The impact of the COVID-19 pandemic on the local business community has pushed more than 50% of businesses in the manufacturing sector into a condition of partial operation and forced the complete cessation of operations of more than 17% of the enterprises. And according to the findings of a recent survey undertaken by the Guyana Manufacturing & Services Association (GMSA) more than half of the businesses in the sector have either already let go of staff or plan to do so.
The survey, some of the findings of which have been seen by the Stabroek Business, itemizes among the “main challenges” facing the sector the knock-on effect of the COVID-19 climate on customers and clients and the consequential dip in demand below the normal level. Significant reductions in the level of cash flow necessary to maintain staff and operations and disruption in supply chains have also been identified as impacting on the current state of health of the sector.
Speaking with Stabroek Business earlier this week recently elected President of the GMSA Shyam Nokta said the impact has been significant and that the need for meaningful intervention to ease the crisis has now become a matter of urgency.
“The sub-sectors of the GMSA and the business community as a whole are suffering immensely in this challenging period and urgent actions are needed to provide support to keep businesses going,” Nokta, who has returned for his third term as Head of one of the country’s key Business Support Organizations (BSO’s) told the Stabroek Business.
And according to Nokta the circumstances have given rise to the need for “a menu of interventions to assist businesses in this period” which should include tax relief, access to loans, subsidies and cash grants and measures designed to stimulate demand for local products. The new GMSA President is also calling for local consumption to give priority to local goods and services.
Meanwhile, in the face of the economic challenges that now lie ahead the GMSA President noted with concern the further delays to the conclusion of the elections process adding that the GMSA is “anxiously looking forward to having a democratically elected government in place, based on the results of the recount process and reflective of the will of the people, and with whom we can start to work with immediately”.
