Since the start of the century, Guyana has undergone substantial growth and has recently emerged as a key player in oil production. This development has piqued the interest of investors, who are now eyeing company formation in Guyana. With the discovery of vast offshore oil reserves, Guyana is increasingly becoming an attractive destination for investors seeking avenues for growth.
Key takeaways on doing business in Guyana
| Is foreign ownership allowed in Guyana? | Yes, foreigners can own a company in Guyana, however, certain restrictions or additional requirements may apply for certain types of investments or businesses deemed strategic to national interest. |
| What is the primary driver of Guyana’s economic growth? | Key opportunities exist in the oil and gas services sector. |
| Which traditional sectors are also experiencing growth? | Oil is the overwhelming boom sector, but there are also strong opportunities in mining and tourism, among others. |
| What incentives are there for Foreign Direct Investment in Guyana? | The state-run organisation GOINVEST offers a range of incentives and schemes to promote investment in key areas |
| What makes Guyana an attractive place for investment? | The government is investing heavily in infrastructure development. |
Key Investment Opportunities in Guyana’s Economy
Below, are three of the biggest sectors experiencing increased interest that might be areas of opportunity.
1. Oil and Gas Services
The booming energy sector requires a vast range of support services. Opportunities exist in logistics, transportation, equipment supply and maintenance, environmental services, and professional and technical training for the oil industry.
A series of major oil discoveries off the coast of Guyana has seen the country recognized as an emerging oil power, with the most recent discovery pushing total reserves past 9 billion barrels.
While much of that oil is currently overseen by a consortium led by ExxonMobil, oil represents one of several business opportunities in Guyana, as highlighted by the recent announcement that the Guyanese government is seeking a partner to market its share of the oil produced offshore.
Expert Tip: The Importance of the Local Content Act
From our experience, any company looking to enter the oil and gas supply chain must understand the Local Content Act 2021. This law mandates that oil and gas companies and their primary contractors must procure a certain percentage of goods and services from Guyanese-owned companies. For a foreign service company, the most effective market entry strategy is often to form a joint venture with a local Guyanese partner. This immediately makes the new joint-venture entity compliant with the local content requirements and provides a significant advantage in winning contracts. Attempting to enter the oil services market without a local partner is now extremely difficult.
2. Agriculture and Agribusiness
With a growing population and expatriate community, there is increased demand for high-quality food production. This creates opportunities in modern farming techniques, food processing, packaging, and distribution.
Beyond traditional crops like sugar and rice, there are significant opportunities in non-traditional agriculture, such as fruits and vegetables, aquaculture, and agribusiness processing to supply the growing local market and for export.
3. Construction and Infrastructure
The economic boom is fueling a massive need for new housing, commercial buildings, hotels, and public infrastructure. This presents opportunities for construction companies, civil engineers, architects, and suppliers of building materials. On top of that is mining.
Known as “El Dorado” for its gold deposits, Guyana is also a significant exporter of diamonds and bauxite, while also having notable reserves of other semi-precious metals and stones, including kaolin, soapstone, copper, molybdenum, tungsten, iron, and nickel.
Guyana’s gold royalty rate sits at 8%, while gold mining companies are taxed on discoveries at a rate of 25%. Overall, mining and quarrying contributes approximately 15% of GDP, and the government is keen to promote further investment in the sector.
4. Tourism and Hospitality
Guyana has a unique eco-tourism offering based on its pristine rainforests and diverse wildlife. As the country’s profile grows, there are significant opportunities for investment in hotels, resorts, tour operations, and related hospitality services.
While tourism contributes an estimated 7.8% of GDP, it has significant scope for further development, and as such represents one of the most notable business opportunities in Guyana.
Boasting stunning beaches, pristine rainforests, and enviable natural features, including the Kaieteur Waterfall — the world’s largest single drop waterfall by the volume of water flowing over it — Guyana has great potential to develop its luxury and ecotourism offerings, and the government is keen to generate more investment in the sector.
Why Invest in Guyana?
Guyana’s recent discovery of massive offshore oil reserves has made it the fastest-growing economy in the world. This has created a boom that extends far beyond the energy sector, generating demand and opportunities across all areas of the economy. The government actively encourages foreign direct investment to help build the capacity needed to support this growth.
Guyana is considered a Caribbean nation and, along with Belize and Suriname, is one of only three mainland members of the Caribbean Community (Caricom) – an economic association that also includes thirteen island nations as full members and five British Overseas Territories as associate members. Caricom’s headquarters is located in Georgetown, the capital of Guyana.
Guyana’s economy has seen significant growth in recent years. The GDP of Guyana for 2024 is projected to be US$ 21.18 billion, a significant increase from the US$ 5.17 billion in 2019. This represents a growth of over 120% in just four years. In terms of Foreign Direct Investment (FDI), Guyana also saw substantial growth. The FDI for 2021 was $2.24 billion, a considerable increase from the $1.695 billion in 2019.
This growth has been driven largely by the hydrocarbons sector, driven by companies tapping into the business opportunities in Guyana. Moreover, the ongoing development of infrastructure and the expansion of sectors such as tourism and agriculture present a fertile ground for exploring business opportunities in Guyana across various segments of the economy.
These figures highlight the rapid economic development in Guyana, making it an attractive destination for international investors. With a stable socio-political landscape now is the time to tap into the unprecedented growth and find the business opportunities in Guyana that will assist your business strategy.
Caricom has free trade agreements established with the Dominican Republic and Costa Rica, while the Caribbean Basin Trade Partnership Act (CBTPA) – an extension of the 1983 Caribbean Basin Initiative (CBI) – gives Guyana-based companies preferential access to the US market.
Currently there are no Free Trade Zones, although the government is considering establishing one on the Brazilian border, in Lethem. Wales, near to the capital Georgetown, is also starting the process of developing a business park.
The economy changed massively when ExxonMobil publicly announced that its substantial Liza oil discovery in the Stabroek offshore block was commercial. They also reported positive results from its Payara discovery in the same block.
The Guyanese government has committed to reforms restructuring and developing new legislation to oversee their nascent oil and gas sector, so this is another offshore development with high potential. This developing market in one to keep on the radar.
FDI is allowed in Guyana, with the law making it clear that foreign and national companies enjoy the same treatment locally. There are some restrictions close to borders and in areas that may be of strategic national interest.
Assistance is provided by the state-run organisation GOINVEST, which offers a range of incentives and schemes to promote investment in key areas. Some of this takes the form of bureaucratic easing, whereas other parts involve tax incentives.
These are aimed at any company working within the country, meaning that foreign businesses are just as eligible as everyone else. However, it makes sense to consider local company formation for full access to the local market.
FAQs on business opportunities in Guyana
Answers to some of the most common questions we get asked by our clients.
1. Can a foreigner own a business in Guyana?
| Yes, foreigners can own a company in Guyana, however, certain restrictions or additional requirements may apply for certain types of investments or businesses deemed strategic to national interest. |
2. Are there Free Trade Zones in Guyana?
| Currently there are not, although the government is considering establishing one on the Brazilian border, in Lethem. Wales, near to the capital Georgetown, is also starting the process of developing a business park. |
3. How long does it take to register a company in Guyana?
It usually takes 3-4 weeks to fully complete company registration in Guyana, as long as you do everything in the correct order and with the correct paperwork.
4. Which sectors are important in Guyana?
Oil is the overwhelming boom sector, but there are also strong opportunities in mining and tourism, among others.
5. Does Guyana have trade agreements with other countries?
Guyana is a member of Caricom, has free trade agreements established with the Dominican Republic and Costa Rica, and the Caribbean Basin Trade Partnership Act (CBTPA).
6. What entity types offer Limited Liability in Guyana?
Both PLCs and LLCs in Guyana benefit from limited liability protection.
7. What is driving Guyana’s economic boom?
The economy is being driven by the discovery of over 11 billion barrels of oil equivalent in the offshore Stabroek Block, which is being developed by a consortium led by ExxonMobil.
8. What opportunities are there in agriculture?
Beyond traditional crops like sugar and rice, there are significant opportunities in non-traditional agriculture, such as fruits and vegetables, aquaculture, and agribusiness processing to supply the growing local market and for export.
9. Is the government investing in infrastructure?
Yes, the government is making massive investments in infrastructure to support the growing economy. This includes new roads, bridges (including a major bridge to Suriname), port facilities, and energy generation projects, creating major opportunities for construction and engineering firms.
10. Is English the official language?
Yes, Guyana is the only English-speaking country in South America, which makes it very easy for international companies to do business.
Biz Latin Hub can assist you with business opportunities in Guyana
At Biz Latin Hub, our multilingual team of corporate support specialists is ready to help you take advantage of business opportunities in Guyana. With our expertise in the likes of company formation, legal and accounting support, or hiring and PEO services, we can guarantee the provision of all of the back-office support you may need in order to help you achieve your business goals.
We have teams in place in 18 jurisdictions around Latin America and the Caribbean, and trusted partners in many others.
Contact us now to discuss your expansion options. Or learn more about our team and expert authors.
