Latest update January 15th, 2025 1:56 AM
Govt.’s Dubai sugar revival hopes fall flat – Jagdeo admits no deal was made
The eight-member delegation from Dubai meeting President Irfaan Ali and other senior government officials back in 2020
Kaieteur News – On December 17, 2020 the headline screamed from the government-controlled Guyana Chronicle ‘Dubai sees sweetness in Guyana’s sugar”. The article was based on a visit by an eight-member delegation from the United Arab Emirates (UAE) late 2020.
The sugar industry in Guyana has been struggling for years
The team which was led by his Highness, Sheikh Ahmed Dalmook Al Maktoum of Dubai, met with President Irfaan Ali, Agriculture Minister, Zulfikar Mustapha and other senior Government officials. Mustapha later told the Guyana Chronicle that he highlighted the opportunities in agriculture to the investors, placing specific emphasis on sugar. “They indicated their willingness to invest, so another team came back recently to look at sugar, a team from GuySuCo (The Guyana Sugar Corporation) accompanied the visiting team on a tour of all the estates. So they went and examined all the estates already,” Minister Mustapha had said during an interview with the state paper.
The Guyana Chronicle reported back then that the visiting team comprised mainly experts, who had a specific task of analysing the operations and viability of Guyana’s sugar estates. “I had a chat with them after their visit to the estates and they seemed very interested, remember they are technical people and not policy makers, so whatever they observe they have to take back to the policy makers, but they were impressed with the sugar industry in Guyana, in terms of investing and so on,” said the agriculture minister. Dubai is no stranger to sugar, as this State is home to the world’s largest port-based sugar refinery, Al Khaleej Sugar Co.
Fast forward to August 2024 almost four years later Vice President Bharrat Jagdeo was asked by this newspaper: “In 2020 President, Ali would have met with a team from Dubai as there was a company that was looking to invest in the sugar industry. Can you say what happened with this venture?” In response Jagdeo said that, “The President has met with a lot of people who might be interested in sugar, and we still have…that’s an option that is actively being explored now about getting private equity into the sugar industry. So that is still under active consideration but if it didn’t happen by now since you’ve asked now it meant that the terms of the engagement may not have been favourable to Guyana and that is why a descision wasn’t made.”
He added, “Since you’re asking now I can’t give you a specific answer to that question because I don’t remember. You are talking about 2020 somebody approached us in 2020, but if it didn’t move forward that may have been the major factor we always look out for what is best for our country.”
The sugar industry has been failing for a number of years and yet the government continues to pump billions into it. Only last week the National Assembly approved $40B in supplementary spending for the government out of this amount the Guyana Sugar Corporation (GUYSUCO) received a whopping $9.5 B. The former APNUAFC administration had downsized the industry, but on retaking government the PPPC Government reopened the shuttered estates. However, GuySUCo has been limping along. Just last week also the privately-owned Stabroek News reported that GuySuCo recorded losses of $7.8b in 2021 and $10.2b in 2022.
However, Jagdeo continues to argue that sugar production is the primary source of job opportunities and income for families in Berbice- a stronghold of PPP/C at elections.
He said removing disposable income from people would affect the entire region, as the source of income from sugar employment is essential for the local economy. “The source of the disposable income is the source for other people, who are selling other types of services,” Jagdeo said. He said the industry not only provides employment opportunities, but also supports the drainage and irrigation network for households in the area.
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