RECENTLY, Finance Minister Dr Ashni Singh indicated that investors’ interest is evident more than ever in our country’s history. In the oil and gas exploration sector alone, investments would reach an aggregate of Cdn$2B.
This is indeed remarkable, especially, when one considers that the global financial crisis has been causing FDIs (Foreign Direct Investments) to dry up and is therefore testimony to the fact that through sound macro-economic policies and programmes, Guyana has returned to economic stability and growth. The half-yearly economic report by the Finance Minister showed that our economy grew by 5.9%, impressive by any standards in the context of a global financial crisis.
Gone are the days when we had to borrow to repay loans; virtually every item was in short supply (even toilet paper); there was soaring inflation; 94 cents out of every dollar went to repay debts; there was run-down infrastructure, etc.
“The policy environment we have created and, as a result of the track record we have created, you have had significant investment in new and emerging sectors too,” he added.
Low fiscal deficit and debt, strong external reserves, stability in the exchange rate and lowering of interest rates and containment of inflation to single digits were some of the measures which Singh said created an attractive environment for investments.
“What distinguishes the Guyanese economy of today from the Guyanese economy of 10 or 20 years ago and what distinguishes the Guyanese economy of today from the economies of other Caribbean member states is the level of progress we have made in diversifying the sources of growth,” Dr. Singh said.
In more recent times, there has been an upsurge in investors’ interest and these include a Memorandum of Understanding (MoU) which was concluded between Guyana and Guyana Goldfields Incorporated for the Aurora gold project in the Cuyuni River, Region 7. The Canada-based company has enough potential to single-handedly double the output of the gold industry once the operation gets underway.
Meanwhile, manganese mining in the North West District, Region 1, has been reinvigorated after agreements were sealed in March this year with Reunion Manganese Incorporated.
Moreover, the government is working closely with a bauxite company in an area at Bonasika that has not been prominent in bauxite production but has the potential.
“You have all of these companies who have said, we are confident in the Guyanese investment environment… and they are creating jobs in the process, they are generating incomes in the process, they are creating wealth in the process,” Dr Singh said.
It is important to recall that when government assumed the reins of government, the opposition and cynics said this government would not survive as it did not have the ability to attract investors. One former President and Opposition Leader even predicted that the government would fall within two years. However, the government has lasted nearly two decades and is set for re-election at the upcoming elections.
In fact, the opposition has been trying to scare off major investors and has unsuccessfully used all sorts of tactics, including overt and covert ones.
In 1997, the ethnicity of President Janet Jagan was used as a “Trojan Horse” to disrupt economic growth, which at the time was the highest in Latin America, and discourage investors in an attempt to bring down the government. The mayhem and destruction caused Sask Power, a large Canadian power company to pull out of an imminent investment deal and caused two years of that government to be lost.
So despite what the opposition and its cohorts have done and are doing, investments into Guyana continue to flow and this undoubtedly is a demonstration of confidence by investors in our economic fortunes.