Why Guyana?

 

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.

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.

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.

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.

Affordable Labour

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.

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.


    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
    His Excellency President David Granger

    Political Parties in Parliament
    APNU/Alliance for Change Coalition Party [Governing Party]; People’s Progressive Party/Civic (PPP/C) [Main Opposition]

    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)

    GDP per capita
    Purchasing power parity – US$4,293 (2004 prices)

    Currency
    Guyanese dollar (G$)

    Exchange Rate
    Guyanese dollars per US dollar – 211 (October 2015)

    Main cities/towns with number of inhabitants
    Georgetown (capital) 170,000
    Linden 30,000
    New Amsterdam 20,000
    Rose Hall 8,000
    Anna Regina 3,000

    Membership in International Organizations
    Caribbean Community and Common Market (CARICOM)
    Caribbean Development Bank (CDB)
    Group of 77
    Group of African, Caribbean, and Pacific (ACP) Countries
    South American Community of Nations / Rio Group
    Inter-American Development Bank (IDB)
    International Monetary Fund (IMF)
    Organization of American States (OAS)
    The World Bank
    Treaty of Amazonian Cooperation
    United Nations (UN)
    World Trade Organization (WTO)
    International Centre for the Settlement of Investment Disputes (ICSID)
    World Intellectual Property Organization (WIPO)

    Trade Agreements
    Caribbean Single Market and Economy/CARICOM,
    CARICOM-Colombia, CARICOM-Costa Rica, CARICOM-Cuba, CARICOM-Dominican Republic, CARICOM-Venezuela, Argentina, Brazil, People’s Republic of China, Turkey and Venezuela.

    Preferential Trade Arrangements
    E.U. African, Caribbean and Pacific (ACP) Agreement
    U.S. Caribbean Trade Partnership (CTP, previously Caribbean Basin Initiative (CBI))
    CARIBCAN (Canada)

    Bilateral Investment Agreements
    People’s Republic of China, Cuba, Germany and United Kingdom of Great Britain and Northern Ireland.

    Double Taxation Treaties
    Canada, CARICOM countries, United Kingdom of Great Britain and Northern Ireland.

 

Investing In LDCs: Risk and Return

“Why would anyone invest in a less-developed country?” a presumably hardheaded investor might ask. “Aren’t the risks too high and the profits precarious?”

This perception, though unfounded, seems widespread in some business circles. When it comes to profits, the evidence is that the rate of return on FDI in less-developed countries (LDCs) is often much higher than investment in developed countries, or even more developed emerging economies. Often the negative perception of LDCs results in an enormous untapped potential. As such, investors able to do their homework and distinguish between perception and reality may find abundant and lucrative investment opportunities. These investors can benefit from ‘first mover’ status. As opposed to locations where everyone wants to be investing, first movers can pick the most promising opportunities. If they are able to navigate the challenges that come with doing business in LDCs, investors will find their experience quite rewarding.
Source: UNCTAD