GUYANA has topped the CARICOM region in terms of Direct Foreign Investment (FDI), second only to the Dominican Republic in this hemisphere, a recent release by United Nations Conference on Trade and development (UNCTAD) indicated. According to the release, Guyana received US$ 1.834 billion last year, which is an improvement from the previous year, when it received US$ 1.695 billion. According to UNCTAD’s World Investment Report (2020), FDI inflows to Guyana have shown a significant increase. Total FDI stock was estimated at 6.3 billion in 2019, with the United States of America (USA) being the largest investor partner.

Traditionally, transportation, communications, mining and agriculture have been among the largest foreign direct investment, but with the emergence of oil and gas in commercial quantities, there is now a shift in the investment portfolio to reflect that new and changing dispensation.  This is good news for the country, especially in this COVID-19 pandemic environment, where there is a global economic slowdown, and a consequential drying up of developmental assistance. And even though there is still some work to be done in terms of the creation of an ideal investment environment, there can be no doubt that significant steps have been taken by the current PPP/C administration to create an investor-friendly environment.

Guyana is forging ahead, in terms of its standing as an investor-friendly country. The World Bank, in its 2020 report, ranked Guyana 134 out of 190 countries for its business environment, but this is likely to see significant improvement, with the slew of measures taken by the government to provide investment incentives, and remove bottlenecks regarding the ease of doing business in the country. The Guyana Office for Investment (GO-INVEST) has issued clear investment guidelines, which will further assist in terms of investment opportunities in the country. Guyana, as the gateway to Latin America, is uniquely poised to attract investments in a variety of ways, including the tourism sector, which is still in its fledgling stages.

For the country to optimise its investment potential, it is imperative that there exists a stable political environment, buttressed by a strong culture of democracy and the rule of law. That is why it is so important to strengthen our democratic and judicial institutions, including the Guyana Elections Commission. No less important is the need for a strong and predictable regulatory framework to protect investors, both local and foreign, from the vicissitudes of political changes.

As pointed out by President Dr. Mohamed Irfaan Ali, Guyana is strategically located, and offers access to key markets, and everything will be done to create an enabling environment for business to do well and prosper. Investors, the President assured, can be assured of a macro-economic framework that will guarantee stability and asset protection. Investors can expect fiscal incentives to attract investments and greater competitiveness. They can look forward to improvements in the ease of doing business, and respect for property rights and the rule of law.

The importance of Foreign Direct Investment for Guyana’s development cannot be overemphasised. Through large investments, the economy can become more competitive, through transfer of financial resources, knowledge, skills and technology in addition to job creation. Making hasty and at times ill-informed comments against investors can be counterproductive, and a disincentive to current and prospective investors. In the final analysis, it is the country and its people that will suffer from any loss of investment capital. And while there is nothing wrong in advocating for due diligence and a fair share of the proceeds of our natural resources, such advocacy must be done within the framework of our laws, and with the greater good of the society in mind.