Guidance

Overseas Business Risk - Guyana

Updated 9 June 2017

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This publication is available at https://www.gov.uk/government/publications/overseas-business-risk-guyana/overseas-business-risk-guyana

Information on key security and political risks which UK businesses may face when operating in Guyana.

1. 1. General Overview

A massive oil find offshore of Guyana by Exxon Mobil in April 2015, and the public statement which followed in July 2016 of them moving to production by mid-2020, is expected to transform Guyana in many ways, dramatically expanding the opportunities for foreign and local companies.

2. 2. Politics

Guyana has a parliamentary democracy with a generally stable political system with national elections scheduled to be held every five years. Guyana has been known to have post-elections protests and violence, but for the past three elections, there have been no major incidents. A coalition government, APNU-AFC, was elected in May 2015, winning a one-seat majority in parliament. Their business priorities are in renewable energy, now oil and gas, and infrastructure.

More information on political risk is available in the FCO Travel Advice.

3. 3. Economic overview

A massive oil find offshore of Guyana by Exxon Mobil in April 2015, and the public statement which followed in July 2016 of them moving to production by mid-2020, is expected to transform Guyana in many ways, dramatically expanding the opportunities for foreign and local companies.

Guyana has seen 11 consecutive years of positive growth with 2016 recording 3.1%. It has a strong base in natural resources – gold, diamonds, bauxite, forests, with an abundance of sun, water and fertile land, and a growing services sector. Growth projections from a variety of international agencies range from 3.5% to 5% for 2017, attributed notably to gold production and a rebound of other commodity sectors. Guyana is strategically located as a gateway to South America, whilst also politically and economically well connected to the Caribbean islands. English is the language while the judicial system is British based. A double taxation treaty exist with the UK (1992), and CARICOM (1995).

Guyana remains an open, market-driven economy which promotes foreign inward investment and has attracted investors from the UK, USA, Canada, Mexico, India, Brazil, and, China. Between 2006 and 2015 foreign direct investment (FDI) inflows to Guyana averaged US$188 million per year or 7.9% of GDP. Most FDI is in mining, tourism and telecommunications sectors (including business process outsourcing). Fiscal incentives are available to foreign investors. The Guyana Office for Investment (GO-Invest) is the first point of contact for potential investors to obtain necessary permits and tax concessions.

As a member of WTO, Guyana underwent a WTO Trade Policy Review in September of 2015, where since its previous Review in 2009, Guyana’s economic performance has improved, supported in particular by foreign direct investment and the expansion of private sector credit.

World Bank’s rankings for Guyana on Ease of doing Business has seen considerable improvement in the past year, moving up 16 points to 124 just 1 point lower than its neighbour Brazil, due mainly to improved ranking on getting credit and electricity.

4. 4. Business and Human Rights

There have been reports of human trafficking. Guyana is both a source and destination for trafficking in persons for forced labour and for sex. Exploitative child labour practices have been evident in the mining, forestry and agricultural sectors. However, the government has a written plan to tackle the problem and has been making strides in implementing it.

Relations with trade unions have improved, while government has launched a commission of inquiry into indigenous people’s land rights and those of other descendants.

Domestic violence, and particularly the abuse of women by their male partners, is among the most common form of gender-based violence in Guyana. There have been numerous cases of murders of women by their male partners.

See the FCO Annual Human Rights report for more information.

5. 5. Bribery and Corruption

Please be guided by the Bribery Act 2010. Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world. In addition, a commercial organization carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

In 2016, Guyana saw an improvement over the previous year in the World Transparency International Corruption Perceptions Index at 34 points moving up 5 points to be ranked 108. Three pieces of legislations regarding the long stymied Anti-Money Laundering/ Combating Financing of Terrorism legislation was passed within two months of the government coming into office, the result, according to the Minister of Finance, has been an economic slowdown, as illicit funds have been removed from Guyana’s cash-based economy.

There have been allegations of corruption leveled against the public sector particularly in the award of contracts for services to the sector, annually the Auditor General notes continuous disregard for the procedures, rules, and the laws that govern public procurement systems. A long awaited Procurement Commission was established but implementation of its functions has seen a sloth of improvement in the public tender process. The completion of several audits of agencies and departments of the government led to the investigation, arrest, and charges laid on previous government and state officials. A State Asset Recovery Unit was recently established to identify and recover assets illegally transferred into private hands. A tax reform committee produced a report in 2016 leading to a number of tax improvement measure introduced in the 2017 budget.

There have been instances of property fraud.

Read the information provided on our Bribery and corruption page.

6. 6. Terrorism and Security

The threat from terrorism is low.

Read the latest Travel Advice for Guyana from the Foreign and Commonwealth Office.

Read the information provided on our Terrorism threat page.

The Centre for the Protection of National Infrastructure also provides protective security advice to businesses.

There have been incidents of robberies on homes and business places. Muggings have also been reported. Burglary and theft from cars are commonplace. Local travel by yellow taxis is advised over minibuses.
Organised crime centers on the illegal drugs trade. Most execution-style killings in recent times have been speculated to be retaliatory for deals gone awry or businesses unable to finance black-market debts.
Read the information provided on our Protective security advice page.

7. 7. Commercial Dispute

Guyana’s constitution specifically protects the right of foreigners to own property or land in Guyana. Foreign and domestic firms possess the right to establish and own business enterprises and engage in all forms of remunerative activity. There is no limit to the acquisition of foreign currency, although the government limits the amount that a number of state-owned firms may keep for their own purchases.

There is little or no executive interference in the court system that has adversely affected foreign investors, but the judicial system is generally perceived to be slow and ineffective in enforcing legal contracts. Foreign investors should acquire proper legal counsel in-country, as suspected corrupt practices and long delays can generate difficulties in the settling of investment or contractual disputes. A Commercial Court is in place. Guyana’s Government lost a few cases at the Final court – the Caribbean Court of Justice – on alleged violations of its laws and the Regional Trade Agreement, Caribbean Single Market and Economy, and have duly complied with the rulings of the Court.

Guyana is a member state to the International Centre for Settlement of Investment Disputes (ICSID convention) and has ratified the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention), which went into force in December of 2014.

  1. Intellectual Property

Upon independence in 1966, Guyana adopted British law on intellectual property rights (IPR). Guyana became a member of the World Intellectual Property Organization in 1994. However, little has been done to comprehensively improve the legislation, while infringement of copyright and intellectual property occurs especially in the music and literature (including textbooks) industries. No modern legislation exists to protect the foreign-registered rights of investors.

8. 9. DIT contact

Narvan.Singh@mobile.trade.gov.uk.

Narvan Singh Head Department of International Trade UK International Trade and Investment Guyana and Suriname British High Commission 44 Main Street, Georgetown Guyana I Tel: + 592 226 5881-2 Ext. 2004 Mobile: + 592 664 2028 E-mail: Narvan.Singh@mobile.trade.gov.uk.
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