Brazilian trade can give a lift to the economic fortunes of Region 10, through distribution depots and trading bonds for retailers/wholesalers in industrial and domestic supplies, if the opportunity is grabbed, especially, by the region’s centre, Linden.
Brazil has a total area of 8,514,877 sq km, with over 198 million people and is the largest and most populous country in South America, as well as the region’s leading economic power; sharing boundaries with every South American nation except Chile and Ecuador.
Guyana with a country size of 83,000 sq miles has capitalized on its proximity to Brazil through the Takutu Bridge that links the border town of Lethem with the Brazilian border town Bom Fin and the rest of the country, and the Brazil/Lethem road. The town of Linden, which already has an established infrastructure, but an ailing economy (due to its heavy dependence on bauxite mining) is strategically placed along the road route to take advantage of the traffic that passes through the town.
However, it seems that the magnitude of the possibilities of trade with Brazil has not yet consumed many Linden businesses, and some have only lightly considered the possibilities.
In a recent bid to ascertain from businesses their views on the possibility of trade with Brazil, this newspaper gathered that there was some reluctance to broach the subject, a downright lack of interest in some cases while others signalled that they have considered their options of trade with Brazil, but it was too soon to speak about it.
Acting Quickly
“We are going to be hit hard if we are found unprepared for what Brazil has to offer,” says former President of the Linden Chamber of Commerce, Industry and Development (LCICD) Leonard Forde and Secretary/Treasurer of the National Association of Regional Chambers. The edge is there for Linden, says Forde, to take full advantage and put ourselves in a position, where the government will say we will work with the Linden Chamber. Already, he noted that businesses in Lethem, through their Chambers of Commerce, are positioning themselves to benefit and the government will depend on them for certain information as well as advise them, because of their proximity to the border. If Linden does not move quickly, says Forde, “[we will sit] over some beers and say, `see what they doing we.’”
Linden, he said, which is at the centre, should be playing a more dynamic role and be looking at business opportunities like setting up large bonds, so that goods can be stored here. Already, the Guyana National Industrial Corporation (GNIC) is constructing a US$4M trans-shipment Container Terminal at the Omai Wharf in Christianburg to facilitate goods from Brazil on their way to the city. This project is receiving financing from the over $2.2B Linden Economic Advancement Programme (LEAP) – a joint Guyana government and European Commission project) that is expected to wrap up next month, after seven years. This infrastructural project falls under the purview of the Finance Ministry.
Forde says the terminal is going to benefit Linden and it is a good idea, but it is more of a business-type arrangement, than an arrangement coming from the people of Linden, since he believes that there was not much consultation with the community.
And his view is that it will be a place, where ships will pass through on their way to the city, and questions whether Linden businesses will be able to maximize on the terminal being there. He will like to see goods offloaded and be stored in bonds for distribution in Linden and for businesses throughout Guyana.
Linden Chamber Stepping Up
Making an effort to capitalize on the huge economic benefits that Brazil can bring, the Linden Chamber is going on a trade mission to Brazil.
Executive Secretary of the Linden Chamber of Commerce Wilfred Simmons told Stabroek Business that a trade mission will be going to Brazil in January and the Chamber will advertise the planned trip (a stay of a week or less); and is encouraging members and non-members to attend. This trip is not expected to go beyond the Brazilian city of Manaus; and is being likened to a fact finding mission, where businesses will be expected to give the details on their area of interest before hand and this information will be sent ahead to Brazil and to Lethem. This is not the Chamber’s first such mission and sometime ago a similar trip was undertaken with the assistance of LEAP, who had provided an interpreter. Simmons said the Chamber is trying in an informal way to encourage people who teach English to learn Portuguese as well, since Brazilians are coming to the country to learn English and Lindeners going to Brazil will need to know the language too. From the Chamber’s previous trip, this newspaper understands that one Linden businessman was able to begin a trading relationship with Brazil.
Region 10 Chamber President Basil Jaipaul, of Riverview Shopping Complex at Burnham Drive Wismar, said that the trade mission may be in mid January. And from a standpoint as a businessman he noted that during his trip in January he will be observing whether it will be cheaper to buy from Brazil rather than going to the city. According to him, “Brazilians – have a slightly better quality, than things available in Georgetown.” He singled out the wide variety of electrical products that Brazil offers.
The president advised that he is, “inviting all the business people to go over and see what they can get.” Jaipaul reiterated that Linden businesses should not let the goods pass through Linden on its way to the city and they in turn become wholesale buyers of the same product in the city. “Maybe the Georgetown people come and buy from us,” he expressed.
Cyrus Nicklson, owner of Star Bonnett Hotel and Restaurant at 671 Industrial Area Mackenzie, told us that he will be interested in going on the trade mission. On the other hand, Prominent Linden businessman Dunstan Barrow has indicated that he has already made contact with Brazilian sources to source items that he plans to sell at his over $160M plaza on Republic Avenue that is soon to be completed.
The Bottleneck of Financing
The Linden Chamber president posited that, businesses can make linkages in Brazil and have the products and goods shipped to the container terminal for distribution in Linden, but said financing may be a challenge. He said that for the business people in Linden the cash flow is not there, “and getting credit is not easy.”
Jaipaul will be looking at becoming a distributor of electrical products and certain groceries made in Brazil once he can form the linkages with suppliers in the neighbouring South American giant. With the Linden Economic Advancement Fund (LEAF), a component of LEAP, in a stalemate, not making any loans so far this year, this facility could have been tapped for some level of financing. LEAF, is waiting on the establishment of the successor for LEAP, Demerara Enterprise Network (DEN), to take over its management. LEAF was given over $450M, through LEAP to lend micro, small and medium size loans.
But can Linden businesses afford not to get on the bandwagon of Brazilian trade?
Forde believes that if Brazilians decide to open up businesses here the bottom-line of many businesses in the community will be affected. He notes that the people of Linden and the community need to be more serious about the impacts of the volume of trade that Brazil offers. Since the Brazilians can bring huge volumes of goods and sell it far cheaper – hence the need to be ahead.
Learn Portuguese
Head of the Allied Arts Department at the Linden Foundation Secondary School Vanburn Browne has used voluntary service to rise to the occasion of bridging the language gap, between Lindeners and the expected volumes of Brazilian visitors. Browne, has decided to teach a Portuguese language class, where he noted that one of the motivating factors to keep the classes was the establishment of the Takutu Bridge.
At the Watooka Youth Linden Skills Training and Graphic Centre, Browne keeps a Monday and Wednesday 5pm to 7pm class on both days with 30 plus persons. The classes which are free include teachers and nurses as students. This teacher depends on sponsorship to maintain the classes and is currently “looking at some more sponsorship.” There are several levels of the classes, and each level is done in a three-month segment.
“I am so concerned,” indicated Forde, about the language barrier. We at Linden, he explained, ought to take the Portuguese and Spanish language as a serious thing and it should be a priority. He also believes that there should be a more vigorous foreign language programme in schools.
