Guyana’s services sector surpassed $500B in 2023 – GMSA Annual Report
CLICK HERE TO READ ORIGINAL ARTICLE
The services industry plays a pivotal role in the Guyanese economy, generating over $500 billion and expanding by 10 per cent in 2023 when compared to 2022. This sector contributes 13 per cent to GDP and over 41 per cent to non-oil GDP. This was revealed in the Guyana Marketing and Services Association (GMSA) Annual Report for 2023. The report was released on Thursday.
Based on data provided in the report, significant growth rates were observed across various subsectors, with administrative and support services growing by 21 per cent, wholesale and retail trade and repairs by 9 per cent, accommodation and food services by 13 per cent, and transport and storage by 12 per cent. These industries, influenced by the energy value chain, are expected to continue growing as the oil and gas sector matures.
Over the past decade (2014-2023), the selected services sector has witnessed tremendous growth, with finance and insurance, accommodation and food services, information and communication services expanding by over 60 per cent.
Professional services nearly doubled, while administrative and support services saw a remarkable 74 per cent increase. These high growth trends indicate abundant business opportunities.
Lending by commercial banks to the services sector has also increased. Private sector loan balances reached $133 billion by the end of December 2023. This marks a 133% increase in lending compared to the balance of $57 billion at the end of December 2014.
The report also revealed numerous opportunities in various service areas such as;
- Tourism, Hospitality, and Catering: Driven by international business activity and eco-tourism policy, with over 545,000 passengers processed at Cheddi Jagan International Airport in 2023, indicating a 13 per cent increase.
- Logistics and Distribution: Fueled by demand for trucking and transportation services, especially from the oil and gas and construction sectors. Guyana aims to become a logistics hub with improved linkages to Brazil and Suriname.
- Financial Services: Growing alongside Guyana’s expanding economy, including banking, insurance, and investment services.
- Information Communications Technology (ICT): Offering opportunities in web design, network administration, software development, and IT consulting.
Meanwhile, President of the GMSA, Ramsay Ali, emphasised the need for proactive engagement, inviting individuals to take leadership roles within the GMSA to foster growth in various subsectors and contribute to the overall development of businesses in Guyana.
“We need people in the GMSA to really take charge in some of the areas we are not strong in and I am hoping that some of you here today, even though you won’t get elected as members of the executive, there is a place for you in the GMSA to head up some of the sub sectors and we are reaching out to some of you to come onboard,” Ali said during the annual general meeting on Thursday.
Read More
Guyana’s manufacturing sector records highest growth in history
CLICK HERE TO READ THE ORIGINAL ARTICLE
The manufacturing sector in Guyana experienced tremendous growth in 2023, generating $70 billion for the year. This marks a 25 per cent increase from $56.3 billion in 2022.
This was revealed in the 2023 Annual Report of the Guyana Manufacturing and Services Association (GMSA).
This performance, the highest recorded to date, reflects a shifting dynamic within the sector, moving away from traditional sugar and rice manufacturing towards the “other manufacturing” subsector.
The “other manufacturing” subsector includes a diverse range of products including spirits, beverages, processed foods, chemicals, pharmaceuticals, paints, putty, metal fabrication, plastic, and timber products.
Notably, the manufacturing subsector expanded by 31.8 per cent in 2023, driven by increased production of fabricated metal products and nonmetallic products.
This growth underscores the influence of the energy sector and construction boom on manufacturing activities.
Based on data provided in the Bank of Guyana September 2023 quarterly report, key developments within the subsectors include: Increased production of paints and putty, attributed to ongoing housing developments.
Growth in aerated alcoholic beverages production, particularly by major producers like Banks DIH Ltd and Demerara Distillers Ltd. Rise in production of edible fats and ice cream, with a focus on local consumption.
Decline in the pharmaceuticals sector, indicated by contractions in tablet, acetylene, and oxygen production. Growth in the Textiles and Sewn Goods Sector, fueled by increased construction and energy activities, with notable growth recorded by Denmor Garments Manufacturers Inc. Introduction of bitumen production in Guyana by DCSN Manufacturing Incorporated, with 100,000 tonnes produced locally in 2023.
The report noted that manufacturers in Guyana, apart from the CARICOM market, have significant export opportunities, particularly Latin America, Florida, New York, and Toronto.
GMSA report noted that the duty-free access to the CARICOM market remains underexploited, presenting scope for increased exports of Guyanese products such as uncooked pasta, medicaments, rum/spirits, and prepared sauces.
Read More
Press Release: GMSA and Ernst & Young Services Limited Join Forces to Prepare Businesses for Regulatory Changes, Ahead of Guyana’s Data Protection Act
Georgetown, Guyana, January 19, 2024 – The Guyana Manufacturing & Services Association (GMSA) collaborated with Ernst & Young Services Limited on Thursday, January 18, 2024, to host an enlightening event centred around data privacy. The interactive session, facilitated by key players in technology consulting and global compliance from Ernst & Young (EY), aimed to prepare businesses for the impending enforcement of the Guyana Data Protection Act 18 of 2023 and the establishment of a Data Protection Office.
The event welcomed both in-person and virtual attendees, with the GMSA ICT Sub-Sector Chairman, Chet Bowling, emphasising the critical importance of prioritising data privacy in day-to-day business operations. The chairman set the stage for the engaging session that followed, articulating why businesses should make data privacy a top priority.
Privacy Explained
The event featured insights from the Executive Director and Cybersecurity Lead at EY Trinidad, Anil Persad, who delved into the fundamental concepts of privacy. Attendees gained a comprehensive understanding of the principles underlying data protection, setting the stage for the subsequent discussions on compliance. “Concerns about personal data protection and the ways companies use personal information to power the digital economy are driving lawmakers and regulators to ramp up data privacy and protection laws, revise statutes, and debate new rules,” said the Executive Director.
Navigating the Data Protection Act: Key Players and Responsibilities
Candace Lopez, Global Compliance EY Law (Guyana and Trinidad), provided a detailed overview of key terms and responsibilities outlined in the Guyana Data Protection Act 2023. Emphasising the role of the data controller, she explained that the data controller is any person (individual or a corporate body) or public authority who determines the purpose for which personal data is or should be processed, or any person (natural or legal) on whom the obligation to process data is imposed by or under any law. Candace noted that the responsibility lies with the data controller to demonstrate compliance with the Act’s provisions regarding data processing practices.
Preparing for Compliance: A Roadmap for Businesses
After an overview of the Data Protection Act’s specifics, businesses were guided on the next crucial steps towards compliance. Justin Morin, Executive Director, Technology Consulting of EY Jamaica, underscored the urgency for companies to act promptly. Justin outlined a comprehensive roadmap, highlighting the need for businesses to:
- Allocate resources to define a privacy program that complies with the law and generates value.
- Consult a privacy practitioner for expert guidance.
- Sensitise staff about the significance of privacy in their roles.
The Executive Director stressed the need for businesses to integrate privacy best practices and operate with privacy as the new normal.
Looking Ahead: Privacy as the New Normal for Businesses
The event reinforced the idea that privacy should be ingrained in the fabric of business operations. Operating with privacy as the new normal was highlighted as a key takeaway for all businesses, preparing them to navigate the evolving landscape of data protection regulations.
The collaboration between GMSA and Ernst & Young Services Limited showcased a commitment to fostering awareness and readiness among businesses as they braced for the Guyana Data Protection Act. This event is the beginning of a series of initiatives aimed at equipping businesses with the necessary tools and knowledge to protect customer data and comply with data protection regulations. It serves as a testament to the proactive approach needed to navigate the evolving landscape of data privacy.
-END-
Read More
Press Release: GMSA COMMENDS GOVERNMENT OF GUYANA ON BUDGET 2024
Georgetown, Guyana, January 16, 2023: The Guyana Manufacturing and Services Association (GMSA) commends the Government of Guyana for its proactive and forward-thinking plans presented in the National Budget 2024, under the theme “Staying the Course: Building Prosperity for All”. By allocating an unprecedented 1.1 trillion Guyana dollars, the association acknowledges the government’s commitment to fostering economic growth and development in Guyana.
The GMSA is particularly pleased with the emphasis placed on supporting the manufacturing sector, as this will undoubtedly create new opportunities for local businesses and contribute to job creation. The growth in non-oil real GDP in 2023 by 11.7% has resulted in the expansion of the manufacturing sector by 25% and services by 10.3%. This hereby reaffirms private sector and manufacturing resilience, despite challenges in
the global economy.
The continuing development of current transformative infrastructure is key to enabling business activity and delivery. Such key infrastructures include enhancements to the energy grid, incorporating developments like the Gas-to-Energy project and solar and hydro initiatives. Equally significant are transformative land infrastructures, including the Demerara Harbour Bridge, the Schoonord to Crane highway, and the Ogle to Soesdyke Linden highway. These initiatives collectively contribute to fostering a conducive environment for business operations.
Government’s inclusion of some of the association’s recommendations assured the intention to work collaboratively with the private sector. The measures below are essential in supporting the manufacturing and services sectors:
- $527.4 million for the development of the agro-processing sector. The GMSA anticipates that this strategic investment will provide manufacturers with the necessary infrastructure to enhance their production capabilities and meet growing market demands.
- $3.3 billion for the development and rehabilitation of industrial estates in Wales (Region 3), Regions 2 and 10. The GMSA believes the development of these estates will further support the growth of manufacturing in Guyana.
- $450 million towards the replenishment of the Small Business Bureau (SBB) Fund, which the GMSA has continuously advocated for in order to support product enhancement and growth in the agriculture and agro-processing industries. It will also enable businesses to attend regional and international trade fairs and events. Entrepreneurs will also benefit from training and mentorship.
- $500 million for the Food and Drugs Lab, which the GMSA believes will strengthen regulatory bodies and accredit laboratories to do testing, inspection, and certification of products for exportation.
- Over $8 billion for the development of human resources to fund tertiary education through Guyana Online Academy of Learning (GOAL) and the University of Guyana (UG), and a further 2.8 billion to develop skills training (Technical and Vocational Education and Training (TVET) and Caribbean Vocational Qualification (CVG)). This, the GMSA believes, will address the shortage of skills and manpower in the country while simultaneously enhancing the workforce through upskilling initiatives.
- Containing the cost of fuel at 0% excise tax and extending the reduction of freight charges for another 12 months, which will assist businesses to be more competitive on the local and global market and mitigate challenges.
- Increasing the income tax threshold to $100,000 monthly, thereby adding $4.8 billion in disposable income to the working population.
GMSA remains open and committed to working with the Government to foster a thriving business landscape and a prosperous future for Guyana.
-END-
Read More
