–stakeholders anticipate better conditions for commerce by mid-year

BOUNDED by the necessary restrictions in place to curb the spread of the novel coronavirus (COVID-19), local businesses, like those the world over, have been faced with the options of either remaining “above water” through innovation and diversity or shuttering because of unmanageable liabilities, which were mounting due to dwindling revenue.

Today, the suffocating effects of the pandemic are not as severe on the business community, since the Government has relaxed certain control measures to create space for commercial activities and employment. But, the real challenge was in the early stages, particularly March 2020, to August, 2020, when the country was not only grappling with the effects of the pandemic, but those created by a protracted electoral process.

Faced with an unstable political environment coupled with a deadly disease, players in the private sector had to make critical decisions to ensure that their business, which, in some cases, was their sole source of income, did not become a fatality of the turbulent times.

The strain experienced by the private sector was felt in every sphere of society, since businesses, particularly medium, small, and micro, are often referred to as the lifeblood of any economy because they give entrepreneurs the opportunity to create meaningful jobs and foster local economies, allowing money to stay closer to communities.

Throughout the world, many persons have gone out of business because of the COVID-19 pandemic. This has been the case in developed nations, so the effects on Guyana — a nation with GDP of just about US$5 billion — are understandably harsh.

The Small Business Bureau, in a bid to ascertain the full impact of the pandemic on small businesses, during the early days of the pandemic, had conducted an online survey which received 243 responses. And, of those responses, 63 per cent had indicated that they had to close completely because of the pandemic.
This was just the tip of the iceberg, as Guyana, aside from recording an estimated real Gross Domestic Product (GDP) growth of 45.6 per cent at mid-2020, was faced with a contraction in the non-oil economy by 4.9 per cent due to significant declines recorded across many major industries.

In reflecting on the economic conditions and the struggles faced by businesses during the early stages of the pandemic, Vice-President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker, said: “A lot of businesses had to drop off and come out of business because the rental industry price [price for rental], especially in growing oil and gas economy, was climbing. Even today, some businesses literally cannot afford to maintain a rent without having an income.

“A lot of businesses in the hospitality industry, bars and so forth, have been severely impacted. I would have loved to see a little more being done for those in the industry, but as a country we were barely even coping with the effects of COVID-19, so it is not the fault of anyone.”

In providing one example of the struggles faced by businesses, Deputy Toshao of Katoonarib Village, Floria Singh, had told the Guyana Chronicle that a shop, managed by the village council, felt the brunt of the pandemic effects.
“Since the COVID started last year with everything in lockdown, things were really hard especially where income was concerned, especially with our shop. There was no kind of investment and we had really lost a lot,” Singh said.

She further lamented: “During the lockdown, people took items mostly on credit and the shop was left in a big expense.”
Persons were only able to clear their debts when the Government introduced the COVID-19 cash grant of $25,000 per household.

DIVERSIFY AND INNOVATE
While some businesses could not navigate the “rough tides,” there were others which had to diversify and innovate in order to stay relevant and profitable.
“When it comes to COVID-19, nobody was ready for it… and clearly we know that it is over 100 years since our last pandemic, so Guyana is a resilient country and we have learnt to be able to adapt,” Tucker said during an exclusive interview with the Guyana Chronicle.

Some sections of the private sector were more resilient than others because, according to Tucker, they experienced “electoral pandemics” over the years and those have helped them to develop strategies to remain viable and do business under trying conditions.
Those very strategies and even new ones were and are being applied during the pandemic, he said, noting: “We have seen many businesses fight, struggle and found ways to find opportunities amid the pandemic.”

Businesses, for instance, have embraced technology and recalibrated their operations to suit the times and ensure that customers are still able to access services, which are sometimes critical.
“Businesses have embraced technology, and through this, they have updated themselves to have smart menus, to have delivery services, online businesses, and have even gone down the road with online banking, receiving payments, just fully adopting and diversifying themselves,” Tucker said.

With this being the case, it is clear that a foundation has been set to ensure that the local economy, particularly some aspects of the business community, is able to withstand possible disasters.
Already, Tucker said, the private sector is looking to put COVID-19 behind and begin to accelerate economic growth.
“I look forward to us putting COVID behind us and the country being able to accelerate in the way we all know and expect it to be, especially now that we have a Government that is business-focussed and development-driven. We expect by mid-year we should be in a much better place when it comes to COVID and we are looking forward to that,” the GCCI vice-president said.
The Government had already started paving the way for a recovery of the economy, firstly with Budget 2020.

President, Dr. Irfaan Ali, in outlining measures included in Budget 2020, had said that the Government, after re-prioritising and re-programming fiscal measures, has managed to add $20 billion in relief to the “pockets” of Guyanese at a time when the nation is faced with the effects of COVID-19, and the recently-concluded protracted electoral process. The conduits of relief include revised tax measures and sweeping incentives.

The broad objectives of those measures which featured in Government’s emergency budget are to stimulate economic activity; get persons back to work; increase Guyana’s productive capacity; reduce the cost of doing business; improve efficiency; and facilitate growth and development of businesses.

Similarly, while protecting the nation is the primary objective, Budget 2021 is also aimed at ensuring that there’s a diversified and resilient productive sector by facilitating large-scale private investment in both traditional and new and emerging sectors, creating 50,000 jobs in the next five years, and promoting entrepreneurship at the medium and small-business level.

Budget 2021 will also initiate investments in catalytic and transformative infrastructure, including energy infrastructure to ensure adequate supply at a competitive cost, and transport infrastructure to improve international connectivity, and unleash domestic production and productivity.