Invest In Guyana's Future: Etfs And Opportunities

Guyana has seen an increase in demand for its local resources, goods, and tourism, making it an attractive prospect for investors. The country is expected to experience significant growth due to its oil wealth, which could make it the richest country in the world on a per-capita basis. With a favourable business environment, investing in Guyana is considered a relatively secure option. However, there are limited investment vehicles available for those interested in the country. One way to gain exposure to the Guyanese market is through ETFs (exchange-traded funds). ETFs are funds that contain multiple stocks, allowing investors to invest in a diverse range of businesses within the country. While there may not be many ETFs solely dedicated to Guyana, some U.S.-listed equity ETFs provide significant exposure to stocks listed in the country. Additionally, investors can consider investing in publicly traded American companies that are expanding their operations into Guyana, taking advantage of the country's position as a gateway between South America and the Caribbean.

Contact GO-Invest for opportunities and incentives

The Guyana Office for Investment (GO-Invest) is the country's investment platform, based on democratic governance, transparency, and accountability. GO-Invest promotes rapid and sustainable economic and social growth through a free-enterprise economic framework.

GO-Invest has offices in Brazil (Boa Vista and Brasilia), China, Suriname (Nickerie and Paramaribo), Switzerland, Trinidad and Tobago, and the United States of America (New York and Washington D.C.). Their headquarters is located at:

> 190 Camp & Church Streets, Georgetown, Guyana, South America.

You can contact GO-Invest via email at [email protected] or by phone at 592-225-0658.

Investment Opportunities and Incentives

Guyana offers a range of investment opportunities across multiple sectors, including:

• Agriculture and food production: Large-scale farming, dairy operations, packaging facilities, organic agriculture, etc.
• Manufacturing: Garment factories, pharmaceutical manufacturing, jewellery production, furniture factories, etc.
• Healthcare: Teaching hospitals, specialised medical centres, telemedicine, etc.
• Entertainment and tourism: Sports complexes, theme parks, marinas, eco-tourism resorts, etc.
• Energy: Solar farms, waste-to-energy operations, oil and gas industry, etc.
• Mining: Bauxite industry, sand mining, semi-precious stone mining, etc.
• Service industries: Call centres, sawmilling and wood dressing operations, etc.

Additionally, Guyana offers duty and VAT-free items, as well as manufacturer and exporter registration. The country also boasts a fairly respectable business environment, ranking 93/180 on the country corruption perceptions index and 134/190 on the ease of doing business rankings.

For more information on investment opportunities and incentives, you can browse the Guyana Export Catalog or contact GO-Invest using the details provided above.

Invest in existing international ventures

Another way to put your money to work in Guyana is to invest in a business that already operates there. As the gateway between South America and the Caribbean, Guyana is well-positioned to participate in both regional communities. This means there are a lot of existing ventures that bring local produce from farms in the country to their island neighbours. There are also food processing ventures and commercial fishing operations that work across multiple countries.

One way to get started with Guyanese markets is to put your money into a business in another country where you already have holdings, investing in an international operation that also operates in Guyana. This is a good way to get a feel for the market without going through the complex steps of establishing a new venture in a new country.

Of course, you'll need to plan for those steps when you're ready to move from ventures that also operate in Guyana to investments directly in the Guyanese industry.

Establish in-country accounts to operate locally

When establishing in-country accounts to operate locally, it is important to understand the regulatory environment and specific requirements for foreign entities. Here are some key considerations for operating bank accounts in Guyana:

• Banking Regulations: Familiarize yourself with the banking regulations in Guyana, including any restrictions on foreign entities holding bank accounts. Understand the requirements for account opening, such as minimum balance requirements, know-your-customer (KYC) procedures, and anti-money laundering (AML) regulations.
• Choice of Bank: Research and select a reputable bank that offers the services you need. Consider factors such as stability, security, fees, and accessibility. Compare the services and requirements of multiple banks before making your decision.
• Account Type: Determine the type of account that best suits your needs. Options may include current accounts, savings accounts, or business accounts. Consider the features and benefits of each type of account to align with your operational requirements.
• Documentation: Gather the necessary documentation for account opening. This may include proof of identity, address, and business registration documents. Ensure that all documents are notarized and legalized as per the requirements of the bank and regulatory authorities.
• Tax Considerations: Understand the tax implications of operating a bank account in Guyana. Consult with tax advisors to ensure compliance with applicable tax laws and regulations, including withholding taxes, income taxes, and reporting requirements.
• Transaction Limits: Be aware of any transaction limits or restrictions imposed by the bank or regulatory authorities. Understand the processes for transferring funds into and out of the account, including any applicable fees and lead times.
• Online Banking: Explore the availability of online banking services, including internet banking and mobile banking apps. Assess the security features, functionality, and ease of use offered by the bank's digital platforms.
• Customer Support: Evaluate the level of customer support provided by the bank. Consider factors such as responsiveness, language support, and accessibility through multiple channels (e.g., phone, email, live chat).
• Risk Management: Implement robust risk management practices to safeguard your funds. This includes due diligence on the bank's financial stability, cybersecurity measures, and fraud prevention protocols. Understand the dispute resolution processes and your rights as a customer in the event of any issues.

Invest in publicly traded American companies coming to Guyana

Guyana has seen an uptick in demand for its locally produced resources and goods, as well as increased tourism. The country has been declared open for business and is actively encouraging investment. There are over 100 American companies in line to bring operations to Guyana, providing a simple way to invest in Guyanese opportunities.

Contact GO-Invest for opportunities

The GO-Invest office has been established to provide a range of incentives for new investors. They can provide information on tax opportunities, broker deals with the government and other industries, and help with the steps for investing in businesses in the country. They also help exporters bring their goods to an international market and can draft investor agreements.

Establish in-country accounts to operate locally

It is easier to invest in a country when you have local funds in a bank. Establishing a banking presence in Guyana means having a place to receive dividends without sending them outside the country. Institutions like GBTI Bank facilitate everything from opening local businesses to participating in ForEx trading and other investments for locals and international finance professionals.

Due diligence

With the right due diligence, you can find the right industry to suit the rest of your portfolio. American companies in almost every industry niche are gearing up to start working and trading in Guyana.

Advice for new investors

If you're new to investing outside your home country, it never hurts to look at multiple paths to opportunity in Guyana. In many cases, a simple investment in an established company serves as a great way to test the waters while you set up your own ventures and negotiate the tax incentives and other operational agreements you need to get started.

Buy shares in an ETF

An ETF, or exchange-traded fund, is a fund that contains lots of stocks grouped together. Buying shares in an ETF is a good option if you want to invest in the Guyanese stock market as a whole, or if you don't have the time or experience to pick individual stocks. ETFs are also a good option if you have a small budget, as you can buy shares in an ETF for a lower cost than buying individual stocks.

When you buy shares in an ETF, you get a share of lots of different businesses, which can help to reduce your risk. ETFs are typically bought and sold on stock exchanges, just like individual stocks.

To buy shares in an ETF, you'll need to sign up for a brokerage account with a trading platform that offers ETFs. You'll need to supply some government-issued ID, such as a passport or driving licence, as part of the process. Once your account is set up, you can search for the ETF you want to invest in and place your order.

It's important to do your research before investing in any ETF, as there may be different types of ETFs available that offer exposure to different types of assets or industries. Make sure you understand the risks involved and the potential returns before investing.

Additionally, keep in mind that investing in ETFs may involve paying certain fees or commissions, so be sure to review the terms and conditions of the brokerage account and the ETF carefully.

Frequently asked questions