Local Content Secretariat: GMC’s Guyana Shop not among 1032 local suppliers registered

The Guyana Marketing Corporation’s Guyana Shop is notably absent from the list of 1,032 companies registered with and under the purview of the Local Content Secretariat (LCS), sparking concerns about the company’s compliance with Guyana’s local content regulations.
GMC’s status was confirmed on Monday by Agriculture Minister Zulfikar Mustapha during a brief telephone interview with this publication.
The Local Content Act, a cornerstone of Guyana’s resource-driven economic policy, requires companies operating in sectors such as manufacturing, oil, gas, and mining to register with the LCS to ensure adherence to guidelines promoting the use of local labor, goods, and services.
The GMC has been a longstanding player in the local economy, contributing to employment and industrial output. However, critics are questioning how a prominent entity like GMC could remain unregistered, particularly given the Act’s focus on fostering local economic participation.
Mustapha, who weighed in on the topic explained that the matter was recently brought to his attention and is being rectified.
Further, when asked if GMC’s absence from the registry hinders the company’s ability to meet legal obligations stipulated in the Local Content Act, the minister reminded that a number of local products are currently on sale at the Guyana Shop, which is managed by the GMC.
“I told them because when I learned about it recently, I told them they will register on the local content…They have the Guyana Shop, and anybody who wants to buy those local products, they normally go to the Guyana Shop. Guyana Shop is at Robb Street, and it’s fully stocked. And then you have a number of processors who supply their trade in different parts of the country. And then you have a number of supermarkets that have Guyana Shop corner. So, it’s different areas you have these products selling,” Mustapha said.
Critics have argued that had the GMC been registered with the secretariat, it could have been securing markets for local products in the oil and gas sector, including on vessels operating offshore in Guyana’s waters.
The Local Content Act currently outlines 40 different service areas that oil and gas companies and their subcontractors must procure from Guyanese and Guyanese-owned companies.
These include 90 per cent of office space rental and accommodation services; 90 per cent of janitorial services, laundry and catering services; 95 per cent pest control services; 100 per cent local insurance services; 75 per cent local supply of food; and 90 per cent local accounting services.
President Dr Irfaan Ali had noted in April this year that there has been a 20 per cent increase in value through local participation from the level of Local Content Secretariat from 2022 to now, representing an increase of US$84 million and a total of US$524 million.
The Guyanese leader had also explained that for this year, the Secretariat estimates that procurement activities will increase to US$550 million, a 5 per cent increase from 2023 and a 25 per cent increase from 2022.

Amendments
In December 2021, the National Assembly passed the Local Content Act, which mandates penalties such as fines ranging from $5 million to $50 million for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act.
Back in April, Attorney General (AG) Anil Nandlall, SC, assured that the Local Content Act could be put through revisions later this year to expand the carved-out areas of opportunity for Guyanese, following consultations with relevant stakeholders and further data from the Local Content Secretariat.
A review of the sector’s performance was conducted earlier in the year by the relevant authorities and according to Nandlall, once a report is forthcoming and consultations completed, Government can go ahead with revising the Act.
The AG added that the Act is based on an elastic, build as you go principle so that the legislation remains alive and responsive to changing needs in the industry. (G1)