–Professor Oramah says, commends Guyana on effective use of natural resources to transform nation, prioritisation of local content

PRESIDENT of the African Export-Import Bank (Afreximbank), Professor Benedict Oramah has said that Africa could help Guyana set up an oil-service financing facility for up to US$1 billion, since this sector is capital intensive and oftentimes local companies are usually only able to participate once they source capital.

“As the President [Dr Irfaan Ali] mentioned earlier, the banking sector, the industrial sector, the other services all come together to make local content more impactful, and this $1 billion can serve as a guarantee to enable the local banks to participate more effectively,” Professor Oramah said during his address on the opening day of the Guyana Energy Conference and Supply Chain Expo.

According to the Afreximbank’s president, it is estimated that Guyana has proven crude oil reserves of over 12 billion barrels, and at the current market price the country is estimated to have billions of dollars of wealth beneath its seas and soils.
He said some countries possess this natural wealth and still choose to deviate from building an economy backed by natural resources.
This, he added, is the notion held by a certain group of policymakers and development practitioners which, he said, would keep natural resource-rich developing countries poor.

“My humble advice is that such countries must drill, baby, drill, and if they cannot drill, they should try to sell the oil reserves forward and use the resources to quickly build infrastructure, train their people and dynamise their economy,” he said.
Against this backdrop, he expressed pride that Guyana is doing just that. With this, Professor Oramah said that the proven crude reserves must become reliable sources of capital needed to pursue economic transformation.

In essence, he indicated that the government could consider leveraging these resources as a possible source of financial flow or security to mobilise the local capital today, to transform the country’s economic infrastructure and build a stronger industrial sector and skilled labour force.

“The government should ensure that its natural resources serve to transform the socioeconomic fortunes of its people; the government must invest in equipping Guyanese with the capacity to effectively participate in the economy, driven these days by technology,” he added.
Further, shifting gears, he indicated that it is urgent that Guyanese entrepreneurs become active players in the oil value chain.

Against this backdrop, he praised the enactment of Guyana’s robust local content legislation and noted that this policy will help to increase the wealth of many Guyanese.
The same was seen in Nigeria which led to the transfer of technology and also increased the wealth that is in individual hands in Nigeria. Professor Oramah said some valuable lessons could be learnt from that experience.

The Afreximbank president noted that some African businesses, traders and refiners are present at the conference and expo, and would be happy to form partnerships with Guyanese businesses, which the bank stands ready to support.