–AMCHAM Guyana

Guyana is on the verge of unprecedented economic growth and the masses are in line to reap the benefits with the production of oil, President of the American Chamber of Commerce of Guyana (AMCHAM Guyana), Zulfikar Ally said when he addressed investors during a Business Forum in New York.

Ally said for years, Guyana’s foreign reserves have hinged on export of gold, diamonds, bauxite and other minerals, agriculture and, to a lesser extent, value-added goods but the tide is now turning. He said the discovery of oil in 2015 has placed Guyana on a new trajectory. To date, there have been 12 successful discoveries by U.S oil giant ExxonMobil in the Stabroek Block.

“Our reserves after the 10th discovery were projected at 5Billion barrels, and the volumes from the 11th and 12th discovery are still to be quantified. (To put this into perspective, ExxonMobil’s total proven reserves as of the end of 2018 were at 24.3Billion oil-equivalent barrels). This now opens the likely need for at least 5 floating, production, storage and offloading (FPSO) vessels on the Stabroek Block, and an expected production for more than 750,000 barrels of oil per day by 2025,” he detailed.

Liza Phase 1 is expected to start off at 120,000 barrels per day in 2020, the year in which the International Monetary Fund (IMF) projects a transition to a positive balance of payment and increased economic growth. In 2022 and 2023, two other wells are expected to come on stream, he reported. This mega investment by ExxonMobil will be of significant benefit to the people of Guyana. “With this new income, public investment is expected to increase regardless of who is in government, which will manifest as large public and social infrastructure projects, health, education, transportation improvement projects, etc.

This means that the opportunities for investment related to the oil sector are endless,” Ally said.
ExxonMobil is just one of the members of AMCHAM Guyana. The other members include: Hess Corporation, Sol Guyana, Guyana Telephone and Telegraph (GTT), Neal and Mass y, Queens ATLANTIC Inc., Corum Group, Fix-it Hardware, Nabi Construction and London House Chambers among others.

He noted that since the launch of AMCHAM in August 2018, its membership base has grown to 40 members, comprising companies and businesses that span all sectors of the economy, from banking to machinery. The AMCHAM Guyana President said while there is a significant increase in business activity in Guyana ahead of first oil, investment opportunities are not restricted to that sector as he warned against the Dutch Disease.
“Lessons learnt from oil-dependent economies have served to guide nations in the direction they take at this very critical juncture of development, that is, the transition into an oil economy,” he posited.

The major stakeholders in Guyana as well as AMCHAM Guyana are cognizant that the country ought not to dependent heavily on the oil revenues. “The business community is poised to play a crucial role in ensuring this mandate is achieved through initiatives which promote diversification. With alternative profit streams, Guyana can avoid being another case study of the infamous resource curse and secure an economy which is adequately insulated from price volatility which follows global market effects,” he said.
Ally said too that there are opportunities for sound investments that are not limited to the oil and gas industry but serve as a key stabilising element in the macroeconomic environment.

“The investment climate is ripe for non-traditional industries and services since there are tax concessions available through the laws of Guyana and are mandated through the Guyana Office for Investment (GOINVEST). Your presence today tells us that you too are curious or have questions regarding investing in Guyana. Whatever those questions are, AMCHAM Guyana is here to provide any guidance you may need,” he told the investors.
In giving them insight into AMCHAM Guyana, Ally explained that it is aimed at promoting trade and commerce between Guyanese and American companies. Its specific mandate is to represent US business interests in the Guyanese market, and provide a support mechanism to overseas business primarily through advocacy and networking.

“We recognise that Guyanese companies face challenges in keeping up with the standard and pace of the global business environment due to a number of constraints including technology, financing, availability of skilled labour, high energy and other importation costs, to name a few, and as such AMCHAM supports initiatives that help to overcome these hurdles.

These include initiatives aimed at building capacity, connecting venture capitalists with businesses seeking capital for growth, expansion or improvements, and at advocating for transformation or optimisation, as the case may be, of systems which reduce the bureaucracy associated with conducting business in Guyana,” he explained. The Business Forum was held at Inter-Continental Hotel at Times Square on Saturday.