The Guyana Manufacturing and Services Association (GMSA) in its 2023 annual report released earlier this year, revealed that the manufacturing sector grew by 25%, recording an impressive revenue of 70 billion Guyana dollars in 2023. Notable as well was the fact that G$70 billion earned by the sector in 2023 represented an increase of $G13.7 billion in comparison to revenue earned in 2023. Guyana’s manufacturing sector is growing, but two questions remain: why investing in this sector would be profitable and what are the specific opportunities for investment in this sector?
In answering why investing is beneficial, the duty-free access markets must be highlighted. According to the Guyana Office for Investment, over 75% of Guyana’s exports enter destination markets duty-free. The country’s vast natural resources and strategic geographical location provide opportunities for diverse investment.
For small and medium-sized enterprises (SMEs) opportunities exist in the sector for the manufacture of plywood and veneers, wooden furnishings, parquet material and floor tiles, doors, windows, kitchen and other household fittings, packaging materials, jewelry made from gold, diamond and other precious stones, leathercraft and souvenirs, textiles and garments, craft, etc.
In the construction industry, opportunities exist for the manufacture of prefab houses and eco-lodges while opportunities in the agriculture sector are targeted towards processing, canning and bottling of agricultural produce. Some other areas for investment include printing and publishing, metal fabrication, industrial and building materials, etc.
Additionally, both fiscal and trade incentives exist for investors in the manufacturing sector. If you export more than 50% of all products, then you are exempted from paying customs duty and you qualify for a zero rating of value-added tax. All approved manufacturers are exempted from Customs Duty on importing raw and packaging materials. If you manufacture poultry feed or flour, you will benefit from Customs and Duty exemptions and will qualify for zero-rating of Value-Added tax.
Economic Incentives for Trade Investors in Guyana’s manufacturing sector are poised to reap significant benefits thanks to a robust framework of fiscal incentives and preferential trade arrangements. These incentives include duty-free access to foreign markets under the Caribbean Basin Initiative (USA), the Lomé Convention (Europe), Caribcan (Canada), the Caribbean Single Market and Economy (CSME), and special agreements with Colombia and Venezuela. Key incentives feature exemptions from customs duty on a variety of process machinery and equipment, including packaging and raw materials, for VAT-registered manufacturing companies. Additionally, import duty and VAT are waived on packaging materials for the manufacturing of exempt items. Manufacturers exporting over 50% of their products can enjoy zero-rating VAT on packaging and raw materials, further supported by exemptions on auxiliary equipment such as boilers, forklifts, and conveyors.
With all these incentives it is undeniable that Guyana is an attractive destination for manufacturing investment.