Local businesses cashing in on Brazil’s lucrative trade offer

Mar 24, 2010 News

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– Linden/Lethem Road, language barriers main challenges

By Leonard Gildarie and Enid Joaquin

Several of Guyana’s most prominent businesses are trying to cash in with what promises to be a lucrative trading partner – neighbouring Brazil.
A packed gathering at the Guyana International Conference Centre (GICC), Liliendaal, heard yesterday that this country could tap into a major trading market with the State of Roraima since almost 60% of its goods have to be imported from other states right within Brazil.
With Guyana only 500 kilometers away, and imports having to be shipped or flown in from 5,000 miles, in some cases, it was obvious that this country’s potential has to be explored, a 60-member team from the neighboring country said.
Additionally, there was the call for local banks to forge direct relationships with the ones in Brazil.
However, the Brazilians are concerned with the Linden/Lethem Road and the problems associated with language barriers. It was stressed that ways will have to be found to solve such issues.
In addition to buying flour from Guyana, there are demands for seafood, construction material and fertilizers.
Goods needed
According to Almir Morais Sa, President of SEBRAE, which is leading the historic Brazilian delegation, the Roraima State currently plants over 30,000 acres, and one of the biggest problems is sourcing fertilizers. Guyana can bridge this gap, he told the gathering, which included Minister of Trade, Industry and Commerce, Manniram Prashad.
Also there were representatives of local banks, Chief Executive Officer (CEO) of the Guyana Office For Investment (GoInvest), and several members of the Private Sector Commission (PSC).
Sa acknowledged that while it would be logistically impossible for Guyana to supply Roraima State with all its needs, a huge void could still be filled.
The delegation arrived Sunday at Lethem and met with the Chamber of Commerce and Industry of that area.
On Monday, the team visited Linden and met with the business community and inspected the new Christianburg Transshipment Terminal site – a wharf that is currently being built there for trade.
Developments
Yesterday, CEO of GoInvest, Geoffrey DaSilva, noted that the joint team was the largest ever to Guyana from Brazil. With four presidents already attempting to build ties with Brazil, Guyana has now moved to a position of “walking the talk”, he said.
Urging that yesterday’s meeting not be another talk shop, the official claimed that the Guyanese business community is excited by the visit.
According to DaSilva, already Region Nine has started to boom. In 2002, GoInvest was considering one project – in 2009, this jumped to 116. For Region 10, there are 50-odd projects slated for that community by investors.
Chairman of the Private Sector Commission, Captain Gerry Gouveia, lauded Guyana’s investment climate and stressed that it is easy to invest with literally no restrictions on the movement of capital. Guyana, it was noted, boasts a healthy economy.
The businessman also noted that over time, Guyana has ignored the possibilities of Brazil which was a “terrible mistake”. It is against this background that yesterday’s seminar has to be viewed as the beginning of new relations between the two countries.
Last September’s opening of the Takatu Bridge should not only be seen as bridging the two countries, but should also be viewed as a linking of the two economies.
Difficulties
According to Sa, Brazil is serious about forging new business ties with Guyana and SEBRAE’s role is to facilitate the process.
With Brazil boasting fibre optic cables and a link being brought to Guyana shortly, no longer could it be argued that the two countries are distant. He admitted that the current roadway linking Linden to Lethem would be a challenge to trade between the two neighbours but it would have to suffice for now.
The official called for an easing of restrictions to allow the timely flow of trade and said that one of the objectives of the Brazilians’ visit is to ease these difficulties. The mission must have some results and positive ones at that. The questions that will have to be asked will include what Guyana has to offer to Brazil. The analysis will have to include a look at ensuring prices for goods are competitive, he urged.
Meanwhile, Minister Prashad, in his remarks, disclosed that an estimated 5,000 persons are expected to swarm the Rupununi area for the annual rodeo. Already, facilities are in place to deal with the expected crowd, he assured.
Regarding Guyana’s tourism, the Minister pointed out that last year, despite the global economic downturn, the country still managed to record an increase in arrivals. This does not take into account the arrivals at Moleson Creek from Suriname or from Brazil.
Guyana has a huge list of crops and seafood that are ready to be exported and moves are underway to further improve the aquaculture industry.
Already, over 50 plots of land have been earmarked for businesses in Lethem and there are many areas open for investment including that of hydro-electric, the Minister said.
Three banks have also signaled its intentions to do business in Lethem, Prashad disclosed.
Linden meetings
On Monday, the Brazilian team had visited Linden where meetings were held with the business people and an inspection was carried out at the Christianburg transshipment facility, located at the old Omai wharf. This facility is expected to be the nucleus for the proliferation of economic activity between Guyana and Brazil, while providing much needed employment for Lindeners.
A meeting with business people at the Egbert Benjamin Conference Hall and Exhibition Centre, saw the team being welcomed by Interim Management Committee Chairman, Orrin Gordon.
Gordon said it was a very auspicious occasion to welcome the Brazilian entrepreneurs, and was optimistic that lasting benefits are expected to accrue as a result, including enhancing businesses in Region 10.
Gordon exhorted the Brazilians to explore the possibilities that exist in the ecotourism sector.  He pointed out that the flora and fauna that exist here are still pristine. Gordon added that the intermediate savannahs possess soil types similar to that of Northern Brazil where large expanses of corn and Soya are cultivated. Some of the Class 1 type soils in Guyana, also offer tremendous potential for fruit and vegetable production, Gordon emphasized.
He also spoke of ‘hard times’, which he said came about due to the fact that Linden was primarily a ‘company’ town in the past, with the consequential complacency that saw residents being ill prepared for the economic downturn in the bauxite industry, and the subsequent scaling down of workers after many became redundant, due to the ever dwindling demand for Guyana bauxite on the world market.
He said that the SEBRAE group offers tremendous opportunities for trade and investment, and therefore sees the visit as an important nexus for economic development. Gordon asked SEBRAE to exercise some patience and understanding in dealing with what he described as a fledgling business community.
According to SEBRAE president Almir Morais Sa, “This is our time, we need to come on board and make it happen. We want to buy, and we want to sell, we are establishing a free zone area in Brazil, and we’ll be importing from all over the world.”
Sa said that his team will also be taking all the touristic potential of Guyana to Brazil, through their media team. “We also want the touristic people from Brazil to come to Guyana!’
Dealers in lumber exporting their products from Manaus, are expected to utilize the wharf facility in Linden, according to Sa.
Brazil presently imports fertilizer from Panama, which reportedly takes a long time to be shipped, and consequently proves very challenging for farmers. Importing these commodities from Guyana, which is closer and thus more easily accessible, is presently being considered as a viable alternative.
“Together we need to do all that is necessary to make this partnership work,” Sa said, and added that SEBRAE would be embarking on intensive tutoring of members of the business sector in the English language.
In concluding his address, Sa urged the local business sector to set a date for a reciprocal visit to Brazil to further explore the trade potential of the two countries.
After meeting and discussing with the local entrepreneurs and major stakeholders, the potential for bilateral trade between the two countries, during an interactive business lunch, the Brazilian team was taken on a tour of the transshipment facility at Christianburg.
The visit to the transshipment facility was the second to be undertaken by Brazilian entrepreneurs.
It was pointed out by a senior GNIC official that vessels with capacity of up to 5000 tonnes can be accommodated at the wharf, as the depth alongside the facility is approximately sixteen feet.
The transshipment facility is expected to take between two to three years to complete, however shipping for the domestic market would commence within a couple of weeks, according to the GNIC executive.
Many local entrepreneurs when asked about the interactive sessions with the SEBRAE team, reiterated, “exciting times are ahead!”
There were a few however that opined that the more business ‘savvy’ Brazilians, would ‘swallow ‘and dominate the locals.
But Managing Director of CABS Hardware, Dustanni Barrow, a young businessman in both the hardware and hospitality sector, noted that while the discussions and interactions were good, the local business community will have to be aggressive and capitalize on the opportunities that are presently up for exploitation. ‘’We cannot afford to let this opportunity slip by; we have to take advantage now!”
Prime Minister Samuel Hinds, who travelled to Linden for the event, welcomed the Brazilian team noting that “since 2000, government has been spending between US$1 million and US$1.5 million annually to maintain and slowly improve the Linden/Lethem road.”
He added that government intends to continue the investment. “We have been in discussions with Brazil to arrange for the financing of asphalting the road, and constructing steel and concrete bridges along the Linden/Lethem road and the construction of a bridge across the Essequibo River,” he further pointed out.
These infrastructural works would cost in excess of US$250 million, Hinds declared.
The Brazilians were also welcomed by President of the Linden Chamber of Commerce Basil Jaipaul and senior executives of the Linden Enterprise Network (LEN), Valerie Adams-Sharpe and Tina Horslen.

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