Business Guyana 2014 by KRITI

businessguyana an investorâ&#x20AC;&#x2122;s guide to doing business in guyana

CAPTURE Global Opportunity

A free Publication of the Georgetown Chamber of Commerce & Industry A free Publication of the Georgetown Chamber of Commerce & Industry

2014

Real Value Matters

Enhanced DSL Service Surf, share, tweet with the fastest network

For more info call: 0488 www.gtt.co.gy CELLINK

Best Value in Guyana

in this issue

BG 26

08 Opening Remarks 09 President of Guyana’s Message

26 Capture Global Opportunity by Clinton Urling 32 Social Entrepreneurship by Annette Arjoon-Martins

12 16 22 25

37 Transforming ICT in Guyana by Lance Hinds 40 Hit for 6 44 A Passion for Small Business 48 Republic Bank 52 Insight by Dr. Justin A. Ram 58 What’s Your Score 60 A Mashramani to Remember by Jessica Eise 62 National Budget in a Nutshell 64 An Interview with Minister of Finance Dr. Ashni Singh 67 Princess Hotel and Casino 70 Shoring Up Small Business 74 Opinion: Developing A New Economic Model for Guyana

FACTS on Guyana Advantage Guyana Investor’s Roadmap Now Boarding: Copa Airlines

editor-in-chief Clinton Urling

editorial contributors Clinton Urling Lance Hinds Annette Arjoon-Martins Ian McDonald Dr. Justin A. Ram Jessica Eise Ambassador Robert Kopecky Georgetown Chamber of Commerce & Industry design KRITI

The cover: business GuyAnA 2014

businessGuyAnA An investor’s Guide to doinG business in GuyAnA

2014

issue 5

78 European Partnership by Ambassador Robert Kopecký 80 Sectoral Performance 81 92 94 95 96

photography Amanda Richards James Broscombe Annette Arjoon-Martins Limacol CPL Fidal Bassier Republic Bank Guyana Ltd. John Greene Dwayne Hackett Ambassador Robert Kopecky Ian McDonald Kester Clarke

Ram & McRae Investment Supplement Guyana’s Diplomatic & Consular Representatives Embassies & Consulates in Guyana Business Contacts Final Say by Ian McDonald

An investor’s Guide to doinG business in GuyAnA

project co-ordinators Monique Tiwari Marissa Lowden

CAPTURE GlobAl oPPoRTUniTy

A free PublicAtion of the GeorGetown chAmber of commerce & industry A free PublicAtion of the GeorGetown chAmber of commerce & industry

The global arena presents many opportunities for Guyana to advance its economic development through traditional linkages and new alliances. The time is indeed right for the country to “capture global opportunity.” Business Guyana is an annual magazine published by the Georgetown Chamber of Commerce & Industry. 156 Waterloo Street, Georgetown, Guyana. SA Tel: + 592 225-5846 | E-mail: gtchamber@networksgy.com www.gccigy.org All information in this publication has been carefully collected and prepared, but it still remains subject to change and correction. Use these contents for general guidance only and seek extra assistance from a professional adviser with regard to any specific matters. Copyright reserved. None of the contents in this publication can be reproduced or copied in any form without permission in writing from the publisher. These articles do not constitute tax or legal advice, and no action should be taken based on the information in these documents without first consulting suitable tax or legal advisers. No liability for actions taken, or in action, based on the information in these articles, will be accepted.

BG OPENING r e m a r k s The Georgetown Chamber of Commerce & Industry is pleased to deliver to you the fifth edition of Business Guyana magazine. Last year the magazine underwent a major metamorphosis as we significantly updated the publication’s design, feel, style, and layout. In that same spirit, this year, we continued to tinker with the broader concept to keep the magazine’s layout fresh and attractive to readers while ensuring the content quality remains high and provides a substantial wealth of information to our readers. You will notice a more prevalent use of color and lighter backgrounds to make reading easier. You also will note that we have used a thinner paper than in previous editions to enhance the magazine’s overall feel. There are familiar features such as the Ram & McRae Investment Supplement offering a comprehensive overview of Guyana’s major commercial regulations. We also brought back the Facts on Guyana supplement to provide a quick synopsis of the country’s main characteristics. Our Q & A segment this year features Mr. Ramesh Persaud, one of Guyana’s up and coming young business executives. With the aim of facilitating the path for investors to navigate through the process of investing in Guyana, we have included a graphical 12-step Investor’s Roadmap illustrating the agencies which would be the first point of contact and culminating with the ways in which products or services reach the intended market. Similarly, in the Advantage Guyana piece we have succinctly outlined a number of sectors where high potential opportunities for investors exist in Guyana’s economy. Our cover feature this year reports on how Guyana is capitalising upon the myriad of global opportunities available to fuel its development and growth prospects. Some opportunities reside with traditional partners and linkages while others require the country to identify and pursue new alliances with emerging economies and players. For the first time, we feature a tourism article (A Mashramani to Remember) in the form of a visitor recounting her experience of participating in Guyana’s republic day celebration known as Mashramani. The article is a real insight into the culture, fervor and excitement of Guyana’s largest social event. Also, for the first time, we feature Guyana’s Finance Minister in a Q & A session sharing his thoughts about Guyana’s economic trajectory. Sometimes we forget there are many entrepreneurs working towards making the world a better place for all through their volunteer and social work. In this edition we are pleased to feature Ms. Annette Arjoon-Martins and her admirable work in Social Entrepreneurship. Indeed, Guyana is a worthy candidate for investment and I believe this edition provides the significant information to confirm for anyone considering the country as an investment destination. I want to thank all those who have made this edition possible including editorial contributors, advertisers and the staff of the Chamber’s Secretariat. Please do not hesitate to send all feedback and comments to gccicommerce2009@gmail.com.

Clinton Urling Editor-in-Chief

MESSAGE FROM HIS E X CELLENCY DONALD RAMOTAR , PRESIDENT OF GUYANA

I am pleased to welcome the fifth “Business Guyana” magazine. Judging from previous publications, I have every reason to believe this one will also be of an exceptional quality, one that is befitting of the very high standards that are associated with the Georgetown Chamber of Commerce and Industry. Through publications such as the “Business Guyana”, the Georgetown Chamber of Commerce and Industry has been in the vanguard of encouraging greater trade and investment to our booming country. I wish to take this opportunity to commend the insightful leadership of the Georgetown Chamber of Commerce and Industry for the excellent work that they have been doing, and especially for the progressive stances they have taken in defense of the national interest. The leadership of the GCCI has been audacious and principled on a number of issues of national concern. Indeed the leadership has been prepared to support developmental initiatives which they view as being beneficial for Guyana. It is important that all stakeholders continue to work together in advancing the development of Guyana. Such collaboration sends a positive signal to investors about the degree of national consensus surrounding issues of national development and thus acts as a magnet for attracting greater trade and investment. The tremendous strides that our economy has made in recent times would not have gone unnoticed by investors. These investors continue to show great enthusiasm in doing business with our country. This interest is heightened when important stakeholders within the private sector are seen as being supportive of the developmental agenda of the country, an agenda that was crafted with inputs from national stakeholders. We all have a stake in the future of our country. We all have important roles to play at this time when Guyana is poised to intensify and diversify its economic activities. In the next few years, my government will aggressively pursue major infrastructural projects. This will allow us to deepen our economic integration with larger markets, and through the regional agreements that we have inked to provide incentives for more competitive trading and investment arrangements with the rest of the world. Guyana is on an irreversible upward trajectory of growth and development. In the years ahead, we will continue to blaze new paths and open up new frontiers of development. I therefore invite investors to be part of this exciting process of economic transformation that is taking place, one that is so vividly captured within the pages of this magazine.

Donald Ramotar

National Motto:

ONE PEOPLE ONE NATION ONE DESTINY

Facts:

CAPITAL CITY:

GEORGETOWN OFFICIAL LANGUAGE:

ENGLISH NATIONAL FLAG:

GOLDEN ARROWHEAD currency:

GUYANA DOLLAR NATIONAL BIRD: OFFICIAL NAME-HOATZIN

CANJE PHEASANT POPULATION COUNT (APPROX.):

760,000 NATIONAL FLOWER:

VICTORIA REGIA TIME ZONE: GMT

-4:00

Location: Guyana is situated on the North-East Coast of South America, along the Atlantic Ocean and covers 214,970 square kilometres. It shares a 600-kilometer border with Suriname to the southeast, a 743-kilometer border with Venezuela to the northwest, and a 1,119 kilometre border with Brazil to the south and southwest. Climate: Guyana enjoys a tropical climate with warm temperature and abundant rainfall without the extremes of hot or cold. It has two rainy seasons (May to June, November to January). Average temperatures ranges between 24 oC â&#x20AC;&#x201C; 31 oC. Mean temperature to 27 oC and the average range from 24 oC to 31 oC. Rainfall is approximately 2,300mm a year. Internal Geography: Guyana has four distinct geographical areas: the Low Coastal Plain, the Hilly Sand and Clay Belt; the High Land Region and the Interior Savannah. The area in square kilometres is 214,969 (83,000 square miles). About 85% of the land area is still forested, and only 2.5% is cultivated. The coastline lies 1 to 1.5 meters below sea level at high tide necessitating elaborate systems drainage canals. The most valuable mineral deposits are bauxite, gold, and diamonds. The main rivers are the Demerara, Berbice, Corentyne and Essequibo.

Emergency Numbers: Fire: 912 Ambulance: 913 Police: 911 Police Emergency Response Unit: 225-6411 BBM 2804E429 or 2828B269 Text 623-6068, 623-6072

Government: Guyana became independent in 1966 and has a semi presidential democratic system with an Executive President, a 65-Member National Assembly, and a Judiciary. General and Regional Elections are due every 5 years. The last general and regional elections were held in November of 2011. Media: There are several daily newspapers: Stabroek News, Guyana Chronicle, Kaieteur News and the Guyana Times. Two weekly published newspapers: Catholic Standard and the Mirror. There are over 20 television stations and multiple radio stations as of 2013. The State operates the National Communication Network (NCN) transmitting television and radio stations.

GUYANA: SOUTH AMERICA

r ive

Mora Passage

W ai Morawhanna ni R

Mabaruma

Rive

uma

Port Kaituma

Kait

rim

Santa Rosa Mission

Kwabanna

ive r

e Riv

a am Bar Kokerite

Wa in

ANNA REGINA

ive r

Matthewâ&#x20AC;&#x2122;s Ridge

Wandaik Monkey Mountains

Wanosoro Falls

Karasabai

8 POTARO-SIPARUNI 9 UPPER TAKUTU-UPPER ESSEQUIBO 10 UPPER DEMERARA-BERBICE

ANNAI

Toka

Apoteri

Karanambu

LETHEM

ROADS

RIVERS

King George V Falls

Awaruwaunau

River Takutu

WATERFALLS

aro

Maruranawa

Barrington Brown Falls

King William IV Falls Rewa (Illwa)River

Wichabai Dadanawa

Riv er

ive r ni R

Kanuku Mountains

Kw it

Boa Vista

Sand Creek

VILLAGES/ SETTLEMENTS

TOWNS

St. Ignatius

Aishalton

Kamoa River Kamoa Mountains

Ikuruw a Rive r nty ne Riv er

Sir Walter R Falls

Oro

Masekenari

BRAZIL

Co re

er i Riv

Gunns Strip

Mamirpawa

AIRSTRIPS

Oronoque Falls

win

u Kuy

Achiwuib

Camp Jaguar

King Edward VII Falls

Great Falls

Kassikaityu River

INTERNATIONAL AIRPORTS

SURINAME

Tiger Falls

CAPITAL CITY Bonfin

Canje River

Governor Light Falls

New River

ORINDUIK FALLS

Governor Falls

Kurupukari r ve Ri ro r u -B Iwokrama rro International Centre Bu

Siparuni River

RIVER

ESSEQUIBO ISLANDS-WEST DEMERARA DEMERARA-MAHAICA MAHAICA-BERBICE EAST BERBICE-CORENTYNE CUYUNI-MAZARUNI

Kato

er ne Riv

ty Coren

Fair View

Canister Falls

Orealla

e Riv er

Paramakatoi

Orinduik

R IVE ER BIC Kwakwani

R BE

CORRIVERTON

ESSEQ

BARIMA-WAINI POMEROON-SUPENAAM

Nieuw Nickerie

Mara Fort Nassau Crabwood Creek Moleson Creek

Takama

Kanami Falls

UIBO

Riv er ng Ire

Kurukabaru

LINDEN Ituni

Konawaruk

Mahdia

KAIETEUR FALLS

4 5

Mabura Hill

r ve

NEW AMSTERDAM ROSE HALL

noq u

o ar

t Po

ADMINISTRATIVE REGIONS

ESSEQUI

River Potaro Landing

Mt. Roraima

3 4 5 6 7

Pakaraima Mountains Kako River

1 2

Rockstone

Kaburi

Kamarang

Kamarang River

Mahaica River S Mi t. Cu ssi thb on e rts aicon y Riv er Abary Rive r

Baracara er Riv Marshall Falls

DEMERAR

Mah

Kyk-Over-Al

ru aza

CBJ International Airport

BARTICA

BO RIVE

Eker eku

Rive r

Riv er

iR ive r Kamerau Falls

ver

Ogle International Airport

Parika Ogle Fort Island

i Ri

zar

GEORGETOWN

tun

Pu ru

Kar

Aruwai Falls

A RIVER

Cuyuni River

Supenaam

ESSEQU IBO RIVER

Po m

ero o

VENEZUELA

Sakaika Falls

CHARITY

Five Star

ATLANTIC OCEAN

Shell Beach

ive

ive r

aR ur

Kanashen

Sipu River

BRAZIL

BG DOMESTIC AIR SERVICE Air transportation is readily available for travelling to several parts of the hinterland, whether for business or for pleasure. Several local airlines depart from Ogle International Airport on the East Coast Demerara and from Cheddi Jagan International Airport, Timehri. Information on their availability and movement is easily obtainable from their office and tour operators. Private charters companies operate flights into the interior from upgraded Ogle International Airport.

ENTRY REQUIREMENTS All visitors to Guyana are required to have a valid passport to enter and depart Guyana. All visitors to Guyana should ensure that their passports have at least six months of remaining validity. Those arriving by air require a return ticket. Visitors who wish to extend their stay may contact the Ministry of Home Affairs at 60 Brickdam, Georgetown. Travelers for purposes other than tourism should check with the Ministry of Home Affairs for information about requirements for work permits and extended stays. On arrival Guyanese Immigration normally grants visitors a stay of no more than thirty days. Visas are necessary for all visitors except nationals of the following countries: Commonwealth Countries Belgium Italy France Luxembourg Ireland Sweden Republic of Korea Norway The Netherlands United States of America Spain Finland Denmark Greece Germany Japan Portugal For further information contact the Consulate or Guyana Foreign Office nearest to you.

Air Services Limited Tel: (592) 222-4357/68 www.airservicesltd.com

TRANSPORTATION DRIVING IN GUYANA Traffic drives on the left. Seat belts are necessary by Law. If travelling to Guyana and you wish to drive, please enquire with the Customs Officer upon entry into Guyana for a local driving permit. Be sure to bring your international licence to show. The permit is granted on the spot and is free of charge. TAXI AND BUSES Georgetown is well served with taxis, which operate throughout the city and to other urban centres. Taxis are easy to find outside most hotels and throughout Georgetown. Enquire of the rates before embarking upon travel. Private taxis are easily arranged through your local hotel or by calling one of the recommended taxi services. There are also ultra-cheap mini buses traversing the town and along the coast or to the Cheddi Jagan International Airport and Linden. Mini Buses operate in their allocated zones (identified by a number marked on the vehicle) with a well regulated fare structure.

Trans Guyana Airways Tel: (592) 222-2525/2861 www.transguyana.net Roraima Airways Tel: (592) 225-9647-8 www.roraimaairways.com Wings Aviation Ltd. Tel: (592) 222-6513 (592) 226-9098 www.airguyana.biz Phoenix Airways Tel: (592) 222-0802 www.phoenixva.org Domestic Airways Tel: (592) 622-1798 Jags Aviation Tel: (592) 222-2460/61 www.jagsaviation.com Hinterland Aviation Tel: (592) 222-2150 ext 128 www.hinterlandaviation.com.au Oxford Aviation Inc. Tel: (592) 222-0812 www.oxfordaviation.com

Facts:

STATUTORY HOLIDAYS

DEPARTURE TAX RIVER BOATS AND FERRIES With the opening of the Berbice Bridge between East and West Berbice travelling time is lessened for commuters from Georgetown to Berbice and onward travel to Suriname via the crossing at Moleson Creek. Commuters to West Demerara travel by road from East Bank of Demerara and cross at the Demerara Harbour Bridge. The highway which begins on the West Coast of Demerara is heavily trafficked since it provides a link to Parika on the east bank of the Essequibo River which has become an important centre of economic activity in the Essequibo region. For example, speed boats or other types of marine transportation can be hired to take passengers as far as Bartica or other hinterland resorts and back in a single day.

INTERNATIONAL & REGIONAL CARRIERS Guyana’s major international airport, named in honour of the late President, Cheddi Jagan International is at Timehri, 25 miles south of Georgetown. Flights from Europe are routed through Antigua, Barbados or Trinidad. There are direct flights from Miami, New York, Toronto, Brazil and Suriname. Caribbean Airlines Tel: 1-800-538-2992 www.caribbean-airlines.com LIAT Tel: 592 227-8281/ 1-888-538-2992 www.liatairline.com Suriname Airways Tel: 592 225-4894/3473 www.surinameairways.com

There is an exit tax of G$2,500 plus a security charge of G$1,500 , a total of G$4,000. This is paid to the Guyana Revenue Authority (GRA) booth at the airport.

BANKING HOURS Mondays - Thursdays: 8:00hrs - 14:00hrs Fridays: 8:00hrs - 14:30hrs commercial banks Guyana Bank for Trade Industry Ltd. Tel: (592) 226-8430-9 New Building Society Ltd. Tel: (592) 227-4444 Bank of Baroda Tel: (592) 226-4005-6 Bank of Nova Scotia Tel: (592) 225-9222 Citizens Bank (Guyana)Ltd. Tel: (592) 226-1705-6 Demerara Bank Ltd. Tel: (592) 225-0610-9 Republic Bank (Guyana) Ltd. Tel: (592) 226-1691-5/4091

New Year’s Day January 1 Youman Nabi January 14 Republic Day February 23 March 17 Phagwah April 18 Good Friday Easter Day April 21 Labour Day May 1 Arrival Day May 5 Independence Day May 26 July 7 Caricom Day Emancipation Day August 1 Eid-ul-Adha October 5* Deepavali October 23 Christmas Day December 25 December 26 Boxing Day *Tentative

and

CURRENCY The unit of currency is the Guyana dollar, which floats against the US dollar (exchange rate at time of publication:US$1=G$200). US dollars are widely accepted. Foreign currency can be converted at banks, finances houses and cambios. CAMBIOS These are licensed currewncy exchange houses. Most cambios are opened from 8:00hrs - 17:00hrs and on Saturdays from 8:00hrs - 12:00hrs. CREDIT CARDS Major credit cards and travellers cheques are accepted by most hotels, restaurants, car rental agencies, tours operators, jewellery stores etc. International Visa, Mastercard, Maestro and Cirrus credit and debit cards can be used to obtain cash from any Scotiabank ABM.

GUYANA STOCK EXCHANGE Guyana Association of Securities Companies and Intermediaries Inc. (GASCI) is a “self-regulatory organization” which was formed for the purpose of developing a Stock Market in Guyana. It is the result of earlier work undertaken by the Adam Smith Institute funded by the UK Department. GASCI was incorporated on June 1st 2001. Trading commenced on June 30th 2003. The Stock Exchange was formally launched on September 25th 2003. It’s members consist of the four securities companies registered to trade on the Stock Exchange viz. Beharry Stockbrokers Ltd., Guyana America Merchant Bank Inc., Hand-in-Hand Trust Corporation Inc. and Trust Company (Guyana) Ltd. It is governed by a board of six directors. Trading currently takes place on Mondays and on Wednesdays.

BG guyana:

A Blooming Investment Destination

16 Bank of Guyana, Main Street, Georgetown, Guyana ÂŠ JOHN GREENE

Guyana’s strengths cover broad spectrum of industry

ike a thriving, blooming orchid, Guyana, strategically located along the northeastern coast of South America, this Englishspeaking country boasts a multicultural society with a friendly, receptive population spread out over its 10 administrative regions. Guyana’s location makes it an economically ideal hub for global trade and commerce providing cost-feasible access to international markets and links to South American locations. The economy, bolstered by a diversified platform, has enjoyed dynamic economic growth for the last eight years, with an average annual GDP growth of 4 per cent. Sound macroeconomic policies and good governance have resulted in a most favorable business environment that makes Guyana one of today’s most appealing investment destinations anywhere in the world.

Advantage Guyana Abundant Natural Resources

Incentive Based Schemes

Simplified Tax System

English Language Communication

Land Availability

Sound Macroeconomic Conditions

High Literacy Rate of Population

Low Labor Costs

Stable Financial Sector

Hub for South America & the World

Open Trade & Investor Friendly Policies

Among the many industry sectors in Guyana providing investment opportunities are the following: Agro and Food Processing.

Guyanaâ&#x20AC;&#x2122;s wide variety of climatic and soil characteristics provides for plenty of cropping patterns suitable for cultivating and growing many types of crops, vegetables, fruits, spices and dairy products. These favorable agro-climate conditions make Guyana a potential global outsourcing hub for food processing. There also exist tremendous opportunities in adding value to primary agricultural produce in developing by-products such as chocolates, fruit juices, perfumed soaps, processed foods, pharmaceuticals, and other items. Moreover, investors are assured of generous conditions for operations, land availability and a skilled, experienced labor force representing many generations of families with the knowledge of effective, highyield farming in Guyana.

Alternative Energy.

Guyana embraces an environmentally friendly development plan known as the Low Carbon Development Strategy (LCDS), designed as a carbon-for-capital scheme. The government has committed to preserving Guyanaâ&#x20AC;&#x2122;s forests and implementing sustainable environmental practices encompassing the utilization and conversion of the countryâ&#x20AC;&#x2122;s abundant natural and climatic

conditions into viable energy for consumption. Additionally, in considering the reduced costs of electricity as derived from alternative energy sources, there is a large push to develop hydropower, bio fuels, wind, solar and other economically viable, eco-friendly and sustainable energy sources for electricity generation. The government also provides incentives for relevant projects, such as reduced import tariffs on energy efficient equipment and appliances.

Civil Aviation.

Both domestic and international travel in and from Guyana presents huge investment opportunities in the civil aviation sector. On the domestic side, buoyed by the success of the mining and tourism industries, demand for air travel has increased, resulting in upgrades at Ogle Airport and the emergence of new airline operators. Internationally, with business and tourism travel to Guyana booming and with an increase in the airfreight market, the government is expanding the country’s main Cheddi Jagan International Airport. This expansion provides opportunities for numerous international carriers to make Guyana a high-profile destination. Additionally, with Guyana’s strategic geographic location and assured government commitments, numerous opportunities exist to invest in aviation that will help Guyana realize its dream of becoming the regional travel hub for the Caribbean as well as South and Central America.

Education.

As a result of Guyana’s high literacy rates, along with an emerging and growing economy and global job market, many of the country’s citizens are investing in quality education to take advantage of job opportunities available both locally and internationally. This has resulted in a spurt of education and skills training institutions, including many tertiary institutions that are globally recognized for their educational efforts. However, space still exists for more academic institutions to set up and operate in Guyana. The country has no restrictions on the establishment of offshore campuses, and colleges and universities operating in specific industry sector disciplines would find an eager welcome in the Guyana marketplace. The growing number of educational institutions creates opportunities for collaboration with education providers for jointly delivering courses, electronic and online delivery modules, content development, teacher training and development, and other education-related services.

the increased mining activity has spawned enormous downstream opportunities

20 New Thriving Banquet Hall, Georgetown, Guyana © AMANDA RICHARDS

Infrastructure & Construction. Oil and Gas. Guyana is home to one of the largest The country is in the midst of an unprecedented economic transformation with both government and private sector investing in infrastructural and property development and expansion. The government is pursuing large “transformational projects” which includes a Marriott branded hotel, an expanded and modern international airport, airstrips, roads, bridges and ports. As the country’s economic growth continues, more projects are expected, thus creating yet further opportunities for investors.

untapped basins for offshore petroleum in the world, according to the US Geological Survey. This has fuelled major investments from global oil and gas companies such as CGX, Repsol, and Pacific Rubiales. Guyana’s government offers investor-friendly policies in order to provide an impetus for exploration activities. Investor interests are protected and clearly delineated in the nation’s Petroleum Act.

Private sector companies also are expanding their operations and are constructing large modern commercial building centers, which require expert construction skills. Likewise, the domestic housing demand for construction and engineering services also has been expanded. Moreover, the national government has earmarked many areas to be transformed into housing development that will create approximately 30,000 new homes across the country in the near future.

Tourism. The tourism sector’s upward trajectory is

being facilitated by major infrastructural upgrades, construction of new hotels, and expansion of the aviation sector; all enhancements are making it easier to access Guyana’s wide array of tourist offerings. There are still many available areas for investments in hotels and resorts, convention and recreation centers, aviation, restaurants and specialty hospitals for the rapidly growing global industry of medical and wellness tourism.

The high construction demand also has generated business opportunities in the market for building supplies and materials – from sand to stones and to hardware and furnishings and to interior design services.

Metals & Mining. This sector currently dominates the country’s economic landscape as the largest contributor to Guyana’s GDP and foreign exchange. However, there is still a widely available supply of minerals in the form of untapped reserves for potential investors to explore. Increased infrastructure development – for example, roads, bridges and ports – has led to improved access and extraction of minerals at lower costs and at higher output capacities. Additionally, the increased mining activity has spawned enormous downstream opportunities for equipment suppliers, retailers, caterers, security, aviation, telecommunication, construction and other industry players. With the continuing high global demand for minerals and metals, Guyana provides the perfect opportunity for investors looking to capitalize on this boom.

companies also are expanding their operations and are constructing large modern commercial building centers

BG1 2

INVESTMENT PROMOTION AGENCIES 1. GO-INVEST 2. GCCI 3. MINISTRY OF FOREIGN AFFAIRS 4. CHARTERED ACCOUNTANTS. 5. BUSINESS CONSULTING FIRMS

incentives & concessions 1. GO-INVEST

business registrations 1. DEEDS REGISTRY 2. ATTORNEY-AT-LAW. 3. CHARTERED ACCOUNTANTS

SUPPORT & ADVOCACY 1. GCCI 2. OTHER SECTOR AGENCIES: GMSA, THAG, ETC

TAX COMPLIANCE 1. GRA 2. NIS CERTIFICATE 3. CITY COUNCIL: PROPERTY TAX

5 PERMITS & UTILITIES 1. CITY COUNCIL: HEALTH CERTIFICATE, BUILDING PERMIT 2. GWI: WATER SEWERAGE 3. GPL: ELECTRICITY 4. CENTRAL HOUSING & PLANNING: BUILDING PERMIT 5. EPA: ENVIRONMENT PERMIT 6. GOVT’ SECTOR MINISTRIES & AGENCIES: SPECIFIC PERMITS

a12-step guide to investing in GUYANA

CONSTRUCTION

1. MANY PRIVATE FIRMS AVAILABLE

INSURANCE

1. APPROACH INDIVIDUAL FIRMS 2. INSURANCE BROKERS

FINANCING 1. COMMERCIAL BANKS 2. STOCK EXCHANGE 3. MERCHANT BANKS 4. DONOR INSTITUTIONS: IDB, COMPETE CARIBBEAN, CARIBBEAN EXPORT, WORLD BANK

10 employment 1. NEWSPAPER ADS, CLASSIFIED/WEB ADS 2. GCCI WEBSITE: GCCI.GY 3. MINISTRY OF LABOUR 4. PRIVATE EMPLOYMENT 5. RECRUITMENT AGENCIES

11 GRAND OPENING 1. GCCI 2. MEDIA 3. PUBLIC RELATIONS FIRM

GO-INVEST: The Guyana Office for Investment GCCI: The Georgetown Chamber of Commerce and Industry GRA: The Guyana Revenue Authority GWI: Guyana Water Incorporated NIS: National Insurance Scheme EPA: The Environmental Protection Agency GMSA: The Guyana Manufacturing & Services Association THAG: The Tourism and Hospitality Association of Guyana

12 MARKET

1. CUSTOMER

NOW

BOARDING:

COPA AIRLINES

usiness travelers from Guyana now have an easier time getting to South American and Central American destinations, courtesy of the Panamanian-based Copa Airlines twice-weekly service to and from Guyana.

As a main travel hub operator for the Latin America region, Copa Airlines serves 69 destination points in North, Central and South America and the Caribbean. Company officials say Copa operates one of the most modern fleets in the industry, with a total of 90 aircraft that includes 64 Boeing 737 Next-Generation planes and 26 Embraer-190s carriers. The airline also registers an on-time performance of nearly 90 percent, on par with the major airlines worldwide, based on information the company has provided for public release. The expansion bodes well for Guyana’s business sector not only because it presents a cheaper and more efficient option for travelers going to and from Latin America countries but also because it presents more frequent opportunities to showcase Guyana for clients, tourists and potential investors coming to Guyana from the larger region. The timing is fortuitous, as Latin America, one of the planet’s most populous regions, is home to some of the world’s fastest emerging large-scale economies and markets. These countries also are home to some of the most sophisticated companies with the relevant expertise and capacity to leverage positively many of the economic opportunities now available in Guyana. For instance, many Latin American countries share with Guyana similar factor endowments in the forestry, mining and extractive sectors that enhance prospective business ventures in the country which is rich in natural and mineral resources. With the convenience of Copa offering regular direct flights to and from Guyana, one could predict with solid assurances

a long-term sustainable trend of increased investments which will strengthen the region’s private sector and provide plenty of new jobs. There already are many Guyanese businesses which currently trade with Panama and expanded air carrier services would allow the country’s business representatives to travel much more frequently to view products, create linkages, negotiate agreements, attend trade shows and conferences on a more cost-effective and time-efficient basis. Before the announced expansion of services by Copa, Guyana business travelers typically would rely on airline connections through Trinidad to reach Panama and other Latin American destinations. This was a costly and time consuming affair that sometimes took 8 to 10 hours to reach Panama as a final destination. The upgraded passenger travel services will undoubtedly enhance the opportunities for increasing travel and trade relationships between Panama and Guyana. Guyana’s tourism sector is also likely to benefit from Copa’s entry into the Guyana air passenger market. This would not only come from curious Latin Americans wanting to experience what Guyana has to offer in its tourism menu but it also would attract visitors from other continents who annually visit multiple South and Central American destinations and can now readily add Guyana to the list. Guyana is part of many regional integration economic initiatives and blocs in Latin America, including UNASUR, MERCUSOR, CELAC, and ALBA. New transportation linkages, such as Copa Airlines’ entry into the Guyana air travel market, provides an essential element of potential success for ensuring new business and economic partnerships can be cultivated and allowed to flourish on a broad scale.

CAPTURE Global Opportunity 26

by Clinton Urling

CLINTON URLING

CEO, GERMAN’S RESTAURANT IMMEDIATE PAST PresIdent of the Georgetown chamber of Commerce

For small emerging states like Guyana, globalization offers a broad spectrum of international business opportunities to extend and accelerate the trajectory for growth and long-term development. More importantly, our policy makers and private sector must recognize those opportunities most applicable to Guyana’s benefit and craft approaches to take full advantage of them. Guyana’s recent economic metrics have been most encouraging. The economy has eight consecutive years of growth; a private sector that is performing well; an upgraded infrastructural landscape that continues to be transformed, high levels of foreign direct investment flows, and a stable banking and financial sector. It also enjoys rising consumer income, sound macroeconomic fundamentals, an approach to economic development that is friendly to concerns about sustainability and environmental management, higher levels of literacy, decreasing rates of poverty, and improving healthcare and other social services. The list is quite impressive for a small country strategically located along the northeast coast of South America. The following briefly outlines the global opportunities most timely for Guyana’s economic focus.

China In order for the country to maintain and sustain a long-term portfolio of success, it will have to look toward the global markets. For instance, China, now the world’s second largest economy and the largest trading nation with a voracious appetite for raw commodities to continue fuelling its development, presents an ideal opportunity for Guyana’s vast untapped and unexplored natural resources to make it to the shores of this Asian giant. Moreover, the Chinese government has aggressively expanded its global economic influence as a major donor and lending nation. In 2011, China surpassed the World Bank in lending to governments in developing countries and companies, primarily

US Ambassador to Guyana Mr. Brent Hardt serves up a toast to President Ramotar

through the China Development Bank and China ExportImport Bank. Recognizing this reality, Guyana’s government has made tremendous moves in attracting Chinese loans and investments here. However, this relationship could be further strengthened, which would translate into more funding for future large infrastructural projects such as a deep-water port, rail connections to Brazil, and hydro power generating plants. President Ramotar and Chinese President Xi Jinping

North America and Europe Guyana also should not rule out the enormous opportunities our traditional trading partners In North America and Europe offer. It is critical that the country work to solidify its relationships with important trading nations on these continents. Our government should work with our domestic companies and professionals to ensure they take full advantage of the provisions contained in the Economic Partnership Agreements (EPA). The agreements give Guyanese companies a significant measure of certainty regarding market access in the European Union (EU), the world’s largest single market with 500 million consumers as well as the largest importer and exporter for goods and services. The EPA allows for goods and services to enter the EU completely free of duties and tariffs. Additionally, Guyana and its sister CARICOM countries in 2013 signed a Trade and Investment Framework Agreement with the United States. The agreement eliminates approximately 85 per cent of tariffs on Caribbean goods, and specifies the creation of a council with a mandate to remove trade barriers between the United States and Caribbean nations. No doubt this agreement will further strengthen Guyana’s relationship with its current largest trading partner.

President Ramotar with leaders of UNASUR

UNASUR The Union of South American Nations (UNASUR), intended to mirror the EU’s integration model, comprises all of the countries on the South American continent. Combined, these countries have a population close to 400 million and a total landmass of approximately 7 million square miles. UNASUR, of course, includes Brazil, which neighbors Guyana and is the sixth largest economy in the world. Several highlevel meetings have been convened to move the process forward and several institutions have already been established. UNASUR’s forthcoming institutional entities will have a tremendous impact on Guyana’s economic fortunes. These include Council initiatives regarding infrastructure, finance, energy, education, science, technology and innovation and social development. Guyana is uniquely positioned to not only access the South American market for its products and services but also to serve as a key hub for the rest of the world along with the continent.

Foreign Direct Investment Because of the size of Guyana’s indigenous private sector, which is small relative to its global counterparts, and its inability to invest and execute large capital intensive projects, foreign direct investment (FDI) inflows play a vital role in Guyana’s development profile. Indeed, According to UNCTAD FDI inflows globally have increased sharply over the past two decades from an annual average of US$208 Billion in 1990, to more than US$1.4 Trillion in 2012. Besides increasing a country’s capital stock, FDI often leads to productivity gains through knowledge and technology transfer, skills acquisition, management sophistication, competition (as well as reduced product costs to consumers), and tax contributions, among other indirect benefits. Guyana must continue accelerating its efforts to promote FDI inflows. Moreover, the country must ensure a stable macroeconomic climate, good overall business environment, and a supportive socio-political environment are maintained so that investors can be assured of maximizing their return on investment.

Diaspora

Foreign Ministry

Guyana has one of the largest diaspora communities of any country in the world. A larger number of Guyanese born citizens live and work outside of Guyana’s geographical boundaries than those residing within the country. This has presented significant opportunities for the country. In fact, the second largest category of earned income for the country in 2012 came from remittances from overseas sources, with the diaspora community making up the bulk of it. The diaspora is also investing heavily in many areas of the economy while providing much needed capital to enterprises. Some are contributing enormously to Guyana’s social landscape with numerous donations and, in some cases, offering their expertise pro bono to the people of Guyana. It would be wise for Guyana’s policy makers to craft a comprehensive strategy to tap into the diaspora and perhaps even consider the establishment of a government ministry to manage such a process.

To effectively capture this comprehensive array of global economic opportunities, Guyana must strengthen its Foreign Service capacities. The country’s foreign policy should seek to consolidate economic ties with its main trading partners while diversifying the destination and composition of Guyana’s exports as well as attracting FDI. This would require additional resource allocations for hiring more foreign service officers; upgrading staff competencies through regular training; opening new diplomatic missions and consular offices in emerging countries where our strategic economic interests lie, and incorporating new information technologies in order to buttress our foreign policy objectives. More generally, the objectives would be directed toward creating institutions that fortify permanent, reliable linkages of the Ministry of Foreign Affairs with political parties, civil society, the diaspora, productive sectors and academia to ensure an inclusive approach, which captures the needs of the country and affirms our policies match whatever dynamic changes may occur in the global system.

Private Equity Investment Domestic and international private equity investment provide a huge opportunity for emerging markets such as Guyana’s to grow their economies and add jobs. These investments provide not only capital but also high quality expertise. More directly, private equity is not passive equity. These investors pump equity capital into a company with an ideal size and growth potential and help to create additional value and success, often bringing them up to a level conducive to an initial public offering (IPO) on a stock exchange, and then selling their stakes in the companies they had acquired. To achieve an early exit, these investors typically require outright control or a minority position with significant management control and say. In order to facilitate private equity flows to Guyana, the country’s policy makers would have to ensure there is an efficient judiciary allowing strangers – that is, international private equity providers and local companies – to collaborate with domestic business partners. A strong legal system unencumbered by redundant bureaucracy ensures contracts are enforceable and makes clear legally articulated expectations for trust in the investor relationship.

Social Entrepreneurship by Annette Arjoon-Martins

s Guyana’s economy continues its upward trend, the challenge to manage responsibly our natural resources by combining conservation practices with revenue-generating opportunities in local communities that depend primarily on these natural resources can be realistically met. My

own

experience

suggests

that success also can be achieved feasibly – with hard work, of course. Having co-founded the Guyana Marine Turtle Conservation Society in 2000 (with Dr. Peter Pritchard), which focuses on the Shell Beach area, I soon realised the long-term protection of these gentle giants, who outlived the dinosaurs, would have been impossible

had we

not taken into consideration the needs of the Arawaks, Caribs and Warraus, who had been users of the turtle meat even long before Columbus ‘discovered’ the West Indies. The rich biodiverse Shell Beach area, best known for the four species of sea turtles that nest there each year,

has been

identified as a priority protected site in Guyana’s Region 1. In 2004, I created the geographic brand Honey House 2014

“

I gained great respect for how these women were motivated to embrace a new-found sense of preserving the most natural assets in their communities which became North West Organics (NWO) to act

Nigel’s and Bonnys’s Supermarket Complex in Georgetown have made the

as a lever for developing business opportunities

‘Green Goodies’ organic product line readily available.

for residents in this economically distressed area. The brand is represented by a shell-shaped label, specifically intended for products produced by North West communities within and adjacent to the Shell Beach protected area. The growth expanded steadily, from four women producers in four communities in 2004 to 2008, with 48 women representing eight communities.

salted moracut, cassava bread, and casareep to cocoa sticks, crabwood oil, and soaps. Generous funding from the U.S. Agency of International (USAID),

the

occurred gradually and with much hands-on effort, underscoring the need to be patient for the long haul, as women not exposed to business world realities cannot survive by being thrust into them and then left on their own. When in 2008 I handed over ownership of NOW completely to the community, the business was achieving $3 million GY annually. Within three years after the transfer, the enterprise – managed by a Waini community resident – annual sales, which now include overseas markets,

The NWO product line has expanded from

Development

Building trust-based partnerships with the Amerindian women producers

United

Nations

Development Programme (UNDP), and the German-government-owned development bank KFW has enabled building to meet capacity demands, emphasized stringent quality controls, provided for the mechanisation of once laborious manual production, and has led to developing packaging , labeling and marketing appropriate for local, regional, and international markets. In

exceeded $8 million GY.

Reinvestment also was essential. For example, 2008 award for civic duty in the amount of US$48,000 from the Anthony N. Sabga Certificate Award for Excellence (ANSCAFE) was reinvested in the women’s group to ensure continued capacity through a VSO placement and expansion of the Blue Flame Women’s Group manufacturing building at Hosorroro. The opportunities were extended in 2010 when I was asked to chair the Guyana Mangrove Restoration Project (GMRP), sponsored by Guyana’s government and the European Union. Traditionally, coastal mangrove forests are a critical part of sea defence, as they help to prevent erosion of the country’s vulnerable coast which is seven feet below sea level and is being threatened by recent sea-level rise and increased wave force.

order to achieve the distinctive label designation,

The goals of protecting and managing mangrove forests are essential

communities were required initially to meet strict

for securing the communities most affected by these changes and

quality control standards and to provide evidence

for identifying alternative sources of livelihood for residents in these

of direct conservation efforts. The efforts also were

communities. The project afforded opportunities to replicate the NOW

guided by fair trade principles to ensure equitable

concept with Amerindian women residing in coastal communities near

distribution of benefits to the indigenous producer

mangrove forests, spanning Regions 4, 5, and 6.

communities.

A line of products capitalizing upon a mangrove reserve brand was

Thus, NWO products quickly became known for

launched at a farmers’ market in 2011, which was sponsored by Digicel.

their purely natural and organic characteristics,

The company also expedited the brand awareness process by ordering

free of chemicals and preservatives, and which

350 gift baskets for corporate customers during the Christmas season.

contributed significantly to the sustainable

More than 50 producers, mainly women, offer products including

livelihood of the local Amerindian communities

golden mangrove honey, handmade beeswax candles, cassava bread,

whilst protecting the area’s natural resources.

tamarind balls, coconut oil, mango achar and pepper sauce. The group

Partnerships with retail outlets such as Bounty,

became an NGO in late 2012 and received shortly thereafter support of

BG GY$4 million from the Canadian Fund for Livelihood Initiative which enabled branding, packaging, labelling and a processing facility at Victoria Village. The products also have been sold at the Mangrove Visitor Center, which was established in the 160-year-old former sugar estate house at Cove and John. Producer members now serve as tour guides to heighten awareness of conservation efforts and the activities of East Coast villages for thousands of students and tourists. The Golden Grove/Belfield Mangrove Reserve, just 20 minutes from Georgetown, has become a popular destination, along with the sprawling three-storey plantation house at the Village of NWO products on sale at Bounty Supermarket, Georgetown

Cove and John with its greenheart beams, pine floors and antique cast iron pillars. Columns made from bricks brought to Guyana as ballast

The impact took root quickly, as the group recently

for sailing ships in colonial days

earned the Tourism and Hospitality Association

support the building’s front gallery.

of Guyana’s Environmental Award and Caribbean

Richly colored banners chronicle

Tourism Organisation’s Biodiversity Conservation

the mangrove story in detail, and an

Award.

intricate hand-painted mural of the coastline depicting coastal forests and diverse birdlife are part of the permanent display.

These experiences have demonstrated the value of just how effective these locally based ventures become, especially with the encouragement of mentors who understand that the transition to

Coastal villagers have found new

a modern business world cannot be rushed or

enriching occupations, working as

expedited at the loss of the area’s most important

tour guides, horse-cart drivers, cane

resources. The lesson’s significance was magnified

juice vendors, musicians, beekeepers,

each time I visited these communities, which were at

and agri-products producers.

least one day’s travel from Georgetown.

Recognizing how I learned to juggle time as a mother with two children in their formative years, I gained great respect for how these women were motivated to embrace a newfound sense of preserving the most natural assets in their communities

while

forging

innovative paths as beneficiaries of fair trade principles and a thriving economy.

PROJECT MANAGEMENT • CIVIL ENGINEERING • STRUCTURAL STEEL FABRICATION • GENERAL CONSTRUCTION SERVICES Trinidad and Tobago Contractors Association Award - Building Construction Category St. Joseph Enhanced Health Facility - Trinidad

Abel Building Solutions (ABS) Caribbean Award - Large Category Buccoo Goat Race & Tourism Beach Facility - Tobago

2010

Trinidad and Tobago Contractors Association Award - Large Category McDonald's Restaurant and McCafe - Trinidad

2011

#91 Frederick Settlement Industrial Estate, Caroni. Trinidad, West Indies Tel: (868) 663-9144 / 6121(Office) • Tel/Fax: (868) 645-8326 Email: imtiyaz.adam@apmcltt.com • Website: www.apmcltt.com

PROMOTIONAL NOVELTIES

EVENT BRANDING

FLAG PRINTING EXPO FACILITIES

DIGITAL ADVERTISING MEDIA

EMBROIDERY OUTDOOR SIGNAGE

DISPLAY FIXTURES ENGRAVING

INDOOR SIGNAGE

SCREEN PRINTING

Innovation Award

149 Crown Street, Queenstown, Georgetown Tel: 227-7757 \ 227-7752 Email.impressionsgy@live.com \ Website: www.impressionsgy.com

2012

LANCE HINDS

CEO, BrainStreet Group and PresIdent of the Georgetown chamber of Commerce

transforming ICT in Guyana T

here can be no doubt that the development of the Information and Communications Technology (ICT) sector can transform life in Guyana in many ways. Despite all the popular sentiment, it is inevitable that the traditional productive sectors will not last forever in their current scope and framework. It is the technology driven, knowledge management industries, knowledge building economies that must become the cornerstone of this countryâ&#x20AC;&#x2122;s future. Today, Information and Communications Technologies (ICT) are the engines for social and economic growth globally. In other Caribbean countries, the past two decades has seen the introduction and spread in use of mobile phones, personal computers and the Internet, dramatic expansion in the number and range of telecommunications and broadcast media providers, and growth of applications of ICTs in businesses, schools and households. ICT sector growth in Guyana has been a very mixed bag. It has meandered, with many fits and starts, and it has some individual achievements (e.g. one laptop per family, soon-toarrive e-governance network) for the record. But, by and large, 2014 still finds us way behind our Caribbean peers in terms of ICTâ&#x20AC;&#x2122;s scope, function and overall contribution to national development. Our progress to date in ICT has been a bit uneven and, to some extent, piecemeal. Some government agencies have implemented and use ICT extensively but also other agencies have done very little. In the financial sector, for example, banks have 21st century ICT architecture but it is, to some extent, insular. Supermarkets still have 2-3 point of sale terminals and, with one exception, in 2013 we still must go to our own banks to use the ATM. Similarly, ICT implementation and utilisation in the general private sector has been varied and, in many cases, limited. The development of ICT as a productive sector remains slow. The high cost of supporting infrastructure, absence of enabling legislation, and limited skillsets have significantly affected this current state of affairs. Fortunately, there has been fair growth in the call center line of business. The industry has now created close to 3,000 jobs. However, in 2008 it was projected that, based on a 40 percent rate of growth at the time, there would be more than 6,000 jobs generated in this market by 2013. It is believed the contraction of the world economy in 2008-2009 and the high cost of connectivity as

Lance Hinds is the Chief Executive of the BrainStreet Group, He is also an Executive of the Georgetown Chamber and a member of the Caricom Regional ICT Steering Committee. a result of a lack of a liberalised telecommunication environment were significant factors in the inability to meet this market benchmark. Skillsets in ICT are improving. The University of Guyana’s department of computer science is producing far more qualified graduates than previously. It has been exciting to watch their progress. Those lecturers do not have to be in academia or even in Guyana, as there are greener pastures. The fact that they are still here working to develop future information technology professionals testifies to a level of dedication and commitment, which should always be recognized and appreciated.

These initiatives should be situated in four major areas: strategy, policy and legislation; infrastructure development; ICT-enabled public sector modernisation, and ICT sector capacity building. The overall strategic objective must be developing an environment which will consistently enable creating and sustaining ICT-related businesses. The initiatives must enhance the possibilities and processes involved in building capacity for the sector: creating policies and programmes that will stimulate new business opportunities, innovation and entrepreneurship in the local ICT sector. We also need to enable the process of innovation: getting high school and university graduates to tap into their creativity and to channel that energy into creating businesses. One of the problems Guyana faces now is youth unemployment, but there are lots and lots of young people with great ideas who are unable to convert them into sustainable income-generating operations. We have to find a way to harness that.

Local ICT companies now work more closely with the university in internships and scholarships that contribute to an enabling environment which is required. In 2013 the Department hosted Guyana’s first CodeSprint. Codesprints are short intensive programming contests that foster competitiveness, innovation and provide an overview of the kind of programming talent available locally.

There are other critical things we also need to address soon. There has to be telecommunications liberalisation or we will be unable to compete otherwise. The rates in Guyana for enterprise level/ high end connectivity are among the highest in the Caribbean. In 2013, the cost of dedicated connectivity, depending on how much you buy – or don’t buy – ranges from $GY2,000 to $GY3,000 per megabit. That is impossible to work with but it is only competition that will address this state of affairs.

The one-laptop-per-family objective can be a game changer. It has the potential, with proper and insightful planning, to provide major increases in ICT penetration, especially in rural and disadvantaged communities. Hopefully now we can see the policy and related initiatives as they pertain to low-cost connectivity, ICT education, literacy – all of which are critical components to the success of a project like this.

Comprehensive intellectual property is fundamental for developing a successful knowledge economy. It would be difficult to provide a higher level of ICT services otherwise. Some companies have already suffered from this. Guyana cannot position itself as a credible offshore provider of ICT-related services unless our prospective clients are comfortable that their intellectual assets will be protected.

The forthcoming e-Governance network is another significant intervention in the local ICT environment. Streamlining for delivering Government services benefits all, as information and related support will be provided far more efficiently to our citizens.

The opportunities are available now. Recent advances in technology have “levelled the playing field.” It is now possible for small developing countries like Guyana to play a successful role in the emerging knowledge-based global society.

ICT’s appropriate utilization can improve the lives of all Guyanese and must, therefore, be the fundamental cross-cutting component in the overall national vision to attain status as a developed nation in the coming years. This will involve growing the ICT sector and applying technology in all sectors and at all levels to achieve rapid and sustained development. We will need to nurture the industry with policy and legislative frameworks.

We live in an age where time, distance and location have become irrelevant. Guyana had better adapt or we are going be left even further behind. In years past, we spoke about Guyana having the potential to become the breadbasket of the Caribbean. We are now using similar language about Guyana’s potential – because of its use of the English language, similar time zones to potential clients, and a willing workforce – to become an information technology hub in the Caribbean. The time for talking is over. The call to action is now required.

It is critical that all stakeholders collaborate in building a national ICT roadmap. This must be an action-oriented portfolio of initiatives, formulated over distinct time horizons for our long-

term goals, along with medium-term objectives and short-term priorities.

Discover whatâ&#x20AC;&#x2122;s possible

We share the same goal: Leveraging your business opportunities Scotiabank can provide you with financial solutions that will help maximise your business goals.

Business accounts Loans Import/export trade financing Foreign currency remittances Commercial project financing Processing of customer payments by credit card Online business banking tools Find out more today.

Call (592) 225-9222 or go to guyana.scotiabank.com

Trademark of The Bank of Nova Scotia.

n December 2012, the West Indies Cricket Board (WICB) announced an agreement with Versus International to launch a professional franchise-based T20 league in the Caribbean. The deal echoes a long acknowledged fact about the ‘wow’ factor in the Indian Premier League (IPL) which has been energized by star players such as Sunil Narine, Chris Gayle, Kieran Pollard and others who hail from the Caribbean. Moreover, the flamboyant style of cricket and carnival like atmosphere that sets apart this brand of cricket (that is, 20/20 format) originated in the Caribbean. Given the IPL’s success it was just a matter of time for a home-based T20 league to take hold.

Many were pleasantly surprised when the Caribbean Premier League (CPL) approached the Guyanese firm New GPC, Inc., about purchasing a franchise. The Guyana Amazon Warriors was the first Limacol CPL franchise to be bought, which became a catalyst not only to kick start things but for the overall success which has materialised. On the heels of that investment, New GPC, Inc., was approached to become a title sponsor – a bold decision. However, the unprecedented opportunity became immediately obvious to pair up two separate yet unique and dynamic brands: Limacol and West Indies cricket.

Guyanese Company’s Bold Investment into Caribbean Cricket

Hit FOR Limacol CPL’s introduction injected the sort of excitement that has readily carried the positive vibes throughout various social media platforms and has allowed Limacol CPL to cultivate a new following. The Guyana Amazon Warriors and Limacol CPL are extremely grateful for the interest and support from all fans but especially to a fan base which has expanded significantly to women and children. The excitement also has been fueled by the challenging and emotional aspects of anticipation to see West Indies players teaming up with talented overseas and other regional players. This

has generated a broader competitive playing field for the sport. Despite a short learning curve period, the inaugural tournament was an outright success. Venues were sold out across the Caribbean, confirming how the Limacol CPL has reinvigorated the region’s passion for cricket which had become quite anemic in the region. Prior to the Limacol T20 inaugural tournament, some venues had never seen capacity crowds. Guyana, in particular, had experienced an international cricket drought in recent years but thanks to the Limacol CPL, the Providence National Stadium saw sold-out crowds in all matches.

Venues were sold out across the Caribbean, confirming how the Limacol CPL has reinvigorated the regionâ&#x20AC;&#x2122;s passion for cricket which had become quite anemic in the region.

The Guyanese business community actively supported the home franchise of the Guyana Amazon Warriors. All sponsorship slots were sold out and even at this early stage for this year’s tournament there are already requests from sponsors to secure slots for the 2014 season. The Guyana Amazon Warriors arguably has become the most popular franchise in the tournament with an interactive website and strong social media presence, which has attracted many online fans. In a nutshell, Limacol CPL’s success links directly to its franchise owner New GPC, Inc., overcoming various previous obstacles such as a lack of commitment and resources both in terms of finances and talent that have stymied cricket’s regional brand. In addition to exciting competitive cricket, Guyana gained a key opportunity to showcase its rich diverse culture to more than 60,000 attendants at the Providence National Stadium and millions of others across the world who tuned in via television, radio and the Internet. The tournament sparked sold-out flight bookings and hotel accommodation across the entire region. The New GPC, Inc., investment also has been recognized by several organizations, including the President’s Award from the Ministry of Tourism and the Business Investment Award from the Georgetown Chambers of Commerce and Industry (GCCI).

Limacol CPL 2014 Work has already commenced with the recent visit from a tenmember team from the Limacol CPL organization, led by Pete Russell, CEO, and Kieran Foley, director for Digicel Group’s marketing operations to raise the bar for the 2014 season, which will run from July 10 to August 16. According to Foley, this season will bring a full complement of overseas players, as the tournament is being played when there will be a lull in international T20 cricket play. He adds that, in terms of sponsors there has not been a single sponsor who indicated any reluctance to be part of the upcoming season. “Our new tag line may well be ‘We are here to play and stay,’ Foley adds.

NEW GPC INC/Limacol Marketing Manager, Trevor Bassoo and Human Resources Manager, Faye Smart-Scott(centre) receive the President’s Awards for Investment in Tourism, which was bestowed on the company in the presence of Prime Minister Hinds and Minister Irfaan Ali.

“

‘Do not accept the status quo; always challenge it. Push the boundaries without breaking the rules’.

Q+A

A Passion for Small Business Interview with Ramesh Persaud, CEO, IPED (Institute of Private Enterprise Development)

Ramesh Persaud is the CEO of IPED and the Executive Director of GYBT [Guyana Youth Business Trust]. He is also a director, founding member and senior lecturer at Cacique, Inc., a tuition provider for ACCA [Association of Chartered Certified Accountants] and ABE [Association of Business Executives]. He is the chairman of the Caribbean Microfinance Alliance, the leading network in the Caribbean that has 24 microfinance companies as members from eight Caribbean nations. He also is the vice chairman of the Private Sector Commission of Guyana. He is a member and current chairman of the Guyana Book Foundation. Persaud is a chartered accountant and holds a master of business administration degree from the Edinburgh Business School, Herriot Watt University.

Who is Ramesh Persaud?

RP: Well, I like to think of myself as a very simple, straightforward person who was given great opportunities and made the right decisions at the appropriate time. Blessed, as some would say. My life revolves around my family and the people I serve through my job. I take great pleasure being a father to two boys, who along with their mother is my greatest source of joy at this time in my life.

Tell us a bit about IPED (Institute of Private Enterprise Development) and your role in the company?

RP: IPED exists to promote enterprise development that will result in wealth creation and poverty reduction. It is a special organization in that we focus on development by using a private sector model. Our focus in development is for micro, small and medium enterprises. We provide technical and managerial guidance as well as access to finance through our supervised credit facilities which enable these businesses to realize their full potential. What is amazing about IPED is that it is a financial services institution in which its product can be seen as social work. Due to its mandate, IPED is recognized as an ‘Institution of National Character.’ My role at IPED is to lead a dynamic team that will identify and implement the right strategies to achieve the organization’s mission.

What can we expect from IPED going forward?

RP: We are working at IPED to bring all systems and procedures to world class standards at the moment. Attention is focused on creating products that will expand the reach of our services and serve clients in markets where they are underserved. We are working towards serving 15,000 micro-, small- and medium-size enterprises by 2020 that will be able to employ 30,000 and more persons in total. At the moment we currently service more than 4,000 enterprises that are employing approximately 10,000 persons in sum. The 2020 vision will be achieved by harnessing our creative potential and maximizing the use of technology.

How important do you view the role of small businesses to Guyana’s economy? RP: For every $100 being loaned by financial institutions in Guyana to business enterprises or the private sector, IPED contributes $2. However, it is estimated that all of the commercial banks together provide loans to between 4,500 and 5,000 businesses. IPED alone serves 4,500 clients –all of whom are involved in economic activity, as we lend only to enterprises.

This is an indicator of how much we value the potential of small businesses that are crucial to the success of Guyana’s economy and can be seen, in particular, as the driving force in the growth of the rice, gold and distribution sector at the moment. These sectors comprise many small- and medium-scale producers and suppliers that employ on a consistent basis 10 to 20 persons each. I believe the innovation cycle in small businesses occurs faster than in their larger counterparts. Hence, they must be seen as an important catalyst in the process of modernizing Guyana’s economy.

You are an accountant by profession. What is your assessment of the level of accounting services offered in Guyana? RP: Accounting, when done professionally and by qualified individuals, must comply with the laws of Guyana and international standards. These standards leave no room for poor quality of service and accountants are expected to comply with the highest ethical and professional standards. In my view the services provided by professional accountants in Guyana is on par with the best of our global counterparts. However, the work of the professional accountant must never be confused with the unqualified quacks that operate the “bottom house” operations without any respect for the rules of ethics and professionalism.

What advice would you give to an investor looking to invest in Guyana? RP: Give us a fair chance and do not try to take advantage of our limitations. Invest so that both the investor and the country and its future generations can benefit. We need your entrepreneurship and capital to maximize the potential of the resources bestowed in our country. Land is plenty and the labourers are willing. Just do not take advantage of us.

What policy changes would you recommend to policy makers to improve business competitiveness and development in Guyana? RP: I believe the policy changes to make Guyana competitive are well documented in the National Competitiveness Strategy and are regularly articulated in summits and forums by the Private Sector Commission and its sectorial members such as the GCCI [Georgetown Chamber of Commerce and Industry] and the GMSA [Guyana Manufacturing and Services Association Limited]. I would rather not rehash these very well developed positions.

BG However, I believe the singular most transformative change that will put Guyana on a better path to competiveness is to change our Constitution to enhance the system of governance through an improvement in the electoral process and the way parliament and the Executive are elected. I am a strong believer that each Member of Parliament should stand for his or her own election rather than to be selected from a party list. There should be constituent representations rather than proportional representation. In this way MPs will be accountable to their constituents and not the powerful party hierarchy, thus eradicating the concept of party paramountcy. There needs to be complete segregation of duties between the executive and those charged with governance. For example, ministers should not be MPs but instead they should be accountable to parliament and, in turn, parliament must be accountable to the people. There needs to be prompt holding of all national and local government election. The Constitution should give the power to call elections to an Independent Elections Commission or Supreme Governance Council rather than to the Executive or Parliament. In addition to governance issues, the Constitution should be amended to create three independent crime fighting agencies other than the Army. Thus, there is an agency for the Police Service to handle day-to-day security issues, another for investigating major crimes and the third for intelligence gathering to proactively manage national security risks involving internal and external sources. These agencies will then be given the power to investigate members of the other agencies so that no one is above the law. I believe in fixing systems, not fixing people.

You are a role model to young people in Guyana so what advice would you give to them? RP: My advice would be to stay true to yourselves and your ambitions. Be genuine at all times. Be sincere and not try to be anyone else. Listen to smart advice and intelligent counsel. You do not have to experience it for yourself to learn; you can learn from the experience of others. Do not accept the status quo; always challenge it. Push the boundaries without breaking the rules. Do not be disrespectful. Regardless of your age, keep developing yourself as the world does not remain constant. Always be there for your family and friends.

BG G

uyana has been, and is home to Republic Bank (Guyana) Limited and its predecessors for over seventeen and a half decades, making this Organization one of the longest serving local financial institutions. Today, while Republic Bank (Guyana) Limited boasts a wide selection of branch location, any-branch banking and the largest local electronic banking network, the Sector continues to evolve and expand into a highly competitive environment where the customers’ needs and expectations drive the business. Sustaining the business of the Bank and the leadership position has not been a minuscule task. However, the Bank’s success can be attributed to a combination of factors that today remain central elements of the Bank’s strategies and pivotal to the future plans of Republic Bank (Guyana) Limited. The Bank’s history dates back to 1837. The sum total of a rich history; community and customer relations; challenges surmounted and experience gained over the years, firmly underpins a wellearned reputation of soundness and sector leadership. Among the Organisation’s experiences have been economic challenges of the world wars and the present global financial downturn; destruction of the Bank’s premises by fire; and four changes of ownership and re-branding. Integral to the Bank’s progression and ongoing success, has been strong Organisational vision and an unswerving commitment to understanding and meeting local needs, while at the same time, staying abreast of and introducing relevant global and regional sector developments aimed at benefiting local constituents of the Bank’s footprint. Equally fundamental has been staff competency and dedication, guided by strong managerial leadership which supports a core competency of quality customer care and satisfaction for which the Bank continues to be highly reputed. Rapid advances in banking technology have transformed the local financial services sector, where manual systems have given way to automation that today allow for better administration and greater efficiencies for both the customer and the bank.

Republic Bank (Guyana) Limited, as the Organisation is known today, holds the distinction of having experienced all related changes from the late 1800s to the present – from pen and ink banking during business hours only, to today’s convenience banking, where the customer has 24 hour access to their account, from virtually anywhere in the world. Over the years the Bank recorded a number of technological firsts – among these, the first Bank to install air conditioning, and later the Bank to lead the sector in computerization; convenience banking and today remains the only local financial institution with an international debit card. Technology continues to play a major role in the current operations and future plans of Republic Bank (Guyana) Limited, as the Organisation seeks to deliver an increasingly outstanding level of service, while remaining relevant to all stakeholders and staying competitive. Customer care is paramount to all that Republic Bank (Guyana) Limited does and aspires to. The Bank remains cognizant of the dynamics of the financial services sector and the importance of staying connected to the ever-evolving needs of customers. Relations are maintained and strengthened through ongoing engagement –dialogue, customer education and interactions – that facilitates and reinforces mutual understanding for advanced customer satisfaction. This allows for product development that addresses customers’ needs; quality service maintenance; and overall, a more empowered, decisive and growth-oriented customer, with a better understanding of financial services and available options. It is the Bank’s firm belief that the fulfillment of its vision to be the Caribbean Financial Institution of Choice for the customer is best realized in an approach to customer care that tangibly benefits the customers. By extension the Bank, the financial services sector and the nation as a whole are ultimately made better. The Republic Bank vision to be the Financial Institution of Choice also extends to staff, communities and shareholders. Customer care is supported by the knowledgeable, competent and committed team that the Bank places emphasis on attracting and retaining. Employee satisfaction is critical to the cultural cohesion that sustains the Bank’s image and reputation for excellence. Through a range of employee benefits and programmes, staff are developed, educated, compensated, rewarded and celebrated to encourage and reward the desired behaviours that best support the Organisation’s strategic goals, and importantly to demonstrate appreciation for the efforts of this key stakeholder group. As part of a commitment to national development, the success of the communities served by the Bank is also significant to the Bank’s vision. With ten Branches conveniently spread across Essequibo, Berbice, Georgetown and Linden - and imminent plans for further expansion into Lethem and Mon Repos on the East Coast Demerara - understanding and meeting the unique needs of the various communities rank high among the Organisation’s key business objectives. This extends beyond meeting financial needs to include core community needs which are addressed under the Bank’s umbrella Social Investment Initiative – The Power to Make a Difference. Through this initiative, the Bank seeks to improve lives, circumstances and prospects via several long term commitments to specific areas of need, in collaboration with respective

Experiences successes future plans goals

Republic Bank (Guyana) Ltd. branch, Camp & Robb Streets Georgetown, Guyana

Non-Governmental Organisations; Community Based Organisations and Government Ministries. The primary current focus includes youth and community development, health care and persons with disabilities. Immediate future plans will see an expansion of current areas of need and a greater emphasis on improving literacy. The Bankâ&#x20AC;&#x2122;s current goals and objectives are executed in accordance with its mission to provide personalised, efficient and competitively-priced financial services

and to implement sound policies which will redound to the benefit of customers, staff and shareholders. The forward plans for Republic Bank (Guyana) Limited include broadening expansion; improving banking efficiencies; deepening customer, employee, and community engagement; and aiming for continued profitable growth, all guided by the Bankâ&#x20AC;&#x2122;s vision of setting the Standard of Excellence in Customer Satisfaction, Employee Satisfaction, Shareholder Value.

BG INSIGHT

DR. JUSTIN A. RAM

DIRECTOR, ECONOMICS DEPARTMENT, CARIBBEAN DEVELOPMENT BANK

Remarks at the GEORGETOWN CHAMBER OF COMMERCE AND INDUSTRY ANNUAL GALA DINNER, DECEMBER 4TH, 2013

Good evening. I feel honoured to be able to share in your Annual Dinner and Awards Ceremony, especially as you mark your 124th year of operation. Congratulations on reaching this milestone. In the last 124 years, this organisation would have had a front seat as a particularly eventful period in Guyana’s social, political and economic history has unfolded. It is my hope that, going forward, you – the business sector - will continue to play an important role in Guyana’s development, ideally from the driver’s seat. This evening, I will share with you my perspective on Guyana’s past and future development, as I seek to answer a few key questions: Where has Guyana come from? Where is the country going? How has the Caribbean Development Bank (CDB) helped and what do we intend to do? I will conclude with some ideas as to the way forward for Guyana. WHERE HAS GUYANA COME FROM? Guyana has had a particularly challenging economic, social and political history. The extended period of inward-looking policies that started in the early 1970s, exacerbated by a series of external shocks, culminated in a socio-economic crisis by the mid-1980s. Mass emigration ensued, as real Gross Domestic Product (GDP) declined by a cumulative 26% during the period 1980-89 and the poverty level peaked at 65% in 1988. The Economic Recovery Programme (ERP), introduced in 1989, helped to make some progress in addressing these issues. The ERP sought to restore economic growth and reduce internal and external imbalances by: liberalising exchange controls; adopting a floating exchange rate; lifting import and price controls; implementing revenue-raising measures and

expenditure cuts; encouraging private investment through incentives; streamlined procedures and reversal of the previous policy of nationalisation; and eliminating substantial payments arrears to foreign creditors, the latter with support from the multilaterals, including CDB . However, despite the implementation of the ERP, Guyana’s economy remained weak in the 1990s, through the first half of the 2000s. Low productivity was reflected in falling income and an inability to boost exports sufficiently to reduce external imbalances. The debt overhang, outward migration and infrastructure gap, as well as enduring social tensions and political challenges, also remained significant impediments to stronger economic performance. But Guyana has turned the corner. A robust and sustained reform agenda, as encapsulated in your Poverty Reduction Strategy Papers (PRSPs), has certainly helped to reverse economic stagnation and enhance most of your development indicators, including per capita incomes and poverty levels. Notably, public financial management reforms adopted from around 2003 have helped to improve fiscal policymaking. Also, structural reforms have been implemented, geared at modernising traditional industries, as well as promoting small business development and private investments. For example the: • Investment Act of 2004 provided the overarching regulatory and legislative framework for the protection of private investments in Guyana;

• Small Business Act of 2004 provided incentive regimes and support programmes for small businesses; and • National Competitiveness Strategy drafted in 2006 was aimed at enhancing Guyana’s competitiveness in terms of reforms to institutions and initiation of policies, projects and programmes. Guyana has, therefore, emerged from years of economic decline and stagnation with improved macro-economic fundamentals. Indeed, Guyana’s impressive real GDP growth rates, which averaged 4.5% during the period 2006-2012, have out-performed several of its Caribbean counterparts. Implementation of these reforms has been rewarded with substantial debt relief under the Highly Indebted Poor Country initiative (HIPC), Multilateral Debt Relief Initiative (MDRI) and Paris Club arrangements, which has led to a substantial reduction in debt ratios. By 2007, the external debt-to-GDP ratio was estimated at 40%, compared with a high of just over 600% in 1989, while the total debt-to-GDP ratio had fallen to the 60% international benchmark Improved economic performance and debt relief have freed up resources for increased social spending. This investment has begun to pay off: • poverty levels were down from 65% in 1988 to 38% in 1999 and extreme poverty down to 18.6% in 2006, from 29% in 1992; • substantial progress has been made toward the Millennium Development Goals (MDGs), particularly in the areas of education, gender and environment; and • Guyana’s Human Development Index (HDI) has risen dramatically since 1980, with the country moving from low (1980s and 1990s) to medium (2000s) human development. WHERE IS THE COUNTRY GOING? The reforms implemented to date have been relatively successful. The macro-economic outlook is quite optimistic - investment, buttressed by key policy initiatives, is set to remain the key growth driver. And there is a high likelihood that Guyana will achieve the MDGs by 2015 in education, gender and environment. But the country still faces critical development challenges: inadequate infrastructure; high vulnerability to natural disasters and climate change; high poverty levels and other social challenges; economic concentration and constraints to private sector development. A new wave of reforms is, therefore, being ushered in to consolidate and augment past progress, within the context of the country’s third generation PRSP, as well as the innovative Low Carbon Development Strategy (LCDS).

Poverty reduction and sustainable development are the main objectives of the PRSP and the LCDS, respectively. Both of these strategies seek to guide Guyana’s development over the 2011-15 period through four main areas of focus: infrastructure development; social and human capital development; strengthening of governance and institutions; and economic diversification and private sector development. HOW HAS THE CARIBBEAN DEVELOPMENT BANK HELPED AND WHAT DO WE INTEND TO DO? CDB’s past strategy in Guyana has focused on strengthening social and economic infrastructure, promoting private sector development, building capacity and strengthening institutions in critical sectors. Notably, CDB has contributed to infrastructure development in terms of roads, docks, markets and sea defences, as well as capacity-building in the area of technical and vocational education and training (TVET) under this strategy. In addition, the occurrence of natural disasters has led to the approval of previously unidentified capital projects for disaster management. The Bank has also supported Guyana’s developmental thrust through the application of concessional lending terms in financing these capital projects. The Caribbean Aid for Trade and Regional Integration Trust Fund (CARTFund) has also provided a key modality for financing private sector development in the area of industry and trade. Likewise, CDB has implemented various capacity-building initiatives for small and medium-sized enterprises (SMEs) through its Caribbean Technological Consultancy Services (CTCS) network. There has also been a significant focus on poverty reduction through the operations of the Bank’s Basic Needs Trust Fund (BNTF), which focuses on community projects that provide basic social and economic infrastructure and capacitybuilding. Interventions under CARTFund, CTCS and BNTF are all grant financed. The Bank’s strategy for Guyana for the 2013-17 period, approved in March this year, maintains the focus on concessional financing for infrastructure development and grant-financed BNTF and CTCS operations, but also seeks to address the country’s environmental, disaster risk management (DRM) and climate finance needs. CDB also aims to restructure its relationship with the private sector in Guyana in a creative way, in line with the Bank’s evolving private sector thrust. THE WAY FORWARD All of the areas highlighted in the Government and CDB’s strategies are critical to Guyana’s future development.

BG Closing the infrastructure gap, building capacity and strengthening institutions have received a lot of attention from the Government and CDB, as well as other development partners, in recent years. While significant progress has been made in relation to these areas that enhance competitiveness and facilitate private sector development, there exists a need to build on these efforts. In this regard, there has been a number of specific constraints identified by private sector stakeholders, including: • restricted access to and high cost of credit for the retooling of manufacturing plants; • the absence of research and development and training facilities for the manufacturing sector; • the acute scarcity of managerial capacity and skilled labour due to migration; • the lengthy bureaucratic processes associated with regulatory approvals for private sector; • high cost and unreliable power supply, which has led most of the larger enterprises to invest in their own electricity generating facilities; • high taxes on production (trade taxes added to corporate taxes); and • inefficient trade logistics and inadequate port facilities, which contribute to high transaction costs. Several of these issues are highlighted in the World Bank’s “Doing Business” Report for 2013, which ranked Guyana 115th of 189 countries overall for the ease of doing business. Moreover, the 2013-14 Global Competitiveness Report ranked Guyana 102nd out of 148 countries in respect of international competitiveness. The results of these and other diagnostic and benchmarking exercises suggest that the reform and policy agenda needs to continue apace. CDB is already responding to some of the issues highlighted, through CTCS and TVET development, for example; but there is scope for CDB to support private sector development in other ways. New and innovative initiatives in the area of renewable energy/energy efficiency and climate finance are coming onstream; and there is already a fund that can be used for support to the private sector to ensure their readiness for the CARICOM Single Market and Economy (CSME), and implementation of the CARIFORUM-EU Economic Partnership Agreement (EPA). Raising Guyana’s competitive position will require continued efforts at improving the basic factors required for such competitiveness, including continued enhancements in

infrastructure, institutions and basic education and health. At the same time, it will be important to address those areas that are necessary to help Guyana to transition from an economy that is driven by the basic factors of production to one that is efficiency-driven. The transition will require, among other things, a greater focus on higher education, advancing the technological readiness of the economy and developing its financial markets. Such investments and reforms would facilitate the continued development of Guyana’s private sector and foster the economic diversification that is necessary to build resilience and generate prosperity. Specifically, these investments would create the foundation for reducing Guyana’s concentration in the extractive industries of agriculture, forestry and fishing, mining and quarrying, which focus on low value-added, natural resource-based products for export and leave the economy vulnerable to “Dutch disease” effects. Indeed, in recognition of the depletable nature of some of these natural resources, it would also be ideal to explore the establishment of a sovereign wealth fund to manage the windfalls from their extraction, as has been done in Trinidad and Tobago, Botswana, Norway and other resource-rich countries. These resources could then be used to underwrite the types of investments and reforms that are necessary to facilitate economic diversification away from natural resource-based products and into higher value-added goods and services. There is certainly strong potential for increased activity in such higher-value-added goods and services. Unlocking this potential will require continued efforts in making the priority investments and undertaking the critical reforms that would encourage such activity. To be sure, the ongoing journey to sustained growth and prosperity now requires building on the strong foundation that has been established through critical investments and reforms. CDB and other development partners are ready to collaborate with Guyana in this regard. The effort will also require a strong partnership between the private sector and the Government to build consensus on the priority agenda going forward. So, substantial progress has been made, but the journey is far from over. Benjamin Disraeli, a former British Prime Minister, said “The secret to success is constancy of purpose.” Another precondition for the creation of an enabling environment for private sector development is strong governance structures and social cohesion. On the Global Competitiveness Index, Guyana performs less favourably on transparency, efficiency of the legal framework and business costs of crime and violence. Despite the identification of these

as key factors in Guyana’s low overall competitiveness ranking, more must be done. It is, therefore, incumbent on the business sector to assume a more activist role. You should advocate strongly for the implementation of reforms, as well as initiatives to strengthen and deepen social cohesion. Indeed, in revamping the policy framework, we need to recognise that the existing approaches for implementing reforms must also be overhauled. Current approaches to private sector development in Guyana have not always been efficient. You have not always been sufficiently consulted or asked to participate in decisions that affect you. Development partners, for our part, have often failed to coordinate our efforts, effectively, to avoid duplication of effort and ensure complementarity. CDB will, therefore, seek to promote collaboration and consultation with all stakeholders as we pursue, together, the development of a vibrant private sector, which we all recognise is a key engine of productivity growth and poverty reduction. The private sector should also take the lead in ensuring that Guyana’s vulnerability to natural events is reduced and that the economic policies being pursued bring lasting and sustainable benefits to all who are willing to work diligently for this. This is particularly important in economies that, like Guyana’s, are heavily dependent on agriculture and natural resource extraction. Let me reiterate this point. Properly measured economic growth is the return on the asset base or capital of the economy. I repeat. Properly measured economic growth is the return on the asset base or capital of the economy. Thus, economic growth is really a function of the quality and stock of assets, as well as productivity of the economy. Therefore, as assets are extracted and depleted, you, the private sector, must ensure that sufficient investment is made in other types of assets, such as human capital, plant and machinery, telecommunications and infrastructure, since these will be the assets that help support growth, in the future. Any good business person knows that the maintenance of assets ensures a sustainable operation and that the economy must also be

heavily reinvested in to ensure sustainable economic growth. Economic history teaches us that business cycles exist, the pendulum swings, the “Economic Googlies, the Bouncers, the Yorkers” will come; but we can be prepared by practicing in the “Batting Nets” of economic investment and fixing the “Economic and Social Roof” when the sun is shining. Opening trade links with other regions of the world and deepening links within CARICOM will also foster growth now and in the future and improve productivity as you seek new markets for your goods and services. Once more, the private sector must be the lead advocates for investment now to achieve continued and future prosperity! I, therefore, implore you to save and invest for the future since this will sustain higher consumption now and for future generations. Benjamin Franklin, one of the founding fathers of the United States of America stated “by failing to prepare, you are preparing to fail”. So, diligence and preparation are integral for future prosperity. The road ahead is full of opportunities and challenges. There are challenges; however, I do know that they are not insurmountable, if Guyana stays the course. Every time I see Shivnarine Chanderpaul bat, I am reminded of this. In my humble opinion, he is one of the greatest batsmen Guyana and the world has ever produced. He stays the course! His constancy of purpose should be our guiding light! CONCLUSION Ladies and gentlemen, in closing, let me reiterate just how delighted I am to have had the opportunity to participate in this evening’s proceedings. I have enjoyed sharing with you my thoughts on Guyana’s past and future development path and the respective roles of the Government, the private sector and CDB, as well as other development partners. I invite you, the business sector, to also share your vision and join with CDB and other stakeholders in working toward a harmonious and prosperous future for all in Guyana. Thank you

BG what’s your score? G Guyana’s First Credit Bureau

uyana’s consumers, businesses and international investors now have an easier way of accessing credit and determining the credit worthiness of individuals and companies through Creditinfo Guyana, Inc., the country’s first credit bureau. With a major investment by the Iceland based company Creditinfo Group Hf, the local subsidiary received its license to operate in August 2013.

Credit bureaus collect information on a customer from various sources, including banks, utilities, insurance companies, lenders, hire-purchase companies, and others. Following strict protocols of confidentiality, they store and analyse such information so as to allow for faster and more accurate decision making when a customer Because the credit bureau still is a new concept to applies for a loan or credit from institutions and businesses. Guyana, Creditinfo Guyana has embarked upon an Through a process in which a ratings score is calculated to reflect aggressive customer education drive to sensitise the credit worthiness and risk, credit bureaus can help expedite the public not only about the products and services offered credit decision-making process for benefit of the applicant and the but also to describe the benefits for consumers. The lending institution. The score is a generally solid indicator of the risks company also has worked aggressively to convince involved in lending monies to applicants and in gauging the likelihood lending agencies and businesses on the advantages in that repayment obligations will be fulfilled on a timely basis. It also partnering and making available their customer credit databases to the bureau. The latter objective has not helps to reduce and minimise instances of fraud. been an easy task but the company is making significant inroads in this regard.

Creditinfo Guyana

products and services include the following:

Creditinfo Report: An extract from the company’s database that shows all of the available credit information on a specific topic or subject in an easily readable format.

The Creditinfo Report Plus: A comprehensive report that builds on the Creditinfo Report by adding valuable scoring information known as the Creditinfo Predictor.

3. 4.

Creditinfo Predictor: A tool which essentially summarises all available credit information on a client in the form of a credit score, including the trends evident in all historical scoring calculations.

5. 6.

The Consumer Report: A detailed credit report that is intended for the individual client. The SeeRisk Report: A comprehensive report prepared about foreign companies, detailing all available information that could potentially drive a decision on credit or business transactions, in general. The SeeID Report: A tool which provides a quick, accurate check on an individual’s identity, using data supplied from a wide cross-section of sources to verify names, addresses, and national identification numbers.

Judy Semple-Joseph, the local subsidiary’s CEO, explained the company has committed and expended substantial time and resources in engaging stakeholders in all sectors to raise awareness and understanding of the functions and benefits of utilising the credit bureau’s services and products. The parent company in Iceland also will continue to innovate and expand its products offering that Guyanese businesses and consumers will see in the near future. Reynir Grétarsson, Creditinfo CEO, says, “Creditinfo will always be an innovator taking the initiative in the development of new services and processes in the credit bureau industry. We continue to strive to enrich business performances and consumers lives by converting data to intelligent decisions.”

A Mashramani to Remember by Jessica Eise Mashramani is a carnival-style celebration that is observed in Guyana annually on February 23 to observe the country becoming a Republic in 1970. It is one of the country’s premier social event attracting visitors from all over the world. Below we share the experience of an American visitor at the 2014 “Mash” celebrations.

The hot Guyanese sun was beating down on us. It was midday when the heat strikes hardest and there wasn’t a cloud in the sky. Sweat was already dripping down our faces and backs. Some of us had on sunscreen, some of us didn’t and paid for it. Deep pumping base vibrated through our whole bodies as we walked past precarious towers of amps wired together with a maze of wires. Approach at your own risk. Families were lining the sides of the road with smiling children and little girls with brightly colored barrettes decorating their braids. Vendors had set up makeshift stands where beers were cooling and chicken was frying. The heat shimmered off their stoves.

Some seven of us – five Americans (three military, one government, one writer), a Spaniard and a Brit – stood stark in the middle of Mashramani – Guyanese carnival, wild celebration, parade, party. Our cameras were pointed out at the parade, and their cameras were pointed right back at us. The spectators were a part of the spectacle. Our white skin reflecting the sun and foreign faces smiling, we danced and drank and Mashed like we were born for it. We were different, but we weren’t apart.

We padded across a rickety, wooden slab bridge across the ditch full of water. Cops in tidy uniforms stood stoically in the heat alongside the road, patiently keeping spectators in a semblance of order. Red, green, yellow and black ribbons waved in my face as we darted across the road to a row of houses. The breeze was a Godsend. Beers in hand, already warm, we stood on a lawn with a tarp hung for shade. Chatting with the local residents, they offered the palest amongst us a rug on the grass out of the sun and the rest of us were welcomed on their neatly trimmed grass; prime real estate for the passing parade just feet in front of us.

Barbara, our 60 year-old Guyanese lawn-sharing hostess – quickly became surrogate mother. She kept an eye out on our cameras and purses and made me buy a hat. She shared her tent, laughed at our ‘wining’ dance moves. For those non-Guyanese readers, that would be grinding your rear up on anyone’s crotch – male/female roles interchangeable. She dumped her beers in an ice-filled insulated mug around her neck. Clearly she was a pro, as ours warmed up to air temperature before you could say ‘Mashramani.”

The media had a field day with our crew; a Brit waving a Guyanese flag with a gusto he’s likely never used with his own national flag, an American woman with a green, yellow and red dress and sparkles finger-painted across her face by a ten-year old Guyanese boy, a Spanish woman hidden under the shade tickling local children and shirtless US military men barefoot and dancing.

The whole day was free, wild, decadent but not destructive – it was everything good about a crazy mass of people dancing. The parade moved a snail’s pace – and why not? What’s the rush? You can’t shake your pelvis like it was meant to be shaken if you’re speed walking.

I got wined on (just dancing, thank you very much) by a man in an extraordinary feathered headpiece that did nothing to diminish his masculinity. He pulled a chunky bracelet off his wrist, snapped it onto mine, and kissed me on the cheek before strutting off to lead his posse of gyrating, nubile youth in sparkling costumes and glitter-covered faces. His gesture and smile captured everything for me. A celebration of life and play and anyone with a smile on their face and a shake in their hips: welcome.

Reveller, Georgetown, Guyana ÂŠ Kester Clarke

BG national 2014 Nutshell Budget IN A the essentials you need to know

2013

FACTS Real GDP Growth 5.20% Balance of Payments Deficit US $119.5M Inflation Rate 0.90% Commercial banks average lending rate 11.16% Small savings rate 1.33% Treasury Bills rate 1.45% Foreign exchange transactions US$6.4B Export earnings US$1.4B Import earnings US$1.8 B Balance of Trade deficit US$0.4 B Net current transfers US$353.2 M Remittances US$328.2 M Capital Account US$314.8 M Foreign Direct Investments US$214M US$776.9 International Reserves Net domestic credit $129 B Expansion of credit to private sector 14.50% $28.7 B Non-financial public sector deficit Total current revenues $135.7 B Non-interest current expenditure $115.9 B Tax revenues $126.5 B Internal revenues $51.7 B Corporation tax $21.6 B Personal income tax $955.8 M Customs & trade tax $13.2 B Value Added Tax $34.4 B Exercise tax $27.3 B Capital expenditure $50.1 B Public enterprises deficit $1.6 B External debt US$1.2 B Total debt service US$45.9 M $98.8 B Total domestic debt

2014 TARGETS Budget Size G$220B Real GDP Growth 5.6% Inflation Rate 5% Balance of Payments Deficit US$21.9M Total Current Revenue $149.6 B Total Expenditure $215.9 B Fiscal Deficit $32.4B Internal Revenues $55.8B Value Added Tax & Excise US $65.8B Non-Tax Revenues G $14.4B

rice milling 9.9% agriculture 13.7 mining & quarry 13.9% personal & real estate 16.9%

Manufacturing 22%

construction 18.8%

engineering 17.4%

BUDGETARY MEASURES Subsidy to Guyana Sugar Corporation Subsidy to Rice Industry Other Agriculture Subsidies Guyana Power & Light subsidy Rural Enterprise Development Establishment of Hospitality Institute Preparatory work to dredge Port Georgetown Linden to Lethem Roads upgrade “Clean Up My Country” initiative Education grants for families

private GROWTH IN sector

CREDIT

2014

SECTOR

$6B $500M $200 M $6.9B $1B US$4M $100M $1B $1B $2B

Manufacturing Construction Engineering Personal and Real Estate Mining & Quarry Agriculture Rice Milling

ALLOCATIONS

22% 18.8% 17.4% 16.9% 13.9% 13.7% 9.9%

G$B

Education 32.3 Health 21.5 Security 19.5 Roads and Bridges 13.7 Electricity 1. Georgetown 7.7 2. Linden and Kwakwani 3.2 Drainage and Irrigation 6.9 Housing 4.4 Water 2.5 Government ICT 1.1 Sea & River Defence 1.9 Agriculture Diversification 1.5 Sugar Industry 6 Sanitation 1. sewer system 0.5446 2. Solid Waste Management 1.1 1.6446 Art and Sport Fund 0.96

25.88 17.23 15.62 10.98 0.00 6.17 2.56 5.53 3.53 2.00 0.88 1.52 1.20 4.81 0.00

1.32 0.77

BG An Interview with Minister of Finance, Dr. Ashni Singh

Government’s Economic Agenda

“

1. How would you describe the evolution of Guyana’s economy over the past 25 years?

The past two and a half decades have witnessed significant structural shifts in the Guyanese economy, from a number of perspectives. Firstly, twenty five years ago, the state or public sector was still a dominant presence in the economy, with state ownership and control of the overwhelming majority of the country’s productive activity, and a very limited and emasculated private sector. That has changed dramatically, with the state having privatised almost all of the previous public enterprises, and the private sector is resurgent and today accounts for much of the growth achieved by the economy as a whole. Secondly, the economy is

“

certain services, such as information and communications technology in particular, have been showing extremely strong potential with the latter having created more than 3,000 jobs directly within the last decade significantly more diversified today than twenty five years ago. At that time, the Guyanese economy was almost entirely dependent on three primary commodities, bauxite, rice, and sugar. Today, while those traditional commodity sectors remain important, they by no means dominate the economy. Thirdly, the more diversified economy of today reflects a distinctive pattern of an emergent services sector, with such areas as information and communications technology, transport and storage, tourism and hospitality, taking on increasing significance in the productive landscape. Fourthly, there has been a marked increase in investor confidence in Guyana over the past twenty five years, as reflected both in the volumes of inward foreign direct investment and the marked growth in domestic credit to the private sector.

2. What does our macroeconomic position look like today? Today, the Guyanese economy is on a steady path of positive growth with real GDP having expanded uninterruptedly by nearly 5 percent annually since 2006, our debt, fiscal, and external balances are within sustainable norms, our financial system is strong and stable with private sector credit growing and commercial bank lending portfolio quality improving steadily. All of this has been achieved at a time when the global and regional economies have been going through their most difficult episodes in recent memory, and is testimony to the policy framework established by Government to secure the resilience of the domestic economy.

3. Apart from the mining sector, which other sector(s) are performing well and which do you see emerging as strong contributors to GDP in the future? Apart from mining, a number of other sectors have been performing extremely well or are showing bright prospects for the future. Foremost amongst these has been agriculture, with rice in particular being a main driver of growth in recent years, and large scale agriculture being a main recipient of inward investment. In addition, certain services, such as information and communications technology in particular, have been showing extremely strong potential with the latter having created more than 3,000 jobs directly within the last decade. With the sector investing heavily in expansion, and with Guyana developing a favourable international reputation for business process outsourcing business, there is all likelihood that this sector will feature prominently in Guyana’s near to medium term growth profile.

4. The Government has pursued a few large projects using the Public-Private Partnership (PPP) model, is this something we can expect more of in the future? The public-private-partnership model is ideally suited to environments where there are investment gaps such as an infrastructure deficit comprising good bankable projects, where the public sector faces a fiscal constraint, and where there is a liquid private sector seeking good bankable investment opportunities. The combination of these circumstances s for application of the PPP instrument. This was done in Guyana’s case, for the first time, in relation to the Berbice River Bridge, a project that has since proven to be extremely successful. The same model is being used to develop the Amaila

Falls Hydropower Project, and the same model will be used to develop the new Demerara River Bridge, just to name a few of the near term projects that would be implemented using the PPP model. This would provide a means through which domestic infrastructural requirements are met while at the same time providing attractive investment opportunities for local and foreign investors.

5. How would you rate Guyana’s capital market? Including the banking system and the bond and stock markets. Notwithstanding gains made over the years, Guyana’s financial and capital markets still have much room for further strengthening. The commercial banks could be more efficient in intermediating the savings they hold and could be more aggressive in seeking out good investment opportunity. Initiatives such as the licensing of an international company to operate a credit bureau are expected to improve efficiency in the market for credit. In addition, the stock market remains under-utilised as a means through which financing can be mobilised for investment and expansion. Critical amongst the factors that would promote growth and development of the capital market would be a greater demonstrated willingness on the part of the larger private sector companies to submit themselves to the rigour and discipline of the open market.

of international investors having already responded to that call and several others in the process of doing so. To aid the facilitation of foreign inward investment, Government has established a Guyana Office for Investment which is intended to facilitate investment projects and market Guyana as an investment destination. Government intends to strengthen this Office to enable it to better discharge its important responsibilities.

7. Which domestic and international threats worry you most? The external economic outlook remains unpredictable at the current time. This uncertainty is unhelpful to economies like ours because of the impact it has on commodity prices, both on the import and export sides, and on foreign investment flows. On the domestic front, recent experience with the parliamentary opposition discloses unwillingness on their part to engage in the joint enterprise of building Guyana. Instead, their approach has been to obstruct and frustrate, including on issues of major national importance. The Amaila Falls Hydropower Project and the Money Laundering Amendment Bill are but the most recent examples. This destructive attitude towards progress and development in our country is a dimension that will need constant attention in the future.

6. Does the government of Guyana welcome foreign direct investments? The Government of Guyana actively welcomes foreign direct investment, and encourages investors from the world over to bring their financing to and locate their operations in Guyana. The investment community has responded, with a number

Serving Guyana for over 50 years We are the leaders in the Shipping Industry.

24 Water Street, Georgetown, Guyana Tel: (592) 227-3344, 227-3350, 227-3363, 226-8843, 225-6294, 226-1506. Fax: (592) 226-1881, 227-3360. Website: www.jf-ltd.com Email: sales@jf-ltd.com

“Where Experience is Always at Your Service”

Princess Hotel & Casino

ince opening up in 2010, the Princess Hotel and Casino, the largest hotel currently (at time of press) in Guyana, has raised the bar for hotels and the hospitality industry in Guyana. The Princess Hotel and Casino features two hundred well appointed and modern rooms including: presidential suites, VIP suites, executive suites and the most spacious double and single rooms. The hotel offers free wireless Internet and complimentary breakfast to all its guests. To complement its world-renowned accommodation, the hotel incorporates a spacious conference facility, which also transforms into a stylish ballroom. Additionally, there are many other facilities available, including a boardroom, an elegant royal restaurant, gym, spa and outdoors sporting facilities; including lawn tennis, basketball, volleyball, football and badminton. Moreover, its star attraction, the largest pool to be found anywhere in Guyana, comes complete with the convenience of a modern poolside bar. As one of the world’s most electrifying casinos, The Princess Casino Guyana boasts over 250 slot machines and a wide range of table games such as Blackjack, Roulette, Poker and Stud Poker. The Casino also features high-limit tables for premium casino players. Princess Bet, which forms part of the many attractions, allows for

smaller betting on any sports game: from football, cricket, to ice hockey and basketball. The Princess Hotel and Casino continues to evolve and maintain its distinctiveness and eminence with new additions like its nightclub, movie theatres and family entertainment center. Its nightclub, ‘Club Next’, is a classy addition that aims to connect fantasy to reality with its unique combination of art, fashion, prestige and service; ‘Club Next’ adds a new spin to nightlife in Guyana. The state-of-the-art lighting, sound effects and an exclusive decorative theme are just a few of the features that ‘Club Next’ brings to club goers. In 2013, the hotel also introduced two state-of-the-art movie theaters that comprise of 93 seats respectively. The “Red and Blue” theaters feature a 22×10 foot screen with Dolby Stereo surround sound and comfortable airline quality seats. Additionally, the facility boasts a family entertainment center called “Fun City Arcade” with more than eighty (80) games to choose from and includes a 7D Cinema, 3D graphics theatre, dancing and street fighting games, etc. The Princess Hotel & Casino is a must visit destination while in Guyana and a one stop venue where all your accommodation and entertainment needs can be met.

Shoring up Small Businesses

70 70

Likewise grants will be made to individuals or groups with new ventures in the low carbon scheme but have been unable to secure financing

erhaps the most predominant barrier for any existing or potential small business owner is access to affordable, manageable financing but a new initiative launched in October 2013 is aimed at easing the burden of getting sufficient credit. The Micro

and Small Enterprise Development (MSED) programme was launched with funds made available from the GuyanaNorway memorandum of understanding, via the terms of the Guyana REDD+ Investment Fund (GRIF). A total of US$10 million has been allocated towards the project over a four-year period. The Small Business Bureau (SBB) of Guyanaâ&#x20AC;&#x2122;s Ministry of Tourism, Industry and Commerce, with partner support from the Inter-American Development Bank (IDB), will monitor and ensure the programmeâ&#x20AC;&#x2122;s implementation. Several commercial banks and financial institutions have agreed to serve as lenders in the programme. The project addresses two primary limitations facing small business owners: limited access to finance and limited technical and business skills. Financial access will be achieved through three available vehicles. The first is a Credit Guarantee Fund (CGF), a repository fund used to guarantee a lending institutionâ&#x20AC;&#x2122;s collateral requirements so that a solid small business proposal can be approved for financing.

BG In assuming part of the financing risks, the CGF hopes to encourage lending institutions to offer more favorable commercial rates to qualified small business owners and potential entrepreneurs. Moreover, the CGF will guarantee a specific percentage of loans across all sectors of the economy, as long as they are applied in low carbon business sectors. Eligible lending institutions will sign a Loan Guarantee Agreement (LGA) with the SBB in order to participate. Through this mechanism, 40 percent of the lending institution collateral requirements per loan can be guaranteed but in no case would the maximum guarantee value per loan exceed $GY12 million (US$60,000). Another financing instrument will be an Interest Payment Support Facility (IPSF) to help small businesses pay off a

percentage of its loan interest obligations. The IPSF also targets sectors relevant to Guyana’s diversification programme and the country’s Low Carbon Development Strategy (LSDC). Qualifying sectors include aquaculture, fruits and vegetable farming and agro-processing, sustainable forestry, eco-tourism and business process outsourcing. The lending institution screens applicants for their potential eligibility with subsequent approval by the SBB. The SBB will reimburse the costs of subsidized interest rate loans to the relevant lending institution. The third option is a Low Carbon Grant Scheme that serves to assist ‘vulnerable’ persons to access financing for their existing or potential business venture. A maximum of GY$300,000 (US$1,500) per applicant will be provided to qualified applicants who already operate a business and require additional financing to further develop low carbon scheme-related activities. Likewise grants will be made to individuals or groups with new ventures in the low carbon scheme but have been unable to secure financing because of high credit risks. The programme also offers a Skills Voucher Scheme, which targets small businesses and vulnerable groups. These grants must be applied toward a registered or accredited training program or school within the skill areas of business management, marketing, accounting, financial management, and technical training.

MSE Financing Structure Phase 1 (US$0000) Components

Year 1 GRIF Funds

Year 2 GRIF Funds

total

1,810.00 1,575.00

940.00 -

2,750.00 1,575.00

135.00 100.00

540.00 400.00

675.00 500.00

Component 2: Access to Business Development Training 2.1.Low Carbon Skills Development Training

763.50 763.50

710.00 710.00

1,473.50 1,473.50

Project Administration and Institutional Support to SBB 3.1. Administrative and Institutional Strengthening costs of the SBB and SBC. 3.2. M&E System and Public Awareness Campaign

421.25

355.25

766.50

419.50 122.75

223.00 49.75

642.50 172.50

7.50 100.00

15.00 200.00

2,994.75

2,005.25

5,000.00

Component 1: Access to Finance 1.1.Credit Guarantee Fund 1.2.Interest Payment Support Facility 1.3.Low Carbon Grant Scheme

3.3. Audit 3.4. Contingency

Phase 1: Totals source: idb

MOHAMEDâ&#x20AC;&#x2122;S ENTERPRISE Lot 29 Lombard Street, Werk-en-Rust, Georgetown, Guyana

Tel: (592) 227 7952; 227 0178-9; 225 9010

Email: mohamedsenterprise@gmail.com

LICENSED CAMBIO (Foreign Currency Exchange)

LICENSED GOLD TRADER

opinion:

Developing a New Economic Model for Guyana

uyana’s functioning governmental structure dictates that the president leads the executive branch while the combined opposition holds the majority in the national assembly. While bipartisanship sometimes seems like an enviable idea, the situation in Guyana has meant that the government must shift its strategies in accessing funding needed to carry out projects for national development initiatives.

comprising economists, researchers, finance specialists, statisticians, and other professionals to gather data, investigate, provide information and make recommendations to the council.

Once the prioritized list of projects and activities are identified as part of the efforts to reduce the constraints, then a public awareness campaign should be implemented to assure the public and to Since 2012, without the benefit of a parliamentary majority, encorage the public’s buy-in for the initiatives being the opposition parties have rejected funding or support for pursued. governmental projects on the grounds that they have failed The next stage in the process for infrastructure and to pass transparency and accountability thresholds. This has building projects would be to submit proposals to resulted in critical projects either being scrapped or stalled. the National Tender Board Administration (NTBA) In order to adapt to this new reality, our policymakers should with oversight from the Public Procurement look at new economic models to ensure critical projects are Commission (PPC). The NTBA would be tasked to duly funded and diligently implemented within a framework of decide key personnel to undertake and execute the good accountability and transparency standards. project, in terms of following the requirements as In considering this line of reasoning, a proposed model could explained in the Procurement Act. The PPC would ensure the integrity of the procurement process and be structured accordingly: deal with queries and reviews by those tendering. As a first step, the country should establish a National Economic Council (NEC) – or, commission – that would be Meanwhile, other non-infrastructure or physical a statutory body of leaders comprising the government, improvements projects would be transmitted opposition, academia, and the private sector stakeholders. directly to a National Implementation Agency (NIA), The NEC’s main responsibility would be to determine where which would be responsible for forwarding those constraints to Guyana’s competitiveness exist and to prioritize proposals to the relevant agencies for adoption. those constraints in the order of their potential detrimental The NIA would be tasked with monitoring impact upon the nation’s economy. The second major responsibilities. It would assure that all projects responsibility would be for the council to craft solutions decided by the NEC are implemented according mitigating significantly or eliminating those constraints in the to the established terms of reference and with same priority order as previously identified. More simply, the the highest standards of accountability and most detrimental constraints would be addressed initially in transparency. policy terms. Ideally, the president should ideally lead the economic council, taking into account the input of all of the constituent stakeholders. The NEC, therefore, should have a secretariat

DIAGNOSTICS & PRESCRIPTION

SECRETARIAT ECONOMISTS STATISTICIANS RESEARCHERS

ECONOMIC COUNCIL GOVERNMENT OPPOSITION PRIVATE SECTOR ACADEMIA

PUBLIC BUY IN TOWN HALL MEETINGS PUBLIC FORUM

PROCUREMENT

PUBLIC PROCUREMENT COMMISSION

NTBA

IMPLEMENTATION

PUBLIC IMPLEMENTATION AGENCY

Full Protection!

Affordable Solutions for your Insurance needs. Motor Insurance Life & Health Insurance Fire & Allied Perils

Homeowners Comprehensive Liability Insurance Travel Insurance

Burglary All Risk

...and more

Insure with

The GTM Group of Insurance Companies Head Office: 27-29 Robb & Hincks Streets, Georgetown Switchboard: 225-7910-9 Fax: 225-9397 E-mail: gtmgroup@gtm-gy.com Website: www.gtm-gy.com

Branch Offices & Agency: New Amsterdam, Corriverton, Port Mourant, Rosignol, Mahaica, Essequibo, Bartica, Lethem, Linden, Diamond, Vreed-en-Hoop, Bagotstown, Montrose

A Tradition of Superior Insurance Service

POLICY | ADVOCACY | NETWORKING | SEMINARS

156 Waterloo Street, Georgetown, Guyana, SA Tel: + 592 225-5846 | E-mail: info@gcci.gy or gccicommerce2009@gmail.com www.gcci.gy

GERMAN’S

European Partnership Head of European Union Delegation to Guyana Ambassador Robert Kopecký

“

I’m honoured to contribute to this edition of Business Guyana and I’d like to use this opportunity to convey three messages to you.

Firstly, you matter. You always did, but now you matter even more than ever before. Why? Because local businesses are the lifeblood of Guyana’s economy. We in the European Union want you to flourish because we believe that with you flourishing the whole Guyanese economy will do so. Secondly, we in the European Union still matter. We remain the world’s biggest market and a long-standing partner of the Caribbean. So keep us on your radar.

Thirdly, the Economic Partnership Agreement (EPA) between CARIFORUM and the European Union also matters. It opens up the European market to you. And it can help achieve precisely the goals which the Georgetown Chamber of Commerce and Industry has identified for Guyana’s economy. We’re as committed as ever to ensuring it delivers just that. The private sector – driving Guyana’s growth Guyana has achieved impressive growth rates of over 4% over last years. Part of this has been driven by mining. But even in a difficult market for raw commodities, Guyana still has great potential. This can only be realised, though, by a dynamic private sector. Businesses like yours drive long-term growth. Entrepreneurs like you create much-needed jobs and spur innovation. But you recognise that you need the support of an efficient administration and transparent institutions which foster fair competition. Only then will you attract investors and be rewarded for your efficiency.

bigger than the US and roughly twice the size of China, despite its recent rapid growth . So we will continue to be one of the world’s main markets for the foreseeable future

“

The European Union shares your conviction. Our interest is in seeing Guyana develop its economy and integrate more fully into the regional and world economies. This is why we back the twenty goals identified by the Georgetown Chamber of Commerce and Industry earlier this year. In fact, they reflect many of the goals of the EPA. I’ll come back to that point later on.

The EU – still the world’s biggest market, still a close partner to Guyana My second point is that Europe still matters. That’s despite the rise of the BRICS (Brazil, Russia, India, China and South Africa) and other emerging economies.

The EU and its Member States are long-standing partners of the region in general and of Guyana in particular. We have strong economic, cultural and historic ties. The European Union’s formal partnership dates as far back as 1975 with the signature of the Lomé Convention. We are also Guyana’s third largest trade partner as well as a major source of investment.

But our relationship could be even stronger. Europe remains the world’s biggest single market. We account for over a fifth of the world economy – bigger than the US and roughly twice the size of China, despite its recent rapid growthi . So we will continue to be one of the world’s main markets for the foreseeable future. No wonder then that we’re also the world’s largest importer and exporter of goods. In 2012 alone our imports came to € 1.8 trillion and our exports to almost as much - €1.7 trillion. We accounted for around 17% of total world trade – the biggest share of any market. And we’re the world’s biggest source of foreign investment, accounting for 35% of the world total. In fact, between 2007 and 2010 we ploughed around €350 billion each year into economies outside the EU. We’re also the world’s biggest aid donor. We’re the single largest donor to Guyana and we’re currently investing more than €50 million to help put the country’s Poverty Reduction Strategy into practice. We’ve also helped the local sugar industry, as well as groups working to protect the country’s precious mangrove forests. The EPA – helping Guyana achieve the 20 goals Manifesto My final point is that the EPA matters as well. It marks a new chapter in Europe’s relationship with the Caribbean. Our goal is to spur development across the Caribbean by making it easier for businesses from our two regions to invest in and trade with each other.

In addition, the EPA commits Guyana to other measures designed to make doing business and exporting and importing easier. These include: 1. Encouraging investment and technology transfers Long term stable access to the EU market and better protection for intellectual property creates more predictability, security and opportunities for investors. We are committed to helping improve the investment climate – for example by helping organize the Guyana Invest Forum in June 2013 or by dialoguing with the Government of Guyana on public finance management related issues. 2. Fostering competitiveness Lower tariffs mean lower price for inputs and lower production costs. More flexible rules of origin make it easier for manufacturers to source inputs from outside the Caribbean and still enjoy fully free access to the EU. And more competition should follow on from more open markets. This should in turn foster innovation and improved efficiency amongst local producers.

How? Well, the EPA provides duty- and quota-free access to the EU market. But to take into account our two regions’ different levels of development, it is asymmetric: it enables the Caribbean not to cut tariffs on around 17% of goods, which are considered as especially sensitive and it staggers tariff cuts on other goods over periods of up to 25 years, to allow time to adjust.

3. Making public procurement more transparent

It opens up the EU’s market in services, too. The Caribbean and Guyana increasingly rely on the service sector as a source of growth. The EU has opened up over 90% of its services market to Caribbean suppliers in areas such as banking and architectural services. Caribbean ‘contractual service providers’ can also operate in 29 sectors, from engineering to IT. These are areas of great potential for Caribbean businesses.

4. Modernising taxes

The EPA also comes with financial assistance. We’re helping governments put the EPA into practice. And we’re supporting Caribbean companies directly through a €28 million programme delivered in partnership with Caribbean Export Development Agency (CEDA). A winning recipe

i Source World Bank 2012 GDP nominal

CARIFORUM states commit in the EPA to improving and guaranteeing transparency in their public procurement processes. Only by doing so can they ensure fair competition and efficient public investment and the best use of limited government revenues.

To integrate fully into the world economy, Guyana needs a modern tax system that supports economic growth and development. The current EU-funded regional programme for the Caribbean includes funds to support reforms of this kind, so countries can adapt taxes to the new challenges of the global economy.

With a dynamic private sector, vast natural resources, free access to the world’s biggest market, and the commitment to improving business environment, Guyana is a prime position to attract investments. This is a winning recipe for Guyana’s future.Best on all the above mentioned I’d like to assure you, Dear Readers, that it is my honour and privilege not only to witness the economic boom of Guyana but also to actively participate in reinforcing closer relations with Europe because of the potential it represents.

Sectoral

Performance INDUSTRY Budget Revised Half Year Budgeted Actual 2014 2013 2013 2013 2012 % % % % % Agriculture, Fishing and Forestry Sugar Rice Other Crops 5.0 4.2 2.0 4.2 5.3 Livestock Fishing Forestry Mining and Quarrying Bauxite Other Manufacturing Sugar Rice Other Manufacturing Electricity and Water Construction Wholesale and Retail Trade Transportation and Storage Information and Communication Financial and Insurance Activities Public Administration Education Health and Social Services Real Estate Activities Other Service Activities

5.2 15.6 1.1 5.0 3.3 2.2 3.3 2.8 11.5 1.4 7.1 15.6 1.0 8.5 7.2 7.5 4.5 8.4 4.2 11.8 0.0 4.0 3.8 9.0 7.6

2.3 (14.4) 26.9 4.2 4.3 (6.5) 5.0 8.0 (11.0) 12.0 8.0 (14.3) 26.9 5.4 5.6 22.6 (0.9) 4.0 5.9 11.2 2.5 3.5 4.0 5.6 (3.0)

4.2 (32.5) 25.1 2.0 1.9 (8.8) 34.7 17.9 24.4 25.3 5.9 (32.5) 25.1 2.5 5.3 6.6 9.0 (8.8) 3.1 9.1 0.0 1.4 1.9 1.2 3.4

Source: Ram & Mc Raeâ&#x20AC;&#x2122;s Budget Focus 2014

3.7 10.1 4.3 4.2 4.0 2.0 (5.6) 3.0 6.5 2.3 4.4 10.1 4.3 3.0 4.0 10.0 6.5 7.8 4.5 12.0 0.0 3.5 4.4 4.0 8.0

3.7 (7.8) 5.0 5.3 14.4 15.5 (4.3) 14.8 12.5 6.2 2.4 (7.8) 5.0 4.2 5.7 (11.0) 6.7 18.9 4.2 13.8 1.4 2.2 3.1 4.5 4.0

EXCLUSION OF LIABILITY & DISCLAIMER Neither in the text nor in any note in this article, is Ram & McRae offering any professional or legal advice. While every effort has been made

Ram & McRae

INVESTMENT SUPPLEMENT

to ensure that the information is accurate, Ram & McRae shall not be liable to any person or entity for any loss or damage caused or alleged to be caused directly or indirectly by use of any information or any error contained herein.

Georgetown, Guyana ÂŠ JOHN GREENE

Ram & McRae Chartered Accountants Professional Services Firm 157 “C” Waterloo Street, Georgetown, GUYANA Telephone: Facsimile: E-mail: Website: LinkedIn: Facebook:

(592) 226-1072 (592) 225-4221 info@ramandmcrae.com www.ramandmcrae.com bit.ly/ram_mcrae bit.ly/accedogy bit.ly/ramandmcrae bit.ly/JoinAccedo

Ram & McRae is a firm of Chartered Accountants with a distinct focus... the desire to provide a dedicated personalised service designed to meet the needs of our clients… services that adhere to the highest professional standards and provided at fees within the financial resources of our clients. The firm provides a full range of integrated services including:

• • • • • • • • •

Published: 10 March 2014 © Copyright Ram & McRae 2014. All rights reserved. No reproduction, copy or transmission of this publication, in part or in whole, may be made without prior written permission. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution or civil claims for damages.

Accounting Audit and assurance Business planning Business and share valuation Corporate services (including company formation, secretarial services) Corporate tax compliance and planning Individual and expatriate tax compliance Payroll preparation and management Paymaster, our in-house developed payroll software

We also offer a unique compilation of business and tax legislation, including our Consolidated Tax Acts of Guyana, and other publications including our Value-Added Tax and Excise Tax Handbook. Accēdō Inc., a service company of Ram & McRae, was established in 2012 by the partners of the firm to offer a wide range of Human Resources services to bring potential employees and employers in contact with each other. Services offered by Accēdō include: • • • • • •

Search and Selection/Recruitment Outsourcing Temporary Staff Work Permits and Visas Compensation and Benefits Surveys HR Consultancy

INTRODUCTION

The information contained in this supplement was prepared by Ram & McRae, Chartered Accountants, to provide investors, both domestic and foreign, with an overview of matters to consider in establishing and conducting business in Guyana. It is intended to provide information to assist those persons to understand the business environment in Guyana, without making any specific recommendations on their choice of business activity or mode of operation. While the countryâ&#x20AC;&#x2122;s tax laws are not particularly complex, they offer several opportunities to the investor. However, if tax planning is not done within the law and on the basis of sound professional advice, the risks of the tax authorities setting the transaction(s) aside is greater. We have taken great care to ensure the accuracy of the information but since this represents a summary only it should not be considered an authoritative statement of any specific matters of law. To avoid any pitfalls but more especially to take maximum advantage of the opportunities offered by Guyanaâ&#x20AC;&#x2122;s developing economy, readers are advised to contact the firm for specific professional advice. We also invite and welcome your specific enquiries on our wide range of professional services.

LEGAL AND ECONOMIC LANDSCAPE

Guyana, a former British colony,

attained independence within the British Commonwealth in May 1966 and became a Cooperative Republic in February 1970. Constitutionally Guyana has a mixed presidential and Westminster system of government while its judicial system reflects the country’s English common law heritage. Guyana operates under a “dualist” system of international law by which international agreements take legal effect through the enactment of implementing legislation. International agreements that have not been incorporated into domestic law cannot be invoked before the courts and have at best only persuasive effect under Guyanese law. The open economy is primarily based on agriculture, eco-tourism, forestry, fishery and mining of bauxite, gold and diamonds. Efforts continue to promote non-traditional agricultural produce and aquaculture, and a number of companies have begun exploration for oil and gas. Under a Low Carbon Development Strategy (LCDS) being promoted by the Government of Guyana, the economy offers attractive opportunities for businesses in new and expanding sectors that pursue environmentally friendly activities. To confirm its commitment to fostering a favourable environment for growth and creating opportunities by improving its political climate, maintaining a stable macroeconomic environment, modernising the

traditional growth sectors and rehabilitating and expanding the physical and social infrastructure, the Government in 2004 passed the Investment Act setting out the incentives and guarantees to both foreign and domestic investors. Guyana is a founder member of CARICOM, a regional trade and political bloc, giving its products wider access to the CARICOM market under the CARICOM Single Market and Economy (CSME) which creates a single economic space and provides for the eventual free movement of goods, services, capital and persons. It is also a beneficiary under the Caribbean Basin Initiative (CBI) through which many of its Guyana’s products gain preferential treatment into the US and enjoy duty-free treatment under the Generalised System of Preferences (GSP). The Caribbean Court of Justice (CCJ) is the final court of appeal for Guyana. Special access arrangements are also in place to the European Market under the Economic Partnership Agreement (EPA), to Canada through CARIBCAN, and to other countries through bilateral agreements. More recently, Guyana became a member of UNASUR, the grouping of South American nations.

ESTABLISHING A LEGAL PRESENCE IN GUYANA

A decision to do business

in Guyana requires the investor to consider the appropriate form of the business unit from both a legal and tax standpoint. If the investor is a corporate entity established in another jurisdiction the issue will be whether to incorporate a new company or register as an external company. Guyanese investors have the option of incorporating a company or doing business as a partnership or sole trader. The latter two do not constitute a separate legal entity but require registration under the Business Names (Registration) Act. Companies are regulated under the Companies Act which is modelled after the Canadian Business Corporations Act.

Constituting under the Companies Act Incorporation Incorporation is effected when one or more persons or entities or a combination thereof agree to form a company in Guyana by filing Articles of Incorporation and, optionally, By–Laws. On the issue to it of a Certificate of Incorporation, the company becomes a legal entity with all applicable rights, powers and privileges.

Registration Registration is effected where a company incorporated or formed under the laws of another country chooses not to incorporate locally but to register as an external company under the Companies Act. This requires the filing with the Registrar of Companies of a statement containing specified information about the company. Registration does not create a separate legal entity but effectively provides legal recognition of the foreign company in Guyana, giving it a right to sue in the courts of Guyana. Registration is required in certain circumstances. Duties on both a fixed and ad valorem basis are payable on incorporation or registration. Annual returns and other filings are required periodically.

LIABILITY TO TAX Taxation of income in Guyana is based on the

source principle, i.e. where the income is earned, as opposed to residence or where income is received. The general principle is that income earned in Guyana is taxable in Guyana. An individual is considered resident in Guyana if he/she resides or intends to reside permanently in Guyana or resides in Guyana for more than 183 days in the year. Residence and non-residence is determined by the location of the mind and management in respect of companies. Individuals and companies resident in Guyana are subject to tax on the world income basis. However, in the case of individuals who have earned income arising outside of Guyana, only that portion that is received in Guyana is subject to tax. A non-resident person or corporation carrying on trade or business is only liable to tax on income derived from Guyana regardless of where the income is received. A temporary resident individual is not liable to tax on income arising abroad whether received in Guyana or not.

Double taxation treaties Double taxation treaties are in force with Canada, member states of CARICOM (except Suriname), and the United Kingdom. These treaties are intended to mitigate the effects of double taxation, eliminate tax evasion and encourage trade and investment. Under the various treaties, the standard 20% rate of withholding tax applicable to dividends, rentals, royalties, management charges, etc. may be reduced, while the income earned by an entity may be limited to tax in the country in which such income was earned or a tax credit available in the other country. Individual Income Tax Income is defined in the Income Tax Act as any gains or profits from any trade, business, profession or vocation for whatever period of time it may have been carried on or exercised in Guyana. Individuals are taxed at the rate of 30% on income in excess of $600,000 per annum or $50,000 per month. Individuals who are employed pay taxes by payroll deduction on the pay-as-you-earn (PAYE) basis. Self-employed individuals are required to pay taxes quarterly in advance on the first day of April, July and October and December 31 of each year. Tax returns are to be filed by, and any balance of tax payable becomes due on, April 30 in the following year. Corporation Tax All companies and branches of foreign companies are subject to tax on the income reported in the company’s financial statements subject to certain adjustments required under the tax laws. The rate of tax for commercial companies (see definition below) is forty percent (40%) and for non-commercial thirty percent (30%). Telephone companies are taxed at the rate of forty-five percent (45%).

INVESTMENT SUPPLEMENT Where the taxes payable by a commercial company for any year is less than two percent of its turnover, minimum corporation tax (MCT) of 2% of turnover is payable. MCT is recoverable in those subsequent years when the taxes payable are greater than 2% of turnover. A commercial company is defined as ‘a company that derives at least seventy-five percent (75%) of its gross income from goods not manufactured by it, or if it is engaged in telecommunication, banking or insurance other than longterm insurance’. Corporation Tax is payable in advance quarterly instalments on the preceding year’s tax liability. Advance tax payments are due on the 15th of March, June, September and December of each year. However, the Commissioner-General may require the company to calculate the payments based on estimated income for the current year. Tax returns are to be filed by, and any balance of tax payable become due on, April 30 in the following year. Deductibility of expenses The Act allows for tax purposes the deductibility of all expenses of a revenue nature wholly and exclusively incurred in the production of income. The principles of deductibility are generally similar to those which apply in North America and the United Kingdom. Deductions for administrative, technical, professional or other managerial service fees paid to a non-resident company or branch, referred to in the Act as “head office expenses”, may not exceed one percent (1%) of annual turnover. Charitable donations are not deductible unless these are made to a prescribed organisation or under a deed of covenant. Losses Losses may be carried forward indefinitely to be recovered against future years’ profits. The loss recovered in any one year may not reduce the tax payable by more than fifty percent (50%) or, in the case of commercial companies, to less than 2% of turnover. The tax laws do not allow for loss carry backs. Other matters Special provisions are applicable to Gold and Diamond mining companies, companies with petroleum operations, insurance companies, non-resident shipowners and several other types of companies.

BG LIABILITY TO TAX cont’d Property Tax Resident individuals and companies and non-residents with net property, as defined in the law, in Guyana are liable to Property Tax. Property includes tangible and intangible property, cash, receivables and other rights. Liabilities are deductible in arriving at net property. The rates and bands applicable are as follows: • Individuals: No property tax is payable on net property below $40,000,000; the remainder is taxed at 0.75%. • Companies: No property tax is payable on net property below $10,000,000; the next $15,000,000 is taxed at 0.5% and remainder at 0.75%. For property acquired prior to January 1, 2011 the value for property tax purposes is the value at that date plus subsequent additions at cost, less allowances for wear and tear. The deadline for filing of tax returns and payment of property taxes is April 30 of the following year. Capital Gains Tax Capital Gains Tax at the rate of 20% is payable on the net chargeable gains on the disposal of capital assets. Gains derived on capital assets acquired and disposed within twelve (12) months are taxed as ordinary income. Gains derived from the disposal of assets held for more than twenty-five years or on the transfer of shares or stock held in a public company are exempt. The deadline for filing of tax returns and payment of capital gains taxes is April 30 of the following year except that the Revenue Authority may request the payment of the tax prior to granting any applicable compliance certificate. Excise Tax and Value-Added Tax Value-Added Tax applies to all taxable supplies of goods and services made by a taxable person in Guyana and to all imports other than exempt imports. The standard rate is 16% whilst goods and services specified in Schedule I of the VAT Act are taxable at zero rate and others specified in Schedule II are exempt. All persons making taxable supplies in excess of $10,000,000 are required to register and once registered will be considered taxable persons.

VAT paid (input VAT) is deducted from VAT collected (output VAT) to arrive at the amount of VAT payable or refundable for the month. VAT paid on passenger vehicles (under ten seats), accommodation, entertainment, and subscription to associations and clubs of a sporting, social, or recreational nature are not deductible as input VAT. Excise Tax is imposed on specific imported or home-produced goods. These are Petroleum products, Tobacco products, Alcoholic beverages, and Motor vehicles. The filing of returns and the payment deadline for value-added taxes is fifteen working days after the period end while for import of services it is twenty days after the import and for Excise taxes, it is fifteen calendar days. Withholding tax Distributions and payments to non-residents are subject to withholding tax at the rate of 20% under the Income Tax Act. The tax is to be deducted by the person making the payment and remitted to the Guyana Revenue Authority within thirty days. A distribution or payment subject to withholding tax is not liable to any other tax. Payments include interest on any debt, other than a temporary bank loan or trade account; rentals; royalties; management charges or charges for the provision of personal services and technical and managerial skills; commissions, fees and licences; discounts, annuities or other annual or periodic payments. Insurance premiums, other than for long term insurance, paid to foreign companies are subject to withholding taxes at the rate of 10% (or 6% where the company has established a place of business in Guyana). Under the Corporation Tax Act, a person making a payment to any non-resident company on account of any contract undertaking must deduct and pay over withholding tax at the rate of 10% of the amount paid to the Guyana Revenue Authority. Unlike withholding taxes under the Income Tax Act, the amount deducted in respect of a contract undertaking is not a final tax but is creditable against the corporation tax liability of the nonresident contractor. Penalties and interest Failure to comply with the tax laws including the filing of returns, to pay taxes on or before the due dates, to make a false return and to deduct and pay over employee and withholding taxes carry significant penalties and interest.

LIABILITY TO TAX cont’d BOOKS AND RECORDS

INVESTMENT SUPPLEMENT

Under the Companies and Tax Acts, adequate accounting records to give a true and fair view of the state of the entity’s affairs are to be maintained. For companies, registers must be kept for Share and Debenture Holders, Directors and Officers along with minutes of meetings and resolutions of Directors and Shareholders. Financial statements filed with annual and tax returns must comply with International Financial Reporting Standards and the Companies Act, and be accompanied by an audit report issued by a practising member of the Institute of Chartered Accountants of Guyana (ICAG). Pegasus Hotel, Georgetown, Guyana

FISCAL INCENTIVES Guyana’s Constitution recognises

and protects private property and provides for the payment of prompt and adequate compensation, including interest. On the request of the private sector, in 2004 the Government of Guyana passed the Investment Act to reinforce the Income Tax (In Aid of Industry) Act, the principal incentive legislation. The Investment Act forbids discrimination between private foreign and domestic investors, or among investors from different countries. It specifies that investment enterprises may be wholly owned by foreign investors and allows unrestricted repatriation of profits after tax obligations have been met, both for companies and the net earnings of foreign personnel working in Guyana. With respect to the protection of property rights, the Act limits the circumstances under which the Government may compulsorily acquire any investment enterprise or the assets of an investor. Certain investments in identified sectors and in particular regions will almost automatically qualify for tax holidays for up to 10 years, while certain types of activities will benefit from a range of fiscal concessions. Fiscal incentives include: • Tax holidays; • Waivers of import duty on specified machinery, equipment and raw materials; • Certain goods and services are completely exempt from Value Added Tax while a whole range are taxed at a zero rate, including transactions falling under an investment agreement entered into with the Government; • Generous capital allowances under the Income Tax (In Aid of Industry) Act to certain key trades and businesses. These are in addition to the normal wear and tear allowances given for tax purposes.

To enhance the application and approval process, the investment promotion agency, the Guyana Office for Investment (GOINVEST), has been given wide powers and charged with facilitating new domestic and foreign investments that are consistent with the country’s development thrust. Incentives in certain sectors are handled by sector specific agencies such as the Geology and Mines Commission for mineral exploration and mining. Investment guarantees All investors in Guyana are guaranteed the full protection of the Constitution and the Investment Act. In this regard, Guyana is a signatory to the International Convention on the Settlement of Investment Disputes between States and Nationals of other States (ICSID) and to the Multilateral Investment Guarantee Agreement (MIGA). In addition, Guyana qualifies for insurance of United States investments in accordance with the scheme operated by the Overseas Private Investment Corporation (OPIC).

INVESTMENT SUPPLEMENT

t n

WORK PERMITS The laws of Guyana

require that nationals of certain countries hold a visa permitting them entry into Guyana. On the other hand the nationals of CARICOM countries falling within certain professional groups or holding a skills certificate under the CSME enjoy certain privileges. Foreign Nationals are required to obtain a work/residence permit from the Ministry of Home Affairs if desirous of being employed in Guyana. It is the obligation of the employer to apply for the work permit by providing the prescribed information in a timely manner. The process can take between 3-6 weeks.

SOCIAL SECURITY National Insurance

The National and Social Security Act provides for the compulsory participation in the National Insurance Scheme. There is no provision which would allow the employee, the employer or a self-employed person to exempt him/herself from participation. The Scheme provides for the payment of short-term, longterm and cash benefits on the basis of the number and level of contributions made by the employed person and his employer or by himself if self-employed. Contributions at the following rates are compulsory and must be deducted by the employer and paid over by the 15th of the month following the month for which the deduction is made: Employee Employer

5.6% of insurable earnings 8.4% of insurable earnings

Where an employee earns below $50,000 per month, the rates of 5.2% and 7.8% respectively will apply with the Government paying 1%. Only the employer is required to contribute - at the rate of 1.5% - where the employee is below 16 or above 60 years of age. The self-employed contributes at a rate of 12.5% of insurable earnings. The maximum amount of insurable earnings on which contributions are payable is $158,159 or its equivalent weekly or fortnightly amounts while the minimum amount of insurable earnings for self-employed persons is $49,384 per month.

Umana Yana, Georgetown, Guyana ÂŠ JOHN GREENE

FOREIGN EXCHANGE ISSUES

Guyana has abolished all exchange controls

and the Guyana Dollar floats freely according to market conditions. Bank and non-bank cambios easily facilitate the conversion and payment of foreign currency and business houses readily accept payment via foreign currency cheques, wire transfers or credit cards. The Customs Act requires a declaration to the Comptroller of Customs when bringing in or taking out of Guyana more than ten thousand US dollars or its equivalent in any other currency. The Bank of Guyana Act provides that all monetary obligations or transactions in Guyana (whether imposed or authorised by a law or otherwise) are deemed to be expressed and recorded, and shall be settled, in Guyana dollars unless otherwise provided for by law or agreed between the parties. However, such an agreement requires the permission of the Bank of Guyana following consultation with the Minister. Non-resident companies require permission of the Minister of Finance to borrow funds locally. Under the Foreign Exchange Miscellaneous Act, the permission of the Minister of Finance is required for: the lending to or borrowing from any person in Guyana other than an authorised dealer of any gold or foreign currency; the act of any person resident in Guyana which involves, is in association with, or is preparatory to borrowing any gold or foreign currency from, or lending any gold or foreign currency to any person outside Guyana; the operation of a foreign currency account; and the lending by a person in Guyana of money or securities to a company resident in Guyana but controlled by a person resident outside Guyana.

ATTRACTING FOREIGN INVESTMENT

Generally, the foreign investments

in which Guyana is interested are those which, among other things: strengthen the infrastructure, with particular reference to services such as financial services, tourism, telecommunications, airport and airline services, shipping and port facilities, hydropower and other electricity generation, housing and hotel accommodation; increase exports and foreign exchange earnings; save expenditure of foreign exchange on imports; develop the countryâ&#x20AC;&#x2122;s natural resources in an environmentally sustainable manner; promote the development and transfer of technology; and promote employment growth and development through the strategic location of economic activities. Ownership of Investments There are, in general, no restrictions on the proportion of private or foreign ownership of any enterprise or asset. A foreign investor could choose to invest alone, or in partnership with other foreign/local investors and entrepreneurs under the Companies Act. However, under section 333 of the Act, an external company shall have the power to hold land as may be authorised by licence of the President of Guyana. There are also certain restrictions on the size of mining and forestry concessions which foreign investors may hold. The Investment Act also allows for the repatriation of interest, capital and income by foreign companies and their personnel. The repatriation of capital out of Guyana is not subject to taxation.

BG LICENSING

A variety of licensing

and other regulatory requirements are in place with the following being the principal agencies and their areas of responsibility:

Agency

Area of responsibility

Bank of Guyana

Banking and finance, Insurance, Money transfer, Foreign currency dealing, Credit reporting

Guyana Securities Council

Public companies, Securities offered to the public, Unit trusts, Stock brokers

Financial Intelligence Unit

Money Laundering

Registrar of Companies

Company formation, maintenance

Registrar of Friendly Societies

Friendly Societies (charities)

Occupational Safety and Health Authority

Occupational safety and health

Environmental Protection Agency

Environmental Impact Assessments

Central Housing and Planning Authority

Property development, building codes

Guyana Revenue Authority

Taxes, Miscellaneous licences (shops, liquor, tobacco,

National Insurance Scheme

Social Security

Guyana Geology and Mines Commission

Mining and exploration

Guyana Forestry Commission

Forests, logging, timber exports

Pesticide and Toxic Chemicals Control Board

Pesticides and toxic chemicals

Guyana National Bureau of Standards

Goods and services standardisation

Chief Co-operatives Development Officer

Co-operative Societies, Credit Unions

Transport & Harbours Department

Vessels, ports, bridges

Civil Aviation Authority

Air transport, navigation

Guyana Energy Agency

Petroleum and petroleum products

Guyana Tourism Authority

Tourist facilities, tour guides

ANTI-MONEY LAUNDERING

The Anti-Money Laundering and Countering the Financing of Terrorism Act

addresses money laundering, terrorism, serious offences, and requirements for reporting entities. The Act is regulated by a Financial Intelligence Unit within the Ministry of Finance. Among the offences listed as “serious” in the Act are terrorism, trafficking in persons, drugs, ammunition, sexual exploitation,

corruption and bribery, counterfeiting, smuggling and insider trading. The Act provides for unlawful proceeds from such crimes to be identified, traced, frozen, seized and forfeited. Reporting entities are required to establish and maintain records as set out by the Act and to report suspicious transactions to the Financial Intelligence Unit. Such entities include banks, money transfer agencies, cambios, pawn-broking entities, credit unions, casinos, used car and car parts dealers, insurers and unit trusts. Attorneys-at-law, notaries, other independent legal professionals and accountants are considered reporting entities in respect of certain clients’ transactions, namely, buying and selling real estate, managing client monies, etc.

The law provides

for the compulsory recognition by the employer of a union which has the support of the majority of the entityâ&#x20AC;&#x2122;s employees. Even in the absence of a union, legislation provides for working hours, the payment of overtime, holidays with pay, occupational health and safety, termination of employment and severance or redundancy pay.

COMPETITION AND FAIR TRADE

INVESTMENT SUPPLEMENT

T LABOUR

Coastline, Georgetown, Guyana ÂŠ JOHN GREENE

CONSUMER PROTECTION The Consumer Affairs Act

seeks to promote and protect consumer interests in relation to the supply of goods and services. This Act is also regulated by the Competition and Consumer Affairs Commission. The Act addresses duties of suppliers in matters such as displaying prices, refunds and warranties, unfair trade practises such as dual pricing, pyramid selling and tied goods or services, unfair contracts, electronic sale transactions, and defective and unsafe products.

This Competition and Fair Trading Act seeks to promote competition

in trade practises and prohibit anti-competitive business conduct in the interest of consumers. The Act is regulated by the Competition and Consumer Affairs Commission which is empowered, inter alia, to investigate businesses practices including anti-competitive agreements, abuses of dominant positions, resale price maintenance arrangements, bidrigging, and misleading advertising.

BG GUYANA’S DIPLOMATIC & CONSULAR REPRESENTATIVES

BELGIUM His Excellency Dr. Patrick I. Gomes Ambassador Extraordinary & Plenipotentiary 12 Avenue du Bresil 1050 Brussels, Belgium Tel: (32) 2-675-6216 Email: embassy9.guyana@skynet.be BRAZIL Mr. Cel. Paulo Gomes dos Santos Filho Honorary Consul Rua Lauro Muller Nr. 116 Grupo 2604 Torre do Rio Sul Botafogo - Rio de Janeiro 22290-160, Brazil Tel: (21) 25429595/25410191 Email:oficial.chancelaria@consuladoguianario. com.br CANADA His Excellency Mr. Rajnarine Singh High Commissioner 151 Slater Street Suite 309 Ottawa KIP 5H3 Canada Tel: (613) 235-7249/235-7240 Email: guyanahcott@rogers.com

GREECE & MIDDLE EAST His Excellency Mr. George Hallaq Presidential Envoy Arithmos Stavros 3 & Makka 1 Emplokib, Athens Greece 11503 Tel: (301) 813-73-20/1 Email: guyanamissiongr@gmail.com INDIA His Excellency Mr. Ronald Gajraj High Commissioner B-3/20 Vasant Vihar New Delhi - 110057 India Tel: (9) 111-4166-9717/8 Email: hcommguy.del@gmail.com JAPAN Mr Tasuku Hasemura Honorary Consul Nissho Iwai Building 4-5 Akasaka 2 Chome Ninato - KU Tokyo 107 Japan Tel: (81) 3-3406-3363

PEOPLE’S REPUBLIC OF CHINA Ms. Anyin Choo, Charge d’Affaires No. Xiu Shui DongJie Jaing Guo Men Wai Beijing People’s Republic of China Tel: (861) 532-1601/532-2066 Email: guyemb@public3.bta.net.cn

PERU Mr. Jorge A. Alarcon Revilla Honorary Consul General AV.Jose Pardo 231 Piso 4 Miraflores Lima 18-PER Tel: (51) 1-445-5339/1-447-6688 (51) 1-98588-4758 Email: esalarcon@terra.com.pe

CUBA Her Excellency, Mrs. Mitra Devi Ali Ambassador Calle 17, No. 506 Entre Avenidas 5ta y 7ma Miramar Havana - Republic of Cuba Tel: (537) 204-2094 Email: embguyana@enet.cu

KOREA Dr. Wan-Hee Kim Honorary Consul 31BL 4LT, Namdong Industrial Complex 608-3 Namchon-dong, Namdong-Ku Incheon, Korea Tel: (82) 2-780-2447 Email: whkim@tricoint.co.kr

RUSSIA Mr. Oleg Viktorovich Krivonogov Honorary Consul Consulate of Guyana 13/1 Nikoloyamskaya Str. Moscow, 109240, Russia Tel: (007) 095-728-4910 SOUTH AFRICA Mr. Kojo Parris Honorary Consul SPESA 1 West Street Houghton Estate Johannesburg 2198 South Africa Tel: (27) 11-771-4000 Email: kojo@socialprivateentrepreneur.com

UNITED KINGDOM His Excellency Mr. Laleshwar Singh High Commissioner 3 Palace Court Bayswater Court London W2 4LP - United Kingdom Tel: (44) 171-792-1178/171-229-7684 Email: guyanahc1@btconnect.com GUYANA EMBASSY & PERMANENT MISSION TO THE ORGANIZATION OF AMERICAN STATES - WASHINGTON, DC, UNITED STATES OF AMERICA His Excellency Mr. Bayney Karran Ambassador Extraordinary & Plenipotentiary 2490 Tracy Place N.W Washington, D.C. 20008 USA Tel: (202) 265-6900/265-3834 Email: guyanaembassydc@verizon.net

SURINAME His Excellency Mr. Keith George Ambassador Gravenstraat No. 82 P.O. Box 785 Paramaribo - Republic of Suriname Tel: (597) 477-895/472-509 Email guyembassy@sr.net

GUYANA PERMANENT MISSION TO THE UNITED NATIONS His Excellency. Mr. George Talbot Permanent Representative 801 2nd Ave #501 New York, NY 10017 Tel: (212) 573-5828-9 Email: Guyana@un.int

SWEDEN Mr. Per Goran Eklund Honorary Consul Consulate of Guyana Odengatan 33 SE-11351 Stockholm, Sweden Tel: (46) 8 408 27 853 Email: pereklund20@yahoo.com

GUYANA CONSULATE GENERAL NEW YORK, USA Mr. Brentnol Evans-Consul General Consulate General of Guyana 370 7th Avenue 4th Floor Seven Penn Plaza, New York, N.Y. 10001 Consul General: (212)-947-5115 Passport Section: 212-947-5112 Tel: (212) 947-5110/947-5111

TURKEY Mr. Erol K. Makzume Honorary Consul Consulate of Guyana Veko Giz Plaza, 2nd Floor No. 3-4 Meydan Sokak 34398 Maslak Istanbul, Turkey Tel: (90) 212-290-2950/212-223-5047 Email: guyanaconsulate.tr@makzume.com erolmakzume@makzume.com

VENEZUELA His Excellency Mr Geoffrey Da Silva Ambassador Extraordinary & Plenipotentiary Quinta Los Tutis, Segunda Avenida entre Novena y Decima Transversal, Altamira, Chacao, Caracas, Venezuela Tel: (58) 212-267-7095 Email: embguy@cantv.net

EMBASSIES & CONSULATES

Embassy of the Argentine Republic 66 Brummel Place, Stabroek Georgetown Tel: (592) 231-9521-22 Email: eguya@mrecic.gov.ar embargentinagy@gmail.com

Embassy of the Peopleâ&#x20AC;&#x2122;s Republic of China 2, Mandela Avenue Georgetown Tel: (592) 227-1651/2 Fax: (592) 225-9228 Email: chinaguyana@yahoo.com

Consulate General of the Netherlands 24 Water Street (In Care at John Fernandes) Tel: (592) 227-3344; 226-3241/2 Email: kristelvincent9@gmail.com

Embassy of Australia 82 Premnaranjan Place Prashad Nagar Georgetown, Guyana Tel: (592) 665-1198 Fax: (592) 231-0799 Email: j.altmann@troyres.gy

Embassy of the Republic of Cuba 46 High Street, Kingston Georgetown Tel: (592) 225-1881/83 Fax: (592) 226 1824 Email: emguyana@networksgy.com

Consulate of Norway 364 Omai Street Prashad Nagar Georgetown Tel: (592) 223-5096

Embassy of the Federative Republic of Brazil 308 Church Street, Georgetown Tel: (592) 225-7970; 227-5790 Fax: (592) 226-9063 Email: brasemb.georgetown@ itamaraty.gov.br

Delegation of European Commission 11 Sendall Place Stabroek Georgetown Tel: (592) 226-4004/5424 Fax: (592) 226-2615 Email: delegation-guyana@eeas.europa.eu

Embassy of the Russian Federation 3 Public Road, Kitty, Georgetown Tel: (592) 225-2179; 226-9773 Fax: (592) 227-2975 Email: embarus.guyana@mail.ru consrus.guyana@mail.ru

British High Commission 44 Main Street, Georgetown Tel: (592) 226-5881-4 Fax: (592) 225-3555 Email: bhcguyana@networksgy.com

Indian High Commission 307 Church & Peter Rose Sts. Georgetown Tel: (592) 226-3996/8965 Fax: (592) 225-7012 Email: hoc.georgetown@mea.gov.in

Embassy of the Republic of Suriname 171 Peter Rose & Crown Streets Queenstown Tel: (592) 226-7844; 225-2846 Fax: (592) 225-0759 Email: surnmemb@gol.net.gy

Embassy of the Bolivarian Republic of Venezuela 296 Thomas Street South Cummingsberg, Georgetown Tel: (592) 226-1543/6749 Fax: (592) 225-3241 Email: embve.gygto@mppre.gob.ve

Embassy of Mexico 44 Brickdam, Stabroek Georgetown Tel: (592) 226-3987-90 Fax: (592) 226-3722 Email: mexicoembassygy@gmail.com

Canadian High Commission High & Young Street Kingston, Georgetown Tel: (592) 227-2081-5 Fax: (592) 225-8380 Email: grgtn@international.gc.ca

Embassy of the United States of America 99-100 Young & Duke Streets Kingston, Georgetown Tel: (592) 225-4900-9 Fax: (592) 225-8497 Email: usembassy@yahoo.com

business

contacts

PRIVATE SECTOR ORGANISATION

CHAMBERS OF COMMERCE

BUSINESS ORGANIZATIONS

Private Sector Commission Umbrella organization for most private sector business and employer organizations. Most major companies are also members.

Georgetown Chamber of Commerce and Industry 156 Waterloo Street, North Cummingsburg Georgetown Tel: (592) 227-6441; 225-5846 Tel/Fax: (592) 226-3519 Email: gccicommerce2009@gmail.com Website: www.gcci.gy

Consultative Association of Guyanese Industry 157 Waterloo Street, North Cummingsburg Georgetown Tel: (592) 226-4603; 225-7170 Fax: (592) 227-0725 Email: ramchancagi@aol.net.gy

157 Waterloo Street, North Cummingsburg Georgetown Tel: (592) 225-0977 Fax: (592) 225-0978 Email: office@psc.org.gy Website: www.psc.org.gy Forest Products Association of Guyana 157 Waterloo Street, North Cummingsburg Georgetown Tel: (592) 226-9848 Fax: (592) 226-2832 Email: fpasect@guyana.net.gy Guyana Manufacturers’ & Services Association 157 Waterloo Street, North Cummingsburg Georgetown Tel: (592) 223-7405-6 Fax: (592) 225-5615 Email: gma_guyana@yahoo.com Website: www.gma.org.gy Guyana Rice Producers’ Association Public Road, Crane, West Coast Demerara Tel: (592) 254-2012/13 Email: kumarraj7167@yahoo.com Institute of Private Enterprise Development 253 South Road, Bourda, Georgetown Tel: (592) 225-8949; 226-5913 Fax: (592) 223-7834 Email: rameshpersaud@ipedgy.com iped@ipedgy.com Website: www.ipedgy.com Tourism & Hospitality Association of Guyana 157 Waterloo Street, North Cummingsburg Georgetown Tel: (592) 225-0807 Fax: (592) 225-0817 Email: thag.secretariat@gmail.com Website: www.exploreguyana.org

Berbice Chamber of Commerce and Development 12 Chapel Street, New Amsterdam, Berbice Tel: (592) 333-3324 Email: bccda@guyana.net.gy Linden Chamber of Industry, Commerce & Development 97-98 Republic Avenue, McKenzie, Linden Tel: (592) 444-2901 Fax: (592) 444-4057 Email: infolindenchamber@gmail.com Website: www.lindenchamber.org.gy Rupununi Chamber of Commerce and Industry Block ‘A’ Takatu Drive, Lethem, Rupununi Region 9 Tel: (592) 772-2213 Email: rupununircci@yahoo.com rupununircci@hotmail.com Upper Corentyne Chamber of Commerce & Industry 157 Line Path ‘B’ Corriverton, Berbice Tel: (592) 339-2935 Fax: (592) 335-3738 Email: uccci_9@yahoo.com uccci.chamber@gmail.com Central Corentyne Chamber of Commerce 65 A Public Road, Rose Hall Town Corentyne, Berbice Tel: (592) 337-4778/5120 Email: central_chamber@yahoo.com West Demerara/East Bank Essequibo & Islands Chamber of Commerce and Industry Ocean View Dr. Ruimzeight, West Coast Demerara Tel: (592) 269-0020/0030 Fax: (592) 269-0022 Email: sase_shewnarain@hotmail.com rose.ramdhan88@gmail.com

GOVERNMENT OFFICES & AGENCIES Ministry of Tourism Industry & Commerce 229 South Road, Lacytown, Georgetown Tel: (592) 226-2505 Fax: (592) 225-4310 Email: wmilton_ps@yahoo.com Ministry of Foreign Trade & Int’l Co-operation 254 South Road, Bourda, Georgetown Tel: (592) 227-7726 Fax: (592) 223-0900 Email: eharper2010@gmail.com Guyana Office for Investment (GO-INVEST) 190 Camp & Church Streets, Georgetown Tel: (592) 227-0653 Fax: (592) 225-0655 E-mail: goinvest@goinvest.gov.gy Website: www.goinvest.gov.gy Guyana Rice Development Board 117 Cowan Street, Kingston, Georgetown Tel: (592) 225-8717 Fax: (592) 225-6486 Email: singhjagnarine@gmail.com Guyana Tourism Authority National Exhibition Centre, Sophia, Georgetown Tel: (592) 219-0094/6 Fax: (592) 219-0093 Email: info@guyana-tourism.com Website: www.guyana-tourism.com REGIONAL ORGANISATIONw Caribbean Community Secretariat (CARICOM) P.O. Box 10827, Turkeyen, Greater Georgetown Tel: (592) 222-0001/75 Fax: (592) 222-0171 Email: registry@caricom.org Website: www. caricom.org INTERNATIONAL ORGANISATIONS The World Bank 87 Carmichael Street, South Cummingsburg Georgetown, Guyana Tel: (592) 233-5036 Email: gmcdaniel@worldbank.org Inter-American Development Bank (IDB) 47 High Street, Kingston, Georgetown, Guyana Tel: (592) 225-7951 Fax: (592) 225-7951 Email: IDBGuyana@iadb.org

FINAL SAY

by Ian McDonald

Ian McDonald is renowned Guyanese author, poet, sportsman, and business executive. He is a recipient of many national honors and accolades and currently writes a weekly column for the local Stabroek News newspapers.

“

A CRUSADE WE ALL CAN JOIN

The global poverty rate has been cut in half in the last 20 years – so why not try our best to eliminate poverty in the next 20? Guyana, joining in this world-wide crusade enshrined in the United Nations “millennium development goals,” is seeking to reduce poverty towards zero. Reaching towards this objective achieves all the element of a better life – longer and healthier life-spans, improved literacy and greater access to education at all levels, a huge increase in worthwhile jobs, reduction of crime and greatly enhanced security of persons and property, enjoyment of a wider range of goods and efficient public services and, since material good is not the be-all and end-all of existence, increased opportunity to develop and participate in those “activities of the mind and soul” which distinguish a nation when at its best in peace and prosperity. Happily, the goal of poverty reduction is not a contentious issue in partisan politics. The government of the day and those who seek to take their turn in governing can readily agree in this national purpose and should have no difficulty regularly meeting to thrash out the best policies and programmes to achieve the objective. It goes without saying that poverty reduction arises from the creation of wealth. And the creation of wealth depends crucially on attracting capital and technology from abroad. And this will happen much more readily if the conditions are found to be favourable to maximizing returns for the capital and technology invested. This involves the planning, building, expanding and maintenance of infrastructure to service growing economic activity. Without such works progress will inevitably be stymied and delayed. Also essential are a responsive and honest public service, a police force clearly on top of criminal activity, an independent judiciary, banking which operates efficiently and according to international

“

norms and an educational system which can turn out the young men and women to meet the needs of rapidly developing business activity. Asking for all this may seem a tall order and it is. But it is by no means all that is necessary in achieving poverty reduction. Poverty reduction also entails fairer income distribution. One estimate has found that two thirds of the recent fall in poverty world-wide has been the result of growth but, very importantly one third has come from greater equality. Martin Ravallion, until recently the World Bank’s head of research, in a Working Paper surveying 125 developing countries, found that more equal countries cut poverty further and faster than unequal ones. The Ravallion study reckons that a 1% increase in incomes cut poverty by 0.6% in the most unequal countries but by 4.3% in the most equal ones. This sends a clear and insistent signal to us in Guyana. We must do everything possible to create more wealth but also make very sure that the share-out is fair. The fruits of wealth creation must be de-concentrated. And not only that. Just as justice must not only be done but be seen to be done so wealth must not only be equitably shared but be seen beyond doubt to be equitably shared. One very good reason why corruption is such a burning issue is that it is a disgraceful manifestation of wealth creation skewed blatantly in favour of a selected few. This is why it is absolutely critical to make sure that independent bodies such as the Procurement Commission must become permanent, functioning features of our national life. And it is also why the watch-dogs of democratic societies, the media, must be treated even-handedly under the law – no special favours, no cosy insider deals, no secret concessions, no buddy bias in public funding. Poverty reduction can only be accelerated if all are involved. And all can only be involved when it can clearly be seen that everyone is getting an equal chance to benefit.

Exploring for oil ... Investing in Guyana. We are pleased to be partnering with a number of partners from the educational sector in Guyana the following projects: •

Queen’s College Old Students’ Association Annual Fundraising BBQ

•

ISA Islamic School to purchase a Laptop computer, LCD Projector

•

Saraswati Vidya Niketan towards the School’s building for their new Science Laboratory

•

Providence Primary School to help with the renovation of the existing space at the school to create a computing laboratory and to equip the laboratory with computers, networking equipment, printers, etc. CGX Energy Inc. will be donating the time of its IT technician to help train students and teachers in use of the equipment, which we will maintain in good working condition and repair. CGX will also provide the laboratory with a subscription to high speed internet

•

Student Program for Innovation in Science and Engineering (SPISE) to support a Guyanese student to attend an intensive four-week enrichment residential summer program for promising Caribbean high-school students who are interested in studying and exploring careers in science and engineering.

•

Covent Garden Secondary School: Sponsorship of a financially challenged high school student who is a talented cricketer to purchase cricketing gear

CGX Country Manager, Mr. Tarachandra Khelawan presenting a cheque for $1.2M to Ms. Petal Jettoo of NCERD while Co-Chairman, Professor Suresh Narine looks on. CGX Energy Inc is a Canadian-based oil and gas exploration company focused solely on the Guyana Suriname basin. The company is significantly vested in the social fabric of Guyana, with a Guyanese co-founder, two board directors who are Guyanese, a Guyanese Co-Chairman and Guyanese country manager. The company has a long history of engaging in the development of Guyana through its social responsibility expenditures, which it regards as investments in the social fabric and competitiveness of Guyana.

In 2014, CGX ENERGY INC. will be investing, GY $10,000,000. Our focus is on education, and having made significant investments already in the research and development sector of the country, we are in 2014 focussing at the primary and secondary schools’ level.

210 New Market Street, North Cummingsburg, Guyana Tel: (592) 227-0529/227-0521 333 Bay Street, Toronto, ON, Canada M5H 2R2 or 16360 Park 10 Place, Suite 310, Houston, TX ,USA 77084. Toronto Office (416) 364-5569 | F (416) 364-5400

Inspired by our past ... Excited about our future!