Ensuring that all Guyanese can access either a stock market or work towards having the one here integrated with other countries should be explored and both the government and private sector in Georgetown seem upbeat in making this a reality, Jamaican financial analyst, Rezworth Burchenson says.
“How do we ensure that persons, when they start to work, to know that there are other asset classes for them to invest in? You don’t have to only to only invest in land and real estate… We have to start the conversations, start setting up investment clubs in schools and in universities and ensure that there is enough financial literacy. It must also be promoted in the churches and service clubs… and when those conversations are started, you see the benefits,” Burchenson told the Sunday Stabroek in an interview.
Burcheson was a part of the 60-member Jamaican private sector delegation that recently came here with that country’s Minister of Industry, Investment and Commerce, Senator Aubyn Hill.
The analyst said that providing investment access to locals and exploring ways to expand the securities market here formed a part of the discussions held with both government and the private sector. “We met with a number of players in the financial industry and they do understand the need for the economy to benefit…,” he explained.
“The vast majority of the working population must have adequate instruments to benefit from the boom. It is not only about giving people a salary. The other part is ensuring that the disposable income is invested in assets that will go in line with the growth in the economy, if you don’t, then there will be a great disparity in income,” he reasoned.
The Senior Vice President and CEO of Victoria Mutual Investments Limited (VMIL) and its subsidiary, Victoria Mutual Wealth Management (VMWM) has also served on the Private Sector of Jamaica (PSOJ) Economic Policy Committee and is a member of the Jamaica Stock Exchange (JSE).
He related that the “Jamaican capital markets have gone through a lot of changes for the past 20 years” and have learned a lot of lessons in its growth that it could share with this country. “To that end, I believe that there are lots of best practices we can bring to the Caribbean. Our stock market is very good, our capital market is very good. Our asset management framework also developed,” he contended.
With Guyana’s oil and gas sector being the catalyst for the mushrooming of many startup companies, Burchenson reasoned that feedback from the public and private sector here was that provisions were being made for more listings on the local stock exchange, even as an integrated regional securities market is worked on.
“How can we ensure that as the country booms, that its stock market has greater listings and population continue to invest in those securities, are among questions that has to be explored? How can we ensure businesses that want to raise capital can do so outside of the banking community for investment purposes… and ensuring persons have a fleet of products? Be it equities or real estate bonds, et cetera, for them to invest in for their retirement for their medium to long term plans,” he queried.
“There are a lot of low hanging fruit available to a lot of the stock exchanges across the Caribbean. In terms of how are they ensuring that their markets are growing, they [leaders] must explore how do they form an appropriate investment vehicle for the medium term and how are they ensuring that small businesses, as they grow, see the stock market as a viable opportunity to raise capital and ensuring that big businesses not only look for debt financing but look for equity financing as another viable way,” he added.
The VM Vice President is confident that there are many viable things that can be done across the stock market in the Caribbean markets to ensure that capital markets grow.
Focusing on Guyana, he said that based on International Monetary Fund statistics, the Guyana economy will see a “boom for the next 10 years from the new businesses that will be created and existing businesses growing.”
“New businesses will come from outside, the objective should be to ensure those businesses see the stock market as a viable opportunity to raise capital and to encourage those persons to start to take some steps to build a stock market listing in their strategic plan for the medium term,” he posited.
Pointing out his company’s strategy to establish a greater presence in the Southern Caribbean, he said that Guyana was zoomed in on because of its positive economic outlook and development forecast.
He said that from the visit, the prospects of that happening soon look bright and the company is excited to begin working here.
On the VM Group’s website it states that it first opened its doors in 1878, led by a reverend, with a mission of “meeting the needs of the deserving thrifty”. Their mission was to, through the power of mutuality, empower economically marginalized Jamaicans to collectively pool their resources to save and acquire homes. They founded a Mutual financial institution that has and continues to enable all Jamaicans to achieve their shared goals.
As the needs of the Members changed, the organisation has expanded its product offering beyond the traditional savings and mortgage loan products. At present, VM Group offers: Wealth Management and Financial Advisory Services, Real Estate and Commercial Property Management Services, Money Transfer Services, Pension Administration and Investment Management Services as well as Property, Casualty and Liability Insurance.
