-as Go-Invest launches nine-month consultancies for designs

THE export and Foreign Direct Investment (FID) potential in Guyana was not realised in the past because of the lack of a strategy and an action plan, but this is about to change with the launch of two consultancies for the design of export and investment strategies.

The consultancies will last for nine months. Consultants, IOS Partners Inc. and Global Partners Consulting LLC will provide consultancy services on two topics which include the review and the redesign of the trade and investment framework for Go-Invest and the design of export and investment strategies and the implementation of those strategies.
Guyana was unable to connect fully, the local economy to FDI opportunities, but the two Inter-American Development Bank (IDB)-funded consultants are expected to shift the practice in quality and standards, by supporting and promoting expert activity under a modern framework.

The framework will result in the national quality infrastructure being brought to a level that is in line with international best practices, and it will also allow the country to respond in a more cost-effective manner to the requirements of new markets.

“I am pleased that this project is aligned with President Granger’s goals, as it seeks to create an enabling environment where local businesses can participate in regional and global value chains, supported by a network of testing facilities where they can access reliable tests at low costs in less time than it would take to send them overseas,” said Minister of Business, Haimraj Rajkumar, during the launch of the consultancies at the Marriott Hotel, on Thursday.

He said the consultancies will result in the creation of an environment which will allow local producers to sell their products confidently to the international markets.
The added local confidence will result in a diversified economy which, Rajkumar said, is urgently needed given that the oil sector is set to come on stream in December.

“The new systems will allow local businesses to play a prominent role in our economy…we have to resist the urge to place all eggs in one basket and look at ways to strengthen economic sectors to ensure they feature prominently in economic development,” said the minister, adding that the project will allow priority sectors to ‘piggy back’ on the strength of the oil sector.

The project will also ensure that Guyana is able to channel investors’ interest to specific priority sectors and that will give the country the desired outcome of a diversified economy.
Many economies around the world have shown that a strong and diversified private sector is a pillar of growth and development, said IDB Country Representative, Sophie Makonnen.
She said the Design of an Export and Investment Strategy and Implementation plan being financed through, the IDB’s National Quality Infrastructure for Economic Diversification and Trade Promotion, is an important step for promoting investment and economic diversification.

“Investment and economic diversification, especially in Guyana’s current context of impending oil production, are essential for building a resilient economy, with improved capacity to withstand external threats in the form of price or weather-related production shocks,” said Makonnen.

In the case of Guyana, the production and trading of goods and services face a number of risks affecting productivity and exports such as rejection of products at border inspection points; increased costs due to delays while tests are being done overseas, disruptions in trade, and loss or inability to expand into new markets.

In that regard, the National Quality Infrastructure for Economic Diversification and Trade Promotion intends to strengthen the institutional framework governing production quality and standards to support private sector enterprises engaging in international trade, and spearheading compliance with quality and environmental regulations.

The project includes the construction of a laboratory and the purchase of equipment for metrology, testing, and chemistry which are expected to address the needs of local exporters and producers developing new areas of growth such as non-traditional agriculture in fruits and vegetables, forestry, seafood and aquaculture, as well as potentially other areas such as mining and manufacturing. The laboratory will contribute to lowering private sector costs of testing and meeting international standards.

She said, similar to that approach, is Go-Invest’s commitment to reviewing its trade and investment framework. Makonnen believes it is a clear example of institutional capacity development, which is an important component for identifying strategic areas for development and building relationships with the private sector.

“Improving the skills and institutional capacity of Go-Invest is clearly a step in the right direction. However, the investment framework is one part of the institutional environment. The literature suggests that institutional quality plays an important role in shaping the patterns of prosperity around the world,” said the IDB country representative.

In this regard, countries that work towards strengthening the qualities of their institutions have generally been able to improve their development path, while those with poorly-designed institutions have been less successful.

Chief Executive Officer (CEO) of Go-Invest, Owen Verwey said his office is working to strengthen its qualities and the consultancies will contribute to a realignment of priorities, promoting better focus and identifying priority areas that will in turn result in the growth and development of Guyana.