Guyana Office For Investment
Presented by: Mr. Shawn Doris
Programme Objective Objective:: To contribute to Guyana’s economic competitiveness by promoting and facilitating MORE local and foreign privateprivatesector investments and MORE Guyanese exports,, and by enhancing the trade and exports investment climate, climate, in accordance with the Government of Guyana investment and export policies
Key Responsibility: Implement 44-year Plan of Action with targets and timelines for GOGO-Invest to enhance and expand its four core responsibilities: responsibilities: [1] Investment Generation and Facilitation, [2] Export Promotion, [3] Policy Advocacy [4] Image Building. [5] Enhancing the Internal Organization of GOGO-Invest The GOGO-Invest Plan of Action, based on the National Development Strategy, Strategy, is part of the National Competitiveness Strategy Action Plan of the Government of Guyana and the Private Sector Commission.
Key Responsibility # 1: {1} Increase Investment Generation and Facilitation
by contributing: A.
B. C.
D.
to a diversification of economic activities - across targeted sectors and within each of those sectors to develop VALUEVALUE-ADDED PRODUCTS and SERVICES; to the sustainable development of the economy; to the development of an open economy based on fostering competition; competition; to an improvement in the regional and global competitiveness competitiveness of businesses in Guyana.
THE BREAD BASKET OF THE CARIBBEAN-- GUYANA CARIBBEAN INTRODUCTION The Government of Guyana is eager to welcome investments that include job creating and profit oriented projects. This is a country that is blessed with various Natural Resources over a large expanse of land. The Government is committed and will provide a package of infrastructure support plus low cost land for potential investors. Interested parties are invited to visit Guyana to see available lands, discuss investment options and learn our regulatory procedures.
GUYANA PROFILE Guyana is a multi ethnic country Land Mass of 83,000 sq. miles (215,000 sq km) Population - 752,000 Guyana’s economy is well endowed with: Fertile agriculture lands Suitable water for agriculture development Range of diversified mineral deposits Significant acreage of tropical forest Rich and exclusive economic fishery zone Outside of the hurricane zone
Development in Guyana Economic Development in Guyana is characterized as: OPEN COMPETITIVE DIVERSIFIED SUSTAINABLE These words highlight the economic strategy of the Government of Guyana in partnership with the private sector and international donor agencies. The main goals of this strategy are to achieve and maintain higher economic growth rates and a better standard of living for all Guyanese through a visibly--enhanced business climate visibly climate..
WHY INVEST IN GUYANA Competitive wage rate Talented, young, productive and educated work force Comprehensive system of agricultural training and other training Economic strength Average GDP growth – 4% Inflation-- 5.4% (2011) Inflation Debt Service Ratio – 4.3% International reserves – US$ 700 million Gateway to South America
GUYANA--BRAZIL RELATIONS GUYANA GUYANA SHARES ITS BORDER WITH TWO BRAZILIAN STATES – RORAIMA – PARA
GUYANA IS THE ONLY CARICOM STATE THAT HAS: – A DIRECT ROAD LINK TO BRAZIL – VIA BRAZIL THE WHOLE S.A. CONTINENT
BRAZIL’S NOTHERN ARC PROJECT IS AIMED AT THE ECONOMIC AND SOCIAL DEVELOPMENT OF ITS NOTHERN STATE - Roraima THE ROAD LINK FROM RORAIMA TO GUYANA IS A CRITICAL PART OF THIS INITIATIVE
GUYANA--VENEZUELA GUYANA RELATIONS
Exports Paddy (as of 2009) White Rice (as of 2010) Imports Gas & Diesel ( approx 20% of the GDP OR APPROX $250,000 US) Future Guyana is seeking to import Lubricants and LDG Gas in the near future.
THE ROAD TO BRAZIL GEORGETOWN TO LETHEM – 543KM GEORGETOWN TO LINDEN - 105KM PAVED LINDEN TO LETHEM – 438KM UNPAVED PONTOON CROSSING – KURUPUKARI MAINTENANCE - MMC & IWOKARAMA
BOA VISTA – GEORGETOWN ROAD & SEAPORT PORT
ROAD State Of Roraim a
Investment Opportunities in the Lethem Area MANUFACTURING/PACKAGING FACILITY Peanuts, Cashew Nuts, Fresh Fruits & Vegetables Cattle rearing, Beef production and Fish (aqua 窶田ulture) Craft SUPPLY OF AGROCHEMICALS Intermediate Savanahas Boa Vista, Roraima SERVICE/HOSPITALITY OUTLETS Petrol Stations Motels & Rest Stops; Coffee & Snacks TRADING OF NONNON-TRADITIONAL PRODUCTS HINTERLAND DEVELOPMENT Strengthen the Population Base Stimulation of Economic Development
INTERNATIONAL ACCESS
WHY INVEST IN GUYANA (cont’d) Supportive Government Policy: Legislative framework Tax holiday for pioneering projects Waiver of duty and taxes on machinery and equipment including renewable energy equipment and materials Unrestricted repatriation of profits and capital Facilitation by the Guyana Office for Investment for all relevant license
Developing The Competitiveness Of Enterprises – Addressing Constraints In Guyana, various constraints are being addressed. The Government of Guyana, international development agencies and the local private sector are co co--investing with private investors by providing a modern infrastructure improved business support services, and skills training of employees, This is being done especially through the National Competitiveness Strategy Implementation Plan and the Agricultural Diversification Plan.
New Developments Infrastructure The Berbice River Bridge The Guyana/Brazil Takatu Bridge New Highways from Georgetown to Moleson Creek (Guyana/Suriname Border) [120 miles] Preparation for new Lethem to Linden Highway Exploration for a Deep Water Port New Highway from Georgetown to Cheddi Jagan International Airport Ogle Airport is now Guyana’s 2nd International Airport New access roads to Region 8 Trans--shipment Port at Linden Trans
Incentives General Incentives for all Investments No foreign exchange controls Unlimited Carryover of Taxes Losses from Previous Years Accelerated Depreciation on Machinery and Equipment for tax purposes Full and Unrestricted Repatriation of Capital, Profits and Dividends Benefits of Double Taxation Treaties with the UK, Canada and CARICOM countries Right to open and retain foreign exchange accounts with commercial banks of your choice
Incentives Special incentives Export Allowances for NonNon-Traditional Exports to Markets outside of CARICOM. The amount deducted depends on the Proportion of Export Sales to Total Sales. % of Export Sales to Total Sales
% of Export Profit Deductible from Income Tax
10% - 20%
25%
20% - 30%
35%
30% - 40%
45%
40% - 50%
55%
50% - 60%
65%
Above 60%
75%
Incentives Special incentives Cont’d Tax Holidays for Information and Communication Technologies (ICT) Projects and investment in Energy, Light Manufacturing, Tourism, Mining and Agriculture. SECTOR INCENTIVES (through an Investment Agreement between the Government of Guyana [GO--Invest} and the investor (s) [GO
Customs Duty and Value Added Tax Rate of Zero on a Wide Range of Processing Machinery and Equipment, including Packaging Equipment, Auxiliary Plant Equipment, Basic Furnishings, Building Materials, etc. Waiver of Customs Duty, Excise Tax and Value Added Tax on Vehicles
An Improving Business Climate Local and foreign investors can attest to the onongoing improvements in the key areas of concern for the private sector: Political, economic and social stability has been maintained There is a strong financial sector There is an expansion of modern infrastructure (bridges, roads and telecommunications) There is the continuous reform of laws, regulations and key public service institutions
An Improving Business Climate Cont’d The modern education, health and housing sectors are continuously expanding The local business sector is growing Foreign Direct investment is increasing, and The Government of Guyana has been commended, nationally and internationally, for its forwardforwardlooking International Outlook, (e.g. the Low Carbon Development Strategy) In response, many investors, local and foreign, have been diversifying their investments into eight (8) economic sectors in Guyana, thereby creating A NEW ECONOMY. ECONOMY.
THE NEW ECONOMY Energy
Petroleum and Gas Exploration Solar Power Hydro Power Bio--fuels such as Ethanol Bio Bio--diesel Bio Wind Power Cogeneration from Rice Husk/ Bagasse Biomass Power
THE NEW ECONOMY Information & Communication Technologies
Business Process Outsourcing (BPO) Call Centres (inbound/outbound Software Development Medical & Legal Transcription
THE NEW ECONOMY Light Manufacturing
Joint ventures and whollywholly-owned by foreign investors, especially with Chinese, Indian and USA Investors [Queens Atlantic] Textiles and Garments (DENMOR) Pharmaceuticals (Twins and GPC) Building & Construction materials (Gafoors, Toolsie Persaud Ltd., BK International) Packaging (Caribbean Container)
THE NEW ECONOMY Mining
Diamond (Mining &/or Purchasing) Gold Bauxite (RUSAL of Russia and BOSAI of China) Other Minerals (Iron ore, SemiSemi-precious stones, platinum, uranium, etc.) Sale of Machinery Mining Laboratories from Canada and Chile (ACTLABS and ACME Laboratory)
THE NEW ECONOMY Traditional & NonNon-traditional Agriculture
Processing (fruit juice concentrates and pulps, vegetable flours) Fresh fruit and vegetables Livestock (poultry, beef, mutton, pork and goat meat) INPUTS (seeds, fertilizers) Machinery & Equipment Sugar Cane Rice
THE NEW ECONOMY Forestry Products
Downstream Wood Processing – flooring, decking, mouldings, mouldings, doors, shingles, dimensional lumber, furniture, plywood, veneers
THE NEW ECONOMY Seafood & Aquaculture
Aquaculture – tilapia/tambuki 5 major seafood processing plants Deep Sea Fishing
THE NEW ECONOMY Construction & Engineering Services
Joint Ventures and whollywholly-owned by foreign or local investors : -
Roads Bridges Ports Housing Commercial Buildings
THE NEW ECONOMY Tourism & Hospitality
Resorts / Hotel development with Casinos Restaurants Recreation Cruise Ships Yachting Bird Watching Fishing
Joint Ventures Tour Operators
THE NEW ECONOMY Services Financial – (Micro (Micro--Credit and Offshore Banking) Medical – (JVs from USA - Heart Institute, Cancer Centre and potential for Medical Tourism) Environmental – Carbon Credits Transportation (aviation, shipping and trucking) Retail / Commercial (retail stores) Housing Fashion, Music and other entertainment Machining (repairs, rere-boring etc.)
Diversification of Investments by Region Region
Top Economic Sectors in order of magnitude of Projects
1
Agriculture, Mining, Wood Products, Services & Energy
2
Agriculture, Wood Products, Services & Tourism
3
Agriculture, Wood Products, Tourism & Services
4
Agriculture, Services, Light Manufacturing, Tourism, Wood Products & ICT
5
Agriculture & Services
6
Agriculture, Wood Products, Services, ICT, Tourism & Energy
7
Mining, Wood Products, Services, Tourism & Agriculture
8
Mining, Wood Products, Energy & Agriculture
9
Services, Agriculture, Tourism, Wood Products, Mining, Light Manufacturing & Energy
10
Wood Products, Agriculture, ICT, Services & Tourism
A Positive Trend Increased Foreign Direct Investments (FDI) Although the largest number of FDI projects continues to be from the USA and Canada, more FDI projects are facilitated from: Brazil China Trinidad and Tobago Barbados 18 Others: Russia, India, St. Kitts and Nevis, St. Lucia, the United Kingdom, Denmark, Switzerland, Israel, Germany, Holland, Japan, St. Maarten, Sri Lanka, Ireland, Turkey, Cayenne, Mexico and Malaysia. An increasing number of FDI Projects are from Trinidad & Tobago, Barbados, China and Brazil. * The diversification of the source countries of Foreign Direct Investment is another major goal of the National Development Strategy.
GUYANA - Surviving & Growing This strategic approach, to develop an open, competitive, diversified and sustainable economy, has enabled our country to survive and overcome many challenges in these times of uncertainty in the global economy. This resilience has encouraged more Guyanese, including overseasoverseas-based Guyanese, and foreign investors from 24 countries to take advantage of the many investment and trade opportunities in Guyana.
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