Guyana’s extractive sector has been significantly contributing to its economy. In 2019 alone, it was able to generate $68.3 billion (GYD) – more than two-folds compared to 2018’s $27.6 billion earnings. The extractive sector’s 2019 contribution accounts for 19.42% of the country’s total GDP and these earnings cuts across to other facets of the economy with 73% to exports, 25% to revenues, and 17% to employment.
A large percentage of the extractive sector’s earnings in 2019 came from gas and oil which accounts for 63% or $43 billion, followed by mining at 23 billion or 34%, and forestry and fisheries at 1%. Noteworthy is the oil and gas performance which significantly increased compared to 2018’s earnings which was only $7.5 billion. In the same year, it came only second to mining at $18.2 billion. This significant increase in the performance of oil and gas sector was because of the start of production of the discovered oil in 2015.
At the rate that the sector is going especially with the recent successes in gas and oil explorations, there is no indication that its economic contribution will be slowing down anytime soon. In fact, it is projected to accelerate further in the coming years. What’s the secret to the overall strong performance of the extractive sector?
For one, the government has enacted laws that help foster a conducive economic environment for both local and international investors. Through these legislations, the government has also placed priority on the locals for employment, believing that the Guyanese must be the top beneficiaries of the wealth and resources of the nation. This earned the government the support of its people who have significantly helped provide a rich resource of competitive workforce.
Guyana has also established global partnerships and linkages knowing full well that these networks can level up the local market’s standards. This paved for rapid growth in terms of technology, finances, and investments.
On top of all these, the country has also placed a strong emphasis on sustainable development. With this, Guyana has been harnessing the potential of the extractive industry while maintaining ecological balance. It does so with the use of appropriate technologies to improve the recovery of resources while reducing the environmental impacts and ensuring value-added production.
Economic forecasts show that the rise of the extractive sectors will bring forth unprecedented growth in the country. With this potential, the government needs to have strong allies that would help facilitate the influx of investors in the country.
Among these allies include Excel Guyana that advocates for the country’s vision to become a globally competitive economic player, especially in the extractive sector. That is why it offers local and national businesses its expertise to help establish their investment in the country. With 30 years of combined experience in leadership and investment, Excel’s partners are confident that they get the best expert assistance in the fields of government relations and orientation, construction management, procurement and logistics, employee relocation, recruiting and human resources and expert accounting among others.
