Chief Investment Officer Peter Ramsaroop says Guyana’s lead agency in the steering investments is being revamped to cut bureaucratic red tape.
“We are going to be proactive…there are many opportunities here and G-Invest becomes that first focal point- a place that investors come and will be guided and steered on all that is needed for their projects to become reality,” Ramsaroop, who is the Chief Executive Officer of Guyana’s Office for Foreign and Local Investment (G-Invest) told the Stabroek News in an interview.
“We will guide them to what are the necessities to be an active corporation here. And then based on the type of investments and which investment criteria the proposals fit, we will explain the requisite tax concessions, machinery waivers, etcetera, that can be accessed. We are a single window to that investor, to guide them through the process,” he added.
G-Invest was previously the Guyana Office for Investment (GO-Invest), which served the same functions.
In the preceding two years, Guyana was ranked at 134 in the World Bank’s ease of doing business index, which highlighted that it could take up to 208 days to get a construction permit, 82 days are needed to get electricity and 46 to register a property.
Ramsaroop, who has promised an even playing field for local, regional and international investors, said that he is working from a mandate set by the Irfaan Ali-led government to increase overall investments and decrease the time spent by investors having to go to several agencies for advice. “Upon realisation of the current economic situation of its economy and linking future investment opportunities, government has since deployed an armada of incentives and policies to achieve the goals and objectives outlined in its 2020 manifesto,” he said, while noting that some of these measures are reflected in this government’s 2020 budget. He said that his agency is eager to actualise the government’s goals and objectives through the investment avenue.
Full revision
“There has been a full revision and implementation of policies impeding the flow of local investments and the inflow of Foreign Direct Investment [FDI], such as the restoration of zero-rated VAT for machinery and equipment for agriculture, mining and forestry, the reversal of VAT on exports and building materials and data. These incentives will stimulate productivity in the economy, create jobs and most importantly attract new local and foreign direct investment and facilitate the expansion of current FDIs,” he explained.
Ramsaroop said when an investor or representative visits G-Invest, located at Church and Camp streets in Georgetown, they will be advised on areas here that match their needs and investment quantum and told of how their investing here will be incentivised.
“They will be given incentives to invest. G-Invest will work through any packages that is needed. Guyana is an attractive investment jurisdiction. Our projected growth rate is the highest in the world. Nothing compares to that. We are open for investment. We have a significant investment boom currently and they can build on that,” he said.
With an infrastructural boom, Ramsaroop said, this country will soon have minimal red tape and an array of incentives to foreign investors.
“Among these incentives are the exemption from customs duty, the exemption from excise tax on items approved under an investment agreement between the Government of Guyana and the business and most importantly the right of foreigners to own property or land in Guyana, which is specifically protected under the constitution,” he noted.
The agency is currently contacting businesses that had sent in proposals on a number of projects. They include proposals for the agriculture, infrastructural, oil and gas and tourism sectors.
When his position was announced earlier this month, Ramsaroop had outlined an overall goal that the agency would work towards.
“We will balance our approach to facilitate [so] that our local entities get the opportunities to build capabilities and capacity and our employment numbers rise in order for our people see a better career progression and earned higher income. There are literally hundreds of companies from around the world wanting to come into Guyana in addition to an increase in bilateral funding. I see us quickly doing a Gap Analysis on the sectoral investment needed, such as in agriculture, tourism, and infrastructure so we can attract and guide the investors in addition to matching them with our local providers,” he had said.
“In addition, high-value industries such as ICT (Information and Communication Technology) that could create excellent and highly paid jobs. Our initial focus will also be analysing what policies, what infrastructure bottlenecks, supply chain issues, [and] workforce deficiencies are keeping investors from being productive in Guyana. As the Chief Investment Officer for Guyana, my goal is to work with all our government agencies and the private sector to make our slogan a reality – ‘Guyana is Open for Business’ – and I will add ‘Come Grow with Us’,” he added.
Potential
Pointing to the importance of the recently signed ‘Growth of Americas’ agreement between the governments of Guyana and the United States – a framework to strengthen energy and infrastructure finance and market building cooperation – Ramsaroop underscored the enormous revenue and human resource potential benefits it brings to this country.
“The United States Secretary of State Mike Pompeo highlighted that Guyana is the second Caribbean nation to join the “Growth in the Americas Initiative”. And in keeping with the president’s agenda of transforming Guyana’s infrastructure, technology and human resources, G-Invest only adds in creating a conducive economy for investors,” he said.
Zeroing in on the mushrooming oil and gas sector, he said that analyses show that this country will become a hub for both local and foreign direct investment opportunities.
“In light of this also, the government’s initiative of opening its borders to its neighbours will pave the way for the expansion of its economy. The Linden to Lethem road, the deep water harbour and the high span bridge linking Guyana to Suriname and other transformative infrastructures will aid in this expansion,” he said.
He further added that the International Monetary Fund had forecast that Guyana will be the fastest growing economy in 2020, with stellar growth continuing into the middle of the decade.
In expounding on the initiatives of the government to stimulate the economy, Ramsaroop elaborated on the recent liberalisation of the telecommunications sector, with the end of the 30-year GTT monopoly and he said it will create a level playing field and increase job opportunities to Guyanese and pave the way for new service providers. He also noted that another major initiative that will create a flourishing environment for investors is the effort towards reducing the cost of energy by at least 50% in five years, as “this will allow both local and foreign investors to achieve economies of scale and gain a competitive edge over international competitors”.
But he wants local investors and potential businesses to not be intimidated by the influx of foreign companies as G-Invest will ensure equity and equality.
Using the Houston, East Bank Demerara-based Guyana Shorebase Inc. as an example of a local company that has maximised on investment incentives afforded here, he said that it is his goal to ensure that other businesses follow suit and reap similar rewards.
“With these attractive initiatives, businesses will get a better return, our Guyanese businesses can benefit significantly and the wealth of our people is enhanced and local content is turned to reality. We are that support arm for local investors. We are here for them. In our Trade Act, there is no discrimination. I want them to remember that. I would like to see our local providers know about those incentives and get every opportunity to be the first movers on it,” he stressed.
