Difficulty doing Business in Guyana…Corruption reduced, overall efficiency improved

Sep 16, 2015 News

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Guyana currently ranks 123 out of 189 countries in the World Bank’s Doing Business Index. This is two points lower than its 2014 ranking. The Coalition government now promises to smash the “suffocating red tape” that stifles businesses and stunts growth in the country.
It also intends to make some serious changes to ensure that doing business in Guyana is made easy because it recognizes that business is not only the engine, but also the driver of economic growth and innovation.
According to Finance Minister, Winston Jordan, entrepreneurial initiatives are one of the main tools for achieving the good life as they provide employment and empowerment, especially for vulnerable groups such as the indigenous people, youth and women; and diversify communities and the local economy.
Being cognizant of the critical role of businesses to the growth and prosperity of the country, Jordan said that the government has created a Ministry of Business to emphasize the importance it attaches to the private sector.
He said that the government, through this new Ministry, will take action to boost entrepreneurship; provide incentives to local manufacturers and producers, as a stimulus for them to introduce greener technologies and increase the value-added in their production lines; and build a new and more responsible economic model.

The Finance Minister said that the government endeavours to create an impartial, more balanced and diversified economy, so that it is not limited to, and dependent upon, a narrow range of economic sectors; and where new businesses and economic opportunities are more evenly shared between regions and industries.
The Finance Minister noted that the enhancement of the business environment will see the computerization of the licensing section of the Ministry, which would allow for more timely and efficient processing of import and export licenses.
He said that a help desk for businesses will be established as it will act as a single point of contact for information and tailored advice between businesses, traders and the government such as implementing measures to reduce the time taken to get electricity and construction permits.
He said these changes are necessary to “reduce corruption and enhance overall efficiency.”
The Finance Minister asserted that the government is committed to making it easier for people to set up new enterprises. He said that this will be done via the implementation of strategies to reduce the time and steps necessary to start a new business. In this regard, he said that the Ministry of Business intends to establish a Small Business Development Centre, which will facilitate the needs of small and medium-sized enterprises (SMEs) in research and document preparation; and reduce the requirements necessary to access the Micro and Small Enterprise Development grant.
He said that initiatives are also planned to make the Guyana Office for Investment (Go-Invest), the single stop when registering a new business, which would greatly reduce the burden placed on the investor.
Jordan said that this will also be coupled with a reduction in the number of forms needed to be completed in the entire registration phase and more towards a ‘one-click’ registration system.
Moreover, in a bid to foster improvements in the trading environment in Guyana, the Business Ministry will be strongly involved in laying the foundation for a Single Window Automated Processing System (SWAPS).
The Finance Minister said that SMEs are pivotal to enhancing economic livelihoods and stimulating competitiveness. He noted that the Government plans to provide added stimuli to small businesses to spur their growth and contribution to the development of the country.
“This will be done through activities such as administering a Credit Guarantee Scheme through Partner Financial Institutions, administering an Interest Payment Facility (IPF) for micro loans through Partner Micro Financial Institutions, and administering the Low Carbon Grant Scheme for working capital and asset acquisition for micro and small businesses.
The Ministry of Business through its Small Business Bureau plans to advance the SME 20 percent procurement initiative as early as 2016, so that SMEs can have a fair chance of being awarded Government contracts,” he stated.
The Finance Minister said that economic growth and social development ultimately depend on efficiency and dynamism of the private sector within a healthy and competitive environment and it is for this reason his government plans on ensuring a level playing field between small and large businesses and between foreign and domestic enterprises.
He said that the Government plans to aggressively enforce compliance with the Consumer Affairs Act, and its provisions through the operations of the Competition and Consumer Affairs Commission (CCAC).
The Commission, he said, will target offences such as price fixing, conspiracy, bid rigging, misleading advertisements, anti-competitiveness, abuse of dominant position and resale price maintenance.
Jordan said that the government has recognized the importance of the Private Sector in fueling economic development as it creates job and entrepreneurial opportunities; establishes inter-firm linkages; facilitates the transfer of technology; builds human capital as well as physical infrastructure; generates public revenue via taxes; and offers a variety of products and services to consumers and other firms.
He said that, notably, each of these impacts has multiplier effects on both social and economic development. Being aware of its significance, Jordan said that the government plans to make private-public partnerships the avenue through which issues are identified and policies implemented to remedy them.
This, he said, will be done via regular engagement of private sector bodies at various levels of decision making.
The Finance Minister said that Government intends to make Guyana the ideal place for doing business, and their comprehensive and sustained economic proposals will lay the foundation for a stronger economy, sustainable jobs and higher incomes for all.

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