Practice Area

Guyana Industries

Tourism

Approximately three-quarters of Guyana’s 83,000 square miles is covered by tropical rain-forest which is home to the country’s numerous species of flora and fauna.

Guyana is home to Kaiteur Falls, renowned as the highest single drop waterfall in the world, and St. George’s Cathedral, believed to be the largest wooden building in the world. It is a country rich in history and traditions and the architecture in its towns and the names of its streets and villages are reminders of the country’s past as a colony of the Dutch, French and the British.

Tourism, although the largest industry in the world, is in its developmental stages in Guyana. As an alternative to the traditional ‘sand and surf’ tourism of the Caribbean, Guyana offers the adventurer an opportunity to experience mother nature at her best. With fishing, hunting, horse riding, bird watching, tree spotting, riding rapids, trekking through the jungle or simply enjoying the tranquility of the outdoors.

The Capital provides the perfect opportunity for the sightseer with its museums, art galleries, local theatre, jazz club, pubs and bars, Restaurants and nightlife. Located approximately one hours’ drive south is the Linden-Soesdyke highway along which several black water creeks frequented on weekends by locals are located.

The interior savannahs provide the perfect setting for horse riding, trekking, camping and fishing. The tropical rain forests are the naturalists dream and home to the country’s numerous species of flora and fauna.

There are several international hotels including the Le Meridien Pegasus, Tower Hotel, Park Hotel and Ocean View Hotel. More intimate accommodations are provided by Ariantze, Cara Suites and the Main Street Plaza, all located in central Georgetown.

There are lodges and guest houses in interior locations some of which offer the modern conveniences of the city and others that cater to adventurers who want to enjoy a more rustic setting. They are all easily accessible from Georgetown by boat and/ or plane.

In an effort to promote the eco-tourism potential of Guyana the Government is promoting private investment in the development of natural resorts and has approved a package of incentives which include duty free and consumption tax concessions for items such as basic furnishing, plant equipment and building materials.

Investment opportunities exist in the areas of:
· Accommodation
· Recreational facilities
· Restaurants
· Transport
· Craft shops
· Training

Agriculture

The Agriculture sector contributes approximately 25% of the Gross Domestic Product and has great potential for further development.

The main crops are traditional ones such as sugar, rice and coconuts. Opportunities exist for expansion in the coconut industry, as well as in cash crops, fresh fruit and vegetables.
Government supports the expansion of a non-traditional agricultural export sector. There is great potential for investment in this sector in the savannah areas where the land is suitable for the growing of citrus, legumes, orchard crops and livestock farming.

Aqua-culture is a sub-sector with great potential, the Government recognises this and is in the process of developing an investment package specially tailored for the aquaculture industry. Currently the bulk of shrimp caught is exported to the United States and Japan.

Forestry

Guyana’s vast forest resources account for over three quarters of its 83,000 square miles of land.

The forestry sector provides approximately 5% of the country’s Gross Domestic Product and is a significant source of employment.

In excess of one thousand types of trees are native to Guyana’s forests, with more than one hundred species being exploited on a regular basis. The more common species logged include Greenheart, Purpleheart, Mora, Baramalli, Crabwood, Kubakali and Wamara.

The Guyana Forestry Commission is responsible for the administration and management of approximately 9.1 million hectares of land identified as state forests.

Logging in Guyana is governed by the provisions of a Code of Practice for Forest Operations established by the Forest Act and the Environmental Protection Act. The Guyana Forestry Commission is responsible for monitoring all logging operations.

An increase in production is projected from its current 564,671 cubic meters per annum to in excess of 1 million cubic meters over the next five years.

The main markets are located in North America and Europe and more recently in the far East.
The Government encourages the development of the industry especially through joint ventures with local producers and is in the process of finalising a forestry policy which emphasises the domestic processing of local raw materials.

There are four main types of logging concession granted:
· State Forest Permissions (SFP)- a one year lease of not less than 20,000 acres
· Woodcutting leases (WCL)- a ten-year lease for 20,000-60,000 acres
· Timber sales agreement (TSA)- a twenty-five year lease for in excess of 60,000 acres
· Exploratory Permits (EP)- a permit to undertake an investment appraisal of the area which the permit covers.

The Sector is governed by principles formulated in accordance with the Rio Declaration on Environmental Development and Guyana’s commitment to the development in an environmentally sustainable manner. To this end the investor is bound by certain conditions including:
· Limitations on log exports;
· Agreements enabling the use of forested areas by multiple users
· Efforts to promote income from non-timber uses including eco-tourism
· Provision to allow for adjustments to recognise and accommodate Amerindian settlements
· Undertakings to maintain strict observance of environmental requirements and the utilisation of environmentally friendly technology
· Provision of supplies for local value-added activities

Investment opportunities in the forestry sector include the supply of timber for the production of furniture, plywood and veneers, parquet floor tiles and kiln drying and wood preservation activities.

Mining

Mining is one of the main revenue producing industries in the country with international companies having operations or interest in operations in Guyana.

Guyana’s mineral resources include bauxite, laterite, manganese, kaolin, sand resources, gold, diamonds, copper, radio active materials, molybdenum, tungsten, iron and nickel.

There is evidence of the existence of oil and gas resources in Guyana, especially in the Takutu Basin located approximately 300 miles south-south-west of Georgetown. The Government has signed agreements with a number of major companies to carry out off-shore and on-shore exploration activities.

The Guyana Geology and Mines Commission is responsible for the management of the mineral and petroleum sectors within an established legal and policy framework.

There are three scales of operations:
· Small scale claims- approximately 27 acres
· Medium- up to 1,200 acres
· Large- approximately 12,000 acres

Concessions are granted in priority of date of application and subject to availability. Small and medium scale grants may be held by Guyanese nationals only. However, large sale operations may be held by foreigners, Guyanese or through joint ventures.

Opportunities exist in large scale prospecting and mining for foreign investors.

Foreign investors in Guyana include Camboir/ Omai Gold Mines Ltd., Golden star Resources Ltd. Reynolds and Alcan.

Large scale prospecting/ mining of gold, precious metals, diamonds and precious stones attracts royalties of 5% of gross revenue and tax at 35%.

The Government guarantees:
· 100% foreign ownership of large scale prospecting and mining
· secure tenure of property rights
· right to transfer and assign rights under prospecting and mining licences
· right to peacefully and quietly possess the land alienated under the Prospecting or Mining licence without undue interference.
· simplified application and licencing procedures

Manufacturing

The Government’s commitment to the development of the manufacturing sector has been demonstrated through the establishment of new industrial estates and the implementation of infrastructural improvement programmes.

The sector is divided in several sub-sectors including:
· Metal Fabrication, foundry, and machine-related products
· Leather, textile and packaging products
· Chemical and paper related products
· Forestry related products
· Mineral related products
· Jewellery
· Beverages

In addition to fiscal incentives, investors in the sector benefit from duty free access to foreign markets under preferential trade arrangements such as the Caribbean Basin Initiative (USA), the Lome Convention (Europe), Caribcan (Canada) and special arrangements with Colombia and Venezuela.

Investment opportunities in the sector include:
· The manufacture of quality wooden furnishings
· The manufacture of plywood and veneers
· The manufacture of parquet material and floor tiles
· The manufacture of doors, windows and kitchen and other household fittings
· The Processing and canning/bottling of agricultural produce
· The manufacture of chemical products e.g. fertilisers, insecticides and weedicides
· The manufacture of packaging materials
· The manufacture of jewellery and items of gold, diamond and other semi-precious stones
· The manufacture of leather craft and souvenirs
· The manufacture of articles of clay, kaolin and silica sand
· The manufacture of textiles and garments

The Services Sector

The Government has intensified its policy of attracting investment in non-traditional resource-based activities in two main areas- infrastructure and services.

Informatics is an area with great potential for which an attractive incentive package has been formulated. Investment opportunities exist in other areas such as: entertainment, banking, insurance and health.

Investment is also being encouraged in:
· Construction and engineering. There is also potential for landscaping, solid waste disposal and environment related services.
· Transportation services- Inland road, air and shipping
· Port and airport development

Trade Information

Caribbean Community (Caricom)
Guyana is a member of the fifteen-state Caribbean Community whose objective is the economic integration of its members through the establishment of a single market and economy.

Member countries are: Antigua & Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname and Trinidad and Tobago.

Caribbean Basin Initiative (CBI)
This is a US sponsored programme aimed at the promotion of economic development in Latin American and Caribbean countries through private sector initiative. The Caribbean Basin Initiative provides duty-free entry to the United States on a permanent basis for a range of products from Guyana. Products enjoying eligibility include craft, wood products, toys, seafood and ethnic and specialty foods.

Lome Convention
This convention extends preferential treatment to agricultural products from African, Caribbean and Pacific (APC) nations allowing them to enter the European community duty-free and without quota restrictions. Guyana benefits from this convention especially in respect of sugar and rum.

Caribcan
A programme implemented by the Canadian Government providing duty-free access to the Canadian market for a wide range of Commonwealth Caribbean exports. Products, with the exception of textiles and apparel, footwear, luggage and handbags, leather garments, lubricating oils and methanol, may be eligible for duty-free status under this programme.

Caricom/ Venezuela Agreement
This Agreement is aimed to strengthening of economic and trade relations between Caricom and Venezuela. Provisions of the agreement include the promotion of the sale of goods originating in Caricom through one-way duty free access to the Venezuelan Market.

Caricom/ Republic of Colombia Agreement
This Agreement is aimed at strengthening economic and trade relations and technical co-operation between CARICOM and Colombia. Colombia has agreed to grant duty free market access to products originating in CARICOM member states.

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Disclaimer: The information contained in this website is not intended to replace the advice of an attorney-at-law. For further information or legal advice we invite you to contact our office.