Investing in Guyana
Stabroek News
March 30, 2007
This column explores initiatives to improve the business climate of our nation and make Guyana Open for Business a reality. Peter R Ramsaroop, MBA Chairman, RoopGroup
It is my hope that our visitors in Guyana for World-Cup cricket take some time to look at our country from an investment perspective. As in any foreign direct investments, there are major risks involved. Guyana is no different, many of us are lobbying our government to introduce a friendlier investment code, create economic free zones and increase law enforcements to enhance security. We in the private sector are slowly winning the battle from the old socialist intervention mentality to a more free market economy but still a far way to go.
Despite my realistic opening remarks, Guyana is a beautiful country that one must look to invest in and those that get in earlier than others have a greater chance of a better return on their investments.
One main example that I have both written and researched is Alternative Fuel. Just this week, US President Bush met with the top three CEO Automakers at the White House and received their commitment that half of their production will run on ethanol by the year 2012. Could it be that Guyana is actually on the front end of a trend that could solidify our economic future in the global market? If we can find major investors to install ethanol technology and some strategic plans laid out for its use, ethanol could hold great promise for Guyana. A Scottish newspaper picked up on the trend and wrote an article about the agreement between Brazil and Guyana. This article quoted the new president of Ford Brazil as saying, "Demand has been unbelievable. I am hard pressed to think of any other technology that has been such a success so quickly." The quick implementation of this ethanol technology could be a positive factor for Guyana through job stability and new job creation.
Another example is taking our waste products such as sawdust, coconut husks, and other raw materials and turning them into finished products. There are great opportunities in this space. We also have major investors right now exploring for uranium and they seem to be on target. We all know of our major oil basin that is yet to be explored.
Our country can be competitive in the world agricultural markets, given the right investments in developing modern farms. One company, RoopGroup has already created a modern export facility but requires other portions of the supply chain to be in place. Investments in greenhouses and organic farming are wide open. With only a low percentage of our land in use, we have the ability to plant, plant and plant to feed the Caribbean. Guyana is ready to become the "Green Anchor" of the region given the massive Caribbean tourist industry and cruise ships demanding fresh produce daily.
Another looming aspect of investing in Guyana is the fact that sometime soon we must agree to pave the road to Brazil which will then create dramatic changes in Guyana's economic landscape. Brazil is the #1 global producer of 5 key products, including coffee and orange juice, the #2 producer of soya beans and kidney beans, the #3 producer of corn and the #4 producer of cocoa. It is also the 2nd largest producer of beef and has the second largest herd in the world. Brazil produces more than 32% of the world's global production of oranges and is the top exporter of concentrated juice, of which Brazil produces 90%. Given the fact that Guyana ports will become the main transshipment points for these produce out of Brazil, investment in the transportation industry will be critical.
These are just a short summary on our future major investment opportunities. We in the local private sector will continue to lobby for stricter enforcement on corrupt practices that sometimes deter investors and especially to create the incentives within reason to attract the type of foreign investors we are looking for.