European businesses should focus on investment opportunities in Guyana- Ali

Last Updated on Tuesday, 21 November 2023, 22:26 by Denis Chabrol

-European Chamber of Commerce Guyana launched

President Irfaan Ali has told executives of major European Union (EU) companies who participated in that bloc’s first ever trade mission to Guyana that they need to pay keen attention to major investment opportunities here.

Addressing the opening of the mission on Monday, he dismissed likely reaction to his concern that the private sector needs to do more to mobilise financing that there is an information gap. He disagreed, saying that the EU Ambassador to Guyana Rene Van Nes has been aggressively pushing the availability of infrastructure projects here and said that companies should instead check. “You have to be honest, too. Do you actually read? Do you visit the website? Do you monitor the markets?,” he queried.

Turning his attention to Guyana’s private sector, he said it views research as an expense rather than an opportunity.

“When you ask why the Chinese companies and China are advancing rapidly, sometimes is because they view research and development as an important opportunity, increasing their share in research and development to more than 20 percent in some cases in the frame of the budget because research and development is what opens up new opportunity,” he said.

Despite hard work by the EU embassy here to promote the investment opportunity of constructing a Guyana-Suriname bridge across the Corentyne River, few member states have offered financing. “In my view, European Union countries did not apply the necessary pressure to secure the financing for this bridge and after the process what we saw. We saw institutions with the financing capability coming forward and saying ‘we would like to finance, we would like to back’,” he told the opening of the first EU Trade Mission to Guyana. Ballast Nedam and the Chinese-owned China Road and Bridge Corporation have submitted proposals build the Corentyne River bridge and those are being evaluated.

Despite ” a lot of work” by EU Ambassador to Guyana, Rene Van Nes to advertise the bridge project, the President cited the sloth in secure financing as an example of “severe deficiency” in the private sector which could have mobilised project financing before. ”

The President said if a company is aware that it could secure financing at a concessional rate based on its internal arrangement, “then your pricing will be different.” That, he said, could only be realised if that company invests the time and networking to understand what is available. Dr Ali said an expression of interest is out for the Amaila Falls Hydropower Plant and another would soon be out f0r the gas sector.

Meanwhile, the European Chamber of Commerce of Guyana (ECCG) was launched Monday night to coincide with the investment mission comprised of 23 companies from 10 EU member states through the Global Gateway, a mechanism for sustainable investments in renewable energy, agriculture, digitisation, transport, manufacturing, health and pharmaceuticals among others. The 23 companies last year recorded 400 billion Euros in revenue and employ 500,000 persons.

Chamber President, Guyanese Gregory Dean said the EECG’s purpose includes establishing opportunities, networking, sharing knowledge and best practices and advocating on behalf of members in the EU and Guyana, providing advice and support to EU companies entering the Guyanese market and Guyanese companies desirous of entering the EU market. “A lot of the interest we have had are from companies saying ‘look, I find Europe very difficult, the regulations etc. are hard for me to understand’ so that will be a critical role we can play in terms of getting companies to publish their businesses in the EU,” he added.

Deputy Director of the Directorate-General for the International Partnership of the EU Commission, Myriam Ferran explained that the Global Gateway is linked to the EU and international standards including respect for democracy, freedom of expression and “sustainability and transparency in public procurement.” She said the plans are devised “hand-in-hand” with governments but the private sector is key player to create jobs and promote sustainable development. “We will only succeed if we bring the private sector because the ultimate goal is to provide for effective investment tat we create locally adds value and there the private sector is number one,” Ms Ferran added.  A part from large businesses, she said there were also opportunities for small and medium-sized businesses in Guyana and the EU.

Guyana’s Minister of Public Works, Juan Edghill said government’s priorities included encouraging investment opportunities based on “type, quality and style”. “We are not closed to any group. We are not pro or anti any group. Guyana is open for business and whoever wants ti come to Guyana on fair terms and conditions to satisfy what we are seeking to do and to help us in this grand project that President Ally is so ably leading in modernising and transforming Guyana, you’re welcome aboard,” he said.

Mr Edghill encouraged the Chamber to work with government to build confidence by working on things that could be done now and encourage others to open up and participate. “You will find Guyana and our government as accessible, open and very clear about what we want to do. We will not waste your time. We will say exactly what can and cannot be done and we will be very clear about what we expect and how it can be done,” he added.