Local Content value projected to surpass US$847M this year

…850 new hires estimated; 1250 companies registered
The projected value of local content in 2025 is expected to surpass US$847 million, almost US$104 million more when compared to the 2024 figure.

This is according to Director of the Local Content Secretariat Dr Martin Pertab, who noted that this projection reflects investments in the three key categories: procurement, employment and capacity building.
In the area of procurement, he explained that projected spending in the 40-carved out sectors is expected to reach US$650 million, an increase of US$38 million or 6.4 per cent when compared to 2024.
Similarly, employment cost of Guyanese in the industry is expected to surpass US$180 million, taking total employment of Guyanese to more than 6500 or 65 per cent of total employment.
Additionally, according to Pertab, this year, the industry expects to see an additional 850 new hires.
In the area of capacity building or training, he disclosed that an additional US$46 million is expected to be invested in the upskilling of Guyanese in areas such as fabrication, supply chain, electrical, procurement, contracts, operations and maintenance for specialised equipment, and health and safety, among others.
“Of this amount, around US$710,000 is set aside for scholarships targeting training in the marine industry,” the Local Content Director added.
Moreover, to date, he said 1250 local companies have registered with the Local Content Secretariat, of which 75 are 100 per cent female-owned.
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.
The Local Content Act 2021 is currently being reviewed with the aim of tightening up on various loopholes and expanding the services areas through which Guyanese can benefit.
Only recently, it was disclosed that the Government is considering adding a residency requirement for companies claiming to be Guyanese-owned.
Currently, under the Act, a “Guyanese company” is defined as one incorporated under the Companies Act, beneficially owned by Guyanese nationals who hold at least 51 per cent of voting rights, and where Guyanese nationals hold at least 75 per cent of executive and senior management positions, and at least 90 per cent of non-managerial and other positions.
In order to participate in the oil and gas industry, companies must register with the Local Content Secretariat and receive a Local Content Certificate.
A criterion for receiving such certificate is for the company to be Guyanese-owned.
However, many have found ways to bypass this requirement through what is known as “rent-a-citizen” schemes.
“Our experience has disclosed that there are companies or persons, who are engaged in the practice of renting or leveraging their Guyanese nationality as a means to allow foreigners who should be the minority shareholders in this arrangement, to more or less beneficially own the company,” Legal Officer at the Local Content Secretariat, Michael Munroe had stated earlier this week, noting that this was a loophole which needed addressing during the review of the Act.
Munroe had pointed out that the Government wanted to ensure that persons follow the Local Content Act, in both the letter and spirit.