–President Ali says

PRESIDENT, Dr. Irfaan Ali has said that with numerous high-profile engagements on his agenda and a surge in Foreign Direct Investment (FDI), Guyana is solidifying its position as an emerging destination for global investors seeking sustainable growth and lucrative opportunities.

The Head of State, speaking at a recent press conference, highlighted the increasing interest and engagement of foreign investors in Guyana as a testament to the country’s stability and sound leadership.

The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) 2023 report has listed Guyana as the leading FDI destination in the Caribbean for the second year running.

The report, which analysed FDI trends in the region, highlighted Guyana’s impressive growth and its pivotal role in attracting investments.

According to the ECLAC report, Latin America and the Caribbean experienced a surge in FDI in 2022, reaching a record-breaking value of $224.579 billion. This figure represents a significant increase of 55.2 per cent compared to the previous year.

The President said that the influx of foreign direct investment serves as a resounding vote of confidence in Guyana’s leadership and the path the country has charted for economic prosperity.
Highlighting the multiple benefits of FDI, including job creation, increased income, and enhanced economic stability, President Ali reiterated the growing interest and engagement from international investors.

“The direct and indirect benefit is the jobs and the spin-off. So, for example, we have eight hotels under construction right now where work would’ve started. On completion of those hotels, you’re talking about thousands of new jobs being created. That is thousands of families who now have more disposable income,” President Ali said.

The Head of State related that the creation of new jobs through FDI would result in increased wealth at the individual, family, community, and national levels.

The economic growth, he said, stimulated by FDI would lead to additional spending in the economy, driving demand for services and subsequently increasing revenue.

“The fact that investors are streaming in and there is a greater level of interest in Guyana speaks to the level of awareness and confidence in Guyana,” President Ali said.

He pointed out that the perception of stability, security, and social, economic, and political stability are key factors that investors consider when making investment decisions.

President Ali further elaborated that investor confidence in Guyana’s leadership and direction was further evident in the numerous requests he received during his international travels.

MAJOR INVESTMENT FORUM
“At every single major investment forum, I have been invited to give the keynote address or lead the delegation; I have not been able to attend 10 per cent of it. That is because of the interests, and you’re seeing this every time we travel… the requests that are there…. So, the FDI is also an indication of confidence in the economy,” the President said.

He added that being the leading destination for FDI not only reflects investor confidence, but also demonstrates the trust and belief in Guyana’s leadership and its vision for a prosperous future.
The increased engagement with international investors and fora indicates the growing awareness of Guyana’s economic potential and the opportunities it offers, the Head of State said.

With eight hotels currently under construction and expanding call centres, President Ali singled out one of the tangible outcomes of FDI, citing the creation of thousands of new jobs.

He added that this surge in employment not only generates income for families but also fosters a ripple effect of increased disposable income and heightened consumer spending, contributing to national economic growth.

President Ali further elaborated on the correlation between FDI, economic stability, and investor confidence.

He added that FDI bolsters Guyana’s economy by stimulating demand for services, which, in turn, leads to revenue growth and subsequent investments.

This cycle of increased supply, revenue, and spending is instrumental in sustaining Guyana’s economic development. According to the ECLAC report, Guyana recorded the highest FDI inflows, which totalled US$4.389 billion in 2022.

Since the discovery of oil, Guyana has attracted significant attention from the international community and the government is harnessing this interest to showcase the country’s capabilities of addressing pressing global challenges.

President, Dr. Irfaan Ali has said that Guyana’s intention is to leverage its oil discoveries to foster strong global leadership in these critical areas. Of particular importance is Guyana’s commitment to forest conservation and its role in combating climate change.

He highlighted a historic deal in which Guyana will earn a minimum of US$750 million from the sale of internationally certified carbon credits to the Hess Corporation over the next decade, with at least 15 per cent of the funds being reinvested in Indigenous communities.

As part of this commitment, the government, in December 2021, introduced the Local Content Act. The law identifies 40 sectors or services and requires oil firms and their subcontractors to purchase a minimum percentage of their total expenditure on those services from Guyanese vendors.

As a result, the Act creates an enabling environment for the growth and expansion of Guyanese businesses, as well as business and job opportunities for Guyanese nationals. The LCA is expected to be updated soon.