GMSA recognizes ground-breaking contributions by local Manufacturers, Service Providers
THE Guyana Manufacturing & Services Association (GMSA) has been at this for fifteen years now, identifying those Guyanese enterprises and producers who have created new products, broken through trade barriers to reach the international market, or generally made tremendous differences to the Guyana economic structure. For fifteen years, members of this Association have been recognized and tangibly rewarded for their successes in the retail sub-sector, industrial manufacturing, food and food products, and for innovations in telecommunications and alternative energy, to name a few.

Thursday 25th November, 2010 was a night of firsts for the new entrants into the GMSA, the umbrella representative body for manufacturers and service providers.

It has seen highs and tremendous lows in its 43 years of existence, but Thursday 25th November was a night for celebrating achievements. 

The largest conference room in the Princess Hotel, gaily decorated in the GMSA’s corporate colours – gold, red and white, was filled to capacity with local and foreign business owners and advocates, representatives of the diplomatic service, international funding agencies, government and non-government organizations, and brother umbrella bodies that oversee the business community.

Highly visible players on the opposition side of the political arena also accepted the GMSA’s invitation as did a few members of the President’s cabinet including the Ministers responsible for Agriculture, Robert Persaud; Labour & Human Services, Manzoor Nadir; and Tourism and Commerce, Maniram Prashad; all of  whom were able to straddle the two huge events taking place that night, the other being the conferment of the Order of Excellence, Guyana’s highest national award, on outgoing President of the neighbouring Federative Republic of Brazil, Mr. Luis Inacio ‘Lula’ Da Silva.

This open-palm gesture by the Government of Guyana towards this man of such large international stature, the man who  is credited with delivering economic prosperity to Brazil, does have tremendous significance for the GMSA. 

Guyana in recent times has been advocating for stronger trade and co-operation ties with Brazil, our neighbour to the south.  This country, categorized as one of the BRIC nations along with India, China and Russia, has been recognised as one of few that could and would help Guyana past the economic morass.

Brazil is the largest and most prosperous country on the South American continent and ranks high among those selected from around the world to provide Guyana’s public and private sector with better trade and investment opportunities. 

World Bank (2008) indicators identified this primary member of UNASUR as the fifth most populous country in the world, the largest market in Latin America, and the world’s tenth largest economy in terms of Gross Domestic Product.  Their Economic Intelligence Unit forecasts vigorous growth to take place in Brazil between 2010 and 2013 despite the economic recession occurring in much of the rest of the world.

With a population of some 192 million, despite glaring inequalities, our neighbour is a fast growing economy that is more than likely to attract international investors’ interest.  In the last decade, Guyana entered a Partial Scope Agreement (2001) with Brazil which was since extended by mutual agreement in 2008 and resulted in the construction of the multi-million-dollar Takutu Bridge in Region 9. 

The obvious intention is to eliminate a few of many barriers to trade between our two countries but for Guyana, the trade statistics fall way below balance. 

Guyana’s imports from Brazil rose from G$2.5Bn in 2005 to G$3.3Bn in 2009.  Our exports to Brazil fell dramatically, however, from G$176.7Mn (2008) to a record low of G$46.9Mn in 2009.

Enter the GMSA in 2010 lobbying alongside mainly the Guyana National Bureau of Standards, the Ministry of Agriculture, CARICOM and the Private Sector Commission to break down existing trade barriers and establish meaningful relationships with a number of economically ebullient countries around the world.

Together with GO-INVEST, a very lucrative partnership was formed with SEBRAE, a private sector business representative in Brazil, to implement a unique Market Intelligence and Trade promotion funded by SEBRAE. 

Several Market Studies are due to be conducted from early 2011 by seven entrepreneurs each from Guyana and the Brazilian states of Roraima and Amazonia.  In addition, in response to heavy lobbying, approximately sixty (60) new tariff lines have been approved under the Brazil/Guyana Partial Scope Agreement including Rum, Flour, Cement and Pharmaceuticals.

GMSA has also initiated contact with other countries through their commercial and economic affairs representatives in Guyana, among them India, China, Mexico, Canada and the United Kingdom. 

The Association is in the process of preparing several local entrepreneurs to initiate business contacts/investment contracts with potential Chinese investors.  Guyanese businessmen and their Caribbean counterparts will come face-to-face with the Chinese at the third China/Caribbean Business Forum scheduled for Trinidad and Tobago in (the first quarter of) 2011.

MAINTAINING FOCUS ON GROWTH
GMSA is integrally involved with most of the major production and services sectors in Guyana, from conceptualization and formulation through incubation and sustenance.

Businesses have been categorized by sub sector to include Agro-Processing, Forestry and Wood Products, Chemicals and Pharmaceuticals, Construction and Engineering, Minerals and related services, Fast Foods, Textiles and sewn goods, and Services.

Every sub-sector is overseen by a member of the 21 strong Board of Directors, each devising plans and strategies to increase production and trade relations, and ease the way with local and foreign institutions, especially for the benefit of new and smaller businesses.

These plans and programmes are the raison d’etres of the GMSA, the plinth for policy development, deployment of financial, human and natural resources, identification of markets and market access, conduct of research and feasibility studies, and any other business.

President of the Association, Clinton Williams, in his report to the business community at the 15th Annual Awards and Presentation dinner, stated that the GMSA in the past year “has recorded some success towards the realization of our mission, i.e. The provision of institutional capacity to initiate, advocate and promote programmes and policies for the development and growth of the manufacturing and related services sectors…”. 

He especially lauded the Canadian International Development Agency (CIDA) and the IDB for their tremendous input into the ‘engines’ that would fuel growth in the business sector in Guyana.

Of the many programmes funded by these two international organizations, he cited the implementation of the CIDA-funded Capacity Building Project which resulted in international accreditation of over seven (7) companies that are now ISO 9001 certified. 

In addition, all major terminals in Port Georgetown providing Maritime Services continue to be compliant in MTSA (USA) and international port inspection (ISPS) requirements.  The most recent International Standard Organisation (ISO) awardee was Amazon Caribbean Inc., Essequibo-based producer and exporter of canned heart of palm and pineapples. 

AMCAR is now certified by the European Union as an Organic Product exporter.  The IDB has also funded a US$1.5 million Environmental Protection Promotion and Training Project (2011) that will eventually certify participating companies adhering to environmental protection issues as ISO 1400 (quality assurance) compliant.

Another CIDA-funded project relates to Labelling and Packaging of products for export.  Williams said that 2 local specialists were recently trained by the Canadian Executive Services Office (CESO) to conduct a series of sensitization programmes for Agro-producers based on effective, environmentally sensitive yet attractive Labelling and Packaging of products destined for the export market.   
Several sessions were held in Georgetown and on the East and West Coasts of Demerara and Essequibo.  They will continue in Bartica and other parts of the country early next year.

One of the highlights of the Presentation event was the handing over of the first ever Agro Processing Manual, a compendium of process flow technology in fruit and vegetable preservation, to Agriculture Minister Robert Persaud.

The manual was the brainchild of the GMSA and was compiled and edited with the expertise of agro-scientists at NARI. 

The ministry will oversee its distribution.  According to the Association’s President, the manual is the end product of long consultations with farmers who spoke of the increasing effects of the El Nino and La Nina phenomena, and high losses and wastage in the field due to insufficient post-harvest intervention.  This manual was one more achievement for the GMSA, delivering on its mandate to provide programmes and policies for the various sectors under its purview.

In his report on the GMSA’s ‘action sheet’ for 2010, Williams took the opportunity to highlight some pertinent issues affecting development and growth of the manufacturing and services sector and outlined a few possible strategies for resolving them.

He named the relatively high costs and frequent unavailability of electricity, inadequate access and high costs both for investment funding and trade financing, and inadequate incentives for manufacturers investing in new/more efficient technologies.  

To counter these inefficiencies, his suggestions included early implementation of the Single Window Automated Processing System (SWAPS), the empowerment of para-statal agencies such as GOINVEST to act as one-stop-shop/clearing houses for services needed to establish new businesses, and the expansion of the concept of ‘Call Centres’, Trade-in services and the establishment of Export Promotion Zones (EPZ) to accelerate the exportation of products whether via the ‘Semi Knock-Down’ (SKD) or ‘Complete Knock-Down’ (CKD) route.

THE DUTCH  DISEASE
The main feature of the event was a stirring Power Point-aided address delivered by the President and CEO of CGX, Mr. Kerry Sully, on Guyana’s “Chances to Diversify with Oil”. 

He posited that this country’s chances for discovering (and benefiting from) crude oil in commercial quantities in the area in which CGX is prospecting is 1 in 5.  In his opinion, this ratio presents a ‘good chance’, but CGX is still faced with  several hurdles to cross “with the odds against us before we could deliver future expectations for Guyana”. 

It is very likely, he said, that a major discovery will not be made within one year.  Inside three years is a more realistic expectation, Kerry posited.

CGX has already discovered the presence of natural gases in their exploration zones that span Guyana, Suriname and French Guiana.  Their engineers and geologists have been to the drawing board to determine the best means of extracting the gas in commercial quantities for domestic and energy uses. 

He expounded on the downstream effects of a major discovery and the likely development of the hospitality and entertainment sectors, and the service and manufacturing industries.

Agriculture Minister, Robert Persaud, while upbeat and positive about the potential for growth and development of Guyana’s economy in the event that crude oil is discovered, warned that Guyanese become aware of and avoid the “Dutch Disease”. 

He was at the podium expressing immense gratitude to the GMSA for their foresight in producing the agro-processing manual with which he had just been presented.  Boosted production of oil, he said, comes with certain economic dangers, one of them being the Dutch Disease, so labelled following the decline of the manufacturing sector in the Netherlands after the discovery of a large natural gas field there in 1959.

“When the Dutch Disease occurs, the immense increase in revenues (including foreign exchange) tends to destabilize a country’s economy.  The exchange rate is increased and the local manufacturing and agricultural sectors in particular could become less competitive in the face of increased imports of goods and services.  The prices of local goods become relatively high, demand for those goods decreases and local goods become unable to compete with the lower-priced imports.  This would have a concomitant negative effect on the job market.  During the 1970s, Indonesia, Ecuador and Nigeria faced this same situation after the sudden increase in exploitation of natural resources.” (i-viewmagazine.net/2010/4)

WELCOMING NEW ‘BLOOD’, ACKNOWLEDGING EXCELLENCE
Approximately five years ago, in 2005, GMSA’s mandate was expanded from the main manufacturing arena to include the services sector, e.g. energy, water, maritime services and telecommunications, all of which are  natural complements to the manufacturing sector. 

Today, the aperture is widening again, doors are being opened to newer players in the services sector who have been responding to the demands of new-age technology.

All of the developed world has seen unprecedented growth in this particular sector, but in Guyana it is only just burgeoning – fashion designing, health and wellness, culinary arts, music and entertainment, the many aspects of Communication Technology, education, sports related services, and real estate.  Professional and skilled artisans such as architects, engineers and management consultants are also included. 

The obvious intention is to expand trade promotion within and across our national borders, and to help these businesses really contribute to national development and national visibility.

GMSA is already in the process of commissioning several surveys to determine the various skill needs of these newer businesses.  External agencies are being engaged, including SENAI through SEBRAE of Brazil, and the Caribbean Maritime Institute (CMI) in Jamaica, to help with specialized skill development programmes.

On Presentation night, the Silhouettes House of Fashion owned by designer Sonia Noel received a rousing welcome to GMSA.  She responded with a flamboyant display of her signature pieces in black and white and earth tones shown by male and female models promenading through a full room of very appreciative businessmen and women.

Hers were complemented by some more sensuality, a glimpse into the uniqueness of renowned fashion designer, Olympia Small-Sonaram.

AWARDED FOR COMMERCIAL AND SOCIAL SUCCESSES
** Sonia Noel
For significantly raising the bar in the local  Fashion Design industry, and for initiating a process to accelerate cross border services and trade.

** Sterling Products Ltd.
For attaining ISO 9001 certification, for being the 9th manufacturing company in Guyana to achieve this certificate, and for creating new opportunities in the Caribbean for regional market penetration.

** Amazon Caribbean (Guy.) Ltd. (AMCAR)
For being certified as an organic producer, canner and exporter of heart of palm and pineapple, and for exceeding the quality and environmental expectations of their EU customers.

** Swansea Industrial Associates
For the vision to expand into audio-visual arts through new and innovative technologies, for being an inspirational business model to recording studios in Guyana, for introducing Internet Radio playing Guyanese products targeted at overseas markets to create international interest for the local music industry.

** Guyana Telephone & Telegraph Co. Ltd.
For own investment in and provision of fast  internet service, for allowing the business community to easily introduce new methodologies using internet communication technologies to improve productivity and competitiveness.

** Advertising & Marketing Services
For boosting Guyana’s image as an investment and tourism destination of significance, and for introducing a new media sub-type. This company has been publishing magazines that cover the NGOs, business umbrella associations and other organizations for many years, contributing to the improvement of the national image.

** BK International
For significantly improving the capacity of the engineering and construction industries to deliver quality service, for demonstrating the ability to respond to engineering challenges, take risks, innovate and approach the work environment with appropriately skilled personnel.

** Essential Supplies Inc.
For successfully penetrating the local market with a new bottled water product (Clear Waters) and creating a niche for new product sizing and packaging.  This company received the International Quality Crown (IQC) Award in London in November 2010.

** Guyana National Industrial Corporation (GNIC)
For superlative skills in Ship Building, Ship Repairs, Technical and Engineering skills, for rendering other maritime-related services of a consistently high standard to the public and private sectors for over 50 years.

PRESIDENT OF GUYANA  AWARD FOR EXPORT ACHIEVEMENT

** Banks DIH Ltd.
For recording significant growth in export sales, for achieving significant diversification in export markets to  over 21 countries.

LIFETIME AWARD

** Ramesh Dookhoo
For unstinting service to the GMSA and the private sector especially in the area of advocacy, for involvement in the national competitiveness drive, for long, mature business leadership.