Manufacturers Association unmoved by rush to pass oil laws

Jan 08, 2022 News

…confident new rules will be revised, improved

Kaieteur News – The Guyana Manufacturing and Services Association (GMSA) in consideration of the Government’s high priority agenda to pass its oil related legislations, “acknowledges that these policies will be subject to emergent revisions and improvements.”
Voicing its support, in a statement for the newly passed laws, GMSA said, “as a major contributor to economic growth in Guyana, the GMSA calls for continued and more participative consultations with private sector support organisations.”
As such, it was pointed out that it is expected that recommendations from each industry be fully considered with timely feedback from the government, to successfully develop and reinforce the regulatory strategies with respect to the Local Content Act and the Natural Resource Fund Act.

GMSA President, Rafeek Khan

According to GMSA, “this proactive collaboration will therefore guarantee improved capacity-building for private businesses and ensure public-private cooperation.”
It was noted too that as Guyana moves into a new dispensation of growth, Sovereign Wealth Fund (SWF) will play an integral role in the stabilisation and sustainability of the country’s economy and accelerate the national objectives for socio-economic progress.
“In order to maximise the benefits of resource revenues,” the GMSA lauded, “the Government’s recognition that these funds must have strict governance under the management of a Board comprising of a team of specialists with knowledge in international investments and markets.”
According to the GMSA, the pieces of legislations are critical to having sound and effective management of the extractive sectors for Guyana’s economic growth and stability.
“The Association therefore extends full support of the passage of the Local Content Policy for the Development of Guyana’s Petroleum Economy and the Natural Resource Fund Bill 2021 legislations, with precedented anticipation that each Bill will provide avenues for the rapid progression of the manufacturing and services value chain,” the statement continued.
It noted that as a key contributor to the LCP and the NRF Bill from the initial consultation stages, the “GMSA attests that the government’s inclusion of the private sector assured of its intention for transparency and governance in developing the framework which guides each Bill.”
The entity reiterated private-sector representation on the Board “is of critical importance and the GMSA strongly encourages that this representative be meticulously evaluated prior to selection, to ensure the requisite experience, knowledge and expertise are met.”
It was noted that the NRF Act will provide a mechanism to enable and accelerate the development and advancement of industries in Guyana.
“The country will be positioned to transition from a predominant primary economy to enhanced manufacturing and services industries.”
According to the GMSA too, for decades the major hindrances to growth and competitiveness in Guyana have been: limited access to finance, inadequate and poor infrastructure, high energy costs, outdated technology, and shortage of qualified skills.
As such, the body said it is imperative that priority be given in these areas as “we seek to strengthen and diversify the non-oil industries.”
“While the GMSA is cognisant that there is much to be done in terms of capacity building among local stakeholders,” it believes that “with the right strategies which include technology transfer and partnership between experienced companies and the local private sector, a sustainable and lucrative pathway can be achieved for Guyanese as we continue to collaborate for more inclusion in local content and natural resource benefits.”

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