Guyana: Invertir

FDI in Figures

According to the UNCTAD's World Investment Report 2023, FDI inflows into Guyana stood at USD 4.4 billion in 2022, in line with the record level recorded one year earlier, making the country the leading destination for FDI in the Caribbean. At the end of the same period, the total stock of FDI increased to an estimated USD 17 billion, representing around 117.6% of the country’s GDP. Traditionally, transportation, communications, and agricultural sectors have attracted the most FDI, but the energy sector has recently become attractive as illustrated by large investments in mining and hydroelectric projects. Moreover, in 2015, ExxonMobil announced the discovery of offshore oil reserves in the Guyana coast, which boosted the flow of FDI in the country. In 2022, the company announced a USD 10 billion investment in a fourth oil production project off the coast of the country. Guyana’s offshore oil development is poised to deliver over 1.2 million bpd by 2027 (from 500,000 in 2023). The longstanding territorial dispute surrounding the Essequibo region escalated into a crisis in 2023. Despite being under Guyana's administration, Venezuela continues to assert its claim over the territory. While this disagreement has historical roots, tensions heightened significantly with the discovery of oil reserves off the coast of Guyana.

Guyana's constitution safeguards the property rights of foreigners within its borders. Both foreign and domestic companies enjoy the freedom to establish and own business ventures and participate in all types of commercial activities, with the exception of certain oil and gas services now safeguarded under the Local Content Act (adopted in 2021). The Investment Act of 2004 further fortifies this protection for investments and stipulates non-discrimination between foreign and domestic investors. In 2022, legislation mandated local content requirements for the oil and gas industry, which now contributes over 50 percent to Guyana's GDP. The nation's export profile heavily relies on natural resources. To foster economic diversification away from oil and gas, the Government of Guyana is providing incentives for investments in sectors like agriculture, business support services, healthcare, information technology, manufacturing, and energy, particularly in remote areas. These incentives are administered through the Guyana Office for Investment (GOINVEST). However, administrative processes, including government tendering, are often sluggish and lacking transparency. Some tenders expire and are re-issued due to prolonged decision-making periods, extending up to a year. Numerous businesses highlight several key challenges they face in operating in Guyana, including rising crime rates, exorbitant electricity costs, ambiguous legal interpretations or protracted delays at customs, tax disputes, and difficulties in securing land access. The Government of Guyana operates an investment screening process facilitated by GOINVEST. This entails the preparation of investment agreements by GOINVEST, subsequent review by the Guyana Revenue Authority (GRA), and final approval by the Minister of Finance. The investment agreement is then subject to further approval by the GRA. Additionally, investments tailored to specific industries may require endorsement from the pertinent ministries. The country ranks 87th among the 180 economies on the 2023 Corruption Perception Index and 98th out of 184 countries on the latest Index of Economic Freedom.

© eexpand, All Rights Reserved.
Latest Update: May 2024