The Guyana Manufacturing & Services Association (GMSA) has come out in support of the passing of the Natural Resource Fund Bill and the Local Content Bill in Parliament last Wednesday.
In a press release on Thursday, the GMSA said it “commends the concerted efforts of the Government to finalize and pass the Local Content (Bill) and the Natural Resource Fund (NRF) Bill.” The release noted that these pieces of legislation are critical to having sound and effective management of the extractive sectors for Guyana’s economic grow-th and stability. The release emphasized GMSA’s “anticipation that each Bill will provide avenues for the rapid progression of the manufacturing and services value chain.”
The release noted that Government’s inclusion of GMSA as a key contributor to the LCP and the NRF Bill, from its initial consultation stages, was testimony of Government’s transparency and governance towards developing the framework guiding each Bill. However, in consideration of the Government’s high-priority agenda to pass the legislation, the Association acknowledges that these policies will be subject to emergent revisions and improvements. Describing GMSA as “a major contributor to economic growth in Guyana”, the release further clarified that the body will be calling for continued and “more participative consultations with private sector support organizations.” The release stated that “recommendations from each industry must be fully considered with timely feedback from the Government, to successfully develop and reinforce the regulatory strategies with respect to the (Local Content) and NRF Bills. This proactive collaboration will therefore guarantee improved capacity-building for private businesses and ensure public-private cooperation.”
GMSA’s release further suggested that, “As Guyana moves into a new dispensation of growth, the Sovereign Wealth Fund (SWF) will play an integral role in the stabilization and sustainability of the country’s economy, and accelerate the national objectives for socio-economic progress.” GMSA, moreover, applauded Government’s recognition that this fund must have strict governance under the management of a Board comprising a team of specialists with knowledge in international investments and markets.
“We wish to reiterate that members must be adequately qualified and represent varied segments of the community. Moreover, private-sector representation on the Board is of critical importance, and the GMSA strongly encourages that this representative be meticulously evaluated prior to selection, to ensure the requisite experience, knowledge and expertise are met,’ the release stated.
According to the re-lease, the Natural Resource Fund Bill will provide a mechanism to enable and accelerate the development and advancement of industries in Guyana. The country will transition from a predominantly primary economy, to one of enhanced manufacturing and services industries. The release noted that for decades the “major hindrances to growth and competitiveness in Guyana have been limited access to finance, inadequate and poor infrastructure, high energy costs, outdated technology, and shortage of qualified skills.”
GMSA further stressed that “It is imperative that priority be given in these areas as we seek to strengthen and diversify the non-oil industries. While the GMSA is cognizant that there is much to be done in terms of capacity building among local stakeholders, the Association believes that with the right strategies which include technology transfer and partnership between experienced companies and the local private sector, a sustainable and lucrative pathway can be achieved for Guyanese as we continue to collaborate for more inclusion in local content and natural resource benefits,” the release concluded.
