-says US$1.6B earned since enactment of Local Content Act

SINCE the enactment of Guyana’s Local Content Act, Guyanese companies have recorded gains upwards of US$1.6 billion, according to newly appointed Director of the Local Content Secretariat, Michael Munroe.

Munroe was at the time speaking on the ‘Starting Point’ podcast during which he stated, “So just in these 40 areas… we’re in our fourth year of implementing the Local Content Act. We’ve already garnered in excess of US$1.6 billion.”

The 40 areas Munroe made reference to are those areas set out in the Local Content Act, which include services such as accommodation, catering, and food supply, among other things, which must be procured from Guyanese companies.

The director explained that the figures reflect a steady increase in the value of contracts won by Guyanese companies since the law took effect.

“In the first year, we would have seen the companies registered as local-content certified; they would have gathered, I think, in excess of US$440 million. In the second year, we more or less went to US$540 million, and in the third year, we went to US$704 million,” he said.

For this year, he noted that the growth trend has continued, as he noted that from January to June, the number stands at just around US$350 million.

“So, we’re seeing increases year on year. Every half year, we are seeing increases in the level of procurement activity,” he added.

To this end, he projected that Guyanese supplies will likely surpass the previous year’s total as he added that he anticipates that there will be a ramping up of procurement activity.

“I anticipate that there will be ramping up in the procurement activity, and we may, more than likely, if the trend holds true, we will exceed last year’s number, so we will be north of US$704 million,” Munroe said.

Getting ahead, Munroe addressed the difference between the secretariat’s figures and those of oil giant ExxonMobil. He noted that the numbers posted by the company, which were in excess of US$400 million at half year, cater for their procurement spending, which includes things outside of the 40 areas in the first schedule.

However, the secretariat’s figures, he said, strictly focus on those 40 categories listed in the first schedule of the act.

With the reporting from the company on a broader range of services outside of that schedule, Munroe noted that this was a positive development, which indicated that the international operators are deepening engagements with local suppliers.

“That is a good thing in my opinion, because it suggests that the companies are procuring beyond the first schedule. These companies now want to be a part of Guyana’s local content story, and in so doing, they are procuring from local companies beyond the first schedule,” he expressed.

The director went on to note that this shift shows how the legislation has transformed corporate behaviour, stating, “I think it’s a good indication for us to feel proud that the act is stimulating procurement beyond the first schedule.”

Guyana’s Local Content Act was passed in December 2021 in the National Assembly. It is designed to maximise participation of Guyanese companies in the sector, beginning with the provision of services such as office space rentals, janitorial services, laundry and catering services, and supply of food, among several others.

As of the beginning of 2025, it was reported that the country’s Local Content Register included over 1,100 companies, pointing to the success of the implementation of the Local Content Act.