The Guyana Manufacturing and Services Association (GMSA) is calling for an end to the current political uncertainty, citing its effects on the business sector.
Addressing the body’s Annual General Meeting on Thursday afternoon at the Marriott Hotel, Georgetown, its President, Shyam Nokta noted the need for “a stable political environment and one which is conducive for doing business.”
He joined with the Georgetown Chamber of Commerce and Industry (GCCI) which in a statement this week said over 50% of the city’s businesses are facing a decline in commercial activity as a result of the current political environment.
“In recent weeks, we have heard concerns expressed by leading private sector institutions, the Georgetown Chamber of Commerce and Industry (GCCI) and the Private Sector Commission as the umbrella body, as it regards investor confidence and a decline in commercial activity while calling for adherence to the constitution of Guyana,” Nokta told those gathered, including Finance Minister, Winston Jordan, former Minister within the Ministry of Finance Juan Edghil and others.
While the GCCI had referred to a study it conducted and reported that two in every three businesses experienced some form of decline in commercial activity, Nokta reported that “even light manufacturing reflected a slowing down from the 3.0% growth recorded in the first half of 2017 to 1.2%, for the corresponding period in 2018.”
The body is still awaiting the end of year report from the Ministry of Finance, he said.
He added that “the overall business environment has not been significantly enhanced in recent years and this ultimately could have implications for all businesses.”
The GMSA represents a total of 135 business while the GCCI’s membership size is over 240 business organizations.
Also addressing the gathering at the Marriott Hotel was representative of the Inter-American Development Bank (IDB), Sophie Makonnen. She pointed out that the World Bank’s Doing Business rankings of 2019 signal specific areas of low ranking in Guyana including “dealing with construction permits” and “trading across borders.”
As such, to strengthen the private sector’s competitiveness and improve the business climate, she suggested that there needs to be streamlining and improvement of government services in the areas of electricity, bureaucracy, and transparency.
Makonnen also noted that policies intended to strengthen infrastructure and connectivity would also be beneficial, along with human capital development in both education and health.
