– President Ali says, urges local businesses to reposition for economic transformation

By Navendra Seoraj

INCREASED interest in Guyana’s economy has created the need for local stakeholders to “step up” and reposition themselves, in order to absorb the potential benefits that will accrue to this fledgling petroleum state, said President, Dr. Irfaan Ali.
Guyana, with its new-found oil wealth, is on the cusp of economic transformation, and has already received the title of “investment capital of the region” and possibly the world.
This has so far served as encouragement for some of the key players in not just the international oil and gas industry, but for hoteliers, agro-processors, and other investors who are interested in penetrating the country’s growing economy, which has a Gross Domestic Product (GDP) of about US$4 billion.

“Oil and gas represents a paradigm shift in our country’s development. Oil and gas will move our development trajectory to a higher level, and to be engaged at a higher gear in other aspects of our economy,” said President Ali during a virtual address at the opening ceremony of the virtual Guyana Oil and Gas Summit, which was organised by the international firm, CWC/Global Future Energy Limited (GFEn), and the Georgetown Chamber of Commerce and Industry (GCCI).

Such a shift, he said, must be accompanied by new ways of doing business. And, in his view, it requires shrewd business acumen.

In giving further advice, the President said: “The old culture of buying and selling must give way to one which emphasises the production of goods and services, and partnering with others to maximise local traction in the sector.

“Local firms must become bold and ambitious; they must think big and international… They must embrace innovation and inventiveness, if they are to compete effectively in the global economy.”

As Guyana prepares to absorb those opportunities and attention, Head of the Department of Economics at the University of Guyana, Sydney Armstrong advises that the country must develop a local content policy, to serve as not just a safeguard, but as a conduit for persons to capitalise on the potential opportunities.

“The local content policy needs to specify in terms of components of labour, especially when we talk about massive hotels… Guyanese must be able to benefit from the construction process, and also be a part of not just lower levels of the general operations, but also be managers, supervisors and so on,” said the economist.
The Government, in September, had established an advisory panel on local content. The panel was tasked with undertaking a review of all existing initiatives and policies relating to local content in the petroleum sector and to provide guidance for the development of Guyana’s Local Content Policy and Legislation.

The panel comprises Shyam Nokta (chair), Carl Greenidge, Anthony Paul, Kevin Ramnarine, Carvil Duncan and Floyd Haynes.
The team handed over its report to the Minister of Natural Resources, Vickram Bharrat, on Tuesday. The policy, once ratified, will pave the way for an inclusive environment, amidst increasing foreign investment and interest in Guyana.
President Ali, during his virtual address, reiterated that this policy is being developed through a consultative process which includes examination of best practices employed around the world.

This is testimony to the Government’s committed to ensuring that local businesses have optimum participation in the oil and gas sector.
While it is imperative for locals to benefit, the President said he is not against foreign investments, as these will help Guyana to acquire capital, skills and technology to convert economic transformation into economic opportunities.

Foreign Direct Investments (FDIs) are essential for capitalising on the opportunities which the oil and gas sector promises, and it is also vital to building capacity of local sectors.
The oil and gas summit provided an opportunity for both local and foreign investors to establish synergies and build capacity through strategic partnerships.