Record $781.9B Santa Mega-Budget

January 16, 2023

The 2023 National Budget, valued at $781.9 billion was tabled on January 16, in the National Assembly under the theme “Improving Lives Today, Building Prosperity Tomorrow”. The fiscal plan, 41.4 per cent larger than 2022, is fully financed with no new taxes and is the largest in Guyana’s history.

Budget 2023 is the first to benefit from the sale of Guyana’s carbon credits, which will amount to $31.3 billion in revenue in 2023, alongside a transfer of $208.9 billion from the NRF to the Consolidated Fund.

Budget 2023 strikes a balance between addressing the pressing needs of today and the critical investments for tomorrow. Interventions will create wealth, diversify economic prospects and bolster growth.

Senior Minister with Responsibility for Finance, Dr Ashni Singh, confirmed presentation of the budget at the approximate mid-point of the government’s term of office, a timely opportunity both to review the first half of this term and, even more importantly, to look ahead at what is to come.

“Our government is committed to sound policies for long-term sustainability. PPP/C Governments do not compromise the long-term well-being of our country and our people at the altar of expediency or populism.”

SALARY

This year $3 billion in salary adjustments, will benefit 5,000 healthcare workers and 9,000 members of the disciplined services, with effect from January 1, as previously announced by President Ali.

TAX

An increase in the monthly income tax threshold from $75,000 to $85,000 monthly will release a total of $3.3 billion for taxpayers and remove 12,000 taxpayers from the tax net.

PUPILS

The Because We Care Cash Grant will rise from $25,000 to $35,000. This will benefit over 214,000 pupils in public and private schools and will award an additional $2.1 billion to parents.

FUEL

Containing the cost of fuel, zero excise taxes on fuel will be maintained to absorb the impact of volatile fuel prices, as long as fuel prices remain elevated at an estimated cost of $17 billion.

JOBS

$10 billion has been allocated for the expansion of the part-time jobs programme.

COST OF LIVING

$5 billion will fund additional cost of living measures to be determined from ongoing community engagements.

PENSION AND ASSISTANCE

For the vulnerable, old-age pension increases from $28,000 to $33,000, awarding an additional $4.4 billion of disposable income to 73,000 pensioners.

Public assistance will rise from $14,000 monthly to $16,000, to benefit over 29,000 persons, gaining an additional $700 million of disposable income .

HOMES

For low-income homeowners, the low-income mortgage ceiling rises from $15 million to $20 million, reducing the cost of borrowing within this range from commercial banks, incentivising home ownership.

HEALTH

$84.9 billion budgeted for the health sector includes over $500 million for the training of healthcare professionals and over $900 million to address non-communicable diseases, including mental health.

EDUCATION

$94.4 billion has been allocated to further improve access to quality education for all, including $2.1 billion to continue the National School Feeding Programme providing juice and biscuits, breakfast and hot meals to over 85,000 pupils; over $3.4 billion to procure textbooks in primary and secondary schools and $12.4 billion to improve education infrastructure across the country.

$1.8 billion will fund the GOAL scholarship programme for 8,555 new students and 1,047 continuing students.

HOUSING

$54.5 billion for housing development in new and existing areas, includes construction of roads, drains and bridges and the installation of utilities to meet housing demands.

WATER

$17.7 billion will boost water supply systems . This will finance several wells and treatment plants to be constructed across the country.

CHILDREN AND ELDERLY

Over $200 million will support child advocacy and daycare centres

$100 million will fund construction of a new care home for senior citizens.

HINTERLAND

Amerindian and hinterland development will benefit from an allocation of $13.52 billion

AGRICULTURE

$26 billion will promote agriculture.

LEGAL AFFAIRS

Legal affairs and received over $6.2 billion.

LOCAL GOVERNMENT

Local government gained $13.5 billion

 

 

$488.5M for BIT to train 8,000

January 16, 2023

Government continues to create avenues for upskilling and employment countrywide, equipping thousands of citizens with new skills and strengthening the workforce. The Labour Ministry through the Board of Industrial Training (BIT), will continue to roll out its technical and vocational training courses, to ensure every citizen has equal access to opportunities across the country.

$488.5 million was allocated for BIT to expand training programmes to benefit 7,890 persons.

In 2022, some $448.5 million was allocated, which benefitted 4,000 persons. In 2020, 2,000 citizens were trained and certified through BIT, while in 2021, 3,086 persons were trained.

BIT programmes include motor vehicle repairs, garment construction, electrical installation, joinery, auto electrics and electronics, welding and fabrication, cosmetology, catering, air conditioning and refrigeration repairs, heavy-duty equipment operation and food preparation. Programmes are free , with no prior certificate or qualifications required and materials necessary for the successful completion of the courses are supplied Courses are not gender-specific and women are encouraged to register for more hard-skill courses.

 

 

$94.4B to improve access to education

January 16, 2023

With a strong focus on equitable access to quality education, the government allocated $94.4 billion to the education sector, up from the $60.7 billion allocation in 2022.This allocation is in keeping with the five-year Education Strategic Plan (ESP) 2021-2025-Vision 2030 and its aim of ensuring that citizens are equipped with skills for the economy. A new curriculum will close the learning gap, created by the pandemic.

“Government remains committed to its manifesto’s promise of increasing access to education for all including universal, primary, and secondary education, increased access to tertiary education and technical and vocational education, and erasing quality across the entire system. We recognised that curriculum reform is a key component of delivering quality education. We have worked on developing new curriculum for nursery and primary levels. We will be rolling these out in 2023 and providing training on their implementation.”

Heavy focus on the education sector has reaped success, indicated by significant increases in the pass rate at critical examinations. For the Caribbean Advanced Proficiency Examination (CAPE), Guyana’s pass rate is now 93.22 per cent from 90.86 per cent in 2021. There was a 100 per cent pass rate in 35 units, while in another 28 units, there was a 75 per cent or higher pass rate.

Similar increases were recorded for CSEC with a 68.5 per cent pass rate in 2022 from 66.36 per cent last year. A total of 10,368 candidates wrote this year with 62,990 subject entries.

Infrastructure

As schools in hinterland and riverain areas pose peculiar challenges, government remains committed to providing a quality learning environment for all students. A comprehensive school mapping exercise was launched and is expected to be completed in the first half of 2023. The exercise will clearly detail specific infrastructural enhancement needs for individual schools at all levels. Results of this exercise will inform immediate and long-term interventions.

Educational facilities will be constructed, maintained, and upgraded including those at Hosororo, Patentia, Orealla, Prospect, Good Hope, North Ruimveldt, Yarrowkabra and Diamond. Construction will commence for facilities to house displaced pupils of St George’s High and Christ Church secondary schools.

 

 

$43.4B for gas-to-energy project, transition to renewables

January 16, 2023

I $43.4 billion was allocated for advancement of the Wales Gas-to-Energy project, set to significantly lower the cost of electricity, triggering rapid growth in industrial activity,and promoting a smooth transition to renewable energy sources countrywide.

Senior Minister for Finance, Dr Ashni Singh reiterated the government’s dedication to catapulting the country into the 21st century and reducing reliance on fossil fuel significantly.

He emphasised the need for renewable energy sources, amid challenges posed by an outdated system.

“For decades, ordinary consumers and businesses alike have been complaining about the state of our aged and ailing power supply system. Industrial business activities have been constrained. We have crafted an energy matrix that looks well beyond today’s needs and which will cater for strong forecasted future demand. In keeping with our manifesto promised to produce more than 200 megawatts of electricity from natural gas, our government has signed a contract for the construction of the integrated natural gas liquids plant and the 300-megawatt combined cycle gas turbine power plant within the Wales development zone.”

This project is the single largest investment in the electricity sector. The administration’s manifesto promise featured a dedication to developing measures to decarbonise the economy, especially the transport sector. The minister noted several measures to be taken to enhance the dissemination of electricity countrywide,

“Additionally, 413 km of new distribution lines and feeders, a new 69-kilovolt transmission line from Kingston to Sophia, and from Edinburgh to Hydronie, new and rehabilitated substations at Hydronie, Sophia, Colombia, Canefield, and No. 53 village, and the replacement of 320 inefficient transformers will all be realised in 2023.”

Minister Singh noted the derailed Amaila Falls Hydropower project under the previous regime, cheating Guyanese out of reliable and renewable energy and disclosed the relaunch of the Request for Proposals for the project, with a vision of restarting and ultimately realising it.

Additional hydropower facilities will also be explored, especially in hinterland communities. These endeavours are financed by resources Guyana earned under its Low Carbon Development Strategy 2030, which builds on the first LCDS, launched by former President, Dr Bharrat Jagdeo in 2009.

$1.8 billion is budgeted specifically for the hinterland project, which will benefit 30,000 households in the hinterland and riverine areas with solar PV lighting systems.

The 2022 budget allocated $29.4 billion for the energy sector, with $20.8 billion for the project.

 

 

Budget 2023 Goals

January 16, 2023

His Excellency, Dr Mohamed Irfaan Ali described the 2023 National Budget as ‘transitional,’ as it addresses the immediate needs of citizens while funding important investments for the future.

“Budget 2023 is that transitional budget as we start to work on a framework that utilises new forms of income that utilise the new revenue stream that our country will be pursuing.”

President Ali said the budget includes direct mcomprehensive and holistic development of all citizens.

“We continue to deliver…deliver on you the types of policies and programmes that will bring prosperity to every home. The type of policies and programmes that will help every stratum of our society. It is a budget with a difference. It is a budget that points to the future aspirations of our country, laying out the bedrock and framework for an economy that must be built to become resilient, sustainable, and strong in 2030 and beyondeasures that are geared towards the .”

The budget aims to boost economic growth by providing incentives to increase productive capacity, President Ali said, noting that it addresses specific issues related to welfare, such as protecting vulnerable individuals and improving the lives of the poor by increasing disposable income.

“That is the framework in which the project has addressed our national goals and aspirations in the context of the international reality.”

Highlighting specific measures that directly impact the lives of e ordinary citizens, President Ali noted that Budget 2023 is 41.4 per cent larger than the previous year, and is fully financed with no new taxes.

Budget 2023 includes specific cost of living measures. These include zero excise taxes on fuel and the reduction of freight charges. An additional $5 billion will fund the additional cost of living measures to be determined from the ongoing community engagements.

Budget 2023 also caters to the increase in the low-income mortgage ceiling from $15 million to $20 million and the removal of the 14 per cent VAT related the sale of residential properties.

 

 

65 per cent of workforce in Oil and Gas are local

January 16, 2023

During presentation of the 2023 budget, Senior Finance Minister, Dr Ashni Singh, revealed that 3,163 nationals are currently employed in the oil and gas industry , accounting for 65 per cent of the sector’s workforce, following the approval of over 29 local content master plans, in keeping with provisions of the Local Content Act of 2021. He noted that over 500 Guyanese companies are now included in the Local Content Registry.

The Local Content Act prioritises Guyanese nationals and companies in the procurement of goods and services, encapsulating 40 services that oil companies and their sub-contractors must procure from Guyanese companies and nationals.

The plans include an amendment ensuring that Guyanese suppliers of the petroleum sector are paid within 30 to 45 days upon receipt of the correct invoice.

The portal, another provision of the Local Content Act, comprises several suppliers from which goods and services may be procured, as well as individuals seeking employment within the petroleum sector.

Budget benefits

Finance Minister Dr Ashni Singh in a preview of assured that the fourth budget since 2020 will deliver both direct and indirect benefits to thousands of ordinary citizens.

The budget was formulated with the “One Guyana” concept in mind to ensure that as many people as possible can benefit from the exciting opportunities that are becoming available and participate in Guyana’s development.

“The overarching and clear message I can deliver is that Budget 2023 will constitute yet another instalment, through which this PPP/C Government, … will continue to improve the lives of all Guyanese people within the context of President Ali’s deeply held philosophy of One Guyana. Budget 2023 will continue to do .. and deliver the things that are necessary to improve the lives… and to create opportunities for all .. And it will do so through a number of instruments. Some will be direct; some will be indirect.”

Among examples Dr Singh gave are the initiatives they have tailored to preserve the private investment environment while creating jobs and training for persons to fill those jobs. The mood and economy in Guyana is a different from 2020, as more companies queue to invest in the economy.

“Projects that were put on hold were once again restarted. Projects that were shelved were brought back on board. Private investment resumed and private sector-led growth resumed and the non-oil economy breathed some oxygen in for the first time, after five years of being starved of oxygen. And that mood and perspective by the private sector have continued ever since a recognition that the PPP/C values the role of the private sector in creating jobs and generating income. And I will always say that very publicly.”

Government values and will continue to work with the private sector to ensure that growth and creation of jobs continue. More income will be generated for households.

“That is what managing a private sector-led economy involves. The strong growth that … since we returned to office, is a reflection of that. It’s a reflection of the private sector recognising that Guyana is once again a good place to do business. They’re investing, they’re growing. They’re creating jobs. And the economy is doing well.”

“Budget 2023 will constitute an advancement of this agenda. It will constitute us taking this agenda forward, ensuring that non-oil growth remains strong. Of course, we want the oil sector to continue to do well too. And it’s anticipated to continue to do well. But we want to ensure we lay the basis for strong non-oil growth as well.”

Budget Day

It was announced that budget day would be on January 16, 2023. Over the last several months the Finance Ministers met and consulted stakeholders including the private sector, ministries, other agencies and civil society. President Ali hosted the latest consultative meeting at State House with representatives from the private sector and other agencies to hear their concerns and suggestions for Budget 2023. These all formed part of possible inclusions as the Budget 2023 planning process continued.

As with Budget 2022, this year’s budget is expected to see critical development programmes for Government being fast-tracked and many more expanded to reflect Government’s continued transformational agenda which has been taking it forward at a rapid pace over the last two years and five months since the PPP/C’s return to office in August 2020. It will be the fourth budget presented by the current Administration and the third by Dr Singh, who commenced his current tenure as Senior Minister for Finance in November 2020. Government’s first budget for its current term was presented in August 2020 when it reversed a large number of taxes by the former regime.

The second budget in 2021 was presented under the theme “A Path to Recovery, Economic Dynamism, and Resilience” while the third was unveiled under the theme “Steadfast Against All Challenges, Resolute in Building Our One Guyana”. Budget 2021 comprised a number of developmental measures and included funding for the construction of housing schemes and expansion of existing ones along with investment in the revitalisation of the sugar industry.

Government implemented programmes in partnership with private sector bodies and other stakeholders, especially with regard to the tourism, hospitality, and agriculture sectors. Several relief cash grant measures benefitted citizens across the country.

In areas devastated by flooding, Government provided relief for affected persons, especially those who suffered losses of crops and livestock. Health, infrastructure, and education sectors received major injections in Budget 2021 in the ongoing pandemic .

Budget 2022 catapulted the infrastructure sector with an increased number of roads and bridges constructed, funded more growth of the Government’s housing drive, energy expansion and diversification, provisions for persons with disabilities, Amerindian and hinterland development as Government proved its commitment to bettering the lives of indigenous people and large injections in the health, education and security sectors.

 

 

Budget 2023 to enhance livelihoods, spur investment

January 15, 2023

With continued focus on improving lives and creating opportunities for all , the People’s Progressive Party/ Civic (PPP/C) Government will unveil a host of well thought out measures to aggressively transform the country as Senior Ministerfor Finance, Dr Ashni Singh presents the 2023 fiscal package to the National Assembly. Minister Singh said the budget will be implemented through a variety of direct and indirect initiatives, with key emphasis on promoting private investment, job creation and skills training. The budget is in line with President’s philosophy of ‘One Guyana’, which emphasises the need for unity and for citizens to benefit equitably from Guyana’s ongoing transformation.

“As has always been the case with budgets presented by the People’s Progressive Party/ Civic Government, budget 2023 will continue to do the things and to deliver the things that are necessary to improve the lives of all Guyanese people.”

Measures were strategically inserted which will see significant investments in infrastructure, education, and healthcare, among other areas. The budget is part of a broader plan to create a more prosperous and inclusive society, where all citizens have the opportunity to succeed and thrive.

“The fact that we are all united around the common cause of advancing and developing our country, and the fact that we must all participate in and benefit from the exciting and incredibly exciting transformation that is taking place, and that even more so will continue to take place in the future in this beautiful country of ours.”.

The 2023 budget will also ensure that non-oil growth remains strong, while laying the foundation for a robust oil sector. Upon assuming office in August 2020, President Ali set out to restore Guyana’s reputation as a favourable destination for private investment and business. Guyana’s private sector faced significant challenges during 2015 to 2020 . Despite the country preparing for the start of oil production then, the economy grew at a sluggish rate and non-oil sectors, such as agriculture, were neglected and negatively impacted by political decisions. The PPP/C made major efforts to restart several projects and attract private investment, leading to a recovery of private sector-led growth in the non-oil economy.

The government also made it clear that it values the role of the private sector in creating jobs and generating income for households. The strong growth in the economy since the government’s return to office is a reflection of this, as private companies are investing, expanding, and creating jobs. The administration is committed to working with the private sector to create more opportunities for Guyanese and improve the overall economic well-being of the country.

 

 

Budgets built on manifesto commitments

January 15, 2023

Senior Minister for Finance, Dr Ashni Singh stated that budgets presented by the PPP/C Government continue to be guided by its 2020 manifesto commitments as each programme and project is directly connected to overall growth and transformation of the economy.

“From the time we got into office, the 2020 emergency budget, the 2021 and 2022 annual, full year budgets, and now the imminent 2023 full year budget. All of these budgets are built upon the manifesto’s commitments. The budgets are designed to deliver on the commitments that we articulate in our manifesto.”

Since assuming office, the government has forged close ties with Guyanese as it strongly upholds the inclusionary democracy principle. One of the distinguishing characteristics of the Government has always been its constant and ongoing close engagement at the grassroot level in various communities, especially since government is pushing its massive transformational development agenda.

The manifesto continues to constitute the contract with Guyanese across the country.

“Having constituency meetings, community meetings, listening and hearing what the concerns are of these communities and feeding back that information into the policymaking processes and into the decision-making process. That is also an ongoing activity.. that informs what we do through the instrument of our annual budgets. So, the process is really an ongoing one and has been going on for a long time.”

The manifesto was the subject of extensive consultations with stakeholders and Guyanese and forms the basis on which the PPP/C Government was elected. As Guyana is a part of the global economic system, monitoring what is happening on the global economic front is an important part of the budget process and it is an ongoing part of the budget process.

“We have to constantly, as economic policymakers and as a responsible government, keep an eye on what is happening in the global economy and how that will feed through multiple channels into the domestic economy. We have to update our own domestic economic projections, developments in the oil and gas sector, developments in the other extractive sector, gold, bauxite, and developments in the agricultural sector.”

This translates into job creation, income generation, and ultimately government revenues. The government prides itself on the closeness of engagement with stakeholders in the private sector, religious community, respective sectors and special interest groups.

“Importantly, we want to hear from other stakeholders in society, what their perspectives are, how they see things evolving, what are their main concerns, issues, what their perspectives are on key issues that are confronting us etc. And we do that on an ongoing basis.”

All of the PPP/C Government’s budgets have been in line with the promises made as well as extra projects that have advanced Guyana, changed the landscape at a fast pace, and garnered attention on a global scale.

The $552.9 billion transformative budget, “Steadfast against all obstacles, Resolute in creating our One Guyana,” was presented in January 2022. Several initiatives were implemented to uplift the lives of Guyanese and aid in their economic development. The budget, which was the greatest fiscal plan to date, replaced the $383.1 billion national budget in 2021.

 

 

Inter-American Development Bank

January 6, 2023

The (IDB) says Guyana is on a trajectory of significant economic growth, with notable advancements in the non-oil sectors.

In its recent report, titled ‘Headwinds facing the Post-Pandemic Recovery’, the financial agency said even though the oil sector accounts for a marginal portion of the country’s economic development, it also facilitates massive recovery in the non-oil sectors, exceeding the expectations projected in the 2022 budget.

The statement notes that Guyana’s volume of exported goods is set to increase by 50 per cent annually from 2022-2026.

In April 2022, the IMF estimated a 22.5 per cent growth in this aspect.

The resulting growth in Gross Domestic Product (GDP) is also set to promote further expansion and development in the non-oil sectors. The main drivers of this growth in the non-oil sectors are attributed to the agriculture, services, and construction sectors.

Meanwhile, it states, “Guyana rapidly moved from being a net importer of agricultural products and mineral fuels to being a net exporter of the same commodities, with a trade surplus of 16 per cent of GDP in 2020 and 31 per cent in 2021 with the rest of the world.”

With further expansion of oil production, these trends in trade surpluses are likely to continue.

The report also mentions the policies implemented in response to many of the challenges the country is facing, even in light of the GDP growth. To ensure this growth is not solely dependent on the oil and gas market, the government has expended heavily to ensure the diversification of the economy.

First, it makes note of the added reinforcements to the Natural Resources Fund (NRF), as well as the Vision 25 by 2025 policy initiative. This initiative seeks to reduce extra CARICOM food imports by 25 per cent by 2025.

Moreover, the report makes note of the government’s efforts to foster technological advancements in the field of agriculture to promote further expansion and development in the sector.

In December 2022, the Agriculture Ministry signed an MoU with KARLICO, an Israeli company, for the development of a massive hydroponic production system project in Guyana. Such a system would provide a more environmentally friendly and efficient avenue for agricultural production.

 

 

IDB commends policies

January 9, 2023

The Government has been commended for implementation of several policy responses to the challenges.

The Inter-American Development Bank (IDB) in its December 2022 report, ‘Headwinds Facing the Post-Pandemic Recovery’ highlighted the government’s efforts at the micro level, to support productive sectors and vulnerable populations.

Notably, the excise tax on petroleum was reduced from 20 to 10 per cent in January, then reduced further to zero in March 2022.

Tariffs on services such as water and electricity remained fixed, with the government absorbing higher operating costs. In relation to its support to vulnerable groups, US$ 3.8 million was distributed in the form of one -off cash grants for households in the interior and riverain communities.

Public assistance was increased to $14,000 per person per month, benefitting approximately 18,000 people, with payments extended to persons living with permanent disabilities. Nationwide 65,000 senior citizens benefit from old age pension increase to $28,000 from $25,000 monthly.

US$4.8 million was allocated for the purchase and distribution of fertiliser for farmers to reduce operating costs.

The fiscal sector earned higher payments to the Natural Resource Fund. According to NRF quarterly reports published by the Ministry of Finance, the fund benefitted from a total of US$1.45 billion through September 2022 since its creation in 2020, including almost US$840 million in 2022.

As part of efforts to strengthen food security, government continues to promote the Vision 2025 by 25 policy, which seeks to reduce the high CARICOM food import bill by 25 per cent by 2025. Guyana is among region governments organising investment forums to promote technological improvements in agriculture and foreign direct investment.

 

 

82.6% increase in arrivals

January 1, 2023

President, Dr. Irfaan Ali revealed statistics recording a vast increase in travel logged at three of the country’s main ports of entry. 717,822 passengers were processed for 2022, an 82.6 per cent rise in arrivals over 2021 at Cheddi Jagan International Airport (CJIA) Timehri,  Eugene F. Correia Airport Ogle and at Moleson Creek, Corentyne.

Government investment in tourism, positioned Guyana as an important destination for ecotourism and events . CJIA, as of December 30, processed close to 658,000 arrivals, an increase of 78 per cent over passenger movement in 2021. Eugene F. Correia Airport, recorded 26,928 passengers , marking a 69 per cent increase over 2021. Moleson Creek, , with some 32,894 passengers, or a 338 per cent increase from 2021 reported the highest arrival turnover.

At CJIA, out of the 12 months, the highest increase in international arrivals for a single month was in September when the inaugural Cricket Carnival was held and a historical 31,050 arrivals were recorded.

“This tells you a story about the name Guyana. This is no doubt positioning Guyana in a positive frame and as we continue to build our tourism product, get new product, get the new hotels coming on stream and host new events, for example the Cricket Carnival. We expect to push closer to that 1 million arrival mark.”

Three new airline carriers this year join four airlines already operating. With at least two more airline carriers scheduled to come on stream this year, numbers are expected to increase exponentially.

“This tells you about a country that is on the move. It tells you about the country that is attractive, a country that people want to go to, it tells you about the set of policies and measures that are bringing the results, for our country and our people.”

He credited the increased arrivals with the portrayal of Guyana in the international media over the past year.   “This year alone, Guyana had more than 110 International headlines all across the world, out of which more than 90 per cent were positive headlines.”

 

 

Fifth fastest-growing economy, even without petroleum

January 1, 2023

Hailing the evolution of Guyana’s development, President Dr. Irfaan Ali disclosed that Guyana ranked fifth in the world as the fastest growing economy in 2022 assessed on its non-oil performance. With oil, projections place Guyana as the fastest growing economy. In 2022, the International Monetary Fund (IMF) World Economic Report projected Guyana to grow at 57.8 per cent for 2022, with the second fastest-growing economy being Fiji, which is projected to grow at 12.5 per cent.

However, based on the half-year projection for 2022, Guyana’s non-oil economic growth is placed at 9.5 per cent. For 2022, according to the world economic report, after Fiji, Kuwait had an 8.7 per cent projection, as did the Maldives, while Saint Kitts and Nevis’ projected growth is 9.8 per cent.

“That tells a lot, because it now shows the result of the redirection of government policies from subjecting the population to more than 200-plus taxes to investing in the productive sector. Amidst all of these global challenges,..t Guyana’s economic performance in 2022 was not only remarkable, but is one that is worth a study.”

• The growth profile of 2022 showed agriculture projected to expand by 17.9 per cent; quarrying and mining at 11 per cent;
• the construction sector by 19 per cent; wholesale and retail trade by 12.5 per cent;
• transportation and storage by 13 per cent and accommodation and
• food services by 18 per cent.

“These are a direct result of the confidence in the economy, as more medium and small enterprises invest in the diversified portfolio. And this is also important when we look at what people call the Dutch Disease. The diversification of our economic portfolio is holding strong.”

The government’s targeted expansion of the other economic sectors and diversifying of the economic pillar show direct results due to the policy formulation and measures that have been implemented.

“If you look at what is happening in different sectors, we see that there is renewed energy. There is renewed optimism; renewed investment in the manufacturing and constructive sector, extractive sector, productive sector, agriculture, agriculture processing. The last two years were really spent on rebuilding the architecture and framework that supports the upliftment and development of these sectors. In the coming years, we’ll see, in a greater sense, the impact of the investments we are making in different sectors. Though 2022 saw severe economic shocks, Guyana’s economic performance was still remarkable, with the shock of the global crisis not fully impacting the lives of the people in Guyana, thanks to initiatives, policies and measures that the government implemented that brought stability to our internal system.”

Notwithstanding all of the international pressure, the government was able to reduce the impact of inflation, the cost of living and food crises and keep prices relatively stable.
Though many countries experienced double and triple-digit inflation this year, Guyana kept inflation in single digits, with its projected seven per cent being below the global inflation rate.

“From a macroeconomic perspective, notwithstanding the complex international environment we’re operating in, we have seen the true results of the policies and measures adopted by the People’s Progressive Party/Civic government.”

Over the course of the year, the government implemented measures to ease the burden on the population. Among infrastructural measures were the construction of 183 bridges in 2022, and the construction and maintenance of 1,651km of roads to improve commute nationwide, including in hinterland communities.

Over 10,500 house lots were allocated in 2022. The government also had major developments in education, health, and social welfare.

The past year required policy formulation and measures that mitigated the full effect of global issues such as the high inflation rate, the high cost of living, increasing cost of food practices, shortages of food products on international markets, supply chain crisis, and rise in shipping cost, all of which impacted Guyana severely. Management of the inflation and inflationary pressure and cost of living was due to very careful planning and a very robust system in terms of our expenditure profile and spending in the right areas.

 

 

Inevitable prosperity

January 3, 2023

In his New Year’s message, Vice-President Jagdeo says foundation set new initiatives to be launched this year to advance development

GUYANA is poised for exciting times ahead, as the massive transformation of the country is set to continue in 2023, General Secretary of the People’s Progressive Party/Civic (PPP/C) and Vice-President, Dr. Bharrat Jagdeo announced. The new year offers an opportune moment for reflection and recalibration to complete unfinished business and for a fresh start to launch new initiatives to further foster prosperity.

Reflecting on 2022, he related that, amid many challenges like the Russia-Ukraine war and the COVID-19 pandemic, the government was able to keep the country moving forward in line with the manifesto promises. Among the successes achieved in 2022 in infrastructure, works have commenced on the new Demerara River Bridge while the Mandela Avenue to Diamond Highway is almost complete. The Ogle to Eccles and Linden to Mabura highways have commenced and funding for the new Soesdyke-Linden Highway was secured.

Also underway was the national energy master plan that is expected to cut costs in half, as the contract had been signed for the Wales Gas to Shore project. The country achieved the milestone of becoming the first country to have been issued carbon credits for successfully preventing forest loss and degradation.

“Thousands of jobs have been created in every region, salary scales have been adjusted upwards and small business loans and grants have benefitted thousands.”

Government embarked on a wide-ranging empowerment programme through state-sponsored academic and professional scholarships, youth participation in governance, ICT and other skills training, socio-cultural investments and community enhancement drives.

All of that and more had been achieved under the competent leadership of President Ali.

“With these overwhelming successes over the past year, our management of the new and emerging multi-dimensional economy and the resolute positioning of our country among the global community of contemporary democracies, Guyana is poised for exciting times ahead.”

To continue transformation this year, government plans to step on the accelerator to complete its national transformative agenda and will work towards completing major road transport works and intensifying digital transformation, among many other things.

 

 

Oil wealth benefits all, President tells Al Jazeera

Jan 01, 2023

World Bank reported that 48 percent of Guyanese live in poverty but President Irfaan Ali told Al Jazeera News that revenue from the oil and gas sector is benefitting the entire populatio, arguing that the People’s Progressive Party invested resources from the sector into various channels that provided relief. Told that a local Transparency Institute official claimed that average Guyanese say they are not gaining from this bounty and are not sure if in future they will, the President contended that “some people are self-appointed” professors.

“I don’t know what survey he did but let me ask you, let me put this back to you now, when you are able to give your citizens the best possible health care. .. announce measures that is giving every single citizen who require dialysis a cheque every year to help them with that dialysis.. give every school child a transportation grant to go to school… a uniform grant… increase old age pension… ensure that the primary health care is working at its best … build roads all across the country to reduce the cost of transportation (through) farm to market access roads that reduce the cost of production, make the farmers more competitive… expand and open up tens of thousands of new acreage of land for agriculture…deliver 50,000 house lots to people… deliver a children and maternity hospital that is world class to reduce maternal death… invest in cancer treatment.. invest in free education- 20,000 scholarships… have a programme that will see 150,000 Guyanese trained as coders… get Al Jazeera to come to Guyana, because of oil, but I can use this opportunity to showcase the rest of Guyana, isn’t there benefit that is coming to the people?”

“The sad thing about the main stream media is that they would not go to developed states to ask whether the ordinary people felt the effects of revenue from fossil fuel but in small developing states, especially countries that are termed third world, some believe these countries are simply not positioned to manage the resource and “need the guiding light.”

Contrary to this belief, the Guyana Government has a clear plan for the utilization of its resources.

“We have a very definitive plan and that plan includes all of humanity. I have made it very clear that the prosperity of Guyana must lead to the prosperity of the Caricom region and the region around us.”

“For someone to say they don’t understand how this is translating to the benefit (of the people) is ..actually naive or someone who does not want to acknowledge the transformation that is taking place and sometimes you have to understand it is politically driven. Small societies like these, you have many actors who shelter under the umbrella of independence but are very politically charged and politically driven.”

In November, the World Bank found that 48 percent of citizens survive on less than US$5.5 or GYD$1,000 per day. The Government issued a rebuttal , insisting that these statistics were garnered during the tenure of the former regime in office between 2015 to 2020.

Centre for Local Business Development promotes steady Growth in Petroleum Industry:-
Over 1,000 local companies participate in the oil and gas economy. Achieving this feat is not just a matter of technical or specialised skills but also adherence to the robust safety practices and standards necessary to safeguard workers and the environment.

Effective training and worker development programmes are central to maximising and capturing the most value from Guyana’s natural resources while protecting the environment. Helping local companies work towards international-level safety and quality certifications is vital in an industry like oil and gas. Because oil companies build complex engineering projects in some of the world’s most challenging environments, the safety standards they require from contractors are very high.

As the industry has grown, so have the safety offerings to businesses operating in the sector. Companies can already take advantage of training opportunities and certification programmes through the industry-funded Centre for Local Business Development (CLBD). The CLBD has been instrumental for the business community by prioritising capacity-building and providing guidance for companies that want to get involved. Since 2017, the Centre conducted seminars for over 4,500 participants, cultivated over 750 oil and gas sector vendors, and delivered Health, Safety, Security and Environment (HSSE) training and certification programmes to over 310 businesses.

OPITO, a global, not-for-profit skills body for the energy industry granted certification to 3t EnerMech’s Training Centre of Excellence at Lusignan on the East Coast Demerara. The new courses on offer at the facility include the Tropical Basic Offshore Safety Induction and Emergency Training (BOSIET), Helicopter Underwater Escape Training (HUET) and Further Offshore Emergency Training (FOET) with Compressed Air Emergency Breathing System (CA-EBS). With the globally recognised certification, the centre can now effectively train offshore workers in the skill areas necessary to maintain safety.

All these measures are part of the delicate balance of marrying rapid development with strong local involvement and careful safety measures. For Guyana, the incentive for a fast pace of development is clear – the global transition away from fossil fuels is imminent. Moving quickly means more near-term revenues, while multiple projects back-to-back mean economies of scale that bring down costs and create momentum for local companies and developing a skilled workforce.

In November, CLBD held its HSSE Management System Awards which celebrated the 30 companies that have completed the programmes this year. This is part of a wider push to improve the safety culture for firms looking to join the oil and gas space and ensure that they are ready to operate at the demanding levels of precision needed.

Dr. Natasha Gaskin-Peters, the Centre’s Director, emphasised “[the] creation of an HSSE Management System in your businesses will not only help you to better compete for contracts in the oil and gas industry, but in other diverse sectors.”

Local companies receiving training are now in a positive position to leverage the local content provisions to succeed.
We are already seeing this policy pay off, according to the Head of Guyana’s Local Content Secretariat, Dr. Martin Pertab. He explained to attendees that the oil and gas sector exceeded its 2022 targets for the training and hiring of Guyanese in this lucrative and growing industry.

By June, the contractors and sub-contractors in the petroleum industry spent US$3.3 million (GYD$691,243,410) on training locals, surpassing the US$1.8 million (GYD$377,041,860) target by around 80 per-cent. Companies committed to hiring over 800 locals for the industry this year—a number they also surpassed in June, with over 850 locals hired in the first half of 2022. Year-end numbers are expected to show similar growth.

It is clear that even though there is still a long way to go, Guyanese are being equipped with the right tools to be able to safely and effectively participate in the industry. These extensive investments in training programmes help create a culture of safety that is crucial to long-term success of the industry and strong local participation.

 

 

ILO – lack of qualified personnel, limited workforce

Dec 20, 2022

While oil resources placed Guyana among the top petroleum producers in the world, the lack of technical expertise and workforce capacity continue to be key weaknesses

However, the Government of Guyana (GoG) earlier in 2022 gave ExxonMobil the green light for the fourth stage, US$10B Yellowtail Development Project. Vice President, Bharrat Jagdeo, is driving oil companies to advance. Exxon began awarding US multimillion dollar contracts for the fifth project, awaiting approval by the government.

As Government accelerates the industry, the International Labour Organisation (ILO) reports a gap between labour force capacity and what will be needed to handle the oil boom. The country lacks qualified human resources as over 80 percent of the total working age of the population did not proceed beyond upper secondary education and the workforce required in future , is six times current workforce capacity.

The ILO report titled, “Prospective occupational skills needs in the Guyanese oil and gas industry, 2022-2026” was delivered in a virtual handover ceremony in the presence of Minister of Labour, Joseph Hamilton and the International Organization for Migration (IOM) Guyana and Coordination Office for the Caribbean.

 

 

 

Education attainment of Guyana’s working age population

‘Availability of qualified human resources’ is a key bugbear to the country’s development. It was explained that the Guyanese economy would have to overcome the aforementioned in order to fully benefit from the oil boom.

“Although oil and gas operations employ a wide range of jobs, including those occupations associated with low(er) skills level 6, an important proportion of the job openings require at least a higher technical or vocational degree.” In contrast, the gross school enrolment ratio at tertiary level for Guyana is only about 12 percent, lower than the average 44 percent in other Latin America and the Caribbean countries.

A figure showed the distribution of educational attainment (in thousands) for the total working age population as derived from the labour force survey of 2021.

Between 1965 and 2000, almost 90 percent of Guyanese with a tertiary level education and 40 percent of those with a secondary level education emigrated. A continuation of such trends may affect the labour supply available to the oil and gas industry.

Another hampering factor is the ‘Quantitatively limited workforce.’ Although the quality of available human capital is certainly worrisome, it is not the only constraint. “Quantitatively, Guyana’s labour force is not big enough to serve the expected growth of the economy.”

Labour demand driven by the oil and gas sector and its support services in Guyana for the forthcoming years is estimated to be 260,000 workers, while Guyana’s national potential labour force is estimated to be a mere 39,342. Even under a hypothetical scenario where all unemployed, underemployed, and discouraged workers are trained, retrained, and up-skilled, to become employed, demand will still outstrip supply in the medium-term.

In May, economist Richard Rambarran, an executive member of the Georgetown Chambers of Commerce and Industry (GCCI), reported similar sentiments.

“Even if we take all of the persons in Guyana who are unemployed, underemployed and even those, the ones that we call in labour economics, disguised unemployed, we still do not have enough persons in this country to serve the productive growth sector or where we are intended to grow over the medium term.”

Research showed that based on where Guyana is going in the medium-term, the country will still require all of those persons who are unemployed, underemployed and disguised unemployed to enter the labour market and, in addition, about 100,000 more persons will still be needed.

“So we need everybody, everyone in this country to have a job, participate in the formal structure in the economy but also we need 100,000 more people.”

 

 

Rystad expert opinion burnishes global O&G profile

December 23, 2022

Arguably the most significant drawback for Guyana from successive oil finds and projections on the issue of more deposits that lie ahead is the attention attracted from both potential investors seeking to benefit from the business opportunities that would appear to lie ahead as the country embarks on a multi-faceted developmental agenda.

Indeed, it now appears that expert opinions and projections on both Guyana’s oil finds up to this time and just where the country stands in the pantheon of the ‘heavy hitters in the global oil and gas industry are likely to be the subject of both actual scientific probes as well as involved industry conversations, in the period ahead. Of particular interest here are the various projected rags to riches projections in the matter of Guyana’s oil and gas industry that have been continually forthcoming from industry experts in recent years.