Even as they provide support to Guyana in building a much needed robust stock and bonds market, regional investors from the Jamaica Stock Exchange (JSE) should also use the opportunity to explore investing with locals in the myriad sectors here as there is strong financial generating potential, Minister of Finance Dr Ashni Singh has said.
“The reality is that the financing needs of the non-financial sector in Guyana, given the pace of rapid expansion, cannot be met with transitional source financing,” Dr Singh said in his address to the conference opening which was held on Tuesday night at the Pegasus Hotel and Corporate Suites, Kingston, Georgetown.
But while capital markets’ expansion is needed and ways for its development explored, the Finance Minister said investors should maximize the opportunities presented before them and seek out local partners to invest with. “I want to say to you, very clearly in this room, that there is no shortage of investment opportunities in Guyana; in every single sector of economic activity. In every sector…there is no shortage of opportunity to partner with domestic companies – Guyanese nationals – to capitalize and take advantage of the economic opportunities that are emerging,” he posited. “…It would be remiss of me to not urge an audience such as yours, to take advantage of your presence in Guyana. Not only speak of the things that need to be done to promote capital market investments, but also to reflect very seriously on the investment opportunities that exist in Guyana,” he added.
Singh explained that Guyana’s Local Content legislation was designed to create incentives to investors who partner with Guyanese companies.
On developing financial markets to bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets so as to give locals more access to investment opportunities, Singh appealed to the conference attendees to provide this country with best options and not proposals that force a single model. “No country wants anybody to come to say, ‘you guys have never done this before, this is what you need to do in Guyana’”, he said. “I urge you to take advantage of the opportunity to share experiences how others have done it, what worked elsewhere, what did not work elsewhere, including in the region,” he added while reasoning that referencing failures or hurdles should not be shied away from as that gives insight into what not to repeat. Overall, Singh said that the government understands that strong capital markets were needed to further advance Guyana’s planned development trajectory, and knows that financing cannot be met by banks alone.
Director of the Jamaica Stock Exchange (JSC), Marlene Street-Forrest said that the JSC fully understands that “one hand can’t clap” and that is why the JSC came to partner with Guyana to learn about and discuss the “development of capital markets in Guyana and the building of requisite alliances to do so.” JSC’s Chief Executive Officer Angus Young reasoned that developing the domestic capital markets in Guyana will ensure that Guyanese citizens have the opportunity to participate in the fastest growing economy in the world, especially the energy sector that will generate the most income for this country. “The opportunities are across all industries and exponential in nature. Traditional banking plays a very important role but it is not enough. In the region we are traditionally asset backed lenders …However, the energy industry usually requires specialized equipment and specialized equipment is difficult to lend against in a traditional banking environment. This is where the capital markets can play a role,” he said.
According to the JSC, the Regional Investments and Capital Markets Conference was first started in 2006 and has become an annual event. “The Conference attracts an elite group of executives and sponsors from different industries in Jamaica and across the region. There is no better testimony to the success of any Conference than the fact that the major sponsors remain on-board year after year. Jefferies Group LLC is the Conference’s main overseas sponsor, a leading global investment banking firm that provides investors, companies and governments with a full range of investment banking and wealth management services across the financial spectrum. By its successful staging each year, JSE’s Regional Conference has earned its place as a calendar event, which government officials, leading experts in business, investors and other stakeholders, locally and worldwide look forward to attending each year. With each year’s theme, the Conference gets more exciting and entertaining,” the JSE website states.
“The Conference examines areas of growth, challenges and advancements that are currently shaping societies and the world economies and critiques how economies and businesses can best manage such rapid changes and capitalize on opportunities for progress through provocative discussions, formal and informal.
Every year, the conference brings together world-class leaders and industry experts who willingly share their success secrets and demystify complex topics into common language that business people and professionals from every sector can understand and be equipped for the year ahead, to navigate successfully and thrive through the sweeping global trends and disruptions that are affecting every country and region,” it adds. Objectives of the conference are, “To bring together key participants of the financial services industry to discuss and present ideas on issues pertinent to the development of the sector. To facilitate a forum for the development of strategies necessary for the future growth of the sector in the region. To assist in the creation of partnerships and improve understanding between financial institutions to allow for the generation of investment opportunities and to provide a showcase for industry trends, products and services.”
Additionally, the Conference is designed to “Create an awareness of the importance of the capital market to the economic development and prosperity of the society and region.”
The JSE said that in recent years, the Conference has given special attention to attracting Small Medium Enterprises (SMEs) through its Entrepreneurial Pitch Room, which has been very successful in building start- ups and strengthening fledging, yet great business ventures.
