Dr Irfaan Ali said that an estimated 6,000 jobs have been created as a result of the country’s robust local content legislation.
The President made the statement while delivering the feature address at the opening of this year’s Local Content Summit, held at the Pegasus Suites and Corporate Centre this morning.
During his address, the President pointed out that there has been a 20 per cent increase in value through local participation from 2022 to now, representing an increase of US$84 million and a total of US$524 million. The President explained that for this year, the Local Content Secretariat estimates that procurement activities will increase to US$550 million, a 5% increase from 2023 and a 25% increase from 2022.
These activities, he underscored, represent the creation of an estimated 6,000 jobs across several sectors.
To complement this, President Ali announced that the Local Content Secretariat will commence a review of the legislation with the aim of improving it.
“Let me say that we have currently asked the local content secretariat to commence the review of the different areas we have under local content; to look at areas in which we have built capacity as a country, and to look at the percentage in the different areas because over the last three years, we would have built tremendous capacity in some areas, and to see how we can further accelerate those areas.”
Changing the Model
The Head of State noted that while local content legislation has allowed the country to build local capacity, there is a need for change to occur in the business models that will facilitate further expansion and increase value creation.
“When we started out on this local content journey, we realised that the scale of what was required was so large that no single company or capital formation could match the scale of what was required but slowly, we saw companies coming together, we saw consortiums being built, we saw a partnership being created.”
He added that summits like these are important because they provide a level of networking. He noted, too, that it is a chance for local businesses to bring capital and human assets together, integrate companies and build the scale that is required to take advantage of the opportunities that are “ahead of us”.
Meanwhile, the President pointed out that the banking sector should also make the necessary changes to fully capitalise on the opportunities that Guyana currently has and will have in the future.
“The bank has to see itself as a facilitating role in the development and expansion of the economy and make investments to facilitate the deployment of capital to make use of those opportunities, and to do this, the bank must not only have a local look at things but a regional look.”
President Ali emphasised that local content is not just about building local capacity but also about positioning local companies to compete in the region and worldwide.
“That is what local content allows us to do. It allows us to accelerate local growth and local development to meet regional and international needs, and I think we have to reset our minds to that context.”
The Summit is being held under the theme, “Creating Value. Driving Economic Expansion”. The forum aims to bring together various stakeholders, including policymakers, regulatory agencies, educators, operators, industry experts, suppliers, investors, and the local private sector.
Minister of Natural Resources, the Honourable Vickram Bharrat; Minister within the Ministry of Public Works, the Honourable Deodat Indar; other government officials and members of the diplomatic community were also at the event.
