To enhance the forestry sector’s output, the government will be issuing 15 new, small concessions this year.
According to Minister of Finance Dr Ashni Singh, when the PPP/C government assumed office in 2020, the forestry sector was in a state of despair. At that time, he said, the Guyana Forestry Commission (GFC) was unable to pay salaries and cover other operational costs.
“We committed to repairing the damage done, and putting the sector on a path to prosperity. In Budget 2020, consistent with our promise to improve the ease of doing business in Guyana, the forestry sector benefited from an adjustment to the National Log Export Policy and the removal of several restrictive VAT and tax hindrances. In particular, the former was instrumental in enhancing the competitiveness of the sector through expanded market access for sawmillers without concessions. These measures materialised into a strong recovery for the forestry sector in 2021 and an even stronger estimated performance in 2022,” he said during the 2023 budget presentation.
To further enhance the forestry sector’s output, he said, the government anticipates issuing 15 new small concessions in 2023. He added that loggers will be supported through the rehabilitation of the Linden to Mabura road network, as well as the Puruni road, as there will be improved access to current and new land.
Work is also expected to continue with the GFC’s implementation of Guyana’s Timber Legality Assurance System – a requirement for the Voluntary Partnership Agreement under the European Union Forest Law Enforcement Governance and Trade programme.
According to Singh, the sector will be further aided by a $900 million revolving fund established in partnership with Demerara Bank Limited, aimed at boosting production and adding value.
“In line with government’s strengthened focus on small, medium and community loggers, as well as value-added producers, the revolving fund provides more accessible, low-cost financing for these operators,” he said.
