AS much of the world struggled with dwindling Foreign Direct Investments (FDIs) in 2023, Guyana emerged as a beacon of economic resilience, defying regional trends and recording an impressive 64 per cent increase in FDIs.
This achievement, highlighted in the 2024 edition of the “Foreign Direct Investment in Latin America and the Caribbean” report by the Economic Commission for Latin America and the Caribbean (ECLAC), is more than just a testament to the country’s burgeoning oil and gas sector—it is a reflection of Guyana’s strategic foresight and its government’s commitment to fostering an environment conducive to foreign investment.

Guyana’s rise as the sixth-largest recipient of FDI in Latin America and the Caribbean in 2023 is remarkable, especially considering the broader regional context. While neighbouring giants such as Brazil and Mexico experienced significant declines in FDIs, Guyana attracted $7.198 billion in investments. The country’s ability to buck the regional trend is no accident; it is the result of deliberate and well-executed policies aimed at capitalising on its natural resources, while laying the groundwork for long-term economic stability.
The driving force behind this surge in FDIs is, undoubtedly, the discovery and subsequent development of the Stabroek oil block. Since 2017, oil has been the catalyst for Guyana’s economic transformation, drawing the attention of multinational corporations and making the nation a key player in the global energy market. However, the story of Guyana’s success is not solely about oil. The government’s proactive approach to creating a favourable investment climate, through tax incentives, streamlined regulations, and investments in critical infrastructure, has been pivotal in attracting capital beyond the energy sector.

Significantly, the ECLAC report notes a growing interest in Guyana’s manufacturing sector. Although still in its infancy, this sector is beginning to attract foreign investors eager to tap into Guyana’s advantageous investment conditions and competitive labour costs. This shift towards manufacturing is a promising development that aligns with global trends such as nearshoring, where companies seek to relocate production closer to home markets, and friendshoring, where geopolitical alliances drive investment decisions.
But while the current success is worth celebrating, Guyana must not rest on its laurels. The momentum in FDI inflows can be sustained only through continuous policy innovation and economic diversification. The government’s vision for developing the renewable energy sector is a step in the right direction. By leveraging the country’s vast natural resources, Guyana has the potential to attract significant “green” investments, positioning itself as a leader in sustainable energy within the region.
Moreover, the future of Guyana’s FDI strategy will hinge on its ability to cultivate a skilled and adaptable workforce. Investing in education and technical training will be crucial in meeting the demands of high-value industries such as advanced manufacturing and technology. This, in turn, will enhance Guyana’s attractiveness as an investment destination, ensuring that the benefits of FDIs are felt across all sectors of the economy.
Guyana’s economic transformation is not just about numbers; it is about strategic leadership and a commitment to inclusive growth. President Dr. Irfaan Ali’s administration has demonstrated a clear understanding of the need to balance the immediate gains from the oil industry with long-term sustainability. This is evident in the government’s efforts to conserve Guyana’s forests and combat climate change, as well as in the historic $1.146 trillion budget approved in February, which allocates proceeds from the National Resource Fund to critical public infrastructure and social services.

As the world grapples with economic uncertainty, Guyana stands as a testament to what can be achieved through strategic vision and sound governance. The country’s impressive FDI growth is not just a fleeting success, but is also a foundation upon which a prosperous and sustainable future can be built. Guyana’s story is one of hope—a narrative of a small nation making a big impact on the global stage. As we look to the future, it is clear that Guyana’s best days are still ahead.