Guyana has experienced significant growth since the turn of the century and has emerged as a major oil producer in recent years. That has made it of increasing interest to investors, with a variety of business opportunities in Guyana to be found.
While much of the world experienced economic standstill during 2020 in the face of the global pandemic, Guyana recorded growth of over 23%. That follows a period of rapid and largely unimpeded growth in the preceding years, with gross domestic product (GDP) increasing six-fold between 2004 and 2019, to reach US$5.17 billion (all figures in USD).
Foreign direct investment (FDI) also grew significantly during that period, increasing tenfold to reach $1.695 billion in 2019, as international investors became increasingly aware of the business opportunities in Guyana.
SEE ALSO: Company Formation in Guyana: a 7 Step Guide
Guyana is considered a Caribbean nation and, along with Belize and Suriname, is one of only three mainland members of the Caribbean Community (Caricom) — an economic association that also includes thirteen island nations as full members and five British overseas territories as associate members. Caricom’s headquarters is located in Georgetown, the capital of Guyana.
Caricom has free trade agreements established with the Dominican Republic and Costa Rica, while the Caribbean Basin Trade Partnership Act (CBTPA) — an extension of the 1983 Caribbean Basin Initiative (CBI) — gives Guyana-based companies preferential access to the US market.
Below, three of the biggest business opportunities in Guyana are considered.
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3 business opportunities in Guyana ready for investment
1) Oil
A series of major oil discoveries off the coast of Guyana has seen the country recognized as an emerging oil power, with the most recent discovery pushing total reserves past 9 billion barrels.
While much of that oil is currently overseen by a consortium led by ExxonMobil, oil represents one of several business opportunities in Guyana, as highlighted by the recent announcement that the Guyanese government is seeking a partner to market its share of the oil produced offshore.
2) Tourism
While tourism contributes an estimated 7.8% of GDP, it has significant scope for further development, and as such represents one of the most notable business opportunities in Guyana.
Boasting stunning beaches, pristine rainforests, and enviable natural features, including the Kaieteur Waterfall — the world’s largest single drop waterfall by the volume of water flowing over it — Guyana has great potential to develop its luxury and ecotourism offerings, and the government is keen to generate more investment in the sector.
3) Mining
Known as “El Dorado” for its gold deposits, Guyana is also a significant exporter of diamonds and bauxite, while also having notable reserves of other semi-precious metals and stones, including kaolin, soapstone, copper, molybdenum, tungsten, iron, and nickel.
Guyana’s gold royalty rate sits at 8%, while gold mining companies are taxed on discoveries at a rate of 25%. Overall, mining and quarrying contributes approximately 15% of GDP, and the government is keen to promote further investment in the sector.
Biz Latin Hub can assist you in Guyana
At Biz Latin Hub, our multilingual team of corporate support specialists is ready to help you take advantage of business opportunities in Guyana. With our expertise in the likes of company formation, legal and accounting support, or hiring and PEO services, we can guarantee the provision of all of the back-office support you may need in order to help you achieve your business goals.
We have teams in place in 18 jurisdictions around Latin America and the Caribbean, and trusted partners in many others.
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