President Irfaan Ali says that the worst of the economic effects of last year is over and this is now the time for recovery and rebounding.
“I know that 2020 was a difficult year, but I assure you that the worst of its economic effects are over. This is the time of recovery, rebounding, and a booming economy.”
According to an Office of the President release, the President made these remarks during the feature address at the 131st Annual General Meeting of the Georgetown Chamber of Commerce and Industry (GCCI) held virtually yesterday afternoon.
Repeating much of what he has said in recent months, Ali noted the need for a thriving private sector and assured that the government intends to continue dismantling barriers that impede business development whilst creating an enabling environment to enhance the ease-of-doing-business.
“Bottlenecks, red tape with its tedious, multi-layered official procedures and administrative gridlock, all carry additional costs for businesses and harm their competitiveness. As such my Government is committed to dismantling barriers which act as a humbug to businesses.”
This, the President said, is part of enhancing the ease-of-doing-business that is encompassed by the seven-point National Development Plan that he had highlighted back in November. Another part of that development plan will be the implementation of an Electronic Single Window for Trade system that is aimed at reducing time and cost, simplifying trade procedures and eliminating duplication and unnecessary redundancy.
According to Ali, he has already discussed the development of a similar system with the Mayor of Georgetown, Ubraj Narine, which will allow for the processing of building permits and plans.
The president however, made it clear that as these barriers are being removed, he expects innovation, cooperation and ambitious undertaking from businesses at all levels without which, he contended, the full effects of private sector development would not be reached. He told the businessmen that they have an opportunity “to turn the tide” and to partake in the country’s overall development by promoting employment and modernisation.
Ali stated that his government recognises the link between democracy and economic freedom, and between economic freedom and investor confidence; and as such, “commits to ensuring that democratic rights and freedom are upheld.”
Small businesses
President Ali addressed the role of small businesses, and asserted that they play “a vital and indispensable role” in economic development as creators of “significant” self-employment, as well as assist in sustaining growth and fostering the effective distribution of goods and services. He also emphasised his government’s commitment to supporting small business development. “Small businesses represent the arms and legs, propelling our economy forward, sustaining employment and acting as vital cogs in the distribution, marketing and consumption of goods and services of large businesses.”
He also made mention of the passing of the Small Business (Amendment) Bill 2020, which he explained, expands the range of procurement opportunities for small businesses. “We have already granted small businesses a 5% advantage in bidding for state contracts. Also, the maximum threshold for grants disbursed by the Small Business Bureau through the Small Business Development Fund has been increased by 100%. We have committed to working with stakeholders to improve small businesses access to finance. In addition, our plans for small business development include the development of business incubators nationwide.” In addition, he informed that this initiative will also be supported by increasing opportunities for businesses through the Public Sector Investment Programme.
As he spoke of the expected exponential growth and transformation of the economy emerging, the Head of State challenged the private sector to start thinking “bigger, bolder, braver and brainier,” by becoming more “ambitious, less risk-averse, and more
innovative.” The business community, he stressed, must position itself to become part of the “national economic transformation revolution,” and to be ready to seize the opportunities that will arise from the enlarging economy and revolutionising of the productive, services and manufacturing sectors.
“The business community must not only think local but also regional and international. Guyana’s economy is burgeoning and buzzing. The business community must grasp the opportunities provided by these developments so as to make inroads into regional and global markets. The expanding local market must become the springboard for extending the local business community’s reach into the larger international and global economies,” Ali was quoted as saying.
And although the government will support the private sector, the Head of State made it clear that it will not become the sector’s babysitter. “Government will work to set the framework for fair competition, but it will not deploy overtly protectionist measures to shield the private sector from competition. The time has come therefore for the business community to rise to the challenges which lie ahead. Government will take steps to strengthen local competitiveness but in the final analysis and as Dr Debbie Mohamed of the University of the West Indies once observed, countries do not compete; it is firms that do.”
President Ali spoke briefly about crime and its deleterious effect on the business community and disclosed that government is formulating a “robust anti-crime strategy to better protect businesses, communities and citizens.” These measures are also aimed at improving the business community’s competitiveness, which he referred to as the “passport to enhanced business opportunities.” He also assured of government’s commitment in supporting the private sector’s desire for greater competitiveness.
