Latin America & the Caribbean
Opportunities for UK companies
Guyana
Guyana earned approximately US$200 million from oil revenues and royalties in 2020 and it is expected to see continued investments across a wide range of sectors in 2021[1].
The forecasted growth of 26,2% in GPD for 2021[2] will create investment opportunities for UK businesses operating in infrastructure development, energy, agriculture, ICT and manufacturing services. The Department for International Trade is working with the Government of Guyana in several sectors including clean energy mix, education, healthcare and infrastructure.
At his recent Investment and Transformation keynote address, President Irdaan Ali emphasised [3] Guyana is keen on attracting investment through public and private partnership and cooperation between local and foreign companies.
Guyana is a signatory to the CARIFORUM-UK EPA, which provides preferential tariff rates for bilateral trade in goods and services between the UK, and the CARIFORUM States. In addition, Guyana’s existing trading agreements offer a gateway for UK companies to trade across the Caribbean and into Latin America via Brazil. The government is investor focused and business savvy and is seeking to position Guyana as the investment capital of the region.
Market Detail
It has less than 800,000 inhabitants[4]: In 2020, GDP per capita was predicted to be $8,649; IMF predicts by 2024 this will be $17,227.Guyana ended 2020 with a predicted real GDP growth of 26.2%, despite the impact of the COVID 19 pandemic. Projected growth is 8.1% in 2021, 29.5% in 2022 and 22.3% in 2023[5].
Guyana is a dynamic environment where foreign investors are welcomed but local content policy and legislation must be adopted.
Prior to its successful oil and gas exploration, Guyana maintained a consistent economic growth rate, with an economy centring on agriculture, (mainly rice) and mining, (mainly gold and bauxite).
UK businesses exporting to Guyana will find:
- Low-cost and flexible workforce
- Unrestricted repatriation of profits, capital and dividends
- Double taxation agreement with the UK
- A signed Treaty for the Promotion and Protection of Investments
- Competitive fiscal incentives for investors in key sectors
- Legislation based on UK common law
- Direct sea-freight link to the UK
- Well-organised, regulated financial system
- English is the official language
- Established property rights and rule of law
Opportunities in Guyana for UK companies:
- Aid Funded Business programmes
- Infrastructure
- Renewable energy
- Education
- Housing
- Services
- Transport
[1] (a) Ministry of, Finance, Guyana Website; (b) IMF, 2021: [LINK]; Oil Now, Guyana earning around $50 million per lift this year, January 2021 [LINK] (c) Oil Now, 2021: [LINK]
[3] Guyana Investment and Transformation Keynote Address by President Irfaan Ali to the Forecast on Latin America and the Caribbean Conference.
