Two chambers of commerce say feedback on the business environment this year shows little business growth, with rising fuel costs eating away profits.
Samuel Arjoon, president of the Essequibo Chamber of Commerce and Industry and Kenneth Wilfred Simmons, chairman of the Linden Chamber of Industry and Commerce Development(LCICD) made these comments after they were asked to analyze the business environment for 2004.
Essequibo
Fuel costs, Arjoon says, "obviously...would eat into the bottom line."
The region's main income comes from agricultural products, in particular, rice farming which is enjoying increased paddy prices. But farmers have not seen the benefits since raw materials such as chemicals and fertilizers have also increased.
"The mood is just taking one day at a time," he says, adding that reducing costs is the first line of defence. Arjoon adds that there were not enough investments to stop the migration of youths looking for work.
He says the chamber had anticipated having more investments in the value-added sectors including agro-processing and adding value to rice products and its by-products. The chamber was also optimistic that this would be the year where the Pomeroon River's mouth would have been dredged and efforts made to level the sandbank at the river's mouth. Large vessels cannot cross the sandbank and this is adding to the cost of regional manufacturers such as the Pomeroon Oil Mill as well as rice millers who have to transport their produce at high tide using small boats to meet the larger vessels waiting in the Atlantic.
He says the chamber has been lobbying for this for decades. Also, when only one ferry plies the Adventure to Parika route, this delays goods to the region by up to three days. But Arjoon also notes that several farm-to-market access roads are being repaired.
With two months remaining in the year he says it is not anticipated that any significant development would change the outlook. Nevertheless, on October 29 to 30 "Essequibo Night" will showcase local products under the theme "Made in Guyana, Grown in Guyana."
Linden
Simmons, the Linden Chamber's chairman, says that in terms of new investments, Karlum South America Timber (Guy) Ltd., a Chinese-owned company operating in Kamaka which employs 67 persons is the most significant. But he says, "There is a lot of talk about investments but they are not really off the ground. In general, people feel things are stagnant [and] business is bad."
One overseas investor with partners in Guyana has approached the chamber with a plan to invest in the hospitality sector but they are experiencing difficulties to acquire the land. Simmons says these same investors have also written to Go-Invest on other investment opportunities.
As for the waste proposal investment now under consideration, he says this is worth an examination. He notes that the chamber has researched the issue on the internet and will be issuing their opinion shortly.
In terms of agricultural development, he says the West Watooka Road being rehabilitated by the Linden Economic Advancement Project(LEAP) will increase access to agricultural lands. "The road is really progressing...[and will ensure] much easier access to a significant amount of land."The Lands and Survey Department is currently trying to sort out grievances with allocations of the lands already in use and will be preparing the paperwork for leases to be issued.
"We have a fair number of small farmers," says Simmons, explaining that currently the chamber will be working with seven of these farmers who hold land between 5 to 35 acres. The chamber plans to encourage them to use more of the land and to this end intends to access equipment to help the farmers clear the land. "This cutlass and fork thing can't work anymore." One overseas investor has shown interest in procuring watermelons from the community but this will entail large-scale planting to meet the demand. Also Simmons mentions that businesses are taking advantage of the increased access that the Guyana-Brazil road offers. One business is currently trading in vehicular parts and engines made in Brazil. Some Brazilian businessmen are interested in furniture manufacturing and forest products and plan to visit Guyana and Linden later this month.