The Start of a New Era

GUYANA THE START OF A NEW ERA

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JANUARY - FEBRUARY 2018

www.foreignaffairs.com/guyana2018 City Hall - Photo courtesy Dwayne Hackett

GUYANA: THE START OF A NEW ERA p.1 The Start of a New Era p.2 Guyana Invites Investment Economic Integration is the Way Forward p.3 Natural Resources Power the Country p.4 Landmark Projects Revamp Infrastructure p.7 Construction on the Rise p.8 Opportunities Abound p.10 Enhancing Guyana’s ICT p.11 Better Education Through Better Connectivity p.11 Tourism Taking a Leap SPONSORED SECTION | GUYANA-1 Kaieteur Falls - FotoNatura Image GUYANA THE START OF A NEW ERA

www.foreignaffairs.com/guyana2018 THE COOPERATIVE REPUBLIC OF GUYANA, ONE OF SOUTH AMERICA’S SMALLEST AND WIDELY UNKNOWN NATIONS, IS ON THE VERGE OF DRAMATIC ECONOMIC CHANGE. The discovery of large offshore oil and gas reserves opens new opportunities for a country rich in natural resources and with strategic access to the markets of North and South America. A new government of national unity, elected in 2015, is committed to turning Guyana into a more competitive economy and to creating a “Green State”.

Guyana is one of the world’s true green gems. It has preserved much of its original environment and a unique level of biodiversity. 75% of its land area is covered in virgin rain forest. With a population of less than 800,000 and a land area larger than England and Scotland combined, Guyana is one of the least populated countries on earth. Agriculture and the mining of minerals, such as gold, bauxite, and diamonds, have long dominated the economy. But Guyana’s new government, under President David Granger, is now working on the country’s economic transformation. The David Granger government places great emphasis on education, President of the Cooperative Republic of Guyana infrastructure development, and job creation as factors for more inclusive growth. “Our top priority is human development,” says President Granger. While remaining the world’s green lungs, we will “We want an educated population that can make have cheap energy to drive agro-processing and use of our abundant resources.” industrial development and, in the process, create With support from the United Nations value and jobs for our people.” Environment Programme, the government has set The government plans to turn Guyana into a out a development strategy, known as the Green more diversified and more resilient economy. State Development Strategy (GSDS), that promotes Revenue from the exploitation of oil and gas a fundamental reorientation and diversification of reserves that were discovered off Guyana’s coast Guyana’s economy as part of a green economy. will help bankroll this process. When oil production “We are looking at green energy, protected areas, starts in 2020, Guyana will be able to export nearly biodiversity, preservation of our rain forests, all of it. “Guyana’s development will not depend on ecotourism, and eco-education services,” says oil and gas production, but will accelerate owing to President Granger. the exploitation of hydrocarbons,” explains Joseph The GSDS aims to make Guyana a “green state” Harmon, Minister of State at the Ministry of the success story that might inspire others to follow Presidency. As President Granger puts it, “We will its example. As Prime Minister Moses Nagamootoo be walking on two legs. We will have a petroleum explains, “We orientate our national policy towards economy and a green economy, walking side by a green economy because we have the potential side, neither contradicting nor dominating one for renewable energy to drive the local economy. another.” SPONSORED SECTION | GUYANA-2 Guyana Invites Investment Guyana’s strategic location and English-speaking five-year Strategic Action Plan to reverse this trend. workforce are major assets to the country’s growth “Our strategic plan is to increase investments, objectives. Situated in South America’s North-East, improve the business environment, increase the Guyana offers natural access to the markets of exports of value-added products, and create better North America, the Caribbean, and South America. opportunities for small businesses,” says Dominic And for Brazil, the continent’s major trading power, Gaskin, Minister of Business. Since then, Guyana Guyana represents the most direct connection to the has advanced 16 positions on the World Bank’s Caribbean. Being the only English-speaking country Ease of Doing Business ranking. in South America also counts as an advantage for The discovery of oil resources has significantly international companies seeking access to the raised Guyana’s attraction as an investment continent. destination, but other sectors also offer abundant “European and American companies actually opportunities. “We have identified tourism, forestry see Guyana as a hub, as a gateway to South products, and agro-processing as priority sectors America,” says Joseph Harmon, Minister of State that we want to promote and tie to our investment at the Ministry of the Presidency. “Amazon.com, strategy,” says Gaskin. “It is imperative that we for example, makes its shipments first to Guyana, diversify our range of exports. We need to ensure using it as a hub for various destinations in South that sectors with a potential for value-added goods America.” are given the best possible opportunities to develop.” Despite these assets, Guyana has had difficulties In agriculture, Guyana has tremendous attracting private-sector investment. The inflow of potential and could turn into the bread basket of FDI has declined sharply in recent years. In 2016, the Caribbean. “We have huge areas of land for FDI fell to a low of $58 million, compared to $121 agricultural production. With the food that we million in 2015 and $255 million in 2014. produce here in Guyana we can feed the entire In 2015, the Ministry of Business launched a region,” says Harmon.

Economic Integration is the Way Forward Guyana is decidedly outward-looking and enjoys that it may be a consideration for investors,” says friendly relations with all global and regional Granger. “But we believe we have law and justice on powers, including the United States, China, Russia, our side. We work within the UN process and expect and Brazil. The country maintains close links to bring the territorial controversy to a peaceful and with several international bodies. It is a member successful conclusion.” of the Commonwealth and of the World Trade What concerns Guyana more are evolving trade Organization (WTO), as well as a founding member relations with the European Union (EU), one of the of both the African, Caribbean and Pacific (ACP) world’s largest trading blocs, and the UK’s decision Group and the Caribbean Community (CARICOM). to exit the EU. Carl B. Greenidge, Vice-President and The very headquarters of CARICOM are based Minister of Foreign Affairs, explains, “As members in the country’s capital, Georgetown. President of the ACP Group, we are currently looking at a new Granger says that “Guyana is fully engaged as a agreement with the EU. At the same time, the UK partner in regional and international organizations. Brexit decision has economic implications for us. The future is bright in terms of our international The UK is a major market for us in terms of sugar relations.” and bauxite and if tariffs change, this will have an A protracted border dispute with neighboring impact on the quantities that we can export.” Venezuela, which may negatively sway some As a result, Guyana will seek to strengthen investors, is likely to be resolved at an international relations with other EU markets, as Dominic Gaskin, level. Despite several tribunals having settled the Minister of Business, explains. “The EU market is argument in Guyana’s favor, most notably the 1899 very attractive. We have an Economic Partnership Arbitral Award in Paris, which Guyana stands by and Agreement that allows a favorable entry of several Venezuela has declared null and void, Venezuela products from our CARICOM region into the EU and has extended its claims to the country’s maritime we are not taking full advantage of it. As we are space, following Guyana’s oil discoveries. “While trying to develop our value-added industries, this is this issue remains to be settled, we understand the direction that I would like us to take.” SPONSORED SECTION | GUYANA-3 Natural Resources Power the Country Guyana’s rich natural resources have long been catering, and administration, and more services the driving force behind the country’s development. will be required in the future. A recently established Mining, agriculture, and forestry have grown into business development center will assist small- and major industries, due to Guyana’s large areas of medium-sized Guyanese businesses in building their fertile land, rare and valuable timber, and important capacity and improving their competitiveness in a mineral deposits, including gold, bauxite, and range of sectors that serve the oil, gas and other diamonds, among others. industries. With the discovery of oil and gas, but also with Most of the produced oil will be destined for export, greater government support for renewable energies, providing Guyana, still one of the poorest countries more natural resources are now being put into the in South America, with a significant new source of country’s service. The country’s rapidly evolving income. The government intends to maximize the energy sector adds an entirely new dimension to value of future revenues for society by introducing Guyana’s economy. careful controls on the use of these resources. “We recognize there is a tremendous potential for damage, Oil Becomes a Game Changer as we have seen in other countries. A sovereign Oil giants such as Shell, Total, and Mobil have wealth fund will be the main means by which we been exploring for oil in Guyana since the 1940s. ensure that we do not squander what we have, and But the 2015 discovery of high-quality, oil-bearing that other important aspects or pillars of our economy off-shore sandstone reservoirs immediately drew do not suffer,” explains Trotman. international attention. Exploration company Exxon Mobil announced the find as one of the largest oil “It is important that savings from the discoveries of the past decade. The total recoverable sovereign wealth fund will ensure protection amount of oil could be worth more than $200 billion of the environment and biodiversity, and at today’s market prices. In June 2017, Exxon Mobil took the final investment provide benefits for citizens.” decision for the first phase of development that Raphael Trotman, Minister of Natural Resources will eventually produce approximately 450 million barrels of oil. Production is expected to begin by 2020, just five years after discovery. Renewable Energy in Full Stream by 2025 For Guyana, oil production is a novelty. The Parallel to the exploitation of hydrocarbon reserves, government must quickly get up to speed and put in the government is planning a radical change in place the necessary legal and regulatory framework the choice of sources of energy. Under the Green to facilitate the process. “Over the next three years State Development Strategy, the government we are working to bring ourselves up to the capacity foresees replacing all other sources of energy with to ensure that we can participate meaningfully in renewables by 2025, with hydrocarbons playing only the production,” says Raphael Trotman, Minister of a transitional role. “We have been advised that there Natural Resources. “We are working very closely is a substantial amount of natural gas available to with several development partners, including the us and we are discussing how that gas can be used United Nations Development Programme and the as an interim measure to transition us into 100% U.S., Mexican, and Canadian governments.” renewable energy,” explains Trotman. The government has proposed the construction As the ‘land of many rivers’, Guyana has an of a $500-million processing facility and oil-services enormous potential for hydro power. “We have 72 base, as well as a gas power plant and connecting potential sites for hydro power that could cover pipelines. “The trajectory is for expanded oil more than our present and future needs and we production and that requires significant onshore are currently exploring our options,” says Trotman. facilities that have the capacity to provide all the “We are also working with the Inter-American support that an offshore oil and gas industry would Development Bank (IDB) on the Arco Norte project need,” says Dominic Gaskin, Minister of Business. to provide power to an entire region. The idea is to Guyana’s economy stands to benefit enormously build a 4,000-megawatt dam in Guyana and then from these developments, in terms of job creation export this power.” and long-term development. About a hundred local Opportunities also exist for solar and wind power companies already provide a range of services, and the government has begun exploring these including in engineering, security, transportation, options in a bid to meet its target for 2025. SPONSORED SECTION | GUYANA-4 Landmark Projects Revamp Infrastructure The Essequibo River flows north through Guyana over with Guyana. “This is our silk road,” says Patterson. a length of more than 1,000 kilometers, dividing the “For northern Brazil, the Linden-Lethem road link country into roughly two halves. Yet, there is not a will be the most viable route to reaching the Atlantic single bridge crossing the river along its course. This Ocean. We estimate that between 35,000 and 60,000 is emblematic of the lack of infrastructure that has containers annually will travel along this road.” slowed the country’s economic development. The first construction phase, including 122.5km The government is now investing heavily in the of road and a bridge across the Essequibo River, is nation’s infrastructure, through the construction of funded by the government of the United Kingdom. bridges, road networks, airport infrastructure, sea As Patterson explains, “Physical work is expected to defenses and renewable energy sources. “We allocate start within 2018 and to be completed by 2020. For funds for infrastructure development not only to the remaining 330km, we are currently reviewing all overcome obstacles in our development but to also options, including private partnerships, arrangements act as a catalyst for this very development,” says David for toll roads and concessions, including special Patterson, Minister of Public Infrastructure. “We have economic zones, to name a few.” The road will to increase connectivity between the hinterland and the eventually connect with a future deepwater port that coastland and to implement projects in key areas that will complete the transport link for northern Brazil and will complement our development goals.” promote Guyana’s ambitions as a transshipment hub. One important investment is the $150 million In addition to the Linden-Lethem road, the upgrade and extension of the Cheddi Jagan International government plans the construction of 600km of new Airport, scheduled for completion by April 2018. When roads by 2025, providing transport connections to completed, its runway will be one of the longest in the villages on the east bank of the Essequibo River. “The Caribbean, able to accommodate large transatlantic project has great economic potential. It will replace aircrafts. “Our objective is to create an air transport river transportation and will give access to two to three hub for passengers and cargo between North and million acres of land. All designs are complete and South America,” says Patterson. “We have commenced we are seeking interested partners to implement the discussions with the biggest airlines in the U.S. for air work,” says Patterson. cargo and passengers.” For the private sector, these developments The government considers building a second represent a huge opportunity. As Patterson explains, international airport on the border with Brazil, “The government has neither the capacity nor the anticipating increased trade with its powerful neighbor. technical skills to manage all these projects. We would For the same reason, the government is investing like the private sector to perform all the implementation in another landmark project, the construction of a work related to new roads, new airports, and the 455km road corridor linking the northern part of Brazil deepwater port.” SPONSORED SECTION | GUYANA-5

Patterson concludes that the impact will be A Boost for the Shipping Industry significant. “At the end of the process, by 2030, we Despite Guyana’s Atlantic Ocean coast and a network expect our country to be uniquely positioned, fully of rivers, the country has not fully exploited its powered, fully linked and serving as a hub for our South opportunities in shipping. Relatively shallow waters American partners.” still limit the size of vessels that can use the country’s seaports, inland river transport and ferry services. GPL: Meeting the Demand for Energy As Patterson explains, the government is now Investments in the energy sector are partly driven by preparing an upgrade of the country’s port facilities. the government’s goal to offset all energy needs with “As part of our mid-term planning we project the renewable sources by 2025. “This year the government establishment of a deepwater port to cater to imports spent about $6 million on hydro and solar projects and and exports in our growing economy. We will begin is expected to continue to do so each year until 2025,” the site selection process next year.” Improvements says Patterson. have also begun in the country’s rivers and Patterson State-owned Guyana Power and Light Inc. (GPL), says that the shipping fleet is also now under review. the main supplier of electricity in Guyana, welcomes “We have an aging fleet of cargo vessels that are on the uptake of renewable energy. “We fully support the average 40 years old. We have started a process of use of renewable energy,” confirms Renford Homer, renovation, bringing in newer vessels and retiring the CEO of GPL. “In addition to obvious environmental aged stock.” benefits, we expect that using a mix of energy sources will reduce our production costs and create financial GNIC: A Tradition in Shipping Services benefits for GPL and ultimately our customer.” Companies in the sector are prepared to seize the GPL plays a pivotal role in Guyana’s economy. opportunities following such an upgrade as well as Homer explains, “In 2001, we had approximately from oil and gas production. Clinton Williams, CEO of 120,000 customers. Today we are close to 186,000 the Guyana National Industrial Company Inc. (GNIC), customers and expect to see our customer base grow a joint venture between Laparkan Holdings Limited by 3-4% annually. We anticipate accelerated growth and National Engineering Co., confirms this. “We after our country realizes commercial production of see opportunities coming from four sectors: in agro- oil. Our challenge at this point is to maintain adequate, processing and more generally agriculture, in the reliable generation capacity to meet current and transportation of goods, in mining and quarrying, and of projected demand while continuing to improve the course, in the oil and gas sector,” says Williams, quality of our supply.” GPL is pushing to install more capacity and to make services more reliable. “Over the years we have significantly reduced outages. But as people become more dependent on electricity, we have to enhance our utility to a level where we can guarantee 100% supply 24/7,” says Homer. The company intends to execute the second phase of its Infrastructure Development program that would include construction of an additional four sub-stations. “The expectation is to improve reliability in our service and reduce our technical losses,” says Homer. GPL also intends to continue to extend its network into unserved communities in the counties of Demerara, Berbice, and Essequibo. “Our objective is to extend our network and deliver electricity services, wherever it is economically feasible,” says Homer. GPL also anticipates fresh demand from foreign investors. As Homer explains, “We can potentially see the emerging oil and gas sector attracting foreign companies to Guyana. There is a tremendous possibility for GPL to be a major player in the provision of electric services. This underscores our efforts to transition into a utility that can deliver a product and service that meets and exceeds customers’ expectations.” SPONSORED SECTION | GUYANA-6

adding, “Our emphasis continues to be on maritime These are opportunities that we need to pursue and services, transportation and equipment, marine type that will result in our facilities being able to receive vessels, and inland transportation.” larger vessels,” says Williams. “We act as agents for GNIC currently operates the country’s largest Jan De Nul, a large dredging company operating from wharfing and industrial facilities and is strategically Belgium. They will be able to assist us in addressing located in Georgetown, Guyana’s capital on the the challenge of shallow drafts.” Demerara River, approximately 1.2km from the Atlantic “We have also been working as contractors with Ocean. The company, which has been described as shipping lines, including Tropical Shipping, Intermarine, a mini industrial conglomerate, is involved in every and Caribbean Line, to discharge and unload cargo. We type of port operation, ship building and repairs, and want to expand our relationships and invest in our equipment rental, as well as engineering design, facilities to become more efficient,” says Williams. construction and project management. GNIC is confident about its role in the wider “The oil and gas sectors offer tremendous economy. As Williams points out, “The ability to respond opportunities that will allow us to develop our to market demand and to move products to market has infrastructure and our capability in shipyard and been our strength for years.” engineering services,” says Williams. “We are already engaging with some of Exxon’s subcontractors to land VIEIRA: Professionalism is the Word some of the pipes that will be used for the subsea E.C. Vieira Investments Ltd is another local business operations, take them to a site for fabrication works, that stands to benefit from greater demand for and bring them back here ready for installation. We shipping. The company started as a shrimp trawling are now in the process of negotiating how we can best business in 1981, but has since developed into a mature do this. We have to consider road infrastructure, lifting organization offering ship repair services. equipment, lifting expertise and construction.” As Edmond Vieira, Managing Director of E.C. GNIC has begun upgrading its wharf and port Vieira Investments, explains, “For the last 25 years facilities by expanding its existing wharf, converting we have been in the service and repair business, it into a more solid cement structure, and installing offering dry docking of vessels and barge building. We new storage facilities. They also foresee a role in perform a large number of repairs in the Caribbean development projects that aim at creating better area on vessels weighing up to 2,000 tons light ship infrastructure for shipping. “Dredging and development displacement. For the past 10 years we have remained of the deep-sea port are naturally high on our agenda. about the same size, yet we have increased efficiency. Now with the government’s potentially greater financial capability due to oil on stream, we expect they will upgrade their fleet and carry larger budgets for the maintenance of the marine sector.” E.C. Vieira Investments is a natural partner for the growing number of international companies operating in Guyana and the region. “We employ the largest number of steel workers in Guyana. We have over 100 skilled welders, burners and fabricators and can deploy over 50 welders under production at any time,” says Vieira. “We also have the capability to lift the largest vessels in Guyana.” “We have done a lot of jobs for international customers and for us this has raised the bar a little higher than if we just worked for local businesses. We have worked with the Dutch company Boskalis, one of the world’s larger dredging companies, for now more than 25 years. We also work with Danish dredging company Rohde Nielsen and we have completed several projects for British tug and barge company JP Knight.” Apart from providing ship repairs, Vieira is keen to explore other opportunities. “We also want to diversify and maybe expand into land preparation for storage, rentals, warehousing, providing office space and the introduction of heavy lift capabilities.” SPONSORED SECTION | GUYANA-7 Construction on the Rise The construction and housing sectors have consistently “For us, the oil and gas sectors represent a rather out-performed other sections of the economy. Both exciting opportunity, where we hope to showcase our are essential for Guyana’s social and economic leadership qualities in the construction industry,” development. Courtney Benn, CEO of Courtney Benn explains Benn. “There will be opportunities for the Contracting Services Ltd. (CBCSL), one of the country’s fabrication of tanks, the installation of pipelines and most renowned civil works construction companies, a range of civil and mechanical works that we are explains, “The construction sector in Guyana is limited capable of delivering.” but competitive and its development leads to the A range of new technical and mechanical jobs will expansion of the country. The creation of road networks, be required relating to oil and gas production, pushing for example, enables development and expansion to companies to prepare in time. For Benn, “Our growth far-off communities resulting in population shifts away strategy over the next 5-6 years involves increased from the coastal regions. Once you have an expanded staff training and improvements in equipment capacity. development base, it presents the opportunity for Some of our strongest segments of operations are in business and residential housing.” shipbuilding, ship repairs, and steel fabrication. But in The government’s ambitious development plan and some areas of general construction we certainly aim to the impending onset of oil production come as a boost strengthen our capacities.” to the industry. “With the emergence of the oil and gas Like other companies in the country’s construction sector, Guyana is set to experience an oil revenue boom sector, CBCSL must deal with fluctuating costs and in 2020 and beyond,” says Benn. CBCSL is responsible the occasional materials shortage in Guyana, as well for several flagship developments, including Guyana’s as a lack of skilled and trained personnel. But Benn first 8-door sluice, the Doppler Radar Tower, the says, “CBCSL has been able to distinguish itself by University of Guyana Berbice Campus in Tain, Guyana’s employing the best workers ranging from engineers first forensic laboratory, the reconstruction of Broad to skilled tradesman. We strive to uphold our own Street, and the construction of floating stations for the standards to strengthen our reputation as a trusted Guyana Defense Force and the Guyana Police Force. household name.” SPONSORED SECTION | GUYANA-8 Opportunities Abound As part of its Green State Development Strategy, Early in the process, Nand Persaud recognized the government is making an aggressive push for the need for higher value-added goods. As Ragindra the development of high value-added industries. Persaud, CEO of Nand Persaud & Company Ltd., The focus is placed on higher value in agriculture, explains, “We started selling bulk rice, but this did forestry, mineral processing, eco-tourism, and not make us competitive. So, in 2000 we launched the fish industry. Agriculture and agricultural the Karibee rice brand, which is now sold in most processing represent some of most promising CARICOM countries, the U.S., Europe, and we are sectors in Guyana’s diversification strategy. just getting started in Cuba.” “Guyana is endowed with an abundance of “We are pushing the potential for value-added agricultural sources.” says Noel Holder, Minister of products, more than anyone else,” says Persaud. Agriculture, emphasizing that Guyana has “highly “For example, we feel that we can sell a lot of fertile soil in the coastal areas, currently used for aromatic rice. There is demand. It is not a big market, rice and sugar cane production, while Guyana’s but it is a niche market with very high margins. We extensive savannahs translate to untapped are also looking at organic rice and at the same time opportunities for dairy, beef, mutton, cashews, trying to make it profitable for farmers.” legumes, soybeans and numerous other products. Rice is not the only commodity that Nand Moreover, Guyana is also open to foreign investors Persaud is working on. “We are also looking to interested in developing niche markets, such as invest in the sugar sector,” explains Persaud. “The aromatic rice and medicinal crops which can lead government wants to privatize part of a sector to high-value commodities.” that so far has been 100% state owned. We think this offers great opportunities. Demerara sugar is Nand Persaud: At the Forefront of known world-wide and if we can brand it properly, Development then we can change the dynamics of the entire Nand Persaud & Company Ltd. is a perfect example sugar sector in Guyana. “ of a company seizing its opportunities in Guyana. Nand Persaud has also developed opportunities What started as a small rice milling company has beyond the food sector. “One of the areas into which developed into a company with diversified interests we diversified is business process outsourcing and control over 60% of the rice market in Guyana. (BPO); we operate call centers. We are also active in the manufacturing of plastic materials and in packaging. We are now getting into renewable energy and are looking for more projects in that area,” says Persaud.

ANSA McAL: Leaders in Distribution ANSA McAL Trading Ltd. (AMTL) represents another success story. One of the largest distribution companies in Guyana, it operates as a subsidiary of the ANSA McAL Group, which has its roots in Trinidad and Tobago and has grown to become one of the biggest companies in the region, comprising over 50 companies in Guyana, Grenada, Barbados, St. Kitts and Nevis, and the United States. In Guyana, ANSA McAL services approximately 95% of Guyana’s population with a total of more than 3000 SKUs of products across four major divisions, including pharmaceuticals, construction, consumer products, and beverages. This includes household names such as Carib, Heineken, and Pringles. “Over the last 25 years, ANSA McAL in Guyana has experienced rapid growth and development in all areas of its business and has become an integral player in the economic activities of the SPONSORED SECTION | GUYANA-9 Republic Bank, the leading bank in the the in bank leading the Bank, Republic greater social inclusion,With a view of supporting benefit Introduction of this new “digital era” will Managing Director of Republic Bank (Guyana) Ltd. (Guyana) Bank of Republic Director Managing of Association Guyana the of Chairman current and Bankers, explains. is of 30% by assets, a market share country with effort by directing the government’s complementing bank’s technology to improve the resources increased network infrastructure to accommodate customer’s growing need for activity and meet “Looking services. online and electronic seamless 3-5 years, our focus will be on forward to the next technology and integration,” operational efficiency, says Sammy. working towards addressing theGuyana’s banks are services in under-served,limited reach of financial partly by developingof Guyana, hinterland regions andalternative channels, such as mobile banking, As capabilities. digital their enhancing by partly inSammy explains, “The time is fast approaching be viewed asGuyana where technology will no longer business.”an option but as a pre-requisite for doing and both the banks in terms of cost and efficiency the quality the citizens. At the same time, improving will foster of financial services across the country sectors and the development of communities and drive a diversified growth for the economy. The system navigated through the global The system navigated through the global The six banks active in the sector are no longer no are sector the in active banks six The Despite some market difficulties, AMTL difficulties, AMTL Despite some market In many ways, AMTL epitomizes the ideal of In many ways, AMTL government-owned and are quite diverse with with diverse quite are and government-owned respect to type, structure and ownership. Republic Bank is the largest domestic private bank, with a 180-year history and is presently a subsidiary of the Republic Financial Holdings Ltd. Group, which has a strong presence in the region. The Canadian Scotiabank and the Indian Bank of Baroda remaining the while banks, international two are three banks are for the most part owned by local Guyanese conglomerates. economic crisis smoothly “due to the simplicity of very strong, services offered and a and the products solid asset base in the country,” Richard Sammy, Guyana’s banking sector is relatively small, but it Guyana’s banking sector is relatively capital currently enjoys healthy liquidity and strong Over the adequacy and it is on a growth trajectory. past decade, the sector has shown unprecedented billion and growth, resulting in an asset base of $1.9 a 130% total lending of $874 million, representing and 220% growth respectively. Banking on Growth regional integration, by offering regional and by offering regional and regional integration, to the Guyanese market and international products employs it Today a Guyanese workforce. utilizing and indirectly provides work to more than 200 people brand representatives large numbers of promoters, and entertainers. “The Guyana. in opportunities find to continues the legal country’s socio-economic environment, supply business framework, and an unreliable power of continue to be challenges for the development says a truly competitive business environment,” been ready Cadogan, but adds, “Guyana has always continues for new investment opportunities and this of being to be the situation even after 50 years committed an independent nation. Our Group is and this is to diversifying its portfolio in Guyana the media, demonstrated through investments in creating industries, automotive and services retail, even more employment for Guyanese.” country which has helped shape and enhance the and enhance shape has helped which country says Troy Cadogan, does business,” way Guyana (AMTL). “In more Director of ANSA McAL Managing in Guyana, AMTL has of operations than 25 years to the country’s more than $250 million contributed towards a corporate over $10 million coffers and investments with program responsibility social and other social in sport, culture, communities, programs.” SPONSORED SECTION | GUYANA-10 Enhancing Guyana’s ICT Following his successful election in 2015, President to 10 Mbps connection and are now pushing Granger quickly gave his full support to the residential 50 Mbps connection. The acceleration telecommunications sector. Guyana’s very first and the growth of ICT and broadband in Guyana has Ministry for Telecommunications was established been driven by GTT’s presence in the market.” in January 2016 and a new Telecommunications The stability of service means that many Act was adopted in July 2016. The legislation business process outsourcing (BPO) companies foresees further liberalization of the market and the have begun establishing operations in Guyana, establishment of a telecommunications agency in a including international players, such as Qualfon regulatory function, with the intent of encouraging and Teleperformance. Nedd explains, “The ICT growth and helping to bridge the digital divide. sector is seeing significant growth and we should Catherine Hughes, Minister of Public expect even greater adaptation of ICT following a Telecommunications, explains, “We had to recent move to 4G and eventually the extension open up the market because we needed more to 5G, which we expect in the next five years. We players who were prepared to go into the under- increasingly see young people and entrepreneurs served areas of Guyana. We think there are good leveraging ICT to break the barriers that have business opportunities. The country’s particular existed for traditional businesses. The local ICT topography means that we have many areas with sector demonstrates that we can operate on a no connectivity, which has a direct impact on global scale. Many Guyanese, returning from their development, on telecommunications, and on studies abroad, bring the necessary skills to help the provision of government services.” Guyana the ICT sector evolve.” currently has a mobile penetration rate of about GTT’s future growth is tightly linked with the 85% and a landline penetration rate of about 36%. country’s development. As Nedd explains, there is GTT, the dominant player in the market, offers still room for improvement. “In some areas, our expanded landline and mobile services and internet regulatory framework must still catch up with the data packages. “Like any telecommunications demands of customers. In rural areas, connectivity is company, GTT has transformed itself from voice still not good, and the government has a key role to communication to data communication,” says play in the expansion of broadband in those areas.” Justin Nedd, CEO of GTT. “The landing of a sea cable But ultimately Nedd is optimistic about the company’s connection in 2010 was a milestone for Guyana. We prospects. “If the country does well, so does GTT. We have seen more than 10% growth in broadband grow side-by-side. As more foreign direct investment connections over the last four years. And the speed flows into Guyana, the demand for GTT and others in of broadband has increased over the same period; the market is to provide better services. This has a we have moved from 1 Mbps broadband connection positive influence on the company.” SPONSORED SECTION | GUYANA-11 At the same time, the creation of so-called ICTAt the same time, the Its differentiated eco-tourism product offering ofIts differentiated eco-tourism product offering thealign will Policy Tourism National “The Produced by: www.worldprofilegroup.com own fiber-optic network to provide free internet network to own fiber-optic and vocational and schools secondary to access country. And in some across the technical institutions rooms, allowing we budget for e-class bigger schools virtually participate to areas remote in students the country. We have in other parts of in classes all school teachers in Guyana,also given laptops to and teaching material, to givecomplete with curricula to prepare their lessons.”them the opportunity and hinterland communitiesHubs in poor, remote, divide. Thirty-ninedigital country’s bridge the helps established since 2016 and 100such hubs have been ICT access, eServices, andmore are planned, offering provide free internet access todigital learning. “We an opportunity for onlinethese hubs, which provide environmentlearning. We are developing an ICT-ready and population,” says Hughes. decision-makers will now allow Guyana to take itsdecision-makers will now allow Guyana rightful place in global tourism. rainforests, nature, and adventure distinguishes it from its Caribbean island neighbors which promote a sun and beach vacation. This is why Guyana will market and promote itself as a nature and adventure destination that offers unique cultural experiences, which resonates with the vision of being recognized internationally as a leading green destination by the year 2025. development of Guyana’s tourism industry with the vision, goals and objectives of the Green State Development Strategy and will ensure that the anticipated increased visitor arrivals deliver maximum benefits to the citizens of Guyana,” states Sinclair.

The provision of equal education across all parts all across education equal of provision The The government finalized the long-awaited NationalThe government finalized the long-awaited necessary the created have initiatives Prior Guyana’s irresistible combination of breathtaking of Guyana is made difficult by the fact that someof Guyana is made in remote and hard-to-accesscommunities exist has decided to make betterareas. The government to overcome theseuse of modern technologies Hughes, Minister of Publicdifficulties. Catherine havewe 2016, “Since explains, Telecommunications, We use ourfocused on increasing our connectivity. Providing better education remains an essential an remains education better Providing critical to supporting goal for Guyana and development The government has sustained growth. the country’s acrosseducation quality deliver to it a priority made more than $200For 2017, it has allocated all levels. “Educationeducation. budget to its or 17.2% of million, the human resources we needis the key factor for placingare We country. the develop to order in at all three levels: primary,emphasis on education says President Granger. secondary, and tertiary,”

Guyana has thus far not relied on tourism for economicGuyana has thus far not relied on tourism andgrowth, given its abundant natural resources a latestrength in agriculture. But despite being destinations, tourism Caribbean amongst starter internationaland investors to both attractive is it the tourisminto translated So far this has travelers. industry contributing 9% of GDP. market theTourism Policy in 2017 which aims to Withproduct “Guyana – South America Undiscovered”. includesthat ambitious marketing program highly a destination,rebranding, repositioning and renewal of Guyana andGuyana aims to “bring more visitors to Guyaneseenhance the impact of the industry on the economy and, in particular, the impact of nature-based livelihoods,” and economies hinterland on tourism of theexplains Donald Sinclair, Director General Department of Tourism in the Ministry of Business. conditions for this effort, such as the establishment of the Guyana Tourism Authority, a 46% increase in budgetary allocations for tourism, and a greater and otherof Guyana at international trade fairs visibility tourism events. This also resulted in a 14% increase in tourist visits in 2016, compared to the previous year. natural beauty, pristine Amazonian rain forests, immense waterfalls - Kaieteur Falls is one of the world’s most powerful and the tallest single-drop indigenousvibrant a and wildlife, amazing -, waterfall culture all make for an ideal tourism destination. Better coordination between the industry and national Tourism Taking a Leap Tourism Taking Better Education Through Better Connectivity Better Through Education Better “We will be walking on two legs. We will have a petroleum economy and a green economy, walking side by side, neither contradicting nor dominating one another.” David A. Granger, President of the Cooperative Republic of Guyana

“We orientate our national policy towards a green economy because we have the potential for renewable energy to drive the local economy. While remaining the world’s green lungs, we will have cheap energy to drive agro-processing and industrial development and, in the process, create value and jobs for our people.” Moses Nagamootoo, Prime Minister and First Vice-President

“As members of the ACP Group, we are currently looking at a new agreement with the EU.” Carl B. Greenidge, Vice-President and Minister of Foreign Affairs

“European and American companies see Guyana as a hub, as a gateway to South America.” Joseph Harmon, Minister of State at the Ministry of the Presidency

“We allocate funds for infrastructure development not only to overcome obstacles in our development, but to also act as a catalyst for this very development.” David Patterson, Minister of Public Infrastructure

“Our strategic plan is to increase investments, improve the business environment, increase the exports of value-added products, and create better opportunities for small businesses.” Dominic Gaskin, Minister of Business

“It is important that savings from the sovereign wealth fund will ensure protection of the environment and biodiversity, and provide benefits for citizens.” Raphael Trotman, Minister of Natural Resources

“We are developing an ICT-ready environment and population.” Catherine Hughes, Minister of Public Telecommunications

“Guyana is open to foreign investors interested in developing niche markets, such as aromatic rice and medicinal crops which can lead to high-value commodities.” Noel Holder, Minister of Agriculture

“The National Tourism Policy will align the development of Guyana’s tourism industry with the vision, goals and objectives of the Green State Development Strategy and will ensure that the anticipated increased visitor arrivals deliver maximum benefits to the citizens of Guyana.” Donald Sinclair, Director General, Department of Tourism - Ministry of Business “We anticipate accelerated growth after our country realizes commercial production of oil. Our challenge at this point is to maintain adequate, reliable generation capacity to meet current and projected demand while continuing to improve the quality of our supply.” Renford Homer, CEO of Guyana Power and Light Inc. (GPL)

“For us, the oil and gas sectors represent a rather exciting opportunity, where we hope to showcase our leadership qualities in the construction industry.” Courtney Benn, CEO of Courtney Benn Contracting Services Ltd. (CBCSL)

“If the country does well, so does GTT. We grow side-by-side. As more foreign direct investment flows into Guyana, the demand for GTT and others in the market is to provide better services. This has a positive influence on the company.” Justin Nedd, CEO of GTT

“The oil and gas sectors offer tremendous opportunities that will allow us to develop our infrastructure and our capability in shipyard and engineering services.” Clinton Williams, CEO of Guyana National Industrial Company Inc. (GNIC)

“Now with the government’s potentially greater financial capability due to oil on stream, we expect they will upgrade their fleet and carry larger budgets for the maintenance of the marine sector.” Edmond Vieira, Managing Director of E.C. Vieira Investments

“We are pushing the potential for value-added products, more than anyone else.” Ragindra Persaud, CEO of Nand Persaud & Company Ltd.

“Guyana has always been ready for new investment opportunities and this continues to be the situation even after 50 years of being an independent nation. Our Group is committed to diversifying its portfolio in Guyana.” Troy Cadogan, Managing Director of ANSA McAL Trading Ltd (AMTL)

“Looking forward to the next 3-5 years, our focus will be on operational efficiency, technology and integration.” Richard Sammy, Managing Director of Republic Bank (Guyana) Ltd. GUYANA THE START OF A NEW ERA

Published in JANUARY - FEBRUARY 2018