Foreword

The Guyana Office for Investment (GO-Invest) is pleased to present both companies and
individuals interested in investing in Guyana with this business guide.

This publication contains useful information for investors and other businesspeople who wish to
start operating in this country either as a corporate entity, a branch or on a personal basis.

The Office of the President and GO-Invest wish to acknowledge the assistance they have received
in preparing this business guide from the United States Agency for International Development
(USAID) Guyana Trade and Investment Support Project (GTIS), which is implemented by the
CARANA Corporation.

GUYANA OFFICE FOR INVESTMENT

190 Camp and Church Streets
Georgetown, Guyana
South America

Tel: +592 225 0658; 227 0653/4

Fax: +592 225 0655
www.goinvest.gov.gy
[email protected]

Prepared with funding from

 MESSAGE FROM HIS EXCELLENCY, PRESIDENT BHARRAT JAGDEO,
PRESIDENT OF THE REPUBLIC OF GUYANA

Guyana has long been the Caribbean and South America’s best-kept secret.

The opportunities our country presents for investors with vision and a capacity to deliver are
immense – vast natural resources; a young, educated and English-speaking population; stable and
open financial markets; a corporate tax regime that allows for the full repatriation of profits; duty-
free access to CARICOM; and a political environment where all major political parties support a
market-oriented approach to economic growth.

My Government continues to pursue an aggressive program of economic and social reform, and we
have delivered unprecedented macro-economic stability, alongside historic levels of investment in
public services. These reforms are providing the solid foundation necessary to accelerate the
expansion of a modern, dynamic, and successful private sector.

But we are not blind to the challenges we face – despite our progress, Guyana remains a young
democracy with limited economic resources, and our people and government experience many of
the issues common to countries such as ours. However, we are clear on the path we must follow to
resolve these issues, and in time, we will fully deliver on our vision of a socially just and prosperous
Guyana.

I want each potential investor to know that they are an integral part of that vision; your investments
will be protected by world-class legislation and your business success will be welcomed by all of us.
This investment guide is designed to help you access the vast untapped potential this country has to
offer. I hope that it allows you to deliver results that grow your business, and to play your part in
creating an ever better Guyana.

BHARRAT JAGDEO
President of the Republic of Guyana
 MESSAGE FROM GEOFFREY DA SILVA,
CHIEF EXECUTIVE OFFICER, GO-INVEST

Guyana is a country on the move. Modernization is underway in all sectors of the economy,
resulting in a country quickly emerging as an attractive place for investment. Under the dynamic
leadership of President Bharrat Jagdeo, Guyana is attracting hundreds of increasingly diversified
investments from many different countries, including the United States, Canada, Malaysia, Trinidad
and Tobago, China and Brazil. Those who know Guyana best—namely domestic Guyanese and
Guyanese living abroad—are among the most active investors.

The country’s investment strategy consists of: 1) continuing to diversify economic activity so as to
develop value-added products and services in traditional and non-traditional industries; 2) promoting
a balanced development of domestic and foreign investment projects, including joint ventures; 3)
supporting the regional diversification of economic activities; 4) improving the competitiveness of
Guyanese businesses through a new business culture that is both innovative and collaborative; and
5) increasing the presence of Guyanese products and services in current markets and expanding into
new markets.

Current and potential investors will find GO-Invest to be a reliable partner for facilitating the
execution of new investment and export plans. GO-Invest is ready to facilitate business start-up
processes, provide information on permit requirements and business opportunities, coordinate joint
ventures and other strategic alliances, and serve as a single point of contact with all government
agencies. Once investors locate in Guyana, GO-Invest can serve as a willing counterpart in all
aspects related to marketing their products for export.

We look forward to working with you.

GEOFFREY DA SILVA
Chief Executive Officer, GO-Invest
WHY GUYANA?

ƒ Natural Resources – Guyana is a country of vast, often untapped, natural resources.

Endowed with extensive savannahs, productive land and forests, rich mineral deposits of gold,
bauxite and diamonds, abundant water resources and Atlantic coastline, the country presents
dynamic business opportunities across multiple sectors of the economy. While recognized
globally as a sugar and rice producer, much of its agricultural potential is yet to be realized,
especially with regard to fresh and processed fruits and vegetables. Its forestry potential is just
beginning to be realized, particularly in the realm of value-added wood products. Its extensive
network of rivers and Atlantic coastline provide ideal conditions for both seafood and
aquaculture. Finally, its pristine environment, unspoiled rainforest and exotic fauna and natural
attractions, which include the famous Kaieteur Falls, the highest single drop waterfalls in the
world, makes Guyana a highly attractive location for eco- and adventure tourism.

ƒ Location – Guyana’s unique geographic positioning and its socio-political heritage put it at the
gateway of South America and the Caribbean. On one hand, its Caribbean and English-
speaking heritage enables Guyana to be part of the Caribbean Community (CARICOM), while
on the other, it is a South American country, neighboring two of the most important economies
on the continent – Brazil and Venezuela. As a result of its geographic proximity, Guyana has
easy access to 277 million consumers, and a US$130+ billion export market with an overall
purchasing power of over US$2 trillion.

ƒ Duty Free Market Access – Through a combination of regional, bilateral and preferential
agreements, about 75 percent of Guyana’s exports enter destination markets duty free, with
many others receiving duty-reduced access. This is achieved through Guyana’s membership
of CARICOM, which provides duty-free access to the 15-nation CARICOM market, CARICOM
agreements with the Dominican Republic, Colombia, Costa Rica, Cuba and Venezuela, partial
scope agreements with Brazil and Venezuela, and bilateral agreements with Argentina, China
and Turkey. Guyana also benefits from preferential duty-free or reduced-duty access to major
developed country markets through CARIBCAN (Canada), the U.S. Caribbean Trade
Partnership and the European Union’s (EU) ACP Contonou Agreement.

ƒ Language – Guyana is the only English-speaking nation in South America. Investors

contemplating the installation and operation of service enterprises will find this a distinct
advantage. This is especially true for those involved in the growing IT and business process
outsourcing (BPO) markets in North America, as well as businesses conducting operations to
support the activities of large corporations worldwide, and those serving English-speaking
tourism markets.

ƒ Affordable Labor – Guyana has one of the most competitive wage rates when compared to
Latin America and the Caribbean. The labor force is well educated, with literacy estimated at
close to 99 percent, and is regarded as trainable and hard working.

ƒ Openness to Investment – Both public and private sector leaders have declared Guyana
‘open for business’. Foreign investors receive the same treatment as domestic investors.
Guyana provides an array of across-the-board investment incentives, including a flat business
tax rate, tax holidays, waivers of customs duties, export tax allowances, and unrestricted
repatriation of profits, as well as additional incentives in priority export sectors. Furthermore,
Guyana’s investment promotion agency, GO-Invest, provides effective support to investors
before, during and after an investment has been realized.
TABLE OF CONTENTS

Map of Guyana .......................................................................................................................... i

Guyana at a Glance................................................................................................................... ii
Executive Summary..................................................................................................................iv
I. Introducing Guyana.......................................................................................................2
Background ..................................................................................................................................................2
Economy ......................................................................................................................................................4
Government Priorities................................................................................................................................7
II. Areas of Opportunity.................................................................................................... 12
Agriculture and Agro-processing............................................................................................................13
Seafood and Aquaculture.........................................................................................................................16
Forest Products .........................................................................................................................................18
Manufacturing............................................................................................................................................20
Tourism ......................................................................................................................................................22
IT-Enabled Services..................................................................................................................................23
Mining.........................................................................................................................................................24
Energy.........................................................................................................................................................25
III. Operating Environment...............................................................................................28
Resources and Infrastructure ..................................................................................................................28
Regulatory Environment..........................................................................................................................37
Appendices ..............................................................................................................................47
Appendix 1: General Information..........................................................................................................48
Appendix 2: Investment Related Laws ..................................................................................................50
Appendix 3: Information, Documentation and Fees for Incorporating or Registering a Company
.....................................................................................................................................................................51
Appendix 4: Organization Contact Information..................................................................................52
References ..................................................................................................................................................58
MAP OF GUYANA

i
 GUYANA AT A GLANCE

Official Name Conventional long form: Co-operative Republic of Guyana

Conventional short form: Guyana
Former: British Guiana

Political System Parliamentary democracy with executive authority vested in the

Head of State

Head of State and Government President Bharrat Jagdeo

Political Parties in Parliament People's Progressive Party / Civic (PPP/C – governing party);
People's National Congress Reform – One Guyana (PNC/R – 1G –
main opposition); Alliance for Change (AFC);
The United Force (TUF); Guyana Action Party / Rise Organise and
Rebuild (GAP/ROAR)

Surface Area Total: 214,970 sq km

Water: 18,120 sq km
Land: 196,850 sq km

Population 765,283 (July 2005 est.)

Population Density 3 persons per sq. km.

Official Language English (Other - Amerindian dialects, Creole, Hindi, Urdu)

Principal Religions Christian 50%, Hindu 35%, Muslim 10%, other 5%

Time Zone GMT – 4

Climatic Conditions Tropical; hot, humid, moderated by northeast trade winds; two
rainy seasons (In the coastal region: May to June, mid-
November to mid-January)

ii
Purchasing Power Parity - US$4,799 (2006 prices)

Guyanese dollars per US dollar - 200.75 (February

2007, Bank of Guyana)
EXECUTIVE SUMMARY

Guyana is an emerging economy Guyana: Favorable Access to Export Markets

with enormous untapped potential. The country’s
geographic position at the gateway to the Through its participation in the Caribbean Single
Market and Economy (CSME), bilateral and
Caribbean and South America, combined with its regional trade agreements with Brazil, Colombia,
natural resources, access to key export markets, Costa Rica, the Dominican Republic, Venezuela
English-speaking population and affordable labor and other countries, and preferential treatment from
present investors with profitable opportunities to the U.S., Canada and European Union, about 75
percent of Guyana’s exports receive duty-free
do business in Guyana. Supported by stable treatment, with much of the remaining balance
macroeconomic policies, attractive investment enjoying reduced duties.
incentives, and a regulatory environment and Due to its geographic proximity, Guyana has easy
corporate tax regime that do not discriminate access a population of over 277 million consumers,
against foreign investors, Guyana also provides and a US$130+ billion export market with an overall
investors favorable conditions to do business. purchasing power of over US$2 trillion.

In the recent past, Guyana has achieved

remarkable progress in its efforts to open its traditional export sectors (such as aquaculture,
economy through market-oriented reforms and agro-processing, fresh fruits and vegetables, light
improvements in the investment climate, while at manufacturing, value-added forest products), to
the same time stabilizing inflation, reducing fiscal services exports (such as tourism and
and balance of payments deficits, and Information Technology (IT)-enabled services).
strengthening infrastructure, health services and Many products receive duty-free or reduced-duty
the education system. Guyana’s home-grown treatment in destination markets. Specific
National Development Strategy (NDS) and opportunities include:
Poverty Reduction Strategy Program (PRSP)
drive these initiatives with support from a Agriculture and Agro-processing – Guyana
number of bilateral and multilateral development enjoys a number of comparative advantages—
agencies. diverse agricultural environments, organic
cropland, widespread irrigation, drainage and sea
Despite these achievements, both private and defenses, and trainable farmers—that support a
public sector leaders understand that continued range of market opportunities for investment and
progress depends on Guyana’s ability to adjust to export. Lucrative markets exist for producing
the ever-changing global economy by responding fresh fruits and vegetables for local markets (e.g.
to new challenges and taking advantage of new domestic consumption, hotels and restaurants) as
opportunities. As part of the NDS, Guyana is well as for export. There is also high demand for
implementing a National Competitiveness processed and semi-processed foods (for sale to
Strategy (NCS) designed to further improve the processors), especially within the Caribbean.
investment climate and support the emergence of Promising opportunities exist in Guyana’s
non-traditional export sectors, while continuing savannahs to produce and export meat,
to fortify the mining, sugar and rice sectors for particularly since Guyana has been declared free
which Guyana is so well known. of foot and mouth disease. Guyana’s virgin lands
provide further opportunities for high-value
certified organic products. Beyond Guyana’s
Opportunities
regional markets, the Guyanese and Caribbean
Guyana offers potential investors—foreign and diasporas in Canada, the U.S. and Europe
domestic alike—a broad spectrum of investment provide a niche market for a number of food
choices, ranging from more traditional industries products. The wider U.S. and European markets
(such as mining, sugar, rice and timber), to non- present opportunities for exporters able to meet

iv
the tough, uncompromising standards of growing IT-Enabled Services industry with both
consumers. While global pricing pressures exist domestic and foreign investment (e.g. Canada,
in the traditional sugar and rice industries, Mexico) in call centre and back-office processing
opportunities exist for investors able to improve operations. Some investors have included
productivity. Guyana as part of their networks of business
process outsourcing (BPO) centers located in
Seafood and Aquaculture – Guyana’s 459 km Latin America. Although not widely known as a
Atlantic coastal zone and extensive network of location for BPO, Guyana provides a number of
rivers provide the ideal conditions for a dynamic advantages that make it an ideal location for IT-
marine fisheries and aquaculture industry. enabled services, including a fluent English-
Already shrimp, prawn and finfish exports speaking workforce, skilled and trainable
account for approximately 12 percent of total workers, and reasonable telecommunication
exports. While the shrimp and prawn sector is costs.
relatively consolidated, there are opportunities
for investors able to add to the value of catches Light Manufacturing – There is growing
through processing and quality upgrades. Some interest in expanding the country’s light
experts suggest that virtually untapped, high- manufacturing sector. In particular, access to
value opportunities exist among pelagic and natural resources provides opportunities in agro
deep-sea species further offshore on the processing and wood processing (see above).
continental slope (deepwater snapper and Low cost labor, proximity to markets, a track
prawns) and in the Atlantic Ocean (swordfish record for quality, and preferential trade access,
and tuna). Finally, recent investments show also make Guyana a good place to source apparel
enormous opportunities in fresh-water fish (i.e. manufacturing, particularly production targeting
tilapia) and shrimp farming for export, with the U.S. market. Other opportunities exist in the
annual income per acre exceeding US$3,400. At areas of pharmaceuticals, jewelry, leather and
present, shrimp and fish are exported primarily to wooden craft, basketry, and ceramics, to name a
the U.S., but in 2004 Guyana was certified for few, for both exports and domestic consumption.
fisheries exports to the lucrative E.U. market.
Mining – Guyana’s mineral deposits have
Forest Products – Guyana’s forests cover about attracted international interest from the largest
three quarters of the country’s land mass and companies in the world. While the industry is
contain over 1,000 tree varieties, which provide relatively mature, lucrative opportunities still exist
vast opportunities for the harvest and export of in the extraction of bauxite, gold, diamonds and
wood products. Forest products exports other minerals. With recent investments, bauxite
accounted for nearly 10 percent of total exports production is expected to grow by nearly 78
in 2005. In the past, most forestry exports percent in coming years. In the gold sector,
consisted of processed plywood and raw or semi- recent exploration suggests deposits of at least 1
processed greenheart and other valuable species million ounces in new resources, while the
(e.g. purple heart, mora, locust). There is, tendency for higher world prices encourages the
however, a growing interest in expanding value- extraction of gold deposits that previously would
added wood processing industries (e.g. furniture, have been uneconomical.
flooring, doors, molding, fencing, veneer, etc)
targeting the Caribbean and U.S. markets. Tourism – While Guyana’s tourism sector has
Further opportunities exist for investors able to focused primarily on business visitors or the
obtain Forest Stewardship Council (FSC) Guyanese diaspora, Guyana’s natural beauty and
certification and develop products for niche attractions, including Kaieteur Falls (the tallest
markets. single drop water fall in the world), Orinduik
Falls, the Rupununi savannahs and the Essequibo
IT-enabled services – Recently, Guyana has River have been drawing increasing attention
experienced the emergence of a small, but from tourists and tour operators alike. With the

v
worldwide growth in the eco-, adventure and geographic proximity, Guyana enjoys easy access
cultural tourism segments and narrow market to 277 million consumers, and an export market
niches such as bird watching, a variety of in excess of US$130 billion with an overall
opportunities exist for the industry to develop purchasing power of over US$2 trillion.
Guyana’s tourism product through investments
in tourism operations/services, facilities, hotels While Guyana’s traditional export products (e.g.
and lodges. In the short term, there are sugar, rice, bauxite, gold and timber) continue to
opportunities for hospitality (hotels, restaurants enjoy robust growth, Guyana’s non-traditional
and related services) as Guyana prepares to host exports (e.g. value-added wood products, non-
matches during the Cricket World Cup in 2007. traditional agricultural products, seafood and
Up to 25,000 cricket fans from all over the world light manufacturing) are becoming an
are expected to visit Guyana, providing a large increasingly important source of export earnings,
boon for the industry. Other opportunities exist with their share of total exports growing
for business tourism, especially with the recent consistently. This reflects progress in the
construction of a large conference centre in country’s increased emphasis towards
Georgetown. diversifying the economy.

Investment Incentives – In order to facilitate Investment Trends

investment and expansion in these sectors,
After a period of decline, Guyana has
Guyana provides an array of across-the-board
experienced an upsurge in investment—both
investment incentives, including a flat business
foreign and domestic—in recent years. In 2005,
tax rate, tax holidays, waivers of customs duties,
for example, investment listed by GO-Invest
export tax allowances, and unrestricted
exceeded US$340 million. Of the 141 projects,
repatriation of capital, dividends and profits, as
approximately one-third involved foreign
well as additional incentives in the sectors listed
investors (including joint ventures), primarily
above. Furthermore, the Government of Guyana
from Asia, the Caribbean and North America.
(GoG) has tasked GO-Invest as 1) the prime
According to GO-Invest, foreign direct
contact for investors to facilitate the investment
investment exceeded US$250 million, or 73
process and expedite applications for investment
percent of the total investments. The food
concessions and government support; and 2)
products (including agriculture, seafood and
Guyana’s main export promotion agency. GO-
aquaculture), mining and wood products sectors
Invest’s activities, complemented by those of
dominated, receiving nearly 70 percent of total
sector-specific agencies and organizations,
investment. At the same time, Guyana enjoyed
provide investors with the information, support
investment growth in Information and
and advocacy needed to capitalize on Guyana’s
Communications Technology (ICT) and IT-
opportunities.
enabled services, tourism and manufacturing.
Trade Trends
Prospects and Challenges
Guyana is one of the most open economies in
Alongside Guyana’s opportunities come
the Caribbean and has enjoyed steady export
challenges for investors. Despite ongoing
growth since 2000. CARICOM, E.U., Canada
progress, Guyana faces problems common in
and the U.S. continue to be Guyana’s primary
many developing countries. The country’s
export markets; however, regional and bilateral
economic infrastructure—transport, energy,
trade agreements—including those involving
telecommunications and access to finance—is
CARICOM—with countries such as Argentina,
still developing, and this impacts profitability.
Brazil, People’s Republic of China, Colombia,
The emigration of professionals often reduces
Costa Rica, Cuba, the Dominican Republic, and
the availability of management and technical
Venezuela, present opportunities to diversify
skills critical for a competitive economy. Limited
markets. Through these trade agreements and
institutional capacity affects the implementation

vi
of legislation, policies and administrative
procedures. Levels of crime, though comparable Investing In LDCs: Risk and Return
to those in other countries in the region, “Why would anyone invest in a less-developed
periodically cause concern. country?” a presumably hardheaded investor
might ask. “Aren’t the risks too high and the
profits precarious?”
These challenges do not go unnoticed by
Guyana’s leadership. Guyana’s government, This perception, though unfounded, seems
private sector and development partners have widespread in some business circles. When it
stated their common objective to do what is comes to profits, the evidence is that the rate of
return on FDI in less-developed countries (LDCs)
necessary to build upon past progress to further is often much higher than investment in
improve the investment environment and developed countries, or even more developed
enhance Guyana’s competitiveness. Within this emerging economies. Often the negative
respect, every major political party in the perception of LDCs results in an enormous
untapped potential. As such, investors able to do
National Assembly has committed to the creation their homework and distinguish between
of a business climate conducive to investment. perception and reality may find abundant and
lucrative investment opportunities. These
The Government is aggressively pursuing its investors can benefit from ‘first mover’ status. As
opposed to locations where everyone wants to be
objectives under the country’s NDS, with investing, first movers can pick the most
activities focusing on sound macroeconomic promising opportunities. If they are able to
policies and economic management, navigate the challenges that come with doing
strengthening investment promotion activities business in LDCs, investors will find their
experience quite rewarding.
through GO-Invest, improving the transport
infrastructure, enhancing the role of ICT in the Source: UNCTAD
economy, and strengthening social capital. As
part of a recent initiative the Government has such as the introduction of a Value-added Tax
worked in partnership with the private sector to (VAT) and the passing of an Investment Act,
develop a NCS aimed at designing and executing Small Business Act and Competition and Fair
action plans to improve the environment for Trading Bill, will likely present an opportunity for
investment, strengthen enterprise Guyana to accelerate investment, trade and
competitiveness for export development, economic growth.
facilitate fast-track development in priority
sectors, and strengthen public-private Many of Guyana’s opportunities for investment
cooperation in efforts to enhance Guyana’s and business development are only now being
competitiveness. As part of these activities, GO- realized. With ongoing efforts to address
Invest’s capacity to promote Guyana and attract competitiveness issues, the conditions for
investment will be strengthened, and priority investment are constantly improving. As a result,
bureaucratic processes will be streamlined, new investors can benefit from ‘first mover’
starting with business registration and customs status and choose the most promising projects,
import and export procedures. These initiatives, while at the same time establishing a platform for
coupled with recent legislative accomplishments long-term growth and profitability.

vii
Introducing
Guyana

In This Section
Background………………………………………………….……..2
Country and People………………………………………….…..2
History………………………………………………………….….2
Political and Legal Framework…….…….………………….…..3
Economy……………………………………………………….…....4
Overview………..……………………………….……………..…..4
Market Access……….…..…………………….……………..…...4
Trade………………….………………………….…………..…….6
Investment……………….…………………………………..….…6
Government Priorities…………………………………………….7
National Development Strategy……….……………………...…8
National Competitiveness Strategy….……..………………...…8

1
I. INTRODUCING GUYANA
BACKGROUND
Country and people
The name Guyana is derived from an creeks and countless drainage and irrigation
Amerindian word meaning land of many waters, canals. Protected by sea defenses, the majority of
which aptly describes the country. Its coastal the population lives here and the zone is the
region is about four and a half feet below sea most important administrative, agricultural,
level at high tide, but its hinterland contains commercial and industrial area in the country.
mountains, forests, and savannahs. This
The Hilly Sand and Clay Zone – This 150 to 250 km
topography has endowed Guyana with an
(90 to 150 mile) wide area lies south of the
extensive network of rivers and creeks and a large
coastal plain and occupies about 25 percent of
number of waterfalls, including the famous
the country’s landmass. The soil supports
Kaieteur Falls that has a direct perpendicular
valuable timber stands and bauxite mines. The
drop of 225.9 meters (741 feet).
sparse population is concentrated among logging
and mining centers and a few Amerindian
Guyana is a secular state that embodies a multi-
settlements.
ethnic society—East Indians, Africans, Chinese,
Portuguese, Europeans and indigenous The Forested Highland Zone – This zone contains
Amerindians—of approximately 765,000 the country's four major mountain ranges—
inhabitants. Religious affiliation for the Guyanese Acarai, Imataka, Kanuku and Pakaraima—that
population breaks down as follows: Christian form part of the greater Guiana Highlands, and
50%, Hindu 35%, Muslim 10%, other 5%. includes the richest gold and diamond deposits.
Members of different religions cohabit Here, the population is sparse, with a few
peacefully. English is the official language of settlements of loggers and miners.
Guyana, and is the language of education, The Interior Savannahs Zone – Comprising 11,655
commerce and government. square kilometers (4,500 square miles), this zone
is made up of dry, gently rolling grassland with
Guyana's total area is approximately 215,000 clumps of trees and several small villages. Rainfall
square kilometers (83,000 square miles), slightly is moderate but is concentrated in a single, long,
smaller than Great Britain. The country is divided rainy season from the end of April to the end of
into three counties: Demerara, Essequibo and September.
Berbice and ten administrative regions, with its
capital residing in the City of Georgetown. History
Ninety percent of the population lives on the
coastal strip. The Amerindians, Guyana's The area of the Guianas is believed to have been
indigenous people, mainly inhabit the savannahs settled before 900 AD by Warrau Indians, and
and forest regions. later by the Arawak and Carib tribes. Sir Walter
Raleigh's voyage in 1595, and his subsequent
The topography is varied and may be divided book on the riches of Guyana, did much to
into four ecological zones: stimulate interest in the area. The French and
English, as well as the Dutch, laid claim to the
The Coastal Zone – This is a low, narrow plain region in the 17th century, and it was settled in
about 25 km (15 mile) wide, adjacent to the separate areas by the three nations – including
Atlantic Ocean and occupying about five percent the Dutch colony located in what is now Guyana.
of the country's land mass. This coastline lies
below sea level in parts and is dissected by the
estuaries of sixteen major rivers, scores of smaller

2
From 1781 onwards, British influence became administration are reasonably effective, but
increasingly evident, but it was not until 1814 that decision-making is occasionally subject to delays.
the colonies of Essequibo, Demerara and Berbice Since the introduction of democracy in 1992,
were finally ceded to Britain. In 1831, the steady progress has been made in improving
colonies merged to become present day Guyana. what at times remains a polarized political
The territory attained independence on May 26, climate. Both the Government and the main
1966 and became a Republic on February 23, Opposition party have supported an extensive
1970. It is the only English-speaking country on constitutional reform agenda, and have agreed to
the South American continent. move on a further wave of reforms, with a
primary focus on improving the operational and
Guyana has undergone major political and administrative capabilities of the National
economic changes over the last 25 years. On the Assembly.
political front, multiparty democracy
accompanied by free and fair elections has, since The Constitution is the supreme law of Guyana.
1992, replaced the effectively one-party system It outlines the branches of government and their
established in 1968 through rigged elections. powers, establishes qualifications and times for
Under the previous socialist-oriented regime, elections, lists basic human rights and sets up
more than 80 percent of the total value of trade independent institutions to protect these rights.
was controlled by the state. State involvement in All laws made by Parliament must be consistent
the economy and unsound economic policies with the provisions of the Constitution. Any law
contributed to persistent negative growth rates, that conflicts with the Constitution is
which pushed a high proportion of the unconstitutional, and therefore invalid.
population into extreme poverty. Since structural,
market-oriented reforms were initiated in 1989, For the most part, Guyana’s legal system is based
economic growth has rebounded, averaging three on British common law; however, vestiges of a
percent per annum during the decade between Dutch legal system remain, particularly in the
1994 and 2006. area of land tenure. There are two types of laws
in Guyana: 1) common law made by judges in
Political and Legal Framework court cases; and 2) statute law, or law of the land,
made by Parliament. Enforcement of the law is
Guyana is a Republic within the British
carried out through a three-tier court system,
Commonwealth, with a form of government
which is made up of 1) eight Courts of Summary
based on the Westminster System, with an
Jurisdiction—commonly referred to as
elected Head of State. Guyana elects its
Magistrates Courts—responsible for criminal
government every five years. The President is
cases and small claims civil suits; 2) the High
elected by direct vote for a five-year term and is
Court, which has general jurisdiction in both
the supreme executive authority, Head of State
criminal, civil and land matters; and 3) the Court
and Commander-in-Chief of the armed forces.
of Appeals. The Court of Appeals was until
The President is limited to 2 consecutive terms.
recently the final court in Guyana. However,
The 65 unicameral Assembly is elected through
judicial appeals can now be taken to the
proportional representation. The President
Caribbean Court of Justice (CCJ).
appoints a Prime Minister who must be an
elected member of the National Assembly, and a
The law provides a number of legal provisions of
Cabinet of Ministers, which may include non-
interest for businesses and investors, including
elected members, and is collectively responsible
dispute resolution, protection of person,
to the legislature. The President also appoints a
property, and international investment. Details
Minority Leader, who is an elected member of
on these provisions are discussed in the
the Assembly chosen by the parliamentary
Regulatory Environment section.
opposition parties as the person most able to
command their support. Policy formulation and

3
ECONOMY At first glance, Guyana’s relatively small
population and low per capita income creates the
Overview appearance of a small domestic market. The per
Guyana’s economy consists largely of industries capita purchasing power of the population
dependent on the utilization of natural resources (US$4,799)1 however, is estimated to be almost
(e.g. agriculture, mining, fishing and timber). five times its per capita income. Augmented in
Agriculture—predominantly rice, sugar, fishing part by remittances, a central portion of this
and forestry—accounted for nearly 35 percent of purchasing power is concentrated in the upper
GDP in 2006, while mining made up an and middle classes that reside in the country’s
additional 9 percent. Most of these products capital, Georgetown. Consumption accounts for
are exported, such that economic performance a large and increasing proportion of GDP.
relies heavily upon international market Together, the population’s purchasing power,
conditions, and weather, which can impact remittance income and domestic consumption
agriculture and access to mining and timber provide a substantial domestic market for the
resources. As such, the Government has placed provision of goods and services.
an emphasis on diversifying the economy and
exploring new sources of income, employment Market Access
and export growth. As a result, Guyana is
Whatever Guyana lacks in domestic market size,
undergoing an important shift from an
it gains in remarkable access to strategic export
agricultural and mining economy to one
markets. This is a result of its geographic
grounded in light manufacturing—including
location and participation in a number of
value-added wood products, agro-processing, and
bilateral, regional and multilateral trade
garments—and services. Indeed, in the services
agreements that allow over 75 percent of
sector, Guyana is seeing growth in tourism, ICT
Guyana’s products to access export markets
and IT-enabled services (e.g. call centers).
duty-free, with most of the remaining exports
receiving reduced-duty treatment. Guyana’s
As a result of its monetary and fiscal policies, and
unique geographic positioning and socio-political
support from multilateral institutions, Guyana
heritage put it at the gateway to South America
has successfully maintained a stable and
and the Caribbean. On one hand, its Caribbean
predictable macroeconomic environment.
and English-speaking heritage enables Guyana to
Inflation has fallen significantly to single digits
be part of the Caribbean Community
and is expected to remain as such for the
(CARICOM), while on the other hand it is a
foreseeable future. The Government has reduced
South American country neighboring two of the
the central government deficit, which was 7
most important economies on the continent –
percent in 2005. The country’s currency, the
Brazil and Venezuela. As Table 1.1 shows, trade
Guyanese dollar, has remained at a stable and
agreements with its neighbors provides access to
fairly competitive rate for a number of years.
over 277 million consumers, and an export
More than 50 percent of the country’s US$2.1
market in excess of US$130 billion with an
billion debt burden has been paid, forgiven or
overall purchasing power of over US$2 trillion.
written off.
Guyana’s membership in CARICOM provides it
The Government continues to work to further
with duty-free access to 14 other member
strengthen its economic policies, with a three-
countries, which are Antigua & Barbuda,
pronged strategy focused on i) stable macro-
Barbados, The Bahamas, Belize, Dominica,
economic policies; ii) increased investment in
Grenada, Haiti, Jamaica, Montserrat, St. Kitts &
public services; and iii) improving the business
Nevis, St. Lucia, St. Vincent & the Grenadines,
and investment climate to enhance national
Suriname and Trinidad & Tobago. In addition to
competitiveness.

1 Purchasing power parity (PPP) at 2006 prices

4
access to the CARICOM market, Guyana Table 1.1:
benefits from a number of bilateral agreements Regional Markets for Guyanese Products
between CARICOM and Colombia, Costa Rica,
GDP Goods
Cuba, the Dominican Republic, and Venezuela. Country
Population (PPP) Imports
These agreements provide a range of duty free (‘000)
US$ millions (2004)
and preferential markets access, with varying Antigua & Barb. 80 872.6 462.8
levels of reciprocity. In addition, Brazil and Bahamas 320 5,291.2* 2,068.1
Venezuela have signed partial scope agreements Barbados 271 4,253.6** 1,285.8
with Guyana allowing duty-free or preferential Belize 282.6 1,893.5 504.0
access for selected products. Dominica 71.46 400.6 143.5
Grenada 105.7 840.0 232.9
Haiti 8,591.7 14,474.7 1,300.8
Guyana also enjoys preferential duty-free or Jamaica 2,664.7 10,530.7 3,641.0
reduced duty access to major developed St. Kitts & Nevis 46.9 599.1 205.0
economies. These include 1) the U.S. Caribbean St. Lucia 163.6 981.1 158.5
Trade Partnership (CTP, formerly the Caribbean St. Vincent &
108.3 714.9 226.0
Basin Initiative (CBI)), which, as a result of an Gren.
Suriname 442.97 2,490** 775.0
agreement, extends “NAFTA Parity” to Trinidad & Tob. 1,323.4 15,761.4 5,483.7
Caribbean countries; 2) CARIBCAN, which CARICOM
grants duty-free access for Caribbean exports to Total
14,473.4 49,558.8 16,487.4
Canada, with some exceptions; and 3) the E.U.’s Brazil 178,718.4 1,482,859.2 65,904.0
African, Caribbean and Pacific (ACP) trade and Colombia 45,300 322,582.0 16,529.9
aid agreement, which provides preferential Costa Rica 4,061.5 39,823.2 8,268.0
treatment to the region’s sugar, banana, rum and Dominican
8,861.4 64,918.2 7,660.0
Republic
rice suppliers. While the value of this preferential Venezuela, RB 26,127 155,790.4 17,299.5
access has diminished as a result of changes in
EU trade policy, this trade partnership Regional Total 277,541.7 2,115,532 132,148.9
nevertheless remains important. Source: World Bank Development Indicators Online
* Denotes 2002 data, **Denotes 2003 data
Beyond these regional trade agreements, Guyana
is a member of the WTO, and benefits from the Box 1.1:
market access rights and most-favored nation Market Access: Brazil
status thereof. Guyana also has bilateral trade
The partial scope agreement with Brazil helps
agreements with various preferential regimes with Guyana gain duty-free access to a very large next-
Argentina, People’s Republic of China and door market for a number of export products,
Turkey. Negotiations with other countries are including:
under way for agreements on trade and economic ƒ Agriculture: fruits and vegetables, beef/cattle,
cooperation. poultry, spices, rice, peanuts, and sugar
ƒ Seafood: frozen fish, shrimp and prawns
Market access opportunities are not only limited ƒ Wood Products: sawn wood, plywood, joinery
to Guyana’s products. As a result of the launch ƒ Construction: stone, fencing, metal sheets
of the Caribbean Single Market and Economy ƒ Mining: Bauxite and related products
ƒ Paper/Consumer products: tissue, cardboard
(CSME), Guyanese professionals, journalists,
Guyana’s ability to realize this potential has recently
artists, and university graduates benefit from free improved with the ratification of a transport and
movement throughout CARICOM. This creates cargo agreement with Brazil that will streamline
opportunities for the export of services and customs and border processes. With current and
allows businesses to mobilize their technical and planned improvements on road linkages between
Brazil and Guyana, this development is likely to
administrative personnel among member states facilitate an increase in Guyana-Brazilian trade.
without limitations.

5
Trade Figure 1.1: Destination of
Guyana is one of the most open economies in Guyana's Exports
the Caribbean, and exports, amounting to over Other
16%
90 percent of GDP, play a large role in the Caricom
economy. Primary export markets include 33%
CARICOM (33 percent), Europe (19 percent), U.S.
Canada (17 percent) and the U.S. (15 percent). In 15%
2005, exports amounted to US$535 million
(excluding re-exports). While slightly lower than
Europe
2004—which involved a significant increase— Canada 19%
2005 exports maintained the overall export 17%
growth trend observed since 2001. During that
time, many sectors enjoyed robust growth, with
Table 1.2
higher market prices contributing to export Traditional and Non-Traditional Exports
values. Table 1.2 reflects Guyana’s shift away (US$ millions)
from its traditional sectors (e.g. sugar, rice,
bauxite, gold and timber) as a source of income Export Products 2001 2002 2003 2004 2005+
and export earnings. While most traditional
export sectors continue to grow, their Traditional Exports
contribution, as a share of total exports, is slowly Sugar 110.8 122.4 132.3 140.5 118.0
declining. Table 1.2 also shows an increase in Rice 50.2 45.5 45.3 55.1 46.2
value-added exports such as manufactured wood Bauxite 61.0 35.2 40.4 44.7 62.8
products (e.g. flooring, molding, furniture, etc.) Gold 127.0 136.2 130.9 145.1 111.9
Timber
and processed foods. Although export (Raw & Sawn)
16.1 24.3 19.7 30.3 39.9
performance in the manufacturing industry has Total Traditional
365.1 363.6 368.5 415.7 382.8
been lackluster, recent investments to expand Exports
garment production promise significantly Non-Traditional Exports
increased exports. Seafood has experienced solid Seafood 49.3 52.6 53.9 58.3 62.02
export growth. With ongoing national initiatives Wood Products 21.0 11.7 11.9 16.7 12.5
to strengthen the value-added manufacturing and Plywood 16.9 11.1 11.0 14.6 9.7
non-traditional agriculture sectors, it is likely that Other Wood
4.1 0.6 0.9 2.1 2.8
the trend towards export diversification will Products
Non-Traditional
continue. Agriculture
13.9 15.8 15.8 16.6 14.9
Rum and Spirits 7.9 9.0 7.9 6.2 5.3
Investment Processed
5.3 5.6 5.5 6.0 7.3
Foods
Guyana has recently experienced a dramatic Fresh Fruits &
0.7 1.2 2.4 4.4 2.3
increase in both foreign and domestic Vegetables
Light Industry 15.5 17.2 11.0 11.4 7.4
investment. Records from GO-Invest, which is
Diamonds 13.3 20.0 29.9 48.8 43.6
responsible for tracking both foreign and Other 9.0 10.5 10.4 10.5 12.6
domestic investment, show that investment listed Total Non-
by the agency exceeded US$340 million in 2005, Traditional 122.0 127.8 132.8 162.2 153.0
a seven-fold jump from investments in 2004 and Exports
2002, and a four-fold increase from investments Total Exports* 487.1 491.5 501.4 577.9 535.8
in 2003. Foreign direct investment facilitated by Share of Non-
GO-Invest exceeded US$250 million or 73 Traditional 25% 26% 26.5% 28% 28.5%
percent of total investment in 2005, led by Exports
Source: Bank of Guyana, Statistical Bulletin 2005
investments in the food products (agriculture and *Does not include Re-exports
seafood/fisheries), wood products, mining and +2005 data is provisional
ICT sectors.

6
Figures 1.2 and 1.3 show these investments by sectors, the investment in ICT (US$27 million in
the value and number of projects per sector. Of 2005) reflects an ongoing trend in IT-enabled
the 141 projects, approximately two-thirds services, with a more than two-fold increase in
consisted of new activities. About one-third of ICT investment over the previous year ($12
these projects involved foreign investors million). Although some jumps in investment
(including joint ventures), primarily from Asia, represent one-off or cyclical projects, the across
the Caribbean and North America. By value, the the board increase suggests that Guyana may be
food products, mining and wood products entering a period of growing investment in the
sectors attracted the most investment. It should short to intermediate term. This increase in
be noted that investments in food products investment shows the fruits of recent
focused on a range of product groups including improvements in the operating environment,
sugar and rice processing, seafood, fruits and economic stability, investment promotion efforts
vegetables, poultry, meat, dairy and animal feed. on the part of GO-Invest, and the realization on
the part of investors that investing in Guyana can
Across the board all sectors experienced a large be rewarding.
increase over 2004 investment totals. For
example, total food products investment GOVERNMENT PRIORITIES
increased 15 fold compared to 2004, while wood
Although Guyana enjoys exciting opportunities
products investment jumped more than 23 times.
for trade, investment and economic growth, it
While relatively small in comparison to other
faces a number of challenges affecting its ability
to realize this potential. Some challenges are
Figure 1.2: GO-Invest Facilitated unique to Guyana, while others are common to
Investments by Sector
countries at its stage of development. In recent
(# of projects) 2005
years, adverse weather conditions have placed
Services
Food additional strain on the country’s physical
Products
23% 25%
infrastructure. Despite a high literacy rate,
shortages in the availability of certain
management and technical skills affect the
ICT country’s ability to operate within a competitive
4%
Light Man. environment. This is due in part to emigration of
Mining 9% professionals to the Caribbean, Europe and
6%
North America. Limited financial and human
Tourism Wood resources affect the Government’s institutional
18% Products
15%
capacity to implement legislation, policies and
administrative procedures and to address critical
development concerns. Segments within the
Figure 1.3: GO-Invest Facilitated business community—including those in key
Investments By Sector Value (%) sectors of opportunity—lack the current capacity
2005 to successfully compete in today’s global
Services
11% Food economy. Poverty is an issue, especially in rural
ICT Products areas. Concerns over crime and political tensions,
8% 32% as well as exaggerated pessimism among some
stakeholders, contribute to negative perceptions.

Mining
Light Man. National Development Strategy
1%
27%
Wood These challenges do not go unnoticed by
Tourism Products Guyana’s leadership. Guyana’s government,
7% 14% private sector and development partners have
stated their common objective to do what is

7
necessary to build upon past progress and rehabilitation and modernization of
achieve sustainable economic development. In coastal roads, the placement of bridges
addition to its continued implementation of along vital corridors, and over the long
policies to maintain macroeconomic stability (see term, construction of two deep-water
discussion on economy above), the Government harbors in the Berbice and Demerara
is implementing Guyana’s National Development rivers. This is coupled with improved
Strategy (NDS). The NDS is designed to achieve land linkages with neighboring trade
a number of key overall development objectives. partners, with a road and bridge link to
These include: 1) attaining the highest rates of Brazil being the first priority.
economic growth possible; 2) diversifying the
ƒ Strengthening the capacity and security
economy; 3) eliminating poverty in Guyana; 4)
of both the Cheddi Jagan International
attaining an equitable geographic distribution of
Airport at Timehri, as well as supporting
economic activity; and 5) achieving geographical
the private sector to develop the Ogle
unity. The strategy outlines a five-pronged
Aerodrome adjacent to Georgetown to
approach to achieve these objectives:
improve passenger and cargo access to
and from destinations abroad.
1. Sound macroeconomic policies and
economic management, coupled with 3. Strengthening social services through
creating incentives for private sector which poverty can be eradicated and
development: productivity improved. This is achieved
through programs in education, health and
ƒ Reforming the tax system to broaden the low-income housing.
tax base and make it more efficient and
equitable. This includes the introduction 4. Enhancing the role of ICT in the
of the VAT in 2007. modernization of Guyana:
ƒ Enabling and encouraging more ƒ Expanding the population’s access to
investment in economically depressed landline and wireless telephones and
areas through initiatives such as the internet;
Linden Economic Advancement ƒ Increasing ICT usage to improve
Program (LEAP). productivity in both government and
ƒ Formulating a clear investment strategy business; and
to improve the investment climate and ƒ Using ICT as a means to develop
attract investment. This includes services exports (e.g. call centers).
strengthening GO-Invest’s ability to
serve as Guyana’s primary investment 5. Improving inclusiveness, accountability
promotion and facilitation agency. and transparency of central, regional and
local governments.
ƒ Enhancing the efficiency of the country’s
revenue collection agencies and those
National Competitiveness Strategy
institutions that are charged with
procurements and other forms of One important step initiated by the Government
expenditure, as well as their monitoring. is the development of a National
Competitiveness Strategy (NCS), which builds
ƒ Developing trade promotion activities to upon the foundations set out in the NDS. The
generate increased exports. process involves a comprehensive and
2. Improvements in the transport participatory analysis of critical issues impacting
infrastructure: Guyana’s competitiveness, and a series of public-
ƒ Strengthening the road network
throughout Guyana, including the

8
private consultations designed to develop an economy. These include macroeconomic
action program focused on2: policy, competition policy, taxation policy,
and trade policy, as well as measures related
ƒ Improving the Environment for Private
to education and training, technology and
Sector Investment, with a focus on standards, finance, investment promotion,
investment promotion, reducing red tape, infrastructure, export promotion, red tape,
and improving competition and consumer and strengthening the legal system.
protection.
ƒ Sector Policies that address sector specific
ƒ Strengthening Competitiveness for Export particular obstacles and opportunities.
Development, focusing on export
promotion, trade, policy, infrastructure, ƒ Strategic Sub-Sector Polices targeting
business development services, access to dynamic sectors with the greatest
finance and skills development. opportunities for growth and diversification.

ƒ Action plans for fast-track development Although it is too soon for the results of the
and enhanced competitiveness of high- competitiveness strategy to be born out, the
potential sectors. renewed government and private sector focus on
ƒ Enhancing Public/ Private Cooperation, competitiveness issues, and a mutual
with a focus on enhancing the private commitment to address these issues will lead to
sector’s involvement in the development of ongoing improvements in the structure of the
economic, trade, investment and business- economy, thus enhancing the ability of investors
related policies and initiatives focused on to take advantage of the opportunities Guyana
enhancing Guyana’s competitiveness. has to offer.

Within the context of the NCS, the Government Senior representatives of the Government and
is taking steps to enhance competitiveness the private sector have indicated that the NCS
through three mutually supporting components: consultation process has significantly improved
the quality of the dialogue between the public
ƒ Core Policies or economy wide measures and private sectors in Guyana.
which cut across most sectors of the

2 Details on the NCS process can be found at the Ministry of Tourism,

Industry, and Commerce’s (MinTIC) website: www.mintic.gov.gy

9
10
 Areas of
Opportunity

In This Section
Agriculture and Agro-processing……………………………….13
Traditional Agriculture Products……………………………..…13
Non-Traditional Agriculture Exports…………………………...14
Seafood & Aquaculture…………………………………………...16
Forest Products…….………………………………………………18
Manufacturing………………………………………………………20
Tourism……………...……….…..………………………………….21
IT-Enabled Services…….…………………………………………23
Mining………………………………………………………………..24
Energy……………...………………………………………………..25

11
II. AREAS OF OPPORTUNITY

Guyana offers potential investors— ƒ Agriculture and Agro-processing

foreign and domestic alike—investment ƒ Seafood and Aquaculture
opportunities over a broad spectrum of activities, ƒ Light Manufacturing
particularly in export-oriented industries. ƒ Forest products
Opportunities include mature, yet often lucrative ƒ Tourism
sectors, such as mining, timber, sugar, rice and ƒ IT-enabled Services
seafood, as well as emerging sectors such as non- ƒ Mining
traditional agriculture (e.g. fruits and vegetables), ƒ Energy
agro-processing, aquaculture, value-added wood In its efforts to attract investment, the
products, light manufacturing, tourism and IT- Government is emphasizing activities that
enabled services (e.g. call centers, medical improve efficiency and competitiveness. It is
transcription). In particular, the enormous promoting strategies that encourage private
growth potential of Guyana’s non-traditional income generation, job creation, an increased
sectors remains essentially untapped. Investors share of value-added activities in the economy,
will find doing business in Guyana rewarding if increased foreign exchange earnings and facilitate
they are able to leverage Guyana’s access to sustainable development.
markets, favorable operating environment, and
various investment incentives to establish or This section presents an overview of the
expand operations in sectors of opportunity. opportunities and reasons to invest in Guyana’s
priority sectors. For more detailed information,
The Government of Guyana seeks to work with interested investors should contact GO-Invest
current and potential investors to facilitate (see Box 2.1). Contact information and websites
investment in the following industries showing for sector relevant public and private
growth potential: organizations are provided in Appendix 4.

Box 2.1: GO-Invest – Providing Export and Investment Support to Foreign and Domestic Investors
GO-Invest is Guyana’s primary investment and export promotion agency. GO-Invest is divided into two
divisions, one responsible for Investment Facilitation and the other for Export Promotion.
Investment Promotion Activities
Act as primary vehicle for investors to liaise with government agencies during investment process
Assist investors with steps necessary to commence business operations
Provide information on investment incentives and regulations relevant to the sectors of interest
Develop profiles on investment opportunities in Guyana
Assist investors in obtaining factory space or land
Assist with coordination of joint venture efforts
Advise Government on the formulation and implementation of national investment policies

Export Promotion Activities

Provide exporters with information on trade opportunities in overseas markets
Help exporters promote their products in national and international exhibitions/trade missions
Collaborate with exporting organizations to help address export problems
Recommend measures to the Government to stimulate export trade
Advise Government on the formulation and implementation of national export policies
Collaborate with donors to identify and address needs of private sector firms in priority sectors
For more information see: www.goinvest.gov.gy

12
 Box 2.2: Sugar
Success Factors for Investment and Growth
Sugar accounts for nearly 12 percent of GDP and
Natural Resources – Rich mineral deposits,
productive land, forests, sea and rivers, pristine and
over 20 percent of Guyana’s exports (2005).
beautiful environment. Most sugar exports are destined for the E.U.
Location – Gateway to South America and the under a preferential trade agreement. The
Caribbean. CARICOM region, which is protected by the
Duty Free Market Access – Over 75 percent of common external tariff (CET), is also an
Guyana’s exports enter destination markets duty- important market for Guyanese sugar. Sugar is
free.
produced by the state-owned Guyana Sugar
Language – Only English-speaking nation in Corporation (Guysuco). In 2005, production
South America.
amounted to nearly 259,000 metric tons. While
Labor – Competitive wage rates with a literate and
trainable labor force. cuts in the E.U.’s guaranteed prices will have an
Openness to Investment – Guyana’s leaders impact on the industry, a modernization program
have declared Guyana ‘open for business’ and are with significant investment by Guysuco (see Box
taking steps to improve the investment climate. 2.3) will help maintain the profitability of the
sector by raising annual production to 450,000
metric tons.
AGRICULTURE AND AGRO-
PROCESSING Although the sector is mature, opportunities still
Guyana’s vast tracts of productive land present exist in processing the raw product into
enormous opportunities for growth. Indeed, crystallized sugar, as well as the brown sugar
agriculture already represents a significant market, which Guysuco reports to be under-
proportion of Guyana’s domestic production served throughout the CARICOM region.
(approximately 25 percent of GDP) and Opportunities also exist for the by-products of
agriculture exports amounted to over a third of sugar-based products, such as ethanol.
Guyana’s total exports in 2004. While about 90
percent of Guyana’s 2005 agriculture exports Rice
consisted of rice or sugar products, the value and Rice accounted for nearly 9 percent of Guyana’s
share of processed goods and fresh fruit and exports in 2005. Like sugar, Guyana exports rice
vegetable exports have experienced a positive primarily to Europe and the CARICOM region.
growth trend in recent years. This is a result of According to the Guyana Rice Development
efforts by the Government and the private sector
to diversify Guyana’s agricultural sector. With the Box 2.3:
right investments, Guyana could easily become Guysuco Responding to Challenges
the ‘breadbasket of the Caribbean’ while at the in the Global Sugar Market
same time increasing exports to markets in North Recognizing the challenges posed by recent
America and Europe. developments in the global sugar market,
Guysuco is embarking on an ambitious plan to
modernize Guyana’s sugar industry. Guysuco
Traditional Agriculture Products plans to expand and enhance production through
a US$165 million modernization program,
Recent changes in the global trading including a new US$135 million sugar-processing
environment, such as the reduction of guaranteed factory at Skeldon in Eastern Guyana. The
prices for rice and sugar in the E.U., have placed company plans to expand sugar cane cultivation
pressure on Guyana’s traditional agricultural on 13,000 hectares of new land while cutting the
current cost of sugar production in half. As part of
exports. Nevertheless, investments in this project, Guysuco plans to include a co-
productivity and efforts to shift exports towards generation electricity plant fuelled by cane waste,
non-E.U. markets can help ensure that rice and as well as a white sugar factory. Guysuco
sugar remain mainstays of Guyana’s economy for expects overall production to grow by more than
25 percent over the next four years.
some time into the future.

13
Board, this trade pattern is starting to shift establishment of medium/large scale agriculture
following the E.U.’s reduction in the guaranteed operations.
price for Guyanese rice. However, Guyana could
Organic cropland – Guyana has large expanses
further expand its market share in the Caribbean;
of land that have never been used for modern
currently it holds 50 percent of the Jamaican rice
agriculture and remain totally free of agricultural
market. Furthermore, Brazil is emerging as an
chemicals. These lands could be certified for
important export destination, as the Brazil-
organic production within one year, as opposed
Guyana Partial Scope Agreement established a
to the traditional three-year certification process.
quota for duty-free importation of Guyanese rice.
While sufficient Brazilian demand exists, this Irrigation – Nearly 30 percent of Guyana’s
quota has yet to be met due to a lack of supply. cropland is currently irrigated.

Opportunities exist to improve productivity by Agricultural Population – Whereas the

upgrading milling facilities for export so they can populations of most Caribbean countries have
manufacture value-added rice products, such as become urbanized, over 50 percent of Guyana’s
breakfast cereal and quick cooking rice. population remains rural and closely linked to
agriculture.
Non-Traditional Agricultural Exports Trainable Farmers – Guyana’s farmers are
Although Guyana’s mature sugar and rice eager to learn new methods and practices, such
industries will continue to play an important role that technology transfer occurs quickly when the
in Guyana’s economy, the non-traditional appropriate systems are put in place, resulting in
agriculture sector is beginning to show high an immediate impact on productivity and quality.
growth potential. For example, agro-processing Markets – Guyana’s proximity to the
exports (excluding rum) experienced an average CARICOM and North American markets
growth of nearly 9 percent since 2000, jumping enables exporters to supply consumers with fresh
over 20 percent in 2005. With investments in produce as well as meet the demands of a
production, facilities, quality assurance and growing food processing industry in the region.
processing, non-traditional agriculture could Many products receive duty-free or reduced duty
become an engine of export growth. access to regional markets.
Guyana’s comparative advantages in diversified Key opportunities in the non-traditional
agriculture include: agriculture export sector include:
Diverse Agricultural Environments – Guyana
is endowed with an abundance of diverse Fresh Fruits – International demand for fresh
agricultural environments, which include: 1) fruit is growing. Market potential exists for citrus
highly fertile soils in the coastal areas—currently fruits such as oranges, grapefruit, tangerines, and
used extensively for rice and sugarcane limes, as well as exotic fruits such as mangoes,
production—with large parcels of flat irrigated sapodillas, papayas, pineapples, and passion fruit.
land that can be used for fresh fruits and However, exporters must be able to establish
vegetables, dairy and beef production (Guyana modern post-harvest handling and quality
has been certified as foot-and-mouth free); and 2) systems to prevent spoilage in transit, and must
intermediate savannahs with untapped meet international phytosanitary controls.
opportunities to produce beef, milk, mutton, Additional value can be achieved by shipping
citrus, corn, cashew nuts, legumes, peanuts, selected fruits to destination markets by air,
soybeans, dairy products, and orchard crops. thereby ensuring maximum freshness. In
The savannahs have large tracts of brown soils addition to exportation, opportunities exist for
that are well drained and responsive to fruit farmers to supply the tourism industry as
fertilization, creating an ideal environment for the well as the expanding agro-processing industry in
application of high technology and the Guyana and the Caribbean.

14
Fresh Vegetables – Export opportunities exist compared to their conventional counterparts.
for a range of vegetables such as cucumber, Organic cocoa, pineapple and heart of palm are
pumpkins, watermelon, melon, saeme, bora, and already being grown for export (See Box 2.4).
callalloo within the Caribbean and North Organic products could also find a welcome
American markets. However, Guyana's ability to market within Guyana and throughout the
supply international markets is currently Caribbean among hotels and restaurants that
hampered by the time required to transport its serve discriminating tourists.
products to market. An increase in airlift capacity
Herbs and Spices – There is growing demand in
would create enormous export opportunities for
the Caribbean, North America and Europe for
this sector. In addition to fresh produce, current
hot peppers, eschallots, celery and other
opportunities exist to supply Guyanese or
ingredients for seasoning, all of which grow
Caribbean food processors with raw inputs.
abundantly in various parts of Guyana.
Plantains, Roots and Tubers – There is
Livestock and Dairy Products – There are
potential to increase Guyana’s exports of selected
excellent investment opportunities for the
plantain, roots and tubers to ethnic markets in
production of meat (beef and mutton), poultry
the Caribbean, North America and Europe.
products, milk and milk products for both
Opportunities also exist for malanga, breadfruit
domestic consumption and export to the
and ground provisions as raw inputs in the snack
Caribbean. In particular, Guyana’s savannahs
food industry.
provide a favorable environment for medium to
Organic Products – As noted above, Guyana large-scale cattle raising. Guyana has been
has large tracts of land free of agricultural certified as foot-and-mouth free, providing it
chemicals, providing a unique opportunity to with favorable access to many markets.
meet a growing demand for organic products in
Processed Foods – Opportunities exist for
North America and Europe. In most cases,
processing, or semi-processing, produce and
organic products receive a premium price
animal products. Already, Guyana’s exotic and

Box 2.4:
AMCAR: Collaborating with Local Communities to Succeed in the Global Organic Market
Known for its exports of organic heart of palms and pineapples, Amazon Caribbean Ltd. (AMCAR) shows how the
utilization of Guyana’s unspoiled, certifiable organic land and indigenous farming communities can enable
companies to take advantage of high-value niche markets abroad.
While the company initially produced hearts of palms for the Guyanese and Venezuelan markets, the company
realized that it could capture higher prices for its products if they were sold as indigenous organic products in
markets further abroad. Although AMCAR’s hearts of palms had always been both organic and indigenous, they
were never marketed as such. AMCAR shifted its marketing efforts towards France and OECD markets where
indigenous organic products enjoy premium market prices. AMCAR quickly acquired organic certification from
ECOCERT (a German certifier) for heart of palms and entered the European market, not only for heart of palm, but
also a variety of other indigenous organically grown crops, including pineapple.
In addition to certification and marketing organic products, AMCAR took another step to ensure success: ensuring
that the Amerindian suppliers of its produce would not engage in non-organic farming practices. This was achieved
by moving towards the use of sustainable plantations owned and operated by Amerindians trained in organic
farming. Through a partnership with UNDP and Government of Guyana, AMCAR trained 500 Amerindians in
farming skills, particularly in organic production. Through the training and production via organized plantations,
AMCAR was able to secure its supply chain, while at the same time providing secure income earning opportunities
for Amerindian communities.
As a result of this approach, AMCAR has enjoyed dramatic growth, from employing 30 people in one factory and
exporting thirteen 20-foot containers to France to employing 400 people, operating two factories and exporting over
100 containers annually to Europe, the U.S., Middle East and South America.
Source: UNDP and UWI Institute of Business. The Millennium Goals and the Private Sector: The Caribbean
Experience. 2005

15
gourmet food products are in demand in
Caribbean, North American and European Box 2.5:
markets. Products with a large growth potential The New GMC: Promoting the
Export of Non-Traditional Products
include jams, jellies, sauces, processed spices and
fruit puree blends. The New GMC provides a wide range of services to
producers and exporters of non-traditional exports:
Agricultural Support Services – Since the non- ƒ A Central Packaging Facility (CPF) in
traditional agricultural sector is still emerging, Georgetown, where producers are offered
there is an ongoing need for investment in standardized cleaning and packaging services
inputs, machinery, and support services. In for fresh produce for export on a daily basis.
particular, there are opportunities for air cargo ƒ Marketing and promotion assistance that
service providers to expand flights for includes market intelligence, advice on market
opportunities, registration of exporters who meet
agricultural exports, as well as for investments in U.S. Food and Drug Administration (FDA)
cold storage facilities, post-harvest handling, and bioterrorism regulations, monitoring of market
packaging services. prices, and a one-stop desk for export
documentation for non-traditional produce. One
of the New GMC’s popular products is the
Organizational Support country-specific export marketing bulletins that
provide profiles of key markets for products with
There are a number of government and private strong export potential.
organizations involved in the agricultural
products sector. The two principal government ƒ Producer support, including farmer training,
technical assistance related to post-harvest
agencies responsible for promoting agricultural technologies, agricultural technicians, input and
development in Guyana are the Crops and supply sourcing assistance, and export
Livestock Division of the Ministry of Fisheries, readiness assessments for farmers.
Crops & Livestock (MFCL) and the Ministry of For more information, visit www.newgmc.com
Agriculture (MOA). The MOA coordinates the
activities of several departments and semi-
autonomous bodies related to the major export agriculture and agro-processing to create a
crops (e.g. sugar and rice). The MFCL is culture of best practices in local research, and to
responsible for the provision of extension develop policies for the national agricultural
services for the production of crops and livestock sector.
as well as agricultural health activities for plants
and animals. The Guyana Manufacturers and Services
Association (GMSA), represents agro-processing
New Guyana Marketing Corporation (New and other non-traditional agriculture companies
GMC) is a government agency charged (see details under manufacturing sector below).
with promoting the development and exportation
of non-traditional agricultural commodities. (See
Box 2.5) SEAFOOD AND AQUACULTURE

The National Agricultural Research Institute Guyana has the ideal conditions for a dynamic
(NARI), which is a part of the MOA, produces seafood and fisheries industry. These include a
research designed to generate the technologies 459 km Atlantic coastal zone and an extensive
and systems required to maintain national self- network of rivers. Recently, fishing has
sufficiency and export capacity. NARI is also accounted for approximately 7 percent of
involved in the development of the Intermediate Guyana’s GDP. It was the third most important
Savannahs. export after sugar and gold, amounting to nearly
US$62 million in 2005. The U.S. is the primary
The Guyana Agri-Business Association (GABA) market for most seafood exports. In 2004,
is a private association whose mission is to however, Guyana was certified to export seafood
icrease the level of technological input in to the lucrative EU market, creating a range of

16
new market opportunities. While the seafood Aquaculture
industry primarily consists of marine species
While Guyana’s marine resources have been an
caught in Guyana’s exclusive economic zone
important component of its economy for some
(EEZ), aquaculture has recently attracted
time, commercial aquaculture, especially in regard
significant investment growth.
to tilapia and shrimp farming, is an emerging
industry receiving the attention of both the
Seafood
Government and private investors. Although the
Guyana enjoys vast fisheries resources in the industry is in its fledgling stages, a number of
Atlantic Ocean, both in its coastal areas and its factors are driving opportunities within the
EEZ, which includes 138,240 square aquaculture sector:
kilometers—equivalent to 64 percent of the
Higher prices – In general, the world’s fisheries
country’s landmass. This area contains highly
are experiencing a decline in ocean catches (a
productive marine fisheries that include prawns
result of over fishing). At the same time there is
(Penaeus latisculcatus), shrimp (Penaeus
a growing demand for fish products, resulting in
litopenaeus schmitti), seabob and a variety of
higher prices. Buyers are in constant search of
commercial finfish. Although some segments of
new sources of quality fish that are available year
the marine sector (e.g. prawns, shrimp and
round. Aquaculture can meet that demand.
seabob) are relatively consolidated and face
uncertain sustainability (in terms of volume of
catch), a number of lucrative opportunities exist, Box 2.6:
particularly in terms of adding value to existing New Line Aqua Farm: Pioneering
resources: Aquaculture in Guyana
Located on the West Bank of the Demerara, the
High quality fish – The price for high quality New Line Aqua Farm is pioneering Guyana’s
fish on the global market is generally increasing. farming of Tilapia for export. The company has a
Investors able to establish or upgrade quality state-of-the-art facility with 100 acres of fresh
control systems can greatly enhance the value of water ponds with advanced technology and is
moving towards the completion of an integrated
seafood without increasing current catch production system with a hatchery, feed mill, fish
volumes. pond and processing plant for export to the U.S.
and Caribbean. Once the processing plant is
Under-exploited species – Although some completed, the company expects to be able to fill
species are widely fished within 80 km of the five 20-foot freezer containers of frozen tilapia for
coastline, a number of species further offshore export each week.
are yet to be fished commercially. These include
pelagic and deepwater species such as deepwater
snapper, prawns, swordfish and tuna. Currently Lucrative Markets – There is a growing
the seafood industry is not adequately rigged to demand for farmed fish, such as tilapia, not only
exploit these species, meaning that lucrative in the U.S., where imports have grown
opportunities exist for first movers. dramatically in recent years, but also the E.U.,
which certified Guyana as an aquaculture supplier
Processing – Profitable opportunities exist for in 2004. Key markets include fresh filets going to
investments in modern processing machines and the retail sector and frozen fillets going to the
product development that meet the ongoing food service sector.
global demand for processed fish products.
Easily adaptable agriculture infrastructure –
Development of by-products – The seabob The infrastructure (e.g. irrigation) developed for
industry produces significant quantities of waste rice production can be easily adapted to serve
that could be used as fishmeal for aquaculture, commercial aquaculture, reducing the cost of the
adding to the overall value of catches. initial investment necessary to initiate operations.

17
Available inputs – As noted above, the marine representing a small, yet rapidly growing share (5
fishery sector produces significant amounts of percent). Guyanese wood experts estimate that
by-product that can be used as inexpensive Guyana is capable of filling most of CARICOM’s
fishmeal to fish farms. demand of 300 million board feet of tropical
wood.
High profitability – The experience of recent
investors shows that income per acre of While Guyana is traditionally known for its
commercial aquaculture activities is considerably export of timber in raw or semi-processed forms,
higher than other typical agricultural activities. the Government and segments of the forest
For example, the estimated profit per acre is product industry have placed an emphasis on
nearly 30 times greater than that of rice. promoting value-added forest product
production for export to the Caribbean, U.S. and
These factors provide a full range of Europe (see Box 2.8 below). In this regard, there
opportunities for investors, from fish farming, to are a number of comparative advantages, similar
value-added downstream activities such as to those found in other light manufacturing
processing and freezing for export. industries, such as affordable and trainable labor
(see section on Light Manufacturing below), as
Organizational Support well as attractive investment incentives.
The Fisheries Department of the MFCL is
responsible for the management, regulation, A number of lucrative opportunities exist for
promotion and sustainable development of investors interested in working with Guyana’s
Guyana’s marine and inland fishery resources. wood industry. These include furniture (e.g.
The unit conducts research, and extension hardwood and wicker), plywood and veneers,
activities, and produces comprehensive statistics.
Stakeholder organizations include the Guyana
Box 2.7:
Association of Trawler Owners and Seafood Timber Concessions in Guyana
Processors (GATOSP) as well as thirteen
fishermen’s cooperative societies. Approximately 52 percent of State Forests have
been allocated to timber harvesting concessions.
The industry uses world-class harvesting
techniques to ensure the sustainability of
FOREST PRODUCTS Guyana’s forest resources.
Three types of concessions are awarded, based
Guyana has vast forest resources that cover more on area size and duration:
than three-quarters of its landmass and contain
over 1,000 different tree varieties. Currently, 120 ƒ Timber Sales Agreement – granted up to
twenty-five years for areas in excess of
species are being logged in various forms, with 24,000 hectares
between 12 and 15 of these logged on a
ƒ Wood-cutting Lease – granted for up to ten
commercial scale through a system of years for 8,000 - 24,000 hectares
concessions (see Box 2.7). The most sought after
ƒ State Forest Permission – granted for a two-
species include Greenheart (Colubrina arborescens year period on no more than 8,000 hectares
or Chlorocardium rodiei), Mora (Mora excelsa and
Mora gonggrijpii), Baromalli (Catostemma altsonii), A selective logging approach is used for timber
harvesting activities, where an identified number
Purpleheart (Peltogyne spp), Crabwood (Carapa of commercial species above a specified diameter
guianensis), Kabakalli (Goupia glabra), and Wamara are extracted from an area. Forests are logged in
(Bocoa prouacensis). In 2005, Guyana exported a manner such that harvesting does not result in a
over US$52 million in forest products, ranging break in the overall rainforest canopy. A Code of
Practice sets minimum operational standards
from raw and sawn timber, to plywood, molding requirements, and the Guyana Forestry
and furniture products. Plywood accounted for Commission monitors harvesting practices,
about 20 percent of all forestry exports, with through a structured program of field visits.
higher-value products, such as furniture,

18
molding and doors, parquet, floor tiles, and other Organizational Support
related products. Within these product sectors,
There are a number of governmental and private
additional value can be achieved on investments
organizations involved in the forest products
that meet the requirements of certain
sector. The Guyana Forestry Commission (GFC)
environmental and social certifications from
is the government agency responsible for the
organizations such as the Forest Stewardship
administration and management of the 13.6
Council (FSC). There are also a number of
million hectares of land classified as State Forest.
opportunities to expand the development and
marketing of lesser-known species where
The Forest Products Association (FPA)
utilization is well below capacity, or where
represents private forest producers and has
species are yet to be utilized commercially. Even
substantial practical knowledge of timber
in cases where the availability and accessibility of
production and forest uses. The FPA
species does not warrant large-scale exploitation,
collaborates with the GFC in selected training
lucrative opportunities exist for investors able to
and research initiatives. This includes the Forest
develop products for niche, high-value markets.
Training Centre Incorporated (FTCI), which was

Box 2.8:
Guyana’s Wood Products Industry: Investing Towards Value-added Production and New Markets
In recent years, Guyana’s wood products sector has experienced a renaissance, with significant investments
towards the manufacture and marketing of value-added and high-value niche products, as well as strides towards
certification under the Forest Stewardship Council (FSC). Examples include:

Barama: Investments in value-added and certified sustainable production – A Malaysian-owned firm,

Barama is Guyana’s largest wood products company, contributing over 50 percent of the country’s exports in that
sector. It supplies major home improvement clients such as Lowe’s Home Centers, who purchase 50 percent of
Barama’s products. Although traditionally known for its plywood and milled lumber, Barama is investing US$35
million to expand production and diversify its products. The investment includes a state-of-the art sawmill, a kiln
drying facility, a veneer plant, and a finishing facility for furniture components to be exported for assembly in Asia,
for final export to Europe. Barama is planning on building a 3-megawatt co-generation plant. Through these
investments, Barama expects to increase its volume and variety of exports to the U.S., Europe, Central America
and the CARICOM region and create 500 jobs.
Barama has spent a number of years developing the systems and controls necessary to receive FSC certification,
with help from the World Wildlife Fund (WWF). Certified in 2006, Barama is better positioned in a global market
increasingly concerned about sustainable utilization of resources. Barama expects to receive a 5 – 10 percent
premium on FSC certified wood.

Variety Woods & Greenheart: Investments in value-added wood production – Although it traditionally
harvested and exported logs, Variety Woods and Greenheart Ltd. has continuously worked towards downstream,
value-added production of both well-known and lesser-known wood species for export to the U.S. and Europe.
This is based on the company’s understanding that Guyana must maximize the value it receives from its forestry
resources for the industry to be sustainable and truly contribute to the national economy. As such, Variety Woods
has recently invested in new machinery (e.g. molders, dust extractors, lathes, etc.) to produce value-added
flooring, paneling and siding for export. Once complete, these investments are expected to increase product
value by approximately 25 percent, without impacting the volume of wood extracted.

Liana Cane and Precision Woodworking: Collaborating in design and product lines – Two of Guyana’s
leading furniture manufacturers, Liana Cane and Precision Woodworking have recently teamed up with a
Canadian designer to design, prototype and manufacture a joint product line targeting niche furniture markets in
the U.S. Under this scheme, each firm will manufacture furniture pieces and components for which they
specialize—Liana Cane with rattan and cane pieces, and Precision with hardwood pieces. This represents a true
leap forward for the Guyanese wood products industry, where inter-firm cooperation was traditionally limited.
Through this collaboration, the two firms will be able diversify their product offerings, respond to larger orders, and
access discriminating, high-value export markets, while at the same time enhancing Guyana’s image as a source
for modern, stylish and quality furniture products.

19
established in collaboration with the Tropical ƒ Agro industries – processing, canning
Forest Foundation (U.S.) and DFID (UK) to and bottling of agricultural produce;
implement a Reduced Impact Logging program fertilizers and insecticides
focusing on hands-on demonstration and training
ƒ Packaging – manufacture of packaging
in an actual timber harvesting operation. The
materials and containers for transport of
FPA is also a timber development partner in the
finished products
Iwokrama International Centre for Rain Forest
Conservation and Development. Iwokrama aims ƒ Leather craft – manufacture of leather
to promote the conservation and sustainable use products and souvenirs
of tropical forests that will lead to lasting
ƒ Ceramics – manufacture of articles
ecological, economic and social benefits.
constructed of clay, kaolin and silica sand
The GMSA represents the interests of down- ƒ Construction Materials – stone, cement,
stream wood products manufacturers (see clay blocks, tiles, and glass
Manufacturing below for details).
There is a particular interest in expanding
Guyana’s garments and apparel sector to build
The Forestry Products Marketing Council of
upon recent successes (see Box 2.9) and to take
Guyana (FPMC) was recently established “to
advantage of preferential access to foreign
ensure the sustainability of Guyana’s forest
apparel markets under preferential trade
products industry by increasing value and
agreements with the U.S., E.U., Canada,
improving its competitiveness through enhanced
CARICOM and other bilateral trading partners.
market access and increased trade opportunities.”
Functions include market intelligence, trade
In addition to favorable market access for most
missions, developing industry and product
manufactured products, Guyana provides a
information, and providing advice on export-
number of advantages to investors interested in
related services such as product packaging and
establishing or expanding manufacturing
handling etc. The Council reports to the Ministry
operations:
of Fisheries, Crops and Livestock.
Competitive cost of labor – Guyana has one of
the lowest manufacturing wage rates in the
MANUFACTURING Caribbean and Central America (see Human
Resources in Operating Environment section).
Guyana’s manufacturing industry contributes
The workforce is highly literate and trainable.
about 10 percent towards the country’s GDP and
employs approximately 12 percent of the Low ‘time to market’ / lead-time – Guyana’s
population. Traditionally, the manufacturing close proximity to the U.S. market gives it a
sector has been dedicated to the processing of shorter time-to-market vis-à-vis countries such as
traditional agricultural products (e.g. sugar, rice), China and India. This lead-time advantage is
forest products and minerals (bauxite, gold and useful for companies wishing to find suppliers to
diamonds), basic consumer items, food and meet their just-in-time delivery requirements.
beverages, and pharmaceuticals for local
consumption. While these traditional Access to local inputs – Guyana’s natural
manufacturing activities remain important, there resources provide manufacturers in specific
is a growing interest to expand value-added, sectors with an abundance of locally available and
export-oriented manufacturing industries such as: affordable inputs for the food processing, value-
added forest products and construction materials
ƒ Garments and apparel manufacturing sectors.
ƒ Value-added/manufactured forest
products – furniture, flooring, doors,
plywood, veneer, etc.

20
 Box 2.9:
Denmor Garment Manufacturers: Competing in the Global Garment Industry
While Guyana is not known for having an apparel industry, its premier garment manufacturer has shown that
companies can succeed amid global competition from leading manufacturers in locations such as China or Latin
America. Since it began production in 1997, Denmor Garment Manufacturers has enjoyed dynamic growth,
expanding from 300 employees to 1,000 (97 percent of whom are women). Denmor has the capacity to respond
to orders of up to 50,000 dozens of garments per month, and can produce up to 15 different styles at the same
time. Approximately 75 percent of Denmor’s activities involve full production (where the manufacturer manages
all aspects except design), demonstrating an ability to carry out value-added manufacturing activities and supply-
chain management. 100 percent of its products are exported, with its customers including some of the world’s
leading brands and department stores, including Russell Athletic, Victoria’s Secret, Paris Accessories, Van
Heusen, JC Penny and Wal-Mart.

How has Denmor been able to grow at a time when many countries are seeing apparel business lost to low cost
producers in Asia? The answer is linked to both Denmor’s management style and the advantages of doing
business in Guyana. First, Guyana benefits from duty-free access to the U.S. under the Caribbean Basin
Initiative (CBI). More importantly, Denmor has developed a reputation as a top quality provider. It has received
awards from its buyers for achieving a 0.6 Acceptable Quality Level (AQL), which means that only 0.6 percent of
its products are considered defective. Denmor’s quality is due, in part, to a 100 percent trained workforce able to
shift rapidly between production forms and materials. Denmor spends over US$250,000 a year on training. The
workforce is also highly motivated, benefiting from a pleasant working environment, productivity incentives, and
generous fringe benefits, which include two-paid weeks of leave during Christmas and daily bus transport to and
from work. Worker retention is high. Denmor’s high labor standards not only contribute to a productive
workforce, but also have helped the company meet the demands of global clients who are placing an increased
emphasis on human resource management practices.

Denmor also benefits from its proximity to the U.S. market. Coupled with efficient production systems, this
proximity allows Denmor to provide clients with a 6 – 8 week turn around time. With Guyana’s sea freight service,
it takes about 10 days for Denmor’s products to reach U.S. markets. This allows Denmor to respond to small or
rushed orders without sacrificing quality, something manufacturers in Asia are less able to handle.

Guyana’s incentive regime also provides a number of advantages. This includes a tax rebate on profits from
exports, no duties on imported inputs and no complex duty-drawback scheme, and a waiver of consumption tax
for locally manufactured goods in the local market.

Denmor continues to grow, currently investing in a new factory in Berbice. The facility will initially contain 25,000
square feet of production space, and will eventually expand to 100,000 square feet. A starting workforce of 300 is
expected to grow to 500. In time, Denmor is expected to be able to manufacture 30,000 dozens of garments per
month at the Berbice facility in 5 years, doubling the company’s overall production capacity.

Availability of industrial parks – In an effort estates with the overall aim of helping local and
to attract manufacturing investments, the foreign investors to stimulate growth in the
Government of Guyana has invested in a number economy. The GMSA, a private organization
of industrial parks with installed infrastructure that supports policy advocacy, marketing, and
available at G$1.00/US$0.005 per square foot per technical assistance, represents manufacturers
annum and investment concessions for materials, and services providers operating in Guyana. The
vehicles, plant and machinery (see Locating in GMSA includes a number of sub-sector
Regulatory Environment Section). committees that discuss issues related to agro-
processing, textiles and sewn goods, printing and
Organizational Support packaging, construction and engineering,
chemicals and pharmaceuticals, forestry and
The Industry Department of the Ministry for wood products and services.
Tourism, Industry and Commerce (MinTIC) is
responsible for promoting industrial
development and the management of industrial

21
TOURISM University of Guyana, the establishment of the
Guyana Tourism Authority (GTA), and the
Guyana’s unspoiled beauty, unique cultural
formation of the private sector Tourism and
heritage and natural attractions make it an ideal
Hospitality Association of Guyana (THAG) (see
destination for tourists. As opposed to the sun
supporting organizations below). The
and sand tourism product offered by many of its
Government also provides the industry with
Caribbean neighbors, Guyana offers a distinct
support through national efforts to market
product—vast open spaces, savannahs, virgin
Guyana as a tourist destination, including the
rainforests, mountains, huge rivers and waterfalls,
innovative creation and airing of video
the most famous of which is the majestic
Kaieteur Falls, known to be the highest single Box 2.10:
drop waterfall in the world and five times taller Developments in Tourism Industry: Boosting
than Niagara Falls. Guyana also boasts abundant Guyana’s Image as a Caribbean Destination
wildlife, numerous species of flora, a variety of Cricket World Cup:
fauna and spectacular birdlife. These sites are Introducing the World to Guyana
accessible by land, air and river and are served by Guyana will host six matches during the 2007
high-quality eco-resorts in the interior. The World Cup Cricket. It is expected that up to 25,000
fans from the all over the globe will visit Guyana. In
capital, Georgetown, is well known for its anticipation of the games, Guyana has invested in a
picturesque, tree-lined avenues, bustling markets, US$25 million, 15,000-fan capacity stadium. Private
and wooden buildings, including the renowned entrepreneurs are investing in upgrades in hotels,
St. George's Cathedral, reportedly the world's restaurants and other services. Although the event
will surely provide the tourism sector with an
tallest wooden building. enormous boost in the short term, it could also have
a critical long-term affect by availing Guyana an
Guyana’s tourism industry is experiencing a opportunity to show the world what it has to offer.
period of dynamic investment and growth. Fans who enjoy themselves will be more likely to
return and share positive experiences with friends,
Visitor arrivals have grown from 57,400 in 1999 thus raising Guyana’s profile as a tourism
to over 116,000 in 2005. Tourism receipts (or destination. With its global draw, the World Cup will
exports) amounted to over US$35 million in help put Guyana on the map in tourist markets that
2005. With worldwide growth in adventure, have not yet discovered Guyana.
cultural and eco-tourism, Guyana's appeal as an
alternative to the standard Caribbean sun and
sand destination is underscored by its market
niches such as bird watching, sport fishing and
yachting. At the same time, there are numerous
opportunities resulting from the recent
construction of a modern convention centre and
Guyana’s hosting of Cricket World Cup matches
in 2007. New Convention Center:
Expanding Business Tourism
Recognizing the potential of Guyana’s tourism In 2005, construction was completed for a new
product and the likely economic impact of a state-of-the-art convention center in Georgetown,
not far from the CARICOM Secretariat building.
dynamic tourism sector, Guyana’s government The centre has a main conference hall with a
and private sector leaders have taken a number of seating capacity of 372, five smaller conference
steps to facilitate the development of this sector. rooms, a business center and a restaurant. This
Tourism was included as a priority under the convention center, coupled with its proximity to the
CARICOM Secretariat building, recent
country’s National Development Strategy. improvements at the Ogle Airport (see Air Transport
Developments include the formation of a in Operating Environment section) and the
Ministry, together with the appointment of a construction of a new hotel nearby will help raise
Minister responsible for tourism, the Guyana’s profile as a destination for the hosting of
international conferences and meetings.
introduction of a Tourism Studies Unit at the

22
commercials to showcase tourism attractions on multilateral organizations and non-governmental
regional airlines, as well as attractive incentives organizations.
for investments in new or expanded facilities and
Transportation services – As Guyana’s tourism
services.
industry grows, there is an increasing need to
expand the availability of tourism-related
While enormous tourism potential exists, there is
transportation services. In particular, this
an ongoing need for investments that develop
includes an expansion of scheduled and
and upgrade the facilities and services that make
chartered air services to and from Guyana, as
up Guyana’s tourism product. Since the tourism
well as boat and car rental services.
sector is still in the early stages of development,
current investors can benefit from ‘first mover’ Craft Industry – Guyana has several established
status and the choice of diverse investment craft shops, but increased interest and demand
opportunities: for these crafts provide opportunities to expand
production. In the short term, the 2007 World
Existing attractions and activities – There are
Cup matches will create a significant increase in
opportunities for investments that improve
the demand for crafts and souvenirs.
Guyana’s existing tourism products and
attractions. These include the development of
the Kaieteur Park area as a major tourist Organizational Support
destination, recreational facilities and activities The Guyana Tourism Authority (GTA), part of
(e.g. rafting, boating, tennis, horseback riding MinTIC, is responsible for promoting the
and golf), and accommodations (e.g. eco-lodges development of Guyana's tourism industry.
or resorts) in the interior. Among other functions, the GTA is entrusted
with designing and marketing tourism strategies
Niche market products – Aside from the
on behalf of the Government. It is also
current adventure and eco-tourism products that
responsible for the regulation of standards to be
Guyana offers, opportunities exist for the
maintained by all industry participants.
development of niche tourism markets and the
services to support these new markets. For The Tourism and Hospitality Association of
example, there is a need for investments in the Guyana (THAG) represents the interests of
infrastructure, facilities and services to support private enterprises working within the sector, and
market segments such as bird watching, yachting is an umbrella body for all tourism related
and deep-sea or river fishing. entities. Members include hoteliers, resort
owners, tour operators, travel agents,
Hospitality services in Georgetown – There
restauranteurs, jewelry and craft shop owners,
are ongoing opportunities for investments in
and transportation services providers. It partners
new hotels and restaurants able to meet the
with the Government in developing and
demands of discriminating international tourists
expanding many vital aspects pertinent to the
and business people. While Guyana has a
tourism industry, including generic marketing, the
growing room capacity (approximately 700 hotel
positioning of individual members in local,
rooms as of 2005, with 700 more under
regional and international markets, as well as
construction), further investment is needed to
introducing and maintaining the highest industry
meet the demands of increased tourism arrivals,
standards.
such as the 2007 Cricket World Cup.
Business tourism services – Guyana’s status as
the home of the CARICOM Secretariat, together IT-ENABLED SERVICES
with the completion of a new convention centre, Recently, Guyana has experienced the emergence
presents opportunities for investors to develop of a small, but growing IT-enabled Services
business services (e.g. convention services, industry with both domestic and foreign
catering, VIP transport, communications, etc.) investment (e.g. Canada, Mexico) in call centers
targeting international business people,

23
and back-office processing operations. Some of minerals, copper, molybdenum, tungsten, iron,
the investors have included Guyana as part of a and nickel among others. Guyana produces
network of business process outsourcing (BPO) high-value refractory-A grade bauxite, which is
centers located in Latin America. Although not produced nowhere else except in China. The
widely known as a location for BPO, Guyana mining and quarrying sector represents a critical
possesses a number of advantages that make it an component of Guyana’s economy, contributing
ideal location for IT-enabled services: to over 9 percent of GDP and accounting for
approximately 38 percent of exports in 2006. In
English-speaking Workforce – As an English-
2006, Guyana produced nearly 1.45 million metric
speaking country, there are few language barriers
tons of bauxite, 205,970 ounces of gold and
for providing voice or data services to customers
340,544 metric carats of diamonds.
in the U.S. and Canadian markets. This has
helped draw the attention of BPO companies
based in Latin America. As in other areas of the economy, the Government
has looked to private industry—and international
Accent – Recent investors note that Guyanese investors in particular—to expand opportunities
workers have an accent more compatible with for the bauxite sector. In February 2007,
the U.S. market than those in other Caribbean Government gave its consent for China’s Bosai
islands. Minerals Group to acquire the 70% share in the
Skilled and trainable people – Guyana’s Linden bauxite operations that were previously
workforce is literate and trainable. To date, call held by Canadian based IAMGOLD, which is the
centre investors have noted their ability to attract parent company of Omai Bauxite Mining Inc.
higher skilled workers, making it possible to Bosai paid US$46M for this acquisition with
reach higher productivity levels. Government retaining its 30% share. The Berbice
bauxite plant, Aroaima Mining Company, was also
Time zone – Guyana is in the same time zone as
privatized. The Russian aluminium giant RUSAL,
the east coast of the U.S. and Canada, allowing
acquired a 90% stake in the Berbice operations at a
firms to work with customers in those countries
cost of US$20M. The remaining 10% is owned by
on a real-time basis.
Government. RUSAL has commissioned a study
Communications Cost – Guyana is able to to determine the feasibility of establishing an
provide call centers with reasonable ICT costs. alumina plant and is also considering building an
alumina smelter plant. With these recent
The Government is eager to attract further investments, bauxite production is expected to
investment in this area. Not only is the increase by more than 50%.
Government providing attractive incentives for
investors (e.g. tax holidays), it is also taking steps
In 2005, gold production was significantly
to improve the regulatory framework for sectors
reduced as economical deposits at the Omai
utilizing ICT for services targeting domestic and
Gold mines were exhausted. In the past, Omai
international markets through the development
produced approximately 70 percent of Guyana’s
of policy strategies for ICT and E-commerce.
gold. This closure, combined with high gold
prices, has precipitated a surge in exploration for
n e w g o l d d e p o s i t s. T h e p r o s p e c t s a r e
MINING encouraging, with exploration results suggesting
Situated on the mineral rich Guyana Shield, that at least one million ounces of gold deposits
Guyana has attracted international interest from are accessible in each of two new sites. Once
the largest mining companies in the world. While confirmed, production at these sites could start
the mining sector is primarily focused on gold, within two years. Furthermore, with the increase
bauxite and diamonds, Guyana also contains in world gold prices, deposits that were
deposits of semi-precious stones, laterite,
manganese, kaolin, sand resources, radioactive

24
 Operating
Environment

In This Section
Resources and Infrastructure……………………………………28
Natural Resources………………………………………………28
Infrastructure…………………………………………………….28
Financial Sector………………………………………………….33
Human Resources………………………………………………35
Regulatory Environment………………………………………….37
Investment Framework………………..…………………………37
Locating……………………………………………………………38
Environmental Regulations……………………………………...40
Starting a Business………………………………………………40
Taxation……………………………………………………………41
Exchanging and Remitting Funds………………………………43
Investment Protection and Standards of Treatment………….44
Trade Procedures………………………………………………...45

27
III. OPERATING ENVIRONMENT

Guyana’s operating environment environment and exotic natural attractions, which

provides both prospects and challenges for include Kaieteur Falls, the highest single drop
businesses. The country offers vast natural waterfall in the world, make Guyana an attractive
resources, abundant, affordable and trainable destination for eco- and adventure tourists.
labor, national treatment for foreign investors
and an attractive investment incentive regime. At In the 2005 Environmental Sustainability Index
the same time, successful investors must be able (ESI), Guyana rated 8th in the world, with
to work within an operating environment positive scores for its air quality, biodiversity,
characteristic of most developing countries. This land, water quality, air pollution, ecosystem
includes 1) Guyana’s still developing economic stress, population stress, natural resource
infrastructure (e.g. transport, energy, management and greenhouse gas emissions.
telecommunications and access to finance) that Negative scores included environmental
can impact profitability; 2) limited availability of governance, eco-efficiency, and private sector
certain management and technical expertise responsiveness to environmental issues. In most
within the workforce; and 3) limited institutional categories, Guyana bettered, if not far exceeded,
capacity to implement legislation, policies and the average of its peer group.
administrative procedures. While these
conditions may hinder some businesses in the Infrastructure
short run, numerous improvements are on the Guyana has adequate infrastructure in place to
horizon, including investment in infrastructure, support production, communication and market
policy reforms, training programs and the access. Nevertheless, the cost and quality of
inevitable increase in overall capacity that results Guyana’s infrastructure can, and does, affect the
from growth. ease and cost of doing business, with the actual
impact often depending on the location of a
RESOURCES AND INFRASTRUCTURE business’ operations. For the most part, Guyana’s
Natural Resources best infrastructure is found in and around the
capital city, Georgetown.
Guyana is a country of vast, often untapped,
natural resources. As shown in the previous Ports and Waterways
section, these resources are able to support
multiple sectors of the economy. In terms of Water transport is the predominant mode of
agriculture, large areas in the country’s coastal transport for most goods. Facilitated by ports at
belt are endowed with productive soil and the Georgetown, New Amsterdam and Linden, water
water necessary to grow tropical crops. Its transport carries about 61 percent of Guyana’s
extensive savannahs are ideal for the production total domestic and international freight load.
of beef, milk, corn, nuts, soybeans and other About 1,000 km of river waterways are navigable
crops. The Atlantic coastline and an extensive by small boat while some sections of the Berbice
network of rivers are able to support both (150 km), Demerara (100 km) and Essequibo (80
traditional oceanic fisheries and ‘inland’ km) rivers are navigable by ocean-going vessels.
aquaculture. Most of the interior is covered with Inland water transport is particularly important
tropical lowland forest containing many species for the sugar (e.g. moving fertilizer to cane fields,
of valuable lumber, many of which have yet to be moving cane to mills) and the bauxite industries
commercialized. Rich deposits of gold, bauxite, (e.g. moving processed bauxite to export points).
diamonds and other minerals exist in locations
throughout the country. Finally, its pristine

28
International trade cargo is handled at the Table 3.1 presents sample rates for a range of
wharves of Georgetown, the bauxite loading products and shipment sizes to the Port of Palm
installation at Linden and another bauxite loading Beach, Florida. It should be noted that Guyana
facility at Everton in the Berbice River. With has directional imbalances, where imported
over 40 separate wharves, Port Georgetown is container shipments come in full, while many
the main shipping port in Guyana, and is export containers leave less-than-full or empty.
accessed via the Demerara River, which flows As a result, exporters enjoy rates ‘subsidized’ by
into the Atlantic Ocean. It is estimated that 90 importers, as shippers are eager to fill outbound
percent of all of Guyana’s imports and exports, containers. It generally takes about nine days for
with the exception of bauxite, move through Port transit between Guyana and the U.S.
Georgetown. Port Georgetown is limited in its
ability to handle very large cargo vessels because Table 3.1:
of its low tide water depth, which ranges from Sample Ocean Freight Shipping Rates (US$):
Georgetown Seaport to Port of Palm Beach, FL
about 5 to 6.5 meters. As a result, a significant
amount of cargo must be transshipped, usually 20’ Less than
40’ Container
through Trinidad and Tobago. While there have Shipment (full)
Container Full
been discussions on the establishment of a deep Type (Full) Container
Base
water harbor in Guyana, the current volume of Charge
Other Base Other Base Other
cargo moving through Port Georgetown does General
not justify the establishment of such a facility at 1550 1021 973 692 3/CFT 75.2
Cargo
this time. Food Products
Rice* 4553 (total) 1301 735 -
Box 3.1: Groceries
1550 1062 959 732 -
Port Operators in Guyana (Dry)
Groceries
ƒ DIDCO Trading Company* 4025 1146 2511 783 -
(Ref.)
ƒ Guyana National Industrial Company Inc* Groceries
2486 783 2511 783 -
ƒ Guyana National Shipping Corporation* (Froz.)
ƒ John Fernandes Ltd.* Seafood*
4383 (total) 2701 363 -
(Ref.)
ƒ Muneshwers Ltd *
Wood Products
ƒ Demerara Shipping Ltd. Lumber 1858 454 1418 222 189/tn 83.37
ƒ Demerara Sugar Terminals Furniture 2160 1069 1001 732 -
ƒ Guyana Fertilizers Ltd. Apparel - - 1341 $735 -
ƒ Weiting and Richter Ltd. Sources: One-line rates from Tropical Shipping,
*Also a shipping agent www.tropical.com and Laparkan (denoted by *). Laparkan
rates inclusive. Rates likely to change by season and by
contract. Long-term contracts may include large discounts.
February 2006.
Port terminals are operated by a number of
Note: Base charges generally include ocean freight, inclusive
independent operators, some of whom are also of landing. Other charges include items such as bill of laden
shipping agents. Together, these operators fee, bunker charges, chassis charges, handling charges,
security surcharges and insurance. Many of these charges
provide about 800 meters of wharfing facilities are standard and/or determined by U.S. charges.
and about 1500 sq meters of warehousing space.
Cargo handling capacity is in excess of 800 metric
In addition to private transport providers, the
tons. In total, there are 11 shipping agencies
Transport and Harbors Department operates its
based in the Georgetown area, arranging own river ferries, as well as a network of stellings
transport with 21 different shipping lines,
and wharves.
including global lines such as Maersk Sealand and
P&O Nedlloyd. The Shipping Association of The Maritime Administration Department
Guyana Inc. (SAG) represents the private
(MARAD) regulates maritime safety and the
shipping sector.
operations of the ports and harbors of Guyana.

29
Its responsibilities include implementing Air Transport
international maritime conventions, codes and
The air transportation system provides transport
customary practices and international maritime
to and from domestic and international
security policy, registering and licensing ships,
destinations. On the domestic side, scheduled
provision and maintenance of navigational aids,
and chartered services carry both passengers and
dredging and maintenance of ships’ channels, and
cargo between Georgetown and hinterland
supervising and administering government
centers, including the mining areas. For some
wharves. MARAD also provides 24-hour
remote hinterland areas, air transport is the only
pilotage service in the Demerara, Essequibo and
practical transport link with Georgetown. For
Berbice Districts.
international travel, Guyana has direct air links
with the United States (New York and Miami),
Road Transport
Canada (Toronto), Barbados, Brazil, Trinidad
Guyana’s road network consists of 2,577 km of and Tobago, and Suriname. Trinidad, Barbados
paved and unpaved roads, providing access to the and Miami are the main hubs for other
central services provided in Georgetown, as well international destinations.
as social and commercial links between the urban
and rural areas. Over 21 percent (2003) of Guyana’s major airports include the recently
Guyana’s roads are paved, of which 77 percent refurbished Cheddi Jagan International Airport at
are considered in good condition. Key arteries Timehri and the Ogle Municipal Aerodrome on
include: the East Coast Demerara. All scheduled flights
transit through either of these two airfields. The
ƒ The coastal road from Moleson Creek
Timehri airport, about 40 km south of
(border of Suriname), through New
Georgetown, serves both international and
Amsterdam and Georgetown to Charity (just
domestic flights. In 2004, over 425,000
over 100 km from the border with
passengers traveled through the Timehri airport.
Venezuela). At present, ferries are required
to cross the Essequibo River, Berbice River
and the Corentyne River at Moleson Creek. Box 3.2:
Ogle Aerodrome Improvements:
ƒ The inland link between Georgetown and the Impact on Tourism and Ease of Business
bauxite town of Linden. From Linden, the The recent improvements at the Ogle Aerodrome to
road continues unpaved to Lethem on the allow regional/Caribbean flights, coupled with the
airport’s proximity to Georgetown, will have a
Brazilian border. positive impact on Guyana’s tourism and business
sectors:
Improving the road network is an ongoing ƒ Increased ease of business travel, especially
government priority. Recent achievements for investors/business people based in key
include the rehabilitation of most of the coastal Caribbean hubs. This could help the new
road, the construction and upgrading of Convention Center become a more attractive
location for meetings.
numerous bridges along the coastal road,
ƒ More choices and easier access for tourists,
upgrades to the four-lane Demerara Bridge especially those interested in charters, short
Highway and the upgrade of the road from hops and multi-country packages.
Timehri Airport to Georgetown. Progress ƒ Increased flexibility in Guyana’s airlift capacity
continues toward the construction of a US$35 to accommodate fluctuations in passenger
million floating bridge over the Berbice River to flows. This is particularly important for events
such as the Cricket World Cup, where arrivals
replace the existing ferry. The completion of this could jump to 25,000.
bridge, expected in 2008, will greatly improve ƒ Opportunity to expand regional cargo capacity
east-west travel. and help provide exporters with more transport
options.

30
Timehri is able to accommodate the following Power Supply and Energy
aircraft: Boeing 727, 737, 767, 763, 757, 747 Although Guyana has major hydroelectric
(restricted); Airbus 320; and McDonnell Douglas generation potential, electricity generation relies
DC-86. The main carriers providing international upon diesel plants. Guyana Power and Light
passenger services include Caribbean Airlines, Corporation (GPL) is the official electricity
Travel Span, Caribbean Star/Liat, North American supply company, with its franchise area covering
Airlines and Meta Airlines. Carriers providing the counties of Demerara, Berbice and
airfreight services include Amerijet and Laparkan. Essequibo. In 2003, GPL had an installed
generation capacity of 124.5 megawatts. GPL is
Air cargo throughput at the Timehri airport currently a state-owned company, but a road map
totaled 6,870 metric tons in 2005, averaging 122 has been drawn up for its privatization, with the
tons each week. Over 45 percent of the cargo Government inviting local investors to invest
moved through the airport is outbound. Rates US$30 million for a 50 percent share in the
vary by product and size of the shipment. Table company.
3.2 provides sample freight rates to Miami, FL.
The cost and reliability of electricity is recognized
Table 3.2: Sample Air Freight Timehri
by both private and government stakeholders as a
to Miami, FL constraint for profitability and smooth business
Cargo type/ Size Price by kg (US$)
operations, especially in energy intensive
industries such as mining and manufacturing.
Vegetables/Fish Several larger business concerns generate their
1500 kg $1.10 own power—at an estimated 45 percent
1500 - 2045 kg $1.00
2045+ kg $0.90
reduction in cost per Kwh. In Georgetown,
General Cargo companies’ self-generation has helped reduce
25 - 45 kg $1.75 demand by 15 percent since 2000, thereby
46 - 440kg $1.65 reducing pressure on the grid.
440+ kg $1.55
Source: Laparkan, March 2007. All prices Table 3.3: Electricity Rates in Guyana (March, 2007)
include US$0.25 /kg fuel surcharge and other
charges amounting to US$40. Rates may Service Residential Business
change by season and contract arrangement. Under 100Kwh G$45.68/US$0.23 N.A.
Over 100Kwh G$49.34/US$0.25 N.A.
Flat Rate
The Ogle aerodrome is located about 8 km east (per Kwh) N.A. G$60.71/US$0.30
of Georgetown. In 2003, passenger traffic Fixed Charge G$339/US$1.70 G$2258/US$11.35
exceeded 55,000, while total cargo throughput Self-generation N.A. G$41.79/US$0.21
reached 4,204 metric tons. Until now, the airport Source: Guyana Power and Light Corporation.
has been used primarily for domestic passenger A combination of government and private sector
service, serving Georgetown as a major airport initiatives suggest that measurable improvements
for the domestic operation of light aircraft. The in the supply and distribution of electricity could
aerodrome, however, is currently undergoing an be achieved in the near future. GPL is moving
upgrade (see Box 3.2). Since 2004, private forward on a US$120 million plan to introduce
operators have been working to double the size 50 megawatts of new generation within two years
of the runway to accommodate small to mid-size and reducing transmission losses—estimated at
regional aircraft for passenger flights to 44 percent of total power output in 2004. The
Caribbean destinations. These improvements are Unserved Areas Electrification Program is
being complemented by government funds to expected to link at least 50,000 additional
help bring the airport in compliance with the households in 200 under-served and unserved
standards of the International Civil Aviation communities to the electricity grid. As part of
Organization.

31
Guysuco’s Skeldon Modernization Project, a new negotiations with Atlantic TeleNetwork (U.S.) to
co-generation plant is expected to contribute 10 terminate the current monopoly license. The
MW of power to the national grid. In March Government believes that the termination of the
2005, Omai Services Inc., whose diesel plant has monopoly will provide the framework for the
an installed capacity of 12 MW, was granted a expansion and improvement of
license to supply electricity to the Linden telecommunications services, alongside
Electricity Company. significant reductions in cost.

While these developments will have a positive Despite the continued monopoly,
short-term impact, the most promising option is telecommunications costs are reasonable. GT&T
the development of Guyana’s hydropower has made significant investments to improve
potential. In this regard, GPL and investors are services and introduce state-of-the-art
negotiating a power purchase agreement that technology. The company installed a domestic
once completed could lead the way for three satellite to provide telephone service to the
projects, including a 100 MW Amaila Falls remote areas in Guyana. Investments in data
scheme in western Guyana. In other alternative networks allow banks, money transfer service
energy plans, the Guyana Energy Authority is providers, airlines and other data-dependent
facilitating a private investor to construct a wind businesses to communicate via a high-speed
farm at Good Hope, which is expected to have network. GT&T also introduced mobile
an installed capacity of 12 MW. voicemail and short messaging service (SMS)
that, when combined with the introduction of
Telecommunication Services GSM and its overlay GPRS, provides customers
with a range of new advantages.
Over the past decade, Guyana has enjoyed
constant improvements in the availability and
Mobile phone services are not included in GT&T's
reliability of its telecommunications services,
exclusive license. The Irish company Digicel
including a significant increase in the number of
working landlines—from 13,000 in 1991 to launched its mobile telecommunication operations
119,740 in 2006 - and cell phone usage - from in February 2007 with an initial investment of
18,400 in 2001 to 292,917 in 2006. US$60M. Digicel has partnered with another
company, Ericksson, to provide GSM cellular
The Guyana Telecommunications and Telegraph service and plans to expand its operations to
Company (GT&T) has had a monopoly over include the interior regions of Guyana.
national and international voice transmission
since 1991, with its exclusive license currently set
Water Supply and Sewage
to expire in 2030. The Government, which owns
20 percent of GT&T’s shares, wishes to liberalize Since 2000, the Government has been
the telecommunications sector and is in ongoing implementing an ambitious program of reform

Table 3.4: Table 3.5:

International Calling Rates from Guyana and Regional Countries Internet Service Rates

Call Origin Calls to Calls to Calls to S. Calls to Type of Service Prices

U.S. U.K. America Asia DSL Monthly
Suriname US$0.44 US$0.44 US$0.44 US$0.71 512 Kbps G$33,250/US$167
Dominican US$0.32 – US$0.98 – US$0.67 - US$0.84 – 384 Kbps G$20,000/US$100
Republic US$0.38 US$1.46 US$0.84 US$1.02 256 Kbps G$9,980/US$50
Guyana US$0.45 – US$0.61 – US$0.95 - US$1.65 –
E1 Monthly
US$0.50 US$0.68 US$1.35 US$2.36
Barbados US$0.49 - US$0.74 - US$0.88 - US$1.14 - 2 MB Connection G$1,500,000 /
US$1.00 US$1.25 US$1.88 US$2.30 US$7,000
st
Source: Extracted from the 21 Annual Directory 2005 of the Caribbean Source: GT&T. Note: E1 rates include 25
Association of National Organizations percent Satellite restoration. March 2007

32
within the water sector, which seeks to provide legislation provides banking regulations and
safe and affordable water to almost the entire supervision that are effectively implemented.
population. Increasing numbers of customers are Under the Financial Institutions Act of 2004
receiving 24-hour water supply, and significant (replacing the Act of 1995), the Central Bank has
infrastructural development has taken place— the power to take temporary control of financial
including the commissioning of seven water institutions in trouble, giving it greater
treatment plants in New Amsterdam, Rosehall, responsibility for the health and stability of
Golden Grove, Eccles, Covent Garden, licensed financial institutions. Also in 2004, the
Pouderoyen and Bartica. Government ratified legislation on the control of
money laundering and the creation of a financial
Table 3.6: investigation unit.
Water Sewage Rates in Guyana
Guyana has made a number of commitments
Service Usage Charges under the WTO’s General Agreement on Trade
Water Georgetown Non-Georgetown in Services (GATS) that facilitate the provision
Domestic G$983/1,533/1,758 G$742/1,150
US$/4.9/7.66/8.79 US$3.71/5.75
and use of financial services by foreign investors.
Monthly, or monthly, or There are few limitations, except that foreign
G$112/US$0.56 G$60.90/US$0.30 borrowers applying for a loan of over US$10,638
per m3 per m3
(G$2 million) must request permission to take
Business* G$2,750/US$13.75 G$1,366 - 18,283 out the loan locally from the Minister of
monthly, or US$6.83 – 91.41
G$100.8/US$0.50 monthly, or
Finance. This requirement reflects Guyana's
per m3 G$92/US$0.46 preference for foreign investors to bring capital
per m3 into the country.
Sewage
Domestic G$400/US$2.01 N.A.
monthly
Commercial Banks
Business G$2,000/US$10.05 N.A. Commercial banks make up over 70 percent of
monthly the assets of the financial system. All domestic
Source: Guyana Water Incorporated, March 2007
*Depends on Business
banks have been privatized; the two largest being
the National Bank of Industry and Commerce
As part of the reform program, in 2002, the (NBIC) and the Guyana Bank for Trade and
Guyana Water Authority and the Georgetown Industry (GBTI). When it was privatized, the
Sewerage and Water Commission were merged to NBIC acquired the assets of the previously state
form Guyana Water Incorporated (GWI). This owned bank, the Guyana National Co-operative
merger was followed by the awarding of a Bank (GNCB). The newest banks are Demerara
management contract to a UK-based company. Bank and Citizens Bank Ltd, which were
established in 1994. The former is an indigenous
GWI is three years into a five-year strategic plan bank, while the latter recently changed from
to progress the goals of the water reform Jamaican to Guyanese ownership. Other foreign-
program. owned banks are the Bank of Baroda (India) and
the Bank of Nova Scotia (Canada).
Financial Sector
While banks offer a full range of banking services
Financial services account for approximately 4 and are linked to a network of U.S. and other
percent of GDP (2005). The financial services correspondent banks, businesses cite the high
sector consists of the Bank of Guyana (Central costs of both short and long ter m credit.
Bank), six commercial banks, trust companies, a Guyana’s interest rates have an impact on new
building society, insurance companies, credit and expansion investments, particularly among
unions, bank and non-bank foreign exchange domestic businesses. Guyana has experienced a
cambios, and private sector organizations gradual fall in prime lending rates from highs of
financing small and micro-enterprises. Financial

33
 Table 3.7: Interest Rates for Prime Borrowers in companies are not precluded from engaging in
Guyana and Other Countries (%) other financial activities, except as specified in
the Financial Institutions Act, but are required by
Lending rate
for Prime 2000 2001 2002 2003 2004
Avg. Avg. law to keep separate accounts, even for the
Borrowers
Rate Spread different classes of insurance activities in which
Antigua & they engage.
12.2 11.6 11.4 12.8 12.3 12.1 7.4
Barbuda
Bahamas 6.0 6.0 6.0 6.0 6.0 6.0 1.9 Trust companies, which constitute 5 percent of
Barbados 10.2 9.6 8.5 8.5 8.3 9.0 5.7 the financial system’s assets, only operate with
Belize 16.0 15.5 14.8 14.3 13.9 14.9 8.0
term (time) deposits. General services offered
Dominica 11.7 11.1 11.0 11.5 8.9 10.8 7.1
include mortgage financing, trust management,
trade financing, pension fund investment and
Grenada 11.6 10.2 11.3 12.0 10.2 11.1 7.3
brokerage services. The New Building Society is
Guyana 17.3 17.0 16.3 15.0 14.5 16.0 10.7 the only building society in the country; its major
Haiti 25.1 28.6 25.7 30.6 34.1 28.8 17.1 activity is the provision of mortgage financing for
Jamaica 23.3 20.6 18.5 18.9 18.1 19.9 10.6 residential properties, typically at rates lower than
St. Kitts and
11.1 11.1 10.9 12.2 10.3 11.1 6.8 those of other financial institutions.
Nevis
St. Lucia 13.1 13.0 12.6 15.0 11.1 12.9 8.4 Bank and non-bank foreign exchange providers
St. Vincent easily facilitate the conversion of foreign
11.5 11.6 11.6 11.8 9.5 11.2 6.9
and Gren.
Suriname 17 17 16 15 15 16.0 10.8
currency. Both residents and non-residents can
access the foreign exchange market with ease.
Trinidad and
Tobago
16.5 15.7 12.5 11.2 9.3 13.0 7.8 There are no restrictions on the amount of
CARICOM foreign currency that may be taken out of, or
14.5 14.2 13.4 13.9 13.0 13.8 8.1
Average brought into Guyana. However, if the transfer
Brazil 56.8 57.6 62.9 67.1 55.1 59.9 41.6 involves the physical movement of greater than
Dominican
26.8 24.3 26.1 31.4 32.6 28.2 9.9
or equal to US$10,000, it must be declared to
Republic Guyana’s port authorities.
Venezuela, 25.2 22.5 36.6 25.2 18.5 25.6 7.5
Source: World Development Indicators Online. February 2006
There are four private sector organizations
offering development finance to small, medium
over 30 percent in the early 1990’s. In 2004 the
and micro enterprises. These include
average lending rate provided to prime borrowers
Development Finance Limited (based in Trinidad
was 16 percent. Some banks reported lending
and Tobago), which incorporated in Guyana as
rates of up to 19.75 percent, depending on the
DFLSA in 2004. A US$2.5 million loan from the
client, size of the loan, terms and level of risk.
Multilateral Investment Fund of the IDB and the
While slightly higher than the regional average
E.U. provides DFLSA with lending capital for
(see Table 3.7), Guyana has lower lending rates
medium to long-term loans to small and medium
than some of its neighbors, particularly Brazil,
enterprises. DFLSA also recently established a
the Dominican Republic and Venezuela.
micro finance institution called MicroFin, which
took over Scotia Enterprise from Scotia Bank.
Non-Bank Financial Institutions (NBFIs)
Two other PSOs engaged in financing micro and
NBFIs comprise pension schemes, trust small enterprises are the Institute of Private
companies, a building society, finance companies Enterprise Development (IPED) and the Small
and insurance companies. They account for Business Development Finance Trust. In
about 30 percent (2002) of the financial system’s addition to providing loans, these organizations
assets. provide firms with consulting services and
Guyana has six insurance companies offering training.
general and life insurance, which make up 8
percent of financial system assets. Insurance

34
A number of financial institutions provide low- Human Resources
income housing loans, including New Building
Cost and Availability of Labor
Society, Citizens Bank, GBTI and Republic Bank.
These rates are offered at concessionary rates Guyana’s labor force is comprised of 290,000
through an agreement where the Government persons, of which, approximately 11 percent are
provides the financial institutions with tax employed in the public sector. The labor force is
waivers for providing the loans. well educated, with an adult literacy rate of 98.8
percent, one of the highest for the CARICOM
Stock Market region. Over 75 percent of the pertinent group is
enrolled in secondary education, while six percent
In 2003, a national stock exchange opened with
attend tertiary education. Moreover, recognizing
12 companies listed. In the medium term, firms
the importance of education and training in
on the Guyana Stock Exchange may be able to
meeting development objectives and competing
cross list on regional stock markets and in more
in the global marketplace, the Government has
than one country within the Caribbean. This
implemented a number of initiatives to improve
gives non-Guyanese investors direct access to
the skills of its workforce. These include the
purchasing Guyanese shares on their local
recently launched National Training Program for
exchange, thus facilitating foreign investment in
Youth Empowerment with a focus on technical
the Guyanese economy.
and vocational training, programs to equip
schools with facilities for technical and vocational
The Securities and Exchange Act was enacted in
subjects, new and improved educational facilities,
1999 and provides the legal framework for the
and a number of donor supported technical and
operation of the Guyana Securities Council
vocational education and training programs.
(GSC), the entity that regulates the activities of
the Guyana Stock Exchange. The Guyana
Association of Securities Companies and Table 3.8:
Average Monthly Wages for Different
Intermediaries (GASCI) is the self-regulatory Private Sector Job Types
organization registered by the GSC to run the
Stock Market. GASCI consists of four member Position
Monthly Salary
firms—the Trust Company Guyana Ltd., Guyana (US$)
Americas Merchant Bank Inc., Beharry Manufacturing 148 – 160
Stockbrokers Ltd. and GNCB Trust Corporation Clerical/ Secretary 115 – 175
Inc.—that provide broker services for customers Supervisory Personnel 200 – 300
who wish to buy and sell shares on the stock Entry Level/ 450 – 900
market. The member firms of GASCI are also Middle Management
registered as brokers with the GSC. Sources: GoG, Private Sector Surveys

Companies interested in serving as brokers must

submit an application to the GSC. Likewise, Guyana’s minimum wage is US$116.00 per
companies interested in listing their stock on the month, but this generally only pertains to the
exchange must also apply to the GSC in public sector. In many sectors, remuneration in
accordance with the rules and guidelines the private sector is higher than the minimum
established for this purpose by the institution. wage, or the public sector wages in any specific
Investors that seek to invest in companies listed category, though they still remain low relative to
on the exchange must pursue this through one of the Caribbean and other neighboring countries.
the registered brokers discussed above. As shown in Table 3.9, Guyana has one of the
lowest hourly wage rates for manufacturing
within the Caribbean and Central America.

35
 Table 3.9:
Regional Manufacturing Wages Box 3.3: Trade Unions in Guyana
About 35 percent of Guyana’s official workforce has
Country Wage (US$/hour)
voluntarily joined one of about 18 active unions.
Antigua and Barbuda 3.01 The Trade Union Recognition Act protects
Bahamas 6.10 employees from termination of employment for
Barbados 4.67 participating in a union and requires both parties to
negotiate in good faith. In instances where an
Costa Rica 2.58
agreement cannot be reached, arbitration may
Dominica 2.14 ensue where:
Dominican Republic 1.53 1) Both parties consent and mutually select an
El Salvador 1.39 arbitrator
Guatemala 1.31 2) A Tribunal is formed under the Labor Act
Guyana 1.00
3) Arbitration is considered to be in the best
Honduras 1.12 interest of the country and made compulsory
Jamaica 2.89
Mexico 1.62
Nicaragua 0.85 compulsory contribution scheme that principally
Trinidad and Tobago 2.24 provides retirement and disability benefits to
Sources: Bobbin Magazine, Barbados Employers
Digest. workers. Both the employer and the employee
are required to make monthly contributions to
While low skilled labor (e.g. agriculture, the Scheme. The employer's contribution is on
manufacturing, some services) is plentiful, top of the employee's salary and the employee's
emigration of skilled and professional persons contribution is taken from the employee's wages.
does create shortages in some management and It is the responsibility of the employer to deduct
technical skill areas, creating problems for both the employee's NIS payment and submit both
the Government and businesses. employer and employee contributions to NIS.

Labor Conditions Under the Trade Union Recognition Act of 1997,

all businesses must recognize and collectively
Most companies operate a five-day workweek of
bargain with a trade union selected by a majority
37.5 to 44 hours. Some, however, spread these
of their workers. Guyana adheres to the
hours into Saturday morning. A shift system,
International Labor Organization (ILO)
consisting of 3 eight-hour shifts, is widely used.
Convention protecting workers’ rights.
Overtime is accrued after the statutory or
contractual hours per day are exceeded, and is
compensated at the rate of time and a half or Work Permits and Visas
double time. Furthermore, Guyanese law Expatriates are allowed to work in Guyana as
stipulates that employees involved in activities long as they comply with work permit and/or
categorized as factory operations are to be paid residence requirements. Nationals of the
double their hourly rate for working on Sundays Commonwealth, and CARICOM countries, the
and major public holidays (see Public Holidays in United States of America, Belgium, Germany,
Appendix 1). All other holidays are paid at the Greece, Ireland, Italy, Netherlands, Portugal,
rate of time and a half. Statutory provisions for Spain, Denmark, Norway, Sweden, Finland,
leave with pay also cover vacations. The general Suriname, Japan, Korea and South Africa do not
provision of the Holiday With Pay Act is that require a visa to enter Guyana. On arrival a visa is
vacation leave is granted at a rate of one day for granted for a stay not exceeding 3 months. If a
every month's service. person wishes to stay longer or intends to take up
employment or residence, he/she must apply for
Under the law, workers are entitled to an extension of stay, work permit or resident
Workmen’s Compensation. Workers must also status at the Ministry of Home Affairs. The
participate—in conjunction with employers—in processing of work permits is usually done in
The National Insurance Scheme (NIS). This is a conjunction with GO-Invest.

36
REGULATORY ENVIRONMENT
Like other countries, Guyana has a Investment Act 2004
number of laws, regulations and administrative The Investment Act of 2004 is the principal
processes that govern the investment regime (i.e., legislation governing investment in Guyana and
locating, operating, finance, and import and is intended to play a reassuring role for investors
export of goods). Appendix 2 presents a list of by providing legal protection for investment,
laws and regulations that concern the start-up increasing the predictability, stability and
and operation of a business in Guyana. transparency of the legal regime for investment,
promoting the development of international best
This section provides an overview of Guyana’s practices regarding investment, and streamlining
regulatory framework, within the sequence of the existing procedures for investment.
procedures an investor may consider when Specifically, the Act provides assurances that:
deciding to locate a business in Guyana. More
ƒ There is no discrimination between foreign
detailed information and assistance can be
and domestic investors
obtained from GO-Invest, MinTIC, or other
regulatory bodies listed in Appendix 4. ƒ Investors may invest in all fields of lawful
economic activity
The Government has continued to take steps to ƒ Investments may be made in existing
improve the regulatory climate, with recent enterprises—both joint ventures and wholly-
developments including reducing the number of owned—by domestic or foreign investors
necessary trade licenses, passing a Value-added
Tax bill in 2005, the Investment Act of 2004, the ƒ Private investments are guaranteed by the
Small Business Act of 2004, and a Competition Government
and Fair Trading Bill (due to be passed by May ƒ Expropriation can only take place as
2006). Furthermore, as part of the recent NCS permitted under the laws of Guyana,
process, the Government is strengthening promulgated on a non-discriminatory basis
regulatory and administrative processes as well as and providing for fair and prompt
improving the environment for public-private compensation
dialogue through the establishment of a National
Competitiveness Council. ƒ Proceeds and profits from investments may
be freely repatriated out of country and
Investment Framework business expenses in foreign currency are
permitted. Limitations may be placed on
With few exceptions (e.g. small and medium scale enterprises that are under bankruptcy
mining), foreign and domestic investors receive proceedings, have been declared insolvent, or
equitable treatment and both have the right to when the investor has pending criminal
establish, own and operate business enterprises, proceedings
and to engage in all forms of economic activity.3
ƒ Investors can hire foreign personnel and
Guyana offers investors a number of incentives,
have the right to repatriate their net earnings
guaranteed by the law. GO-Invest, a semi-
autonomous body under the direct purview of ƒ Intellectual and property rights of investors
the Office of the President in Guyana, is the are guaranteed under Guyanese law
primary contact for investors and is mandated to ƒ In cases of disputes, mediation is the
facilitate the investment process for them. recommended form of conflict resolution.
However, if settlement is not made amicably,
3 A few limitations do exist in the mining and finance sectors. In the the investor may seek international
former, investment in small and medium sized operations is restricted arbitration under the rules of the
unless a joint partnership exists. In the latter, foreigners must receive
approval to obtain loans greater than US$10,000.
International Centre for the Settlement of
Investment Disputes (ICSID)

37
Investment Incentives attempting to acquire or lease property. The
Status of Aliens Act legislates that foreigners be
Guyana offers investors a range of general,
treated the same as Guyanese citizens in the
special and sector-specific incentives for the
ownership and disposition of all movable and
agriculture and agribusiness, manufacturing,
immovable property.
forestry, mining, tourism, fisheries, housing, ICT,
garment and textiles sectors. The majority of
There are four types of land in Guyana: state-
investment incentives are in the form of tax
owned, government owned, private transported
incentives (see Taxation section below). Firms
or titled land, and industrial estates. The process
interested in finding out which incentives they
for acquiring or leasing land depends on its
are entitled to should contact GO-Invest. A
classification. In most cases, state and
summary of Guyana’s investment incentives is
government owned lands are leased rather than
provided in Table 3.10.
sold, through an application process that involves
the Guyana Lands and Surveys Commission
Bilateral Investment Treaties
(GLSC), GO-Invest and other regulatory bodies.
Guyana has entered into Bilateral Investment Private transactions are generally carried out
Promotion and Protection Agreements with the between lawyers for the buyer and seller.
UK, Germany, the Peoples’ Republic of China,
and Cuba. There are two operating government-managed
industrial estates in Guyana—Eccles and
Locating Coldingen—and others in development,
including estates in Lethem and Belvedere that
Guyana offers foreign investors the flexibility and
have various levels of infrastructure and services
advantage (as the particular situation may
available for investors (see Box 3.4 for details on
warrant) to purchase or lease land. Foreigners
the specific estates).
are treated the same as domestic investors when

Box 3.4:
Industrial Estates Available in Guyana
Coldingen Industrial Estate
Located thirteen miles east of Georgetown on the East Coast of the Demerara River, this site occupies 39 acres
of land divided into 36 plots that average 1,858 sq. meters (20,000 sq. feet). Infrastructure work includes both
access and internal roads capable of accommodating heavy-duty vehicles and internal concrete drains.
Electricity is provided at the site for industrial purposes and street lighting. A sum of G$28M (US$140,000) was
spent to install a new well that supplies potable water to the estate and adjacent community. Telephone lines are
available for businesses.
Eccles Industrial Estate
The estate is located about four miles south of the capital city Georgetown. The site is approximately 55 acres
and is divided into 84 plots, the smallest plot being 1,115 sq. meters (12,000 sq. feet) and the largest 3,252 sq.
meters (35,000 sq. feet). The development at the site includes paved roads and concrete internal drains. An
access road makes the estate easily accessible from the East Bank Public Road. This estate has its own street
lighting circuit and is provided with potable water. Telephone landlines are available.
Belvedere Industrial Estate
The estate is located in the village of Belvedere Hampshire on the Corentyne coast (Region 6). The site has been
identified for an industrial estate, with an electricity circuit installed onsite by GPL. MinTIC is also planning to
build a reinforced concrete bridge, which will allow investors to gain access to the site.
Lethem Industrial Estate
MinTIC is proposing to develop about seventy acres of land at the Bon Success site, in close proximity to the
Takatu Bridge between Guyana and Brazil. This estate holds tremendous prospects in view of the proposed
Georgetown/ Brazil road link that will substantially increase trade with Brazil’s northern states. An Environmental
Impact Assessment has been completed and the design layout of the site prepared. The infrastructural work for
developing this site is scheduled to begin in 2006.

38
 Table 3.10: Summary of Investment Incentives Available to Domestic and Foreign Investors

General Incentives
Across the ? Zero-rate on Customs Duty on most plant, machinery and equipment
board incentives ? Zero-rate on Customs Duty on raw materials and packaging materials used in the production of goods
for investors by manufacturers and small businesses
? Unlimited carryover of losses from previous years
? Accelerated depreciation on plant and equipment
? Full and unrestricted repatriation of capital, profits and dividends
? Benefits of double taxation treaties with the UK, Canada, and CARICOM countries
? Zero rate of Value Added Tax on items imported under an investment agreement entered into on behalf
of the Government with taxable persons
? Exemption from the payment of Excise Tax on items covered under an investment agreement entered
into on behalf of the Government with taxable persons
Special Incentives (provided in additional to general incentives)
Firms producing ? Export Allowances for non-traditional exports to markets outside of CARICOM. The actual amount
Non-traditional deducted depends on proportion of export sales to total sales.
products for % of export sales to total sales % of export profit deducible from income tax
export 10% - 20% 25%
20% - 30% 35%
30% - 40% 45%
40% - 50% 55%
50% - 60% 65%
Above 60% 75%
Sector Incentives (provided in additional to general incentives)
Agri-business ? Waivers of Duty on a wide range of machinery and equipment for land preparation and cultivation
including agricultural hand tools and spares for agricultural machinery
? Duty waivers on a wide range of agro-processing equipment
? Zero rates of duty and Value Added Tax on fertilizer, pesticides, fungicides, herbicides and weedicides
? Allowances for expenditures incurred for development and cultivation purposes
? Zero rate of duty and Value Added Tax on cultivators, scarifiers, ploughs, weeders and hoes
? Duty-free importation on a wide range of agro-chemicals
Manufacturing ? Zero rate of duty on a wide range of process machinery and equipment including packaging
equipment
? Zero rate of duty on a wide range of auxiliary equipment such as boilers, fork lifts, scales for
continuous weighing, conveyors
? Zero rate of imported duty on packaging materials by registered manufacturers
? Zero rate of duty on raw materials imported by registered manufacturers

Tourism ? Companies are eligible once every five years for a package of incentives comprised mainly of waivers
on Customs Duty on basic furnishings, equipment, and building materials. Concessions are limited to
50% of the value of the total investment for new and expansion projects and 25% for maintenance and
refurbishing of existing hotels.
? Tax holidays
Fisheries ? Exemption from Import Duty on trawlers, fishing vessels, spares for fishing boats and trawlers, wide
range of fishing equipment
? Exemption from Duty on fish/seafood processing equipment, packaging material and other inputs for
processing
Forestry ? Exemption from Duty on equipment used in logging, land development and sawmilling
? Zero rate of Customs Duty and Value Added Tax on outboard engines up to 75 Hp
Mining ? Exemption from duty on a range of mining equipment, equipment used for land clearing, and certain
outboard engines
? Tax holidays
Housing ? Waivers of Customs Duty and Value Added Tax on selected building materials

? Waivers of duty on machinery and equipment

ICT
? Tax holidays

39
Businesses at these locations enjoy favorable organisms, harvest and utilization of forest
terms and conditions, which are available to both resources and the extraction of mineral resources.
local and foreign investors. This includes 99-year
lease agreements with the following terms: Starting a Business
ƒ Annual Rent of G$1.00/US$.005/sq. foot To start a business in Guyana, investors must
comply with the administrative procedures
ƒ Concessions on building materials, vehicles,
established under the relevant business acts.
plant and machinery
Compared to a sample of other countries in the
ƒ The investor is responsible for reimbursing region, the procedures and time required to start
25 percent of the costs of basic a business are low compared to the mean, and
infrastructure, currently ranging between relatively consistent with the median. Table 3.11
G$153/US$0.76 to G$210/US$1.06 per sq. shows data from the World Bank Doing Business
foot Guide 2005. This section provides an overview
of the most salient aspects of this process. More
The allocation of the plots at the industrial details on business start-up are found at GO-
estates is based on a variety of criteria, including Invest’s website – www.goinvest.gov.gy.
macroeconomic impact (e.g. export potential,
employment generation, import substitution, Table 3.11:
utilization of local resources), project parameters Starting a Business – Guyana and Other Countries
(e.g. nature and scope of project, level of
investment, types of products/services), and the Cost
applicant’s profile. Applications are filed with (% of Min. capital
Procedures Time
Country income (% income
MinTIC, with GO-Invest facilitating on behalf of (number) (days)
per per capita)
investors. Further sites may be developed on a capita)
demand-driven basis. Guyana 8 46 101.4 0
AVERAGE 10.7 61.5 53.1 15.5
In addition to the industrial estates, the Jamaica 6 9 8.3 0
Government is developing 600,000 acres Brazil 17 152 10.1 0
(250,000 hectares) of Intermediate Savannahs, Dominican
10 75 30.9 1.2
with very good agricultural potential. It is Republic
offering investors access to land under very El Salvador 12 40 118 124.4
favorable terms for undertaking specific Guatemala 15 39 58.4 29.3
agricultural related projects. Interested investors Nicaragua 8 42 139.1 0
should contact GO-Invest to obtain pertinent Panama 7 19 24.8 0
information. Venezuela 13 116 15.7 0
Source: World Bank, Doing Business 2005
Environmental Regulations
Forms of Ownership
Any individual engaged in a project or activity
that may significantly impact the environment Forms of business ownership include single
must apply to the Environmental Protection ownership (i.e., sole proprietorship), partnership
Agency (EPA) for an environmental permit, (in any form), and company (incorporated
possibly upon completion of an environmental businesses both domestic and foreign). No
management plan or environmental impact regulations govern the proportion of ownership
assessment. Projects requiring a permit include: by partners or joint ventures in a partnership.
construction of hotels, guest houses or inns Rather, the individual concerned has the right to
above 10 rooms, hydroelectric projects, choose whether to invest alone or to have
construction of roads, harbors and airfields, partners, and to determine the form of that
construction of dams, importation of any waste relationship. With regards to a private
matter, release or use of genetically modified incorporated company, there must be at least 1

40
and no more than 20 shareholders. There are no direct and indirect. Direct taxes include income tax,
restrictions on the nationality of shareholders. and corporation tax, while indirect taxes include
The company’s capital structure may comprise property tax, capital gains tax, value-added tax and
more than one class of shares including excise tax. The value-added tax has replaced 7 taxes
redeemable preference shares, with such that were in place before its introduction. Table
conditions as the articles may provide. Shares in a 3.12 provides a summary of the taxes most likely to
company are without nominal or par value. impact investors.

The Business Names (Registration) Act and the Fiscal Enactments Act
Partnership Act are the governing regulatory
documents for single ownerships, partnerships, The Fiscal Enactments (Amendment) (No. 2)
and companies. The Companies Act (9/91) Act 2003 provides income and corporation tax
governs the registration of an incorporated relief to firms that meet the following criteria:
business. Though three different acts address the 1. Activities that demonstrably create new
different business types, the government office employment in one of the following regions:
for business registration of any kind is the Deeds Region 1: Barima-Waini; Region 7: Cuyuni-
Registry in Georgetown. Mazaruni; Region 9: Upper Takatu-Upper
Essequibo; and Region 10: Upper Demerara-
Incorporation, Registration and Fees Upper Berbice
The process for incorporating a business is 2. New economic activity in one of the
relatively straightforward, and takes, on average, following fields: Non-traditional agro
approximately 8 days. Incorporated or foreign processing (excluding sugar refining, rice
firms may wish to engage a competent lawyer to milling and chicken farming); information
facilitate the process and save time. Registering a and communications technology (excluding
foreign company requires additional steps. retail and distribution); petroleum
Appendix 3 provides a summary of the exploration, extraction, or refining; mineral
information and documents required to exploration, extraction or refining; and
incorporate and register a foreign or “external” tourist or eco-tourist hotels
company in Guyana, as well the pertinent fees.
Income Tax (In the Aid of Industry) Act
Exit Under the Act’s provisions, both domestic and
An investor (foreign or domestic) is free to exit foreign investors can benefit from:
from a venture in accordance with the law. ? Initial allowance of 10 percent of the cost of
Unlike other Caribbean jurisdictions, the law constructing a building or structure for the
relating to the liquidation of companies is purpose of operating an eligible activity in
embodied in the Companies Act. Under this Act, the year in which the capital expenditure is
a company may be wound up either by an order incurred. Thereafter, a deduction or
of the Court or voluntarily. In bankruptcy allowance of 5 percent per annum is
proceedings, additional obligations may be permitted
imposed on directors, managers or principal
officers of an external company who reside in ? An initial depreciation allowance of 40
Guyana. percent on the cost of machinery. The cost
of altering an existing building to
Taxation accommodate the new machinery may be
added to the cost of machinery
All businesses operating in Guyana—except for
those benefiting from tax-related investment
incentives—are liable to taxation. As elsewhere,
taxes generally fall into two broad categories,

41
 Table 3.12: Schedule of Selected Taxes Impacting Businesses in Guyana

Tax Category Applicable Tax Rates and Details

Income Tax A progressive rate is applied as follows:

Applicable to Income Tax
individuals, sole
? Less than G$336,000 None
proprietorships and
partnerships and may ? Greater than G$336,000 33.3 percent
apply equally to Losses can be carried over until completely recouped, with some stipulations. Deduction
companies of depreciation, interest on capital and rent is allowed. Accelerated depreciation
schedules are available for some businesses.
Non self-employed individuals pay taxes through employers via payroll deductions on the
Pay As You Earn (PAYE) system.

Corporation Tax ? Commercial Companies – 45 percent on chargeable profits

Applicable to ? Non-Commercial Companies – 35 percent on chargeable profits
commercial (derives 75 Losses can be carried over until completely recouped, with some stipulations. Deduction
percent of gross income of depreciation, interest on capital and rent is allowed. Accelerated depreciation
from trading goods it schedules are available for some businesses.
does not manufacture)
and non-commercial Commercial companies with a minimum turnover of G$1,200,000 are subject to a
companies minimum tax equal to the greater of the applicable corporate tax or 2 percent of turnover.
Exemptions from the minimum tax apply to insurance, tourism, and primary agriculture
companies.

Capital Gains Tax ? 20 percent applied on net chargeable capital gains in excess of G$1,000
Applicable to assets
held less than 25 years Net capital losses can be carried forward for 24 consecutive years and be applied
and exchanged above against the realized, annual net chargeable gains in those years. Capital gains losses
original price less cannot be treated as loss under income or corporation tax.
depreciation
Property Tax For a person (not a company):
Applicable to moveable Value of Property Tax
and immovable ? Up to first G$7.5 million of net property None
property, computed as
the value of property in ? Every dollar of next G$5 million 0.5 percent
excess of debts owed ? Every dollar of remainder of net property
0.75 percent
For a Company:
Value of Property Tax
? Up to first G$1.5 million of net property None
? Every dollar of next G$5 million 0.5 percent
? Every dollar of remainder of net property
0.75 percent

Value Added Tax Applicable to goods and services which are collectively referred to as supplies and which
Not applicable to goods are consumed locally. Standard rated supplies are taxed at a rate of 16% on selling
that are exported price. Zero-rated supplies are taxed at 0%. Exempt supplies are not taxed.
Excise Tax Charged on motor vehicles, petroleum products, alcoholic beverages and tobacco and
tobacco products. Rates vary.

Withholding Tax ? 20 percent for distribution

Applicable to gross ? 20 percent on payments other than interest
distributions to persons ? 20 percent on interest payments
not resident in Guyana
and gross interest ? 20 percent on remittance of profit to non-resident company, after payment of income
payments or corporation tax. Only applicable to businesses which operate as a branch of a
non-resident company.

42
 Accounting Requirements
Box 3.5: Introduction of Value-Added Tax
Guyana largely follows British conventions and
In 2005, Guyana's Parliament passed the Value
practice in the reporting of accounting
Added Tax (VAT) Bill, interrelated with the Excise Tax
information and, more recently, has adopted a
Bill. VAT has replaced Consumption Tax, Travel
Voucher Tax, Hotel Accommodation Tax, Service
number of international accounting standards.
Tax, Entertainment Tax, Purchase Tax and
Inflation accounting is not allowed. The
Telephone Tax. The VAT was designed to be revenue
revaluation of fixed assets, however, is
neutral and is imposed on the value added (or the
permissible. The Companies Act 1991 stipulates
mark-up added) on goods and services (including that external reports ought to comply with
imports) supplied by one business to another, or to a international accounting standards. Additionally,
final consumer. The VAT is charged at a rate of 16%. qualifications of the reports have to be issued by
Some goods and services have been zero-rated or an accountant/accounting firm that is a member
exempt from the tax. of the Institute of Chartered Accountants of
Guyana. It is mandatory that public companies
This step is part of ongoing efforts by the publish annual accounts.
Government to expand the tax base and establish a
more competitive tax regime. Prior to the introduction All companies are obliged by the Income Tax
of the VAT many items attracted a 30% Consumption Act (Chapter 8 1: 0 1) and the Companies Act to
Tax which contributed to the high cost of those goods. maintain adequate accounting records that reflect
a true and fair view of their operations.
Companies are also obligated to file tax returns
? For extraction industries (other than gold, annually. Generally, accounting records are kept
diamonds and petroleum), an initial manually but increasingly computerized record
allowance of 10 percent on the construction keeping is being adopted.
of works likely to have little or no value when
the source is no longer producing. Thereafter The Institute of Chartered Accountants of
an annual allowance is permitted Guyana is considered the local accounting body
? Tax allowances on the purchase of patent responsible for establishing auditing requirements
rights for companies registered in Guyana.

? Deferred income recognition on net Exchanging and Remitting Funds

proceeds from the sale of patent rights by
residents, whereby one-sixth of the proceeds The Guyana dollar is fully convertible. There are
may be recognized each year for six years. no foreign-exchange controls in place, and the
foreign currency can typically be acquired at
? Tax deductions for scientific research prevailing market rates in addition to a normal
expenses transaction fee. Funds can be wired electronically
? An initial allowance for capital expenditures with ease.
on scientific research of 60 percent of the
expenditure and an annual allowance equal to Investors may open accounts in the currency of
10 percent of the expenditure for each of the Guyana (the Guyana Dollar) and in foreign
next 4 years convertible currency with any corporate body
licensed to carry on banking activity in Guyana
? Subject to conditions, an annual allowance under the Banking Act. There are no restrictions
equal to 10 percent of the cost of on the repatriation of capital and investment
constructing housing for workers income. Residents and non-residents alike have
unlimited access to the foreign exchange market
Double Taxation Treaties to repatriate funds.
Double taxation treaties currently exist with the
United Kingdom, Canada, and CARICOM.

43
Investment Protection and Standards of These expropriation clauses are in conformity
Treatment with the principles of international law, due
process, transparency and compensation.
Treatment of Investors
Guyana’s legal framework provides foreign and Intellectual Property Rights
domestic investors with equal treatment. Foreign
Guyana adopted British law on patents and
and domestic firms have the right to establish
copyrights upon independence. Current
and own business enterprises and engage in all
legislation covers:
forms of remunerative activity. In some
industries, licenses are required for foreign and ƒ The Copyright Act, 1956 (UK) – Prevents
domestic investors to operate a business. (e.g. the unlawful copying of physical material
mining, telecommunications, forestry, banking, existing in the field of literature and the arts.
and environmental sectors). Foreign investors Its object is to protect the writer and artist
have equal access to privatization opportunities. from the unlawful reproduction of his/her
For some larger operations, foreign investment is material. The Copyright Act is concerned
openly preferred. only with the copying of physical material
and not with the reproduction of ideas and it
The Investment Act reinforces the Government’s does not give a monopoly to any particular
commitment to neither discriminate between form of words or design.
foreign and domestic investors, nor among ƒ The Patents and Designs Act, Cap. 90:03,
foreign investors from different countries. 1937 – Protects holders with monopoly of an
invention or design for a period of time.
Expropriation
ƒ The Trademarks Act, Cap. 90:01, 1953 –
Guyana’s Investment Act of 2004 provides that Protects rights of trademark holders.
the Government will protect investments and the Trademarks are defined as a mark used or
property of investors in accordance with the laws proposed to be used in relation to goods for
of Guyana. The Government shall not the purpose of indicating a connection in the
compulsorily acquire or take the possession of course of trade between the goods and some
any investment enterprise, or any asset of an person having the right either as proprietor
investor, except: or as registered user to use that mark.
ƒ For a purpose which is in accordance with ƒ Geographic Indications Act – This act aims
the laws of Guyana to protect geographical indications which are
ƒ On a non-discriminatory basis signs used on goods that have a specific
geographical origin. It was recently passed
ƒ In accordance with the procedures provided by Parliament, and is only pending the
by law President’s signature to be formally enacted.
ƒ There is prompt payment of adequate
compensation together with interest The Deeds Registry, under the Ministry of Legal
calculated from the date of acquisition or Affairs, has direct responsibility for the
taking possession of the investment implementation of Guyana's intellectual property
enterprise or asset to the date of payment at legislation. The Registry is responsible for
the commercial bank rate on loans to the processing applications, as well as other
corporate sector administrative work related to intellectual
property protection. Guyana is a member of the
ƒ There is a right of access to the High Court World Intellectual Property Organization
to dispute the respective level of (WIPO) and is a signatory to the Paris
compensation Convention for the Protection of Industrial
Property (Stockholm Text), and the Berne

44
Convention for the Protection of Literary and Trade Procedures
Artistic Works (Paris Text).
The Government continues to take steps to
improve the ease of trade, including a reduction
In addition to enacting new copyright law,
in products requiring licenses and upgrading
Guyana is seeking to improve its intellectual
customs administration software. Trade
property enforcement through a review of the
procedures fall under the auspices of the Guyana
current legal framework. These efforts have
Revenue Authority (GRA) of the Ministry of
been promoted with technical assistance from
Finance, and MinTIC. Currently, there is no
WIPO, the IDB, and the Commonwealth.
formal appeals process for differences of opinion
Guyana is in the process of updating its
that arise at any step of the way in the import or
legislation on intellectual property rights to
export process. However, a Customs Tariff
comply with the provisions of the TRIPS
Tribunal is being established that will provide an
Agreement.
appeals process to expeditiously decide on
complaints.
Dispute Resolution
Under the Guyanese legal system, and in Registration
particular the Investment Act of 2004, parties to All importers and exporters, regardless of their
a dispute are encouraged to first seek to settle nationality, are required to register and obtain a
their disputes through either consultation or customs registration number from the GRA’s
mediation. Guyana is a signatory to the Custom and Trade Administration department.
Convention on the Settlement of Investment The New GMC has a one-stop brokerage desk
Disputes between States and Nationals of Other that prepares export documents.
States. International arbitration decisions are
enforceable under Guyana's (then British Guiana) Import Procedures
Arbitration Act of 1931. The country is also a
member of the International Centre for the Since the early 1990s, there has been a significant
Settlement of Investment Disputes (ICSID). If reduction in import restrictions, enabling the
parties to the dispute fail to resolve the matter, ready availability of machinery, fertilizer and
they may: pesticides, among other things. While the
number of products requiring import licenses has
? Submit their dispute to arbitration under the been greatly reduced, importers need to ascertain
Arbitration Act from MinTIC whether they need a license.
? Invoke the jurisdiction of the competent Information can be obtained from the MinTIC
courts in Guyana website: www.mintic.gov.gy/licences.html.
? Adopt such other procedures provided for in
Import Licenses
the articles of association, or other
constituent document of the investment Import licenses are required and granted by the
enterprise MinTIC for a very limited category of items.
These include medicinal drugs; fresh, frozen and
? Submit their dispute to the International
chilled meat, fresh fruits, beet sugar, wheaten
Centre for the Settlement of Investment
flour, rice, cane sugar, organic and inorganic
Disputes (ICSID) of which Guyana is a
fertilizers, petroleum and petroleum by-products,
member
beauty and makeup preparations, aircraft,
helicopters, spacecraft including satellites, and
In an effort to improve the mechanism for
military weapons (e.g., revolvers, pistols, bombs,
resolving disputes, the Government of Guyana
grenades, torpedoes, bayonets, lances and similar
recently established the Commercial Court to deal
arms). The licensing process is normally
with commercial and related disputes. Alternative
completed within 48 hours.
Dispute Resolution Mechanisms are also being
expanded.

45
The importation of livestock/animals and plant Clearance times range, but normally fall between
materials into Guyana, including domestic pets, is 2 and 3.5 days.
subject to an import permit from the Animal
Services Division (animals) or the Plant Exporting procedures
Quarantine Section (plant materials) of the
Export Licenses
Ministry of Agriculture. The permit specifies the
conditions that must be met in the exporting Export Licenses are required for the following
country before importation to Guyana is allowed. items: poultry feed, rice bran, rice chips, rice dust,
Animals from countries affected by rabies must rice stock feed, wheat flour, wheat bran, wheat
be quarantined for a period of 90 days before middlings/wheat screenings, beet sugar and cane
being issued a health certificate and cleared for sugar in solid form, fertilizers, hides and skins,
entry. feathers, bird skins with feathers, feathers
prepared, ornamental feathers and other articles
The importation of fresh/raw meats is also of feather, gold, jewelry of precious metal or
subject to the Import Permit procedure. Upon rolled precious metal, copper waste and scrap,
arrival at the Port of Entry in Guyana, it must be arms and ammunition. Exporters wishing to
inspected by qualified veterinary doctors from export goods out of Guyana need to ascertain
both the Ministry of Agriculture and the from the MinTIC whether they need a license.
veterinary Public Health Services of the Ministry Information can be obtained from the MinTIC
of Health. website: www.mintic.gov.gy/licences.html .

Customs Clearance - Imports Customs Clearance - Export

Importers are allowed to act on their own behalf Exporters are allowed to act on their own behalf
to clear goods, although competent customs to clear goods, although competent customs
brokers are recommended to save time and brokers are recommended to save time and
money. Customs must be provided with a copy money. Most exporters will seek permission to
of the clearance form upon importation, together load on-site, i.e., at their premise, which means
with supporting documents, such as an invoice that a Customs Officer will come to the
from the supplier, a bill of lading and/or a license exporter's place of work to inspect the goods
and, when requested, a certificate of origin. during the loading of the container. At least two-
Valuation is based on invoice or purchase prices. hours notice is required to schedule an on site
Guyana is a signatory to the WTO Customs loading inspection. After the inspection, the
Valuation Agreement. Taxes must be paid container is sealed and a customs form returned
before delivery of the goods. Customs to the broker/exporter to deliver along with the
inspections are carried out at the port of entry shipment to the shipping company.
before the goods are cleared for delivery.

46
APPENDICES

47
 APPENDIX 1: GENERAL INFORMATION

Currency
The Guyana dollar floats freely according to market conditions. As of February 2007, the rate of the Guyana
dollar to the US dollar was G$ 200.75 to US$ 1

Foreign currency may be bought or exchanged without restrictions at any of the commercial banks or
non-bank cambios.

Principal Exports
? Bauxite ? Molasses ? Diamonds
? Sugar ? Timber ? Fresh fruits and
? Rice ? Value-added Wood vegetables
? Fish Products ? Processed food
? Shrimp ? Gold ? Tourism (service
? Rum ? Apparel export)

Principal Imports
? Fuels and Lubricants ? Building Materials ? Petroleum
? Grain ? Machinery ? Consumer Goods
? Animal feed ? Transport Equipment
? Capital Goods ? Chemicals

Press
There are several independent, state and political party publications:

Daily
? Guyana Chronicle (State)
? Kaieteur News (Independent)
? Stabroek News (Independent)

Weekly
? New Nation (Political)
? Catholic Standard (Independent)
? Official Gazette (State)
? Mirror (Political)

Monthly
? Guyana Review (Independent)
? Guyana Entertainment Magazine (GEM, Independent)

48
Radio

The National Communications Network (NCN) broadcasts as follows:

ƒ NCN Radio 560 MHZ

ƒ FM 98.1 MHZ

NCN replaced the Guyana Broadcasting Corporation (GBC), which is state-owned.

Television
There are several television channels for viewing:

ƒ Gwtv-Channel 2 ƒ GP-STVS-Channel 16
ƒ CNS-Channel 6 ƒ STVC-Channel 21
ƒ WRHM-Channel 7 ƒ 8RTVVCT- Channel 28
ƒ Channel 89 ƒ MBC-Channel 42
ƒ DTV-Channel 8 ƒ STVS-Channel 72
ƒ NBTV-Channel 9 ƒ MTV 14/65
ƒ GTV–NCN Channel 11 ƒ NTN 18/69
ƒ RBS-Channel 13 ƒ VTV 46/102

Direct TV with international news and entertainment channels is also available.

Other areas of interest

Public Holidays
ƒ New Years Day – January 1 ƒ CARICOM Day – July 1
ƒ Republic Day / Mashramani – February 23 ƒ Emancipation Day – August 1
ƒ Phagwah (Hindu) – follows lunar calendar* ƒ Youm-man-Nabi (Muslim) – follows lunar
ƒ Good Friday (Christian) – April* calendar
ƒ Easter Monday (Christian) – April* ƒ Deepavali (Hindu) – follows lunar calendar
ƒ Labor Day – May 1* ƒ Christmas (Christian) – December 25*
ƒ Independence Day – May 26 ƒ Boxing Day – December 26
ƒ Eid-ul-Azah (Muslim) – follows lunar * Major Public Holidays requiring double pay
calendar*

Business Hours:
In Guyana most businesses commence at 08:00 hours, but closing times vary. Commercial banks open at
08:00 hrs and close at 14:00 hrs, Monday through Thursday. On Fridays they remain open until 14:30
hrs. The Bank of Guyana is open 08:00 hours to 12:00 hours Monday through Friday, and additionally
15:00 hours to 17:00 hours on Friday. Public sector agencies generally operate from 8:00 hours to 16:30
hours Monday through Thursday, and close around 15:30 hours on Fridays.

49
 APPENDIX 2: INVESTMENT RELATED LAWS

Legislation Reference
The Companies Act 29 of 1991
The Income Tax Act 81:01
The Corporation Tax Act 81:03
The Income Tax (In Aid of Industry) Act 81:02
Capital Gains Tax Act 81:20
Property Tax Act 81:21
Petroleum Act 92:01
Factories Act 95:02
Petroleum (Exploration & Production Act) 3 of 1996
Mining Act 20 of 1989
The Labor Act 98:01
The Termination of Employment and Severance Pay Act 19 of 1997
The Occupational Health and Safety Act 32 of 1997
The Prevention of Discrimination Act 26 of 1997
The Trade Union Recognition Act 33 of 1997
The Securities Industry Act 1998
The Bank of Guyana Act 1998
Revenue Authority (Amendment) Act 2003
The Fiscal Amendment Act 2003
The Small Business Act 2 of 2004
The Investment Act 2004
Value-Added Tax Act 2005
The Excise Tax Act 2005
The Competition and Fair Trading Act 2006

50
APPENDIX 3: INFORMATION, DOCUMENTATION AND FEES FOR
INCORPORATING OR REGISTERING A COMPANY

Information and Documents Required to Incorporate a Company

1. The proposed name of the company
2. The proposed address of the registered office in Guyana
3. The classes and any maximum number of shares that the Company is authorized to issue
4. Registration of shares, if any
5. Number (or minimum/maximum) of Directors
6. Restrictions on business the company may carry out, if any
7. The names, addresses, occupations and signatories of incorporators
8. The names and addresses of Directors and Secretary
Information and Documents Required to Register a Foreign or “External” Firm
1. The name of the company
2. The jurisdiction within which the company was incorporated
3. The date of its incorporation
4. The manner in which it was incorporated
5. The particulars of its corporate instruments
6. The period, if any, fixed by its corporate instruments for the duration of the company
7. The extent, if any, to which the liability of the shareholders/members of the company is
limited
8. The undertaking that the company will carry out in Guyana
9. The date on which the company intends to commence its undertakings in Guyana
10. The authorized, subscribed and paid-up or stated capital of the company and the shares that
the company is authorized to issue and their nominal or par value, if any
11. The full address of the registered or head office of the companies outside Guyana
12. The full address of the principal office of the company in Guyana
13. The full names, addresses and occupations of the directors of the company
Company Registration Fees
Company Registration Fees
Share capital fee - G$1 to G$500,000 G$25,000
- Greater than G$500,000 6 percent of share capital
Duty on share capital 0.5 percent of share capital
Certificate of Incorporation G$30,000
Notice of Directors G$800
Notice of Secretary G$800
Declaration of Compliance G$800
Changes to any of the above G$800
External Company Registration
Share capital fee - G$1 to G$1 million G$80,000
- G$ 1 million to G$3 million G$150,000
- Greater than G$3 million G$300,000

Changing Share Capital Fees

Share capital fee – Up to G$10 million 2 percent of additional share capital
- Greater than G$10 million 1 percent of additional share capital
Duty on share capital 0.5 percent of share capital
Certificate of Increased Capital G$800
Resolution G$800

51
 APPENDIX 4: ORGANIZATION CONTACT INFORMATION

Public Sector Ministries

Hon. Robert Montgomery Persaud, M.P.
His Excellency Bharrat Jagdeo
Minister of Agriculture, Fisheries, Other Crops and
President of the Co-operative Republic of
Livestock
Guyana, Commander in Chief of the Armed Forces
Ministry of Agriculture, Fisheries, Other Crops and
Office of the President
Livestock
New Garden Street, Georgetown
Regent St. & Vlissengen Rd, Georgetown
Tel: 592-225-1330, or 227-1573
Tel: 592-226-1565
Fax: 592-226-9969
Fax: 592-227-2978
E-mail: [email protected]
E-mail: [email protected]
www.op.gov.gy
Hon. Samuel A. Hinds, M.P. Hon. Manniram Prashad, M.P.
Prime Minister of the Cooperative Republic of Minister of Tourism, Industry and Commerce
Guyana Ministry of Tourism, Industry and Commerce
Wight's Lane, Kingston, Georgetown 229 South Road, Lacytown, Georgetown
Tel: 592-226-6955, or 227-3101 Tel: 592-226-2505, or 3182, or 3192
Fax: 592-226-7573 Fax: 592-225-9898, or 4310
E-mail: [email protected] E-mail: [email protected]
Office of the President www.mintic.gov.gy
(Located at New Garden Street, Georgetown) Hon. Dr. Henry Jeffrey, M.P.
Dr. Roger Luncheon Minister of Foreign Trade and International
Head of the Presidential Secretariat Cooperation
Adviser to the President on National Security, Ministry of Foreign Trade and International
Secretary to the Cabinet Cooperation
Tel: 592-225-7071, or 1330-7 Takuba Lodge, 254 South Road & New Garden St.,
Fax: 592-226-3395 Georgetown
E-mail: [email protected] Tel: 592-226-5054, or 8427
Fax: 592-226-8426
Mr. Navin Chanderpal, M.P. E-mail: [email protected]
Adviser to the President on Science, Technology www.moftic.gov.gy
and the Environment
Tel: 592-226-6453 Hon. Jennifer Westford, M.P.
Fax: 592-227-3849 Minister of Public Service
E-mail: [email protected] Public Service Ministry
164 Waterloo Street, Georgetown
Mr. Feroze Mohamed, M.P. Tel: 592-227-1193
Presidential Adviser on Internal Affairs Fax: 592-227-2700
Tel: 592-227-5387 Email: [email protected]

Mr. Odinga Lumumba, M.P. Hon. Dr. Bheri Ramsarran, M.P.

Presidential Adviser on Community Development Minister within the Ministry of Health
Office of Empowerment Ministry of Health
93 Duke Street, Kingston, Georgetown Brickdam, Georgetown
Tel: 592-227-4812 Tel: 592-227-1316
Fax: 592-225-7556 Fax: 592-225-6985
E-mail: [email protected] Email: [email protected]
Website: www.health.gov.gy

52
Hon. Rudy Insanally, M.P. Hon. Manzoor Nadir, M.P.
Minister of Foreign Affairs, Minister of Labour
Ministry of Foreign Affairs, Ministry of Labour
254 South Road & New Garden St., Georgetown Lot 1 Water & Cornhill Sts., Georgetown
Tel: 592-226-9080, or 9606-9 Tel: 592-226-6115
Fax: 592-223-5241 Fax: 592-227-1308
E-mail: [email protected] E-mail: [email protected]
www.minfor.gov.gy Hon. Clement Rohee, M.P.
Hon. Doodnauth Singh, M.P. Minister of Home Affairs
Attorney General Ministry of Home Affairs
Ministry of Legal Affairs Brickdam, Stabroek, Georgetown
Attorney General's Chamber Tel: 592-225-7270
95 Carmichael Street SIC-Burg, Georgetown Fax: 592-227-4806
Tel: 592-226-2616-8 E-mail: [email protected]
Fax: 592-227-5419, 226-9721 Hon. Kellawan Lall, M.P.
E-mail: [email protected] Minister of Local Government
Hon. Shaik Baksh, M.P. Ministry of Local Government
Minister of Education Fort Street, Kingston, Georgetown
26 Brickdam, Stabroek, Georgetown Tel: 592-225-8621
Tel: 592-226-3094 Fax: 592-226-5070
Fax: 592-225-5570 Email: [email protected]
E-mail: [email protected]
Hon. Robeson Benn, M.P.
www.moe.gov.gy
Minister of Transport, Public Works and Communications
Hon. Dr. Ashni Singh, M.P. Ministry of Transport, Public Works and Communications
Minister of Finance Wights Lane, Kingston, Georgetown
Ministry of Finance Tel: 592-226-1875
Main Street, Georgetown Fax: 592-225-6954
Tel: 592-225-6088, or 226-9433 E-mail: [email protected]
Fax: 592-226-1284
Hon. Jennifer Webster, M.P.
E-mail: [email protected]
Minister within the Ministry of Finance
www.finance.gov.gy
Ministry of Finance
Hon. Dr. Leslie Ramsammy, M.P. Main Street, Georgetown
Minister of Health Tel: 592-227-7935
Ministry of Health Fax: 592-227-7968
Brickdam, Georgetown E-mail: [email protected]
Tel: 592-226-1560, or 5861
Fax: 592-225-4505 Hon. Dr. Desrey Fox, M.P.
E-mail: [email protected] Minister within the Ministry of Education
www.health.gov.gy Ministry of Education
26 Brickdam, Georgetown
Hon. Priya Manickchand, M.P. Tel: 592-226-3117
Minister of Human Services & Social Security E-mail: [email protected]
Ministry of Human Services & Social Security
Lot 1 Water & Cornhill Sts,. Georgetown
Tel: 592-225-6545
Fax: 592-225-7112
E-mail: [email protected]

53
Hon. Carolyn Rodrigues, M.P. Privatization Unit
Minister of Amerindian Affairs Mr. Winston Brassington, Executive Director
Ministry of Amerindian Affairs 126 Barrack Street, Kingston, Georgetown
236 Thomas St., South Cummingsburgh, Tel: 592-225-6339
Georgetown Fax: 592-226-6426
Tel: 592-227-5067 E-mail: [email protected]
Fax: 592-225-7072 www.privatisationunit.org
E-mail: [email protected]
Guyana Forestry Commission
Hon. Harrinarine Nawbatt, M.P. Mr. James Singh, Commissioner
Minister of Housing & Water 1 Water Street, Kingston, Georgetown
Ministry of Housing & Water Tel: 592-226-7271-4
41 Brickdam, Stabroek, Georgetown Fax: 592-226-8956
Tel: 592-225-7192, or 226-0489 E-mail: [email protected]
Fax: 592-227-3455 www.forestry.gov.gy
E-mail: [email protected]
Guyana Geology & Mines Commission
Hon. Dr. Frank Anthony, M.P. Mr. William Woolford, Commissioner (ag.)
Minister of Culture, Youth and Sport Upper Brickdam Stabroek, Georgetown
Ministry of Culture, Youth and Sport Tel: 592-225-3047
71 Main Street, South Cummingsburg Fax: 592-225-3047
Tel: 592-227-7860 E-mail: [email protected]
Fax: 592-225-5067 www.ggmc.gov.gy
E-Mail: [email protected]
Environment Protection Agency
Government Agencies Mr. Doorga Persaud, Executive Director
IAST Building, University of Guyana
Guyana Office for Investment (GO-Invest)
Turkeyen, E.C. Demerara
Mr. Geoffrey Da Silva, Chief Executive Officer
Tel: 592-222-2277
190 Camp & Church Sts, Georgetown
Fax: 592-222-2442
Tel: 592-225-0653, or 0658
E-mail: [email protected]
Fax: 592-225-0655
www.epaguyana.org
E-mail: [email protected]
www.goinvest.gov.gy Food and Drug Department, Ministry of Health
Ms. Marilyn Collins, Director
Guyana Tourism Authority
Mudlot, Kingston, Georgetown
Indera Anandjit, Chief Executive Director
Tel: 592-225-6482
Sophia Exhibition Complex, Georgetown,
Fax: 592-22-54249
Tel: 592-223-6351
E-mail: [email protected]
Fax: 592-231-6672
E-mail: [email protected] Guyana Revenue Authority
www.guyana-tourism.com Mr. Kurshid Sattaur, Commissioner General
357 Lamaha St, Georgetown
New Guyana Marketing Corporation (NGMC)
Tel: 592-227-8814
Mr. Nizam Hassan, General Manager
Fax: 592-227-8347
87 Robb & Alexander Sts., Lacytown, Georgetown
E-mail: [email protected]
Tel: 592-226-8255, or 2219
www.revenuegy.org
Fax: 592-227-4114
E-mail: [email protected] Customs and Trade Administration
www.newgmc.com Commissioner
34 Main Street, S/C-burg, Georgetown
Office of the Auditor General
Tel: 592-225-9102
Mr. Deodat Sharma, Auditor General (ag.)
Fax: 592-226-2128
63 High Street, Kingston, Georgetown
Tel: 592-225-7592
Fax: 592-226-7257
E-mail: [email protected]

54
Office of the Auditor General Guyana National Bureau of Standards
Mr. Deodat Sharma, Auditor General Dr. Ramcharran, Executive Director
63 High Street, Kingston, Georgetown Sophia Exhibition Complex Sophia, Georgetown
Tel: 592-225-7592 Tel: 592-225-6226, or 9013
Fax: 592-226-7257 Fax: 592-225-7455
E-mail: [email protected] E-mail: [email protected]
www.gnbs.info
License Revenue Department
Mr. Tanner Whentworth, Director Government Information Agency
Princess & Smyth Sts, Werk-en-Rust, Georgetown Mr. Neaz Subhan, Director
Tel: 592-223-5501 Area “B” Homestretch Avenue
D’Urban Backlands, Georgetown,
Guyana Lands & Surveys Commission
Tel #: 592-223-7519
Mr. Andrew Bishop, Commissioner
Fax #: 592-226-4003
22 Upper Hadfield St., Durban Park, Georgetown
Email: [email protected]
Tel: 592-227-2582
www.gina.gov.gy
Fax: 592-226-4052
E-mail: [email protected]
www.lands.gov.gy Private Sector Organizations

Guyana Post Office Corporation Private Sector Commission

Mr. Stanton Halley, Post Master General Mr. Bal Persaud, Executive Director
Block 'C', Robb Street, Georgetown 157 Waterloo St., Georgetown
Tel: 592-226-9836, or 227-7494 Tel: 592-225-5347 or 0977 or 5339
Fax: 592-226-4370 Fax: 592-225-0978
E-mail: [email protected] E-mail: [email protected],
[email protected]
Central Housing & Planning Authority
www.psc.org.gy
Ms. Myrna Pitt, Chief Executive Officer
Homestretch Ave, Durban Park, Georgetown Guyana Manufacturing and Services Association
Tel: 592-226-2265 Mr. George Robinson, President
Fax: 592-227-4991 Sophia Exhibition Centre, Georgetown
Guyana Water Incorporated Tel: 592-227-4295
Managing Director Fax: 592-225-5615
10 Fort Street, Kingston, Georgetown E-mail: [email protected], or
Tel: 592-225-0477, or 0471 [email protected]
Fax: 592-225-0478 www.gma.org.gy
E-Mail: [email protected] Institute of Private Enterprise Development
Guyana National Energy Authority Mr. Leslie Chin, Head
Mr. Joseph O’Lall, Chief Executive Officer 252 South Road, Bourda, Georgetown
295 Quamina Street S-C/burg, Georgetown Tel: 592-225-8949, or 3067
Tel: 592-226-0394, or 223-7060 Fax: 592-226-4675
Fax: 592-226-5227 E-mail: [email protected], or
E-mail: [email protected] [email protected]
www.sdnp.org.gy/gea www.ipedgy.com

National Insurance Scheme (NIS) Aircraft Owners Association

Mr. Patrick Martinborough, General Manager Mr. Michael Correia (Jnr.), Head
Brickdam, Stabroek, Georgetown C/o Correia’s Jewwellery (Guy) Ltd.
Tel: 592-226-6797 159 Charlotte Street, Lacytown, Georgetown
Fax: 592-225-9377 Tel: 592-227-3188, 226-0605
E-mail: [email protected] Fax: 592-225-1171
E-mail: [email protected]

55
Guyana Association of Trawler Owners and Consultative Association of Guyanese Industry
Processors Association Md. David Yankana, Head
Mr. Philip Bruce Vieira, Head 157 Waterloo St., Georgetown
C/o PBS Investment Ltd. Tel: 592-225-7170
Greater Georgetown Fisherman’s Co-op Fax: 592-227-0725
Meadow Bank, Greater Georgetown E-Mail: [email protected]
Tel: 592-225-7173
Chambers of Commerce
Fax: 592-226-2111
[email protected] Association of Regional Chambers of Commerce
Mr. Joshua Safeek
Forest Products Association of Guyana
c/o Guyflag Insurance Company,
Mr. David Persaud
Regent and Oronoque Streets, Georgetown
C/o Toolsie Persaud Ltd., 1-4 Lombard St.
Tel: 592-226-5648
Charlestown, Georgetown
Fax: 592-231-6534
Tel: 592-226-9848
E-mail: arc@telsnetgy
Fax: 592-226-2832
E-mail: [email protected] Georgetown Chamber of Commerce & Industry
Mr. Gerald Gouveia, Head
Tourism and Hospitality Association of Guyana
156 Waterloo Street, Georgetown
Ms. Cathy Hughes, Head
Tel: 592-225-5846
157 Waterloo St, North C/burg, Georgetown
Fax: 592-226-3519
Tel: 592-225-0807
Fax: 592-225-1171 E-mail: [email protected]
E-mail: [email protected] www.georgetownchambero fcommerce.org
www.exploreguyana.com Bartica Chamber of Commerce and Industry
Guyana Rice Producers Association Mr. Prembishal Persaud
Public Road, Crane Tel: 592-619-6275, or 455-2049
West Coast Demerara E-mail: [email protected]
Tel: 592-254-2011-13 Berbice Chamber of Commerce
Fax: 592-254-2010 Mr. Normal Semple
12 Chapel St, New Amsterdam, Berbice
Shipping Association of Guyana
Tel: 592-333-3324
Mr. Clinton Williams, Head
E-mail: [email protected]
C/o Guyana National Industrial Corporation
2 Lombard St, Charlestown, Georgetown Central Corentyne Chambers of Commerce
Tel: 592-226-7827 Mr. Adrian Anamayah
Fax: 592-226-0432 Lot 7 Charlotte St., New Amsterdam, Berbice
E-mail: [email protected] Tel: 592-333-6427
www.shipping.org.gy Fax: 592-333-6050
E-mail: [email protected]
Guyana Association of Securities Companies and
Intermediaries Essequibo Chamber of Commerce and Industry
Mr. George Edwards, Operations Manager Mr. Basil Persaud
Hand-in-Hand Building, 1 Avenue of the Republic, Lot 6, Anna Regina, Essequibo Coast
Georgetown Tel: 592-771-5032, Tel/Fax: 592-771-4310
Tel/Fax: 592-223-6175 E-mail: [email protected]
E-mail: [email protected], or [email protected]
Linden Chamber of Industry, Commerce and
www.gasci.com
Development
Guyana Customs House Brokers Association Mr. Basil Jaipaul
Mr. Andrew Thorne, President 97-98 Republic Avenue, Wismar, Linden
C/o United Shipping, Palm Court Building, Tel: 592-444-2901, or 6741, or 626-3899
35 Main St., Georgetown E-mail: [email protected]
Tel: 592-225-3646
Fax: 592-225-3646

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Mahaica Chamber of Commerce and Industry Upper Corentyne Chamber of Commerce and
Mr. Chaman Basdeo Industry
c/o Budget Supercentre, Mr. J.P. Gamandie
16 Richardstown, Lusignan, East Coast Demerara Lot 59, East Public Road, #78 Village, Corriverton,
Tel: 592-220-6562, or 5593, or 231-7180, Berbice
or 616-6908 Tel: 592-339-2331, or 335-3063
E-mail: [email protected] E-mail: [email protected]
Matarkai Chamber of Commerce and Development West Demerara/East Bank Essequibo & Islands
Association Chamber of Commerce and Industry
Mr. Crafton Harris Mr. R.H. Persaud
Port Kaituma, North West District Lot A Oceanview Drive, Ruimzeight Gardens,
Tel: 592-777-4098, or 4063, 4027, 4040, 4096, or West Coast Demerara
619-4001, or 622-0101 Tel: 592-254-0328, or 660-2565
Fax: 592-269-0022
Rupununi Chamber of Commerce and Industry
Mr. Daniel Gajie West Berbice Chamber of Commerce and Industry
Lethem, Rupununi, Region 9 Mr. Terrence Rohan
Tel: 592-772-2069, or 2226 c/o S. Osman & Sons Saw Millers, Burham Ave,
Fax: 592-772-2213 Rosignol, West Bank Berbice
E-mail: [email protected], or Tel: 592-333-0280, or 0795
[email protected] E-mail: [email protected]

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 REFERENCES
Information is available from a variety of public agencies and private sector organizations (see
Appendix 4 for websites). Specific documents or publications referenced in this document include:

1. Government of Guyana. National Development Strategy. www.guyana.org/NDS

2. Ministry of Tourism, Industry and Commerce. Enhancing National Competitiveness: Implementing
the National Strategy. www.mintic.gov.gy. July 2005
3. Government of Guyana. Poverty Reduction Strategy – Progress Report 2005.
www.povertyreduction.gov.gy/
4. World Bank. Doing Business 2005. www.doingbusiness.org
5. Guyana Information Agency. Budget at a Glance. www.gina.gov.gy
6. International Monetary Fund (IMF). Guyana: Poverty Reduction Strategy Paper Progress Report.
2004
7. Country Watch. Guyana Country Review. 2004
8. Economist Intelligence Unit (EIU). Guyana Country Report and Guyana Country Profile, 2005
and 2006.
9. Embassy of the United States, Georgetown, Guyana. 2005 Investment Climate Statement on
Guyana. April 2005
10. Caribbean Community Secretariat. Guyana Country Brief. June 2004
11. Guyana Transport Sector Study. Multiple Reports. www.guyanatransportstudy.com
12. UNCTAD and University of West Indies (UWI) Institute of Business (IOB). The Millennium
Goals and the Private Sector: The Caribbean Experience. 2005

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