Latest update January 14th, 2025 3:35 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Cost of electricity, poor infrastructure among key factors affecting private sector growth – IDB Report

Apr 06, 2017 News

The Inter-American Development Bank (IDB)’s Caribbean Region Quarterly Bulletin is out and already, heads have begun to turn. The report explores primarily, constraints to private sector development in the Caribbean.
It was noted that while the private sector in each country faces specific issues, there are similar challenges resulting from red tape, complicated and tedious processes and weak environments for doing business.
In the Guyana context, it was stated that major constraints that the private sector in Guyana faces include, small market size, access to and cost of electricity, an inadequately educated workforce, taxes, crime and violence, inefficiency of domestic markets, access to and cost of financing, low research and development, poor infrastructure (roads, ports and air connectivity), weak protection of property rights (land tenure, intellectual property rights, and contract enforcement), and a lack of coordination between government and private sector.
These challenges, the report states, hinder growth in the private sector and contribute to a less diversified economic structure than wanted.
The compilers of the report examined the ‘bottlenecks related to infrastructure’ which obstructs private sector development.
“Poor transport links and the high cost and unreliable supply of electricity directly undermine business competitiveness. Guyana ranks relatively low on infrastructure indicators: road (ranking 104 out of 148 countries on the index), port (87 out of 148), and air transport infrastructure (98 out of 148).”
It was stated also that in terms of service parameters, Guyana, along with its eastern neighbour Suriname, obtained the worst scores in the Caribbean on shipping lines and air connectivity indices. It was stated also, that on a scale of 100, Guyana’s air connectivity index is 2.46 and its maritime shipping connectivity index in 2014 is 4.1.
“In addition, Guyana has one of the highest costs of electricity at US$0.29 per kWh, compared with an average residential energy price of US$0.16 per kWh in LAC (Latin America and the Caribbean). Of Guyanese firms interviewed, 58.3 percent complained that energy costs prove to be a major or very severe obstacle.” The report stated.
The report posits that dialogue and consensus building between private sector actors and government can lead to partnerships, and foster a long-term commitment to reform and innovation to address these constraints.
It was stated that concerted efforts along several lines of action could be pursued in elevating some of these constraints such as supporting reforms that clarify property rights, secured transactions laws, expanded coverage of credit bureaus, modern insolvency laws, bank loan risk classification and collateral changes, better contract enforcement, land tenure and land administration reform, and could reduce uncertainty and risk.
Further, the report advised the need to improve access to finance and technical assistance for micro, small and medium enterprises; leveraging finance of private investment for infrastructural needs, particularly energy and transportation under well-developed Public Private Partnership laws (PPP) and a dedicated PPP analysis and promotion unit; supporting cross-border trade facilitation efforts, a port community system and cross-border facilitation with Brazil; strengthening export and investment promotion programmes; and creating a business-government council with authority to identify bottlenecks and streamline regulations and administrative processes in a timely fashion.

Similar Articles

The Glenn Lall Show | January, 10th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Pakistan targets West Indies’ vulnerability with spin-heavy squad for Test series

Pakistan targets West Indies’ vulnerability with spin-heavy squad...

Jan 14, 2025

SportsMax – Pakistan has unveiled a spin-dominant squad for the upcoming two-match home Test series against West Indies, aiming to exploit the visitors’ well-documented struggles against spin...
Read More
West Indies U-19 Women defeat Nepal by nine runs in first ICC U-19 Women’s T20 World Cup Warm-up match

West Indies U-19 Women defeat Nepal by nine runs...

Jan 14, 2025

Sir Clive Lloyd to Lead Operations at proposed Cricket Academy

Sir Clive Lloyd to Lead Operations at proposed...

Jan 14, 2025

Savory, Anderson batting form a good sign for Harpy Eagles, following first practice match 

Savory, Anderson batting form a good sign for...

Jan 14, 2025

GFF/Racing Madrid partnership brings new head coach and two technical experts to Junior Jaguars U17 team

GFF/Racing Madrid partnership brings new head...

Jan 14, 2025

Chatargum, Persaud headline Senior National Indoor Barebow Archery Championships 

Chatargum, Persaud headline Senior National...

Jan 14, 2025

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]