DEVELOPMENT is a cumulative process. Every new investment, large or small, adds to the country’s Gross Domestic Product (GDP). This is why any new investment must be welcomed with open arms. The most recent report from the Bank of Guyana (BOG) has indicated that the country’s investment portfolio has increased substantially in the recent past due in large measure to the emerging oil and gas sector. This development has already impacted significantly in terms of enhanced levels of economic growth and job creation.

Only recently, Finance Minister, Dr. Ashni Singh disclosed that Guyana will restart manganese exports after fifty-four years. This development is highly significant and comes at a time when the country is seeking to diversify its economy along more competitive lines while at the same time ensuring that the other sectors such as agriculture, minerals and tourism are not pushed in the background as a result of the booming oil and gas sector.

The recent economic successes in the country, especially in oil and gas have served as an impetus for foreign investment which, as mentioned earlier, has increased substantially over the past few years. This development has resulted in a net surplus of US$1.7 billion in 2021 in the country’s capital account. That surplus, according to the Bank of Guyana, is due to higher inflows to the private sector in the form of Foreign Direct Investments (FDIs) of US$4.4 billion as well as the Special Drawing Rights (SDRs) allocation of US$ 247.4 from the International Monetary Fund (IMF).

All of this is good news. For one thing, it is indicative of an increase in the cumulative wealth of the country which in effect meant that the country has more money at its disposal to finance the several developmental projects, while at the same time increasing the disposable income of the Guyanese people, especially the more vulnerable segments of the population. Only recently, President Dr. Mohamed Irfaan Ali announced that hinterland households will benefit from a one-off cash grant of $25,000. This is in addition to the several other measures taken by the PPP/C administration to cushion the adverse impact of the recent flood situation and the COVID-19 pandemic.

In all of this, the nation’s farmers have not been ignored. The current war in Ukraine has pushed up the cost of agricultural inputs, especially fertiliser, and as a caring administration a sum of one billion dollars has been set aside to provide fertilisers to farmers free of cost. This announcement was made recently by President Ali, who indicated that the intention of the assistance is to cushion the impact of the rising cost of fertiliser, which is a major component of the cost structure. The idea is to bring down the production cost of agricultural produce which will ultimately pass down to consumers by way of reduced market prices.

As the revenue stream of the government expands, more resources will be available for national development and also to enhance the quality of life of the Guyanese people. Investment in the productive sector is key to realising an enhanced revenue stream. The PPP/C administration must be commended for creating a supportive and enabling investment climate while at the same time ensuring that the environmental standards are not compromised. Like any investment, there will always be some element of risk but risk-taking is part of the investment culture. In the final analysis, it is the extent to which the benefits and opportunities outweigh the potential for risks that is the decisive factor.

Guyana is already making waves at the regional and international levels as an attractive place for investment. The most recent investments in the mining sector will further buttress and consolidate the multi-dimensional character of the country’s development along sustainable lines.