–President Ali highlights

SMALL and medium-sized enterprises (SMEs) are set to become a driving force in the building out of Guyana’s agro-processing industry, with President Dr. Irfaan Ali pledging that they will be empowered through partnerships, technology, and financing.

The President threw the spotlight on SMEs during a recent press conference where he unveiled a strategy that links local businesses with global partners in a bid to accelerate Guyana’s position as a regional food hub.

The President said: “SMEs have an important role to play in agro-processing. That is why we are now working with those who have the technology, the investment, to work in a co-investment model with our local SMEs to ensure that we maximise the potential of our SMEs while giving them the fastest track in technology, in financing, in technical support, to build their businesses and be part of this transformation.”

The President highlighted the challenges that Guyana faces, such as technology, explaining that adopting a co-investment model with local farmers and SMEs, alongside international partners with advanced technology and expertise, will help in attaining the objective.

“So, we can either sit back and wait forever, or we can go and get those who have the technology; those who have done it and done it successfully, to come on board with us together, so that we reduce the lag time and advance the opportunity in a more rapid way.

“I think that is the best approach, and that is why the private sector is involved in this,” Dr. Ali stated.

Notably, Guyana’s agro-processing industry is rapidly growing, positioning the country as a food hub and prominent exporter of value-added products.

As a result, investors are expressing significant interest in the country’s manufacturing and agro-processing sectors, the President said during another engagement earlier this month.

Dr. Ali highlighted that investors from the Middle East and the United States are showing a strong interest in manufacturing and agro-processing.

SPECIAL DEVELOPMENT ZONES

The President highlighted Guyana’s competitive incentive regime, and the government’s ongoing work to establish special investment zones across several regions, including Regions Nine (Upper Takutu-Upper Essequibo), Six (East Berbice-Corentyne) and 10 (Upper Demerara-Berbice).

“I think we have the best incentive regime for manufacturing; a very competitive regime, both on the fiscal side and look at the support on the infrastructure side; support that the government is giving, building out the infrastructure to support manufacturing. So, we are creating different hubs. Some of these hubs will be tax tax-free zones to encourage investment,” President Ali said.

These zones, which will offer special tax regimes and infrastructure support, are expected to further stimulate growth in the manufacturing sector.
The Enmore Development Zone in Region Four (Demerara-Mahaica) and the Wales Development Zone in Region Three (Essequibo Islands-West Demerara), the President said, are examples of these special zones that will be created to stimulate investments.

The President also highlighted the importance of bilateral trade agreements within the wider region, highlighting the ease of doing business in Guyana.

MAJOR AGRO-BUSINESS DEVELOPMENT HUB

During the press conference, the President did not mince his words, explaining how Guyana is moving assiduously to cement its role as a regional food production and logistics powerhouse.

It is in this regard that he announced plans to establish a major agro-business development hub, emphasising his government’s commitment to food security, agricultural innovation, and regional integration.

Not only will the project capitalise on the broader commitment to food security and infrastructural development, but it will also provide a platform to strengthen Caribbean self-sufficiency.

The President explained that agro-business development is not a policy priority, but it stands as a growth pool that could drive international partnerships and spark investors’ interests.

President Ali then pointed to the project United States (US) giant, Blumberg Grain and Logistics to develop a landmark regional food hub. Earlier this year, the Government of Guyana signed a Memorandum of Understanding (MoU) with the renowned US-based company, Blumberg Grain and Logistics.

The agreement paved the way for the establishment of a state-of-the-art regional food hub at Yarrowkabra, along the Soesdyke-Linden Highway.

The Yarrowkabra food hub, once completed, is expected to significantly boost Guyana’s export capabilities, reduce post-harvest losses to as low as 5 per cent, and provide new manufacturing and processing facilities.

 It is also expected to serve as the base from which Guyana can strengthen trade across CARICOM and South America, while laying the foundation for entry into US and international markets.

The commencement of Phase One of the project took place in 2023, accompanied by an investment totalling $187 million.

Also essential to the plans to position Guyana as a major food exporter within the region is the acceleration of production.

So, how does the President envision supporting both food security and the growth of agro-processing industries that add value to raw products before export?

President Ali stated that the government is seeking to work with megafarms and co-invest with megafarms in the local agricultural sector.

“We’re looking at 100,000 hectares of land to be converted into large-scale mega farms, looking at corn, soybean, coconut, spices and cocoa. All of this we have been able to advance,” he said.

TRANSFORMING AGRICULTURE

The agriculture sector has experienced rapid transformations in recent years through expansion, diversification and modernisation to improve its resilience and competitiveness.

These developments are being bolstered by government support to farmers, especially to add value to crop, livestock, dairy and fisheries industries.

Earlier this year, the Ministry of Agriculture reported that Guyana has surpassed regional expectations for agricultural production, achieving approximately 88 per cent of production targets one year ahead of schedule.

In 2022, Guyana produced nearly 899,000 metric tonnes of food. By the end of 2024, that number climbed to 1.26 metric tonnes.

This increase was supported by the skyrocketing of rice yield, brackish water shrimp (which recorded a more than 1,000 per cent increase), corn and soya, and prawns.

Guyana’s ambitions are closely tied to the  Caribbean Community’s Agri-Food Systems Agenda through “Vision 2030”, a strategy aimed at boosting food production, ending hunger and strengthening food security across the region.

Out of 186 countries, only Guyana produces enough food to feed all its citizens without foreign imports, according to a recent study published in Nature Food.

Nature Food had investigated how well each country could feed its populations in seven food groups: fruits, vegetables, dairy, fish, meat, plant-based protein and starchy staples.

Worldwide, the study found that 65 per cent of countries were overproducing meat and dairy, compared to their own populations’ dietary needs.

It also found that Guyana was the only country that could boast total self-sufficiency, while China and Vietnam were close behind, being able to produce enough food in six out of seven food groups.

Just one in seven of the tested countries was judged self-sufficient in five or more categories.