Latest update November 26th, 2024 1:00 AM
ATTRACTING FOREIGN INVESTMENT
Guest Editorial
One of the more disheartening bits of news that this newspaper and others have published was that there is not much interest by potential foreign investors to invest in Guyana due to the high crime rate as recently highlighted by the U.S. State Department.
Since taking office in May 2015, the government has been encouraging foreigners to invest in Guyana, but many are not impressed with the instability in the sugar industry and the low growth of economy.
For the last three years, there have been negligible foreign investments in Guyana, despite having a stable government and several overseas trips by public officials to woo foreign investors. The government believes that there is a significant opportunity for companies to invest in Guyana, but the issue of crime which is being published daily in the newspapers seems to deter investors.
As reported, local and foreign investors are not eager to do business in Guyana under the present conditions. When in opposition, the current government had criticized its predecessor for its failure to attract foreign investment in the country, and had made it an election campaign issue. Since taking office, the government has reiterated its commitment to this strategy which is a good first step towards attracting much-needed foreign investment, yet the country has not benefitted from overseas investment. For one thing, the crime rate is still high, and the economy is ailing, both of which are not conducive to attract foreign investors. For another, the world economy is undergoing rapid and comprehensive changes and all countries, particularly the developing countries, are competing for foreign investment.
On a recent visit to London, President David Granger stated that his overwhelmingly successful engagements with investors had renewed their interest and confidence to invest in Guyana. He also said that the current mood of restored democracy in the country has made it an extremely attractive investment destination. Mr. Granger claimed that there is a surge in Guyanese entrepreneurs who wanted to come home with their capital and technical knowledge and expertise to play their part in developing the economy and help to provide a better life for all.
The Head of State explained that this renewed interest among Guyanese and foreign investors stems not only from the discovery of large quantities of petroleum in the country, but also from the steps taken by the government over the past two years to ensure that Guyana becomes a lawful state. These steps include the passage of legislation to fight corruption, money laundering and the illegal trafficking of narcotics, the holding of local government elections and the setting up of the Procurement Commission and other statutory bodies to improve transparency and accountability and foster good governance.The President explained that Guyana has an abundance of natural resources and Guyanese in the diaspora can play a very important role in harnessing the resources and help to transform and the diversify the country’s economy, which has been largely dependent on primary products.
Despite the President’s optimism, foreign investors and even international banks have shown very little interest in doing business in Guyana. It seems that investors are not convinced that Guyana’s economy which has been dependent on Agriculture, mainly rice and sugar and a few limited commodities such as bauxite and timber and very little manufacturing for decades,is suitable for investment. And although the President has touted the country’s tourism wealth potential, yet investments to convert that wealth into a good quality of life for the citizens have not materialized.
What Guyana needs urgently is an influx of massive foreign investment in every sector of the economy to develop the country. But for this to happen, its foreign missions should be involved more in economic diplomacy. They should be mandated to attract foreign investors, which can only give greater support to the government’s effort to attract overseas investment. The hope is that these efforts will bear fruit and spur investments in Guyana.
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