…US envoy warns against aggressive local content posture

…says local business leaders should be concerned about financial transparency, environmental protection

“At a time of increasing integration, especially in a globalised energy sector, focusing on who owns a firm is counterproductive. Rather, the emphasis should be on whether firms are following international best practices on matters such as financial transparency and environmental protection and otherwise acting in a manner that contributes directly to Guyana’s overall sustainable prosperity.”

BUSINESS leaders in Guyana were challenged to visualise the country’s future in the next 10, 20 and 30 years and decide if there will be balanced and broad sustainable growth that is resistant to external shocks. Guyana is on the cusp of tremendous change with oil on the horizon.

The challenge was issued by US Ambassador to Guyana, Sarah Ann-Lynch during her remarks at the first Annual General Meeting (AGM) for The American Chamber of Commerce of Guyana (AMCHAM GUYANA) at the Marriott Hotel on Saturday.
“You are responsible parties and the decisions made today by all stakeholders will shape Guyana’s future. Guyana is already showing its commitment to future generations through efforts as the creation of a sovereign wealth fund, and we in the international community and the private sector each want to play our part to help the country on the path to prosperity,” the US envoy told the gathering.

She said in order to maintain such as path, government, along with organisations like AmCham, needs to encourage more foreign direct investment.
Adding that foreign direct investment brings in capital and employment opportunities, Ambassador Ann-Lynch said it also introduces international standards that local companies need to reach global competitiveness.

“International investors require sub-contractors to accept clauses from standard international contracts, including audit requirements. This is good for Guyana’s businesses, as Guyanese companies adopt best international standards in ISO certification, inventory management, and logistics planning; they will reach a point where they can compete with, and beat, the larger players,” the ambassador said.
Such a process, Ambassador Ann-Lynch said is central to AmCham Guyana’s mission to create a greater appreciation for the value of more liberal investments and competitive business.

LEADERSHIP ROLE
AmCham Guyana, she said, should ponder its leadership role in pursuing a strengthened investment and trade relationship with the US in support of the shared vision of a sustainable prosperous Guyana.

“As in most policy matters, such a vision requires that we avoid undermining our own objectives. Some recent suggestions of a Local Content Policy in Guyana may send a signal that some investors, and the employment of know-how benefits they bring, are not welcome,” the US envoy said.

The ambassador continued: “At a time of increasing integration, especially in a globalised energy sector, focusing on who owns a firm is counterproductive. Rather, the emphasis should be on whether firms are following international best practices on matters such as financial transparency and environmental protection and otherwise acting in a manner that contributes directly to Guyana’s overall sustainable prosperity.”

Further, she said Guyana should look at foreign investors as partners in growing the economy, rather than adversaries.

“The U.S. Embassy is prepared to, and very much want to work with AmCham to connect your leadership with U.S experts who can provide guidance on these key issues,” the US envoy noted.

Meanwhile, President of the AmCham, Zulfikar Ally said the chamber’s mandate is different from all other private sector chambers since the main objective is to promote and deepen growth between the US and Guyana.

He said AmCham will also facilitate and guide U.S investors on investing in Guyana, and as such, locally-registered Guyanese companies have been included in the network of the chamber’s channels.

FOUNDATION LAID
He said the organisation is an information hub and the ground work has been laid by fostering a culture of cooperate social responsibility that is structured, impactful and synchronised.

He said strategic alliances were formed with private sector organisations such as the Georgetown Chamber of Commerce and Industry (GCCI), the Guyana Manufacturing and Services Association (GMSA) and the Private Sector Commission (PSC), in addition to the US Embassy.

AmCham, he said has echoed the calls of the local private sector for strengthening of policies, most notably the Natural Resource Fund Act and the recent draft of the Local Content Policy.

Over the year, Ally said AmCham has hosted 24 events which offered its members prime networking opportunities with each other, along with key stakeholders.
He noted that Ambassador Sarah Ann-Lynch, according to AmCham by-laws, is an honorary member and co-chair of the board of directors.

He explained that an AmCham app was created solely for members. It will serve as a portal for all things business and persons will even be able to vote on various topics, using the app.

AmCham currently has 61 members as the body aims to promote the transfer of skills and technology among the membership and private sector as a whole.
“The values of AmCham Guyana are not different from the values we all share in a democracy. We are aware that for business and investments to prosper, the tenets of democracy, respect for the rule of law and for human rights will automatically lead to stability, predictability and ultimately private sector growth. We stand firmly committed to advocate and promote these values and to play our part in ensuring all businesses and investors can rely on and enjoy such an environment,” he explained.