Local Content Summit 2025: Govt will overhaul financial system, strengthen local content laws – Pres Ali

…says some companies still trying to dodge Local Content Act

The Local Content Summit 2025 opened on Tuesday at the Marriott Hotel, with President Dr Irfaan Ali making it clear that the People’s Progressive Party/Civic (PPP/C) government will be strengthening not only its local content laws, but also overhauling Guyana’s financial systems.
During the opening of the Local Content Summit, the Head of State outlined his administration’s vision for creating an even more enabling environment for small and medium sized businesses, to expand their operations.
These plans include a complete overhaul of the financial systems, with the aim of helping companies to reinvest their profits into the local economy and for local businesses to expand. When it comes to the financial systems, President Ali noted that this will also include introducing an e-payment platform by year end.
“Growing wealth and creating prosperity, is not only about your businesses winning. It’s about your employees winning with your businesses. And creating an enabling environment in which employees must win with you. So that they’ll deliver better every day.”

“Regulations and the financial system. We’re going to have a complete overhaul of our financial system. We have to modernize the financial architecture. We have to have a payment platform by the end of this year, where you can make payment anywhere across the country, by sitting in your home. All of that will come on stream,” President Ali said.
Back in February, Vice President Bharrat Jagdeo had revealed that the Government is currently working to modernize the country’s financial sector in alignment with modern standards. This is particularly important with the plans to introduce new technologies and the use of digital currency.
Once this overhaul is completed, Jagdeo had noted that the Government will branch into new avenues like cryptocurrency, provided that the appropriate safeguards could be found and instituted.

Local Content Act
At the summit, President Ali also acknowledged that there are still efforts to undermine the Local Content Act. According to President Ali, however, the govt is committed to continuing to strengthen the law.
“We are proud of what we’ve achieved so far. But we’re not naive. We know that challenges remain. There are still attempts to exploit legal loopholes. There are still some who seek to undermine the spirit, if not the letter, of the local content Act. We will not stand idly by. We will continue to strengthen enforcement. And to close any gaps that are being abused.”
“It is also gross misrepresentation to suggest that local content legislation is protectionist. It is not. Local content is an instrument of national development. It is not about shielding inefficiency or denying competition. Rather, it is about ensuring that the playing field is not just level, but accessible,” he added.
The Local Content Act mandates penalties 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.
These fines range from as low as $5 million to as high as $50 million. Over the past few years, there have been concerns surrounding companies seeking ways around the law, such as through fronting in order to qualify as a local company.
The Local Content Summit is an annual event that brings together policymakers, regulatory bodies, industry experts, investors and representatives from the local private sector, as they discuss critical issues affecting the oil and gas sector and seek out opportunities for partnership.
The organizers of the event include MBW Energy Support Services Inc. and Prestige Management Consultants, in collaboration with the Ministry of Natural Resources’ Local Content Secretariat.