Creation of ICT parks, export zones

AMIDST growing international interest in Guyana’s economy, the new Government has committed to creating an enabling environment for business development through a seven-point plan which includes preserving the rule of law and democracy; improving the ease of doing business; enhancing national competitiveness; facilitating trade and investment; and supporting small businesses.

At a time when the world is faced with the dreaded effects of the novel coronavirus (COVID-19) pandemic, the importance of businesses and their role as the lifeline of any economy cannot be overlooked, said President, Dr. Irfaan Ali, in his address, during the American Chamber of Commerce’s (AMCHAM’s) virtual annual general meeting (AGM), on Friday.
In order for economic wealth to be distributed equitably, that wealth must first be created. If the “economic pie” does not grow, then there will be less to distribute. The larger the “economic pie”, the more there will be to share; if the economy contracts and business activity shrinks, the less there will be to distribute.
It is for this reason that President Ali said: “My Government unapologetically and unambiguously supports business development. My administration will not be neglectful or indifferent towards business. We will ensure a robust business environment in order to sustainably generate wealth and create jobs.”

The Government hopes to achieve this through a seven-point programme, which is now being fashioned to create an environment which is conducive for business.
The first element of the programme involves strengthening the country’s democratic framework.

Democracy is vitally important to national development and to providing comfort to investors that there is respect for the rule of law and, thus, their investments would not be subject to capricious actions.

The absence of democracy creates unfair playing fields, ‘clientelism’, predatory business practices and corruption. On the other hand, a strong relationship exists between democratic institutions and economic freedom. The latter fosters legitimate business activity and promotes investor confidence.
“We are therefore keen to ensure that democracy is protected so that our businesses can thrive in an environment of economic freedom,” said President Ali.
This, he said, will set the foundation for there to be ease of doing business, which is the second element of the programme.
The World Bank’s Ease of Doing-Business 2020 report showed that Guyana slipped two spaces in its rankings for 2019, relative to 2014. Among the problems identified in the report were the processing of construction permits, registration of property and the payment of taxes.

The Ministry of Tourism, Industry and Commerce will spearhead policies to reverse this slippage and to allow the country to climb the rankings, said President Ali.

Trade facilitation is another area which will receive the ministry’s attention. Issues such as delays in customs clearance, increase costs and reduce export competitiveness will soon be addressed through an electronic single window for trade, which will reduce time and costs.
“We will also be seeking to ensure that investors’ applications and requests are facilitated more promptly. As part of our agenda to improve ease-of-doing business, the Guyana Office for Investment (Go-Invest) is being restructured as a vehicle to attract and facilitate investment and export promotion,” said President Ali.

ENHANCING COMPETITIVENESS
But, although facilitation of investment is expected to be easier, the President said the Government will be working to enhance the competitiveness of local businesses.
Through the National Quality Infrastructure (NQI) project, the Government will create a catalyst for competitiveness and increased global market access. The NQI aims to improve the quality of local products and services, thereby stimulating greater demand. The implementation of the NQI will bolster the ability of local businesses to engage in global trade and increase their competitiveness therein.

The liberalisation of the telecommunication sector has already boosted business competitiveness. The cost of overseas telephone calls and bandwidth have begun to be reduced. With increased investment and competition in the sector, Guyana anticipates greater competitive gains.
“These efforts are in addition to the cost-cutting and competiveness-boosting measures announced in the 2020 Budget. Businesses will benefit from the removal and reduction of several taxes and fees such as the elimination of VAT on water and electricity, exports, building and construction materials and hinterland travel,” said President Ali.
These measures effectively put more money back into all businesses – large, medium or small- allowing them to reinvest, grow and create additional employment, while simultaneously attracting new companies to Guyana.

NEW MARKETS
Conversely, the Government plans to unlock new markets for traditional exports and create opportunities for new products, services and industries.
Such measures are expected to benefit particularly small businesses. The effects of COVID-19 have been devastating on those businesses, but President Ali has assured that they would not be left out of the development agenda.

Government, he said, will soon table, in the National Assembly, a Small Business Amendment Bill. This bill will expand the range of procurement opportunities for small businesses.
Further, the Government, he assured, will continue to vigorously pursue more avenues for increasing small businesses’ access to finance.

“We are committed to stimulating business development nationwide. We want business opportunities throughout Guyana and not solely concentrated in one or two regions. We want to see industries being developed throughout Guyana.

“As such we have a plan to establish industrial estates, ICT parks and export zones to stimulate manufacturing and increase trade. We will give preference to manufacturers and technology services for occupancy in these estates, zones and parks,” said President Ali.

In expanding the opportunities for businesses, the Government will be implementing a transformative infrastructural agenda, which includes reducing the cost of electricity by at least 50 per cent within the next five years.

“As I have alluded, we are going to transform the country’s transportation network. A new bypass between Diamond and Ogle will be built with connections to Mocha, Eccles and Providence. A high-level bridge will be constructed across the Demerara River and will be connected at its westernmost extremity to a new four-lane highway leading to Parika,” said the President.

The private sector will be required to use these opportunities to build capacity to capitalise on the other massive long term transformative projects in the pipeline, such as Amaila Falls Hydro-electric facility; a deep water harbour; an all-weather road linking Linden and Lethem; the Parika to Rockstone Del Conte Road with connections to Bartica; and a bridge over the Corentyne River.

The levels of investment which are taking place and which are projected in the future will generate massive business opportunities and a demand for human resource skills.
“We are determined to ensure that local businesses benefit from business opportunities, particularly in our oil and gas sector. I have already appointed an advisory committee to examine and propose ways in which we can ensure that local businesses benefit from the business opportunities spawned by the oil and gas sector,” said the President.
Local content legislation will be implemented to allow local firms and companies a greater share of opportunities in the oil and gas sector.