Latest update December 23rd, 2024 3:40 AM
Inefficient access to nation’s abundant resources reduces competitiveness — GMSA
Kaieteur News – “As we aim towards sustainable development in the wake of Climate Change, it is imperative that we build to last and we prioritise in areas that positively affect competitiveness,” since inefficient access to some of the nation’s abundant resources reduces business’ competiveness domestically.
GMSA President, Rafeek Khan addressing the business luncheon on Friday last
A section of the GMSA’s annual business luncheon held at the Guyana Pegasus
As such, “better built or built to last is a complement to sustainable development”, since “we are facing changing weather patterns that destroy bridges and roads.”
To this end, “repairs to damaged infrastructure can be avoided if built properly from the start.”
These were among the clarion calls made on Friday last by President of the Guyana Manufacturers and Services Association (GMSA), Rafeek Khan, during the entity’s annual Business Luncheon, venued at the Guyana Pegasus Hotel.
Expanding on the issue of competitiveness domestically, Khan told those in attendance, “…competitiveness is ultimately the key factor that affects growth of industries.”
To this end, he argued from farm to market, forest to mill, the cost of transportation for goods are as much, or even more than 50 percent of the value.
He cited as example, that the value of a truck load of logs is around $800,000, inclusive of transportation cost, of which $450,000 is the trucking cost – this is 56 percent of the overall cost.
“Consider tourism for the moment, the average cost to hire a pickup from Georgetown to Iwokrama is approximately $120,000 return. One can travel to most Caribbean destinations or Miami on a return trip for similar amount.”
As such, Khan used the occasion to welcome government’s enthusiasm and commitment to infrastructure development across the length and breadth of Guyana.
Additionally, Khan pointed to the removal of the Value Added Tax (VAT) from Hinterland travel, which he said provided great relief especially to small businesses and commuters alike.
“The cost of transportation to the hinterland and far reached areas of Guyana has been a challenge for too long,” he added.
He went on to note too that while high energy cost quite often takes precedence, the burdensome logistics cost to transport our primary production especially in Agro, Forestry, and Mining must also be addressed.
According to Khan, “we are extremely blessed as a nation with an abundance of Natural Resources but accessibility to these resources are sometimes limited…On the other hand, where hinterland road exists – the prohibitive cost of maintenance contributes to higher production cost.”
Past President of the Association, Ramesh Dookhoo, in his remarks to the Luncheon, used the occasion to urge local manufacturers and other stakeholders to work together to strengthen their businesses, given the transformation taking place not only in Guyana, but internationally.
“The Government is working at lightning speed…everything is happening quickly. We in the private sector need to start running alongside the Government of Guyana with a similar speed,” he noted.
Guest speaker at the business luncheon, Minister within the Ministry of Public Works, Deodat Indar, in his presentation referenced a number of transformative infrastructure projects being undertaken by the Government, which he said will create an enabling business environment. He cited as example the new Demerara Harbour Bridge, the Delconte Road, the deep water port across the Corentyne River, Kurupukari Bridge, the Mandela Road project, the energy-mix project among others.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Chilling reminders that we are not safe
Peeping Tom… Kaieteur News- Georgetown was plunged into shock and terror last week after two heinous incidents laid... more
Breaking the Chains of Poverty: A need for political will
By Sir Ronald Sanders Kaieteur News- The year 2024 has underscored a grim reality: poverty continues to be an unyielding... more
Weekend Cartoon
