The Government is currently pursuing an action plan to ease the red tape and make doing business in Guyana easier. And it is receiving assistance from the World Bank in order to do this.
This is according to Business Minister Dominic Gaskin, who was at the time addressing members of the Diaspora in London, England, at Guyana’s High Commission.
During his address, which formed part of the Embassy’s observance of Guyana’s
Business Minister Dominic Gaskin
51st Independence Anniversary, Gaskin acknowledged that doing business in Guyana was a challenge, something the Private Sector has complained of for some time.
“The Ministry of Business has sought assistance from the World Bank and is currently working on an action plan to improve the ease of doing business in Guyana,” Gaskin said. “Significant improvements are expected over the coming years.”
It is understood that last year the Business Ministry had invited a team from the World Bank to do assessments and provide advice on improving the local business climate.
Their scope had included trade transactions, access to electricity, land and construction permits, and ease in starting businesses, as well as paying taxes and ensuring that contracts are enforced.
“In spite of many challenges, Guyana’s economy is still growing,” Gaskin said. “Last year, it grew by 3.3 per cent which is impressive when compared to all our neighbouring economies.”
Gaskin then went on to compare Guyana’s economic performance to the economic plights of Venezuela, Brazil, Trinidad and Barbados.
He also noted that with the discovery of oil, “We are receiving a level of attention that we are not accustomed to and this is not necessarily a bad thing”.
Gaskin claimed that Guyana was for a long time ignored by the international business community and not given much consideration as an investment destination.
“We have a chance to change this and to transform our country into one that is ready to do business with the rest of the world.”
World Bank rankings
Guyana has wallowed quite low on the World Bank’s ranking of countries based on their ease of doing business. In 2016, Guyana was ranked at 124 out of 190 countries, with regard to the ease with which business was done locally.
In terms of starting a business, Guyana came in at 99, while it was ranked at 148 based on how easy it was dealing with construction permits.
Out of all the countries analysed, Guyana came in at 129 in terms of getting electricity.
Guyana was ranked at 122 in how easy it was to register property, and at 136 based on how easy it was to pay taxes. The country was ranked at 135 and 154 based on the ease of trading across borders and resolving insolvency, respectively.
It fared better in the rankings on how easy it was to enforce contracts (91), for persons to get credit (82) and on how well minority investors were protected (87).
The Minister’s address to the Diaspora comes after criticism from different quarters on the economic slowdown gripping the country and the slew of tax measures the Government implemented for the new year.
The Private Sector Commission (PSC) recently declared a loss of confidence in the Government, based on the economy’s performance and the poor policies.
The body had called for the Government to create an enabling environment and to increase its engagements with the business community.
During a visit by this publication to the community of Wales (itself in the throes of economic depression following the Government’s decision to close the sugar estate), villagers had complained bitterly about the difficulties faced in starting a business.
The Small Business Bureau (SBB) is one agency which came under fire. The SBB is a semi-autonomous Government agency, which was created to complement the Small Business Act No. 2 of 2004. It coordinates programmes for small business development, in addition to facilitating training for aspiring entrepreneurs.
According to one Wales resident, however, he was sent by the Bureau to a local bank in order to get a loan, only to ultimately be denied.
