (2005) which became effective in 2008. DDL has also applied to the European Union for registration as well.
It was noted that these developments provide opportunities for the creation, development and protection of brands that can target specific groups of computers.

“The bold strategic decision by DDL to embark on a brand development strategy over 25 years ago as it started to transition from commodity oriented business to a brand focused company has proven to be quite a success. But the company continues to constantly review and re-validate its brand strategy in the light of ongoing changes in the marketplace,” Samaroo noted.

In 2017, DDL recorded its best year ever when its pre-tax profit grew by 22 per cent over the previous year.
Like Samaroo, GCCI President Deodat Indar is optimistic about the future of Guyana, more so in the business arena. Indar, with accompanying statistics, anticipated that several sectors will grow in the coming years as the country responds positively to the budding oil and gas sector.

“[The]construction sector has grown and the infrastructure throughout Guyana will have to be enhanced and in some cases transformed to be able to address the needs of the upcoming oil boom. All ports and wharves would have to be further developed and certified,” Indar said optimistically.

Real estate in certain areas of the country is well positioned to experience price inflation, due to a likely increase in demand he further noted, while adding that greater emphasis will be placed on education and training, and in the hospitality and tourism sector.
Acknowledging that there are challenges to be addressed, Indar said both the government and private sector must work towards crafting strategies that would arrest decline and stagnation in some economic sectors

“We at the GCCI strongly believe that the oil and gas sector needs to be developed in conjunction with other sectors of the economy, we need a diversified mix of economic sectors to withstand external shocks if world market prices fall to unsustainable levels for prolonged periods in the future,” he posited. The Business Guyana Magazine is the 9th edition of its kind. Minister of Finance Winston Jordan and Minister of Business and Tourism, Dominic Gaskin, were among the officials present.