GMSA raises concerns over operations at GA-FDD
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The Guyana Manufacturing and Services Association (GMSA) has been monitoring the recent developments at the Government Analyst Food and Drug Department (GA-FDD) and wishes to express its concerns.
The GA-FDD has a crucial role in maintaining the nation’s health and well-being through speaking directly as a regulatory body on the importation of food, drugs and other like materials into Guyana.
Over the last few years, the GA-FDD had made significant strides towards delivering on its mandate to the nation. The GMSA, through the Agro-Processing Sub-sector Chairman, indicated that there is a seeming lack of leadership as a result of the Director’s absence, which could call this quality reputation of GA-FDD into question, hinder progress and also raises concerns of transparency and accountability.
The GMSA therefore wishes to urge that this Department, which comes under the Ministry of Health, be empowered to carry out its mandate independently and effectively.
We also request that the relaxing of the rules mandated by law regarding the importation of food and other products into Guyana, be re-examined. The Association has actively engaged with the Ministry of Health to review and relax said provisions made by law however, we are concerned that the agreement created which allows for the importation of items on the basis of documentation from a non-regulatory body in Florida, is not working as was initially intended since we continue to see questionable items imported into the country based on documentation from the said body in Florida.
While we are cognizant of the many challenges due to the COVID-19 pandemic and the issues associated with the global supply chain, we should not compromise on the nation’s health and well-being.
The Standards regarding the origin, labeling and naming of local distributors on labels where necessary is very clear, however, this standard is being flouted in some cases, while our sister Caricom countries rigidly enforce this. These actions are contradictory to the spirit of the recently passed Local Content Act.
The GMSA calls on the Minister to ensure the compliance of rules, regulations, and standards and to empower the GA-FDD to so do.
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‘Rapid progression’ for local manufacturers with two new laws governing oil sector – GMSA
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The GMSA, made up of the country’s largest manufacturers and service providers, says the recently passed laws governing how oil revenues will be spent and how Guyanese individuals and companies should be used in the oil industry, would see rapid progression for the sector.
Below is a full statement from the GMSA:
The Guyana Manufacturing & Services Association (GMSA) commends the concerted efforts of the Government to finalize and pass the Local Content Policy (LCP) and the Natural Resource Funds (NRF) Bill.
These legislations are critical to having sound and effective management of the extractive sectors for Guyana’s economic growth and stability. The Association therefore extends full support of the passage of the “Local Content Policy for the Development of Guyana’s Petroleum Economy” and the “Natural Resource Fund Bill 2021” legislations, with precedented anticipation that each Bill will provide avenues for the rapid progression of the manufacturing and services value chain.
As a key contributor to the LCP and the NRF Bill from the initial consultation stages, the GMSA attests that the Government’s inclusion of the private sector assured of its intention for transparency and governance in developing the framework which guides each Bill. However, in consideration of the Government’s highpriority agenda to pass the legislations, the Association acknowledges that these policies will be subject to emergent revisions and improvements.
As a major contributor to economic growth in Guyana, the GMSA calls for continued and more participative consultations with private sector support organizations.
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 LCP and NRF Bills.
This proactive collaboration will therefore guarantee improved capacity-building for private businesses and ensure public-private cooperation.
As Guyana moves into a new dispensation of growth, Sovereign Wealth Funds (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.
In order to maximize the benefits of resource revenues, the GMSA lauds the Government’s recognition that these funds must have strict governance under the management of a Board comprising of 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 Natural Resource Fund Bill will provide a mechanism to enable and accelerate the development and advancement of industries in Guyana. The country will be positioned to transition from a predominant primary economy to enhanced manufacturing and services industries.
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 qualified skills. 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.
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GMSA Caribbean Export Forum
10th EDF Implementation and the role of Caribbean Export Development Agency
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Determining the Feasibility of Establishing a Consolidated Log Yard Operation in Guyana
Project background
The GMSA and the FAO signed an agreement in September 2020, for a 6M GYD grant which was used to determine the feasibility of establishing a CLY operation in Guyana. The study, through a consultative process, engaged key stakeholders such as forest sector operators, Government agencies, civil society, indigenous organisations and other non-governmental organisations.
The establishment of any CLY should have as its intended purpose to improve growth within the forestry sector in an open marketplace and as a clearing house for legally produced timber that meet the needs of the local and international markets.
The facility is envisioned to serve as an open marketplace and as a clearing house for legally produced products. The current objectives are three- pronged: increased revenue from the forest resource, increased value-adding opportunities and creation of a platform for equal access to legally produced raw materials at competitive prices that meet international standards.
To this effect, only wood products which are compliant with Guyana’s Timber Legality Assurance System (GTLAS), will be traded through the facility. The facility’s adherence to the GTLAS will engender enhanced confidence in the legality of wood products on the local and international market.
This project advances the Guyana-EU Joint Implementation Framework for FLEGT Voluntary Partnership Agreement (VPA) in the specific area of marketing and promoting of legal timber and timber products.
Project Files
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GMSA/IDB Energy Efficiency Project
Energy expenditure is believed to account for more than 30 percent of the average Guyanese company’s overheads in any given month. Manufacturers in almost every category of industry, whether metal work, food production, infrastructural and vehicle repairs, household artifacts or building accessories, have struggled with high energy costs for decades.
The Guyana Manufacturing & Services Association (GMSA) has been advocating at the highest levels in Guyana for reductions and concessions for electricity charges for power from the national grid as well as the cost of fuel for power generators, mostly to find solutions to keep manufacturers in operation.The Association found a solution some two years ago and made the bold decision to embrace the concept of Energy Management. A finely defined strategy was crafted to promote better Energy Management and encourage companies to make the most efficient use of their installed applications, whether they receive power from the national grid or they self-generate. The element of effective Energy Conservation was added to derive a comprehensive Energy Management Strategy programme that will ultimately be morphed into a national model applicable to the entire business sector.
GMSA then approached the Multilateral Investment Fund (MIF) of the Inter American Development Bank (IDB) for assistance with funding. The Bank approved and the jointly funded project (IDB 70%, GMSA 30%) was signed into being on 6th June 2012.Project Administrator, Clement Duncan who is also responsible for Trade and Investment on the GMSA’s Board of Directors, said that this Energy Efficiency/Management Project is critical to the development of enterprises in Guyana since it directly addresses the often contentious issue of high energy costs. He specifically designed it to sensitize companies especially in the Manufacturing and Services Sectors to the best means of measuring and managing their energy distribution equipment/components and consumption, to make the most efficient use of their Energy applications and simultaneously, employ the most effective methods of Energy Conservation.
The project retained the services of two of the Caribbean’s most prolific Energy Management Consultants to carry out the key elements – the Energy Efficiency Ratings Survey and Energy Audit. Both consultants, Mr. Eaton Haughton and Dr. Carl Duncan, expressed the view that there is a dearth of correct information around the Caribbean that would improve general awareness and prevent companies from being misled into believing that new equipment could reduce their high energy costs.
“There are many easy ways to measure, monitor and reduce energy usage, and to harmonize conventional systems with renewable sources,” said the Energy Audit consultant, Dr. Carl Duncan, a Fellow of CIDA, IDB and the UK Government. He is highly trained in Power Station Operation and Maintenance, and Non-Conventional Electricity Generation and his areas of expertise include 1811-WA Auditing & Review of Regulated Utilities, tariff setting and regulating Electric and Water Utilities. He holds Bachelor’s and Master’s degrees in Industrial and Electrical Engineering and a PhD in Business Administration.
Over the past 25 years, the Energy Ratings Survey consultant, Eaton Haughton, owner of an Electrical Services Company (ESCo) in Jamaica, has completed or contributed to several internationally funded projects for the governments and private sectors of Belize, the Bahamas, Jamaica, St. Lucia, Suriname and St. Vincent and the Grenadines. He has installed hospital solar water heating systems in Grenada and conducted energy audits and energy services projects for the Petroleum Corporation of Jamaica (PCJ), the University of the West Indies and the CARICOM Headquarters here in Guyana.
“Energy Efficiency is paramount,” they both stated. During his Q2 2013 intervention Haughton noted that “when a company’s energy management system is geared towards efficient consumption, that company will save itself the expense of investing in renewable energy capital.”
According to Dr. Duncan, business owners across the region and in Central America are beginning to understand that their energy usage must remain a key agenda item in day-to-day deliberations, stressing that “energy has to be managed in the same way as finance, production and other aspects of business”.
The good news, he said, is that the momentum is picking up in CARICOM countries. Jamaica, Barbados and some countries in the Eastern Caribbean have already developed policy frameworks that are to be ratified by their heads of state. “What seems to be lacking is the commitment from leaders in the public and private sectors to embrace conservation, employ renewable sources, and implement wide ranging education programmes that highlight the real monetary benefits.” It is extremely important that business leaders buy in to the concept of energy management, Dr. Duncan added.
During his current 20-day intervention, the specialist consultant visited the project’s pilot companies and conducted on-the-job training sessions at each location for engineering and finance operatives. He was also able to make significant recommendations for changes in equipment and fuel usage among other things after surveying the facilities and reviewing the data gathered by the measuring instruments. His initial calculations indicate that the largest energy user in the group of pilot companies could save at least 5 percent of their annual energy cost which could accrue to an estimated US$250,000 per annum if certain efficiency measures are adopted.
The pilot companies had been encouraged to procure these measuring instruments at the beginning of the Energy Ratings Survey that had extended from November 2012 to May 2013. Two of the five pilot companies originally selected to represent the major sub-sectors that fall under the GMSA’s purview fell out of the project, but three others were added – Sterling Products Ltd. representing the agro-processing sub-sector, Caribbean Containers which represents the Packaging sub-sector, and Demerara Mutual Life Insurance Company representing the Services sector. The remaining pilots are the National Milling Co. (NAMILCO), the Edward B. Beharry Group and Brass Aluminium & Cast Iron Foundry (BACIF).
At the recent workshop titled “Measuring for Efficient Energy Management” Dr. Duncan gave kudos to the GMSA for spearheading Guyana’s push towards effective, efficient energy management in business places. He contended that with the application of energy measuring equipment, the auditing of information via online systems and constant monitoring, businesses would begin to really manage their consumption and develop patterns aimed at conservation.
Production priorities, he said, have traditionally taken precedence over most other aspects of business, but the positive effects on the bottom line of any company that takes its energy management seriously would be worth it.
THE ENERGY EFFICIENCY PROJECT
The ultimate objective of this project is to guide Guyanese enterprises across the business spectrum towards effectively managing their energy costs through the application of conservation methodologies, technological adaptations and Best Practice techniques.
This Project was designed to address three (3) distinct but interrelated components – Energy Conservation, Energy Consumption and Alternative Energy sources and Awareness. All interventions, according to the Terms of Reference, will comply with the regulatory framework of the National Energy Policy, and the GMSA will continue to work closely with the Government of Guyana though the Guyana Energy Agency (GEA).
The first phase, an Energy Efficiency Ratings Study was to collect baseline data for Lighting Equipment & Accessories, Heating& Cooling Equipment, Motorized Drives and other major energy consuming and power conductivity assets to establish a data baseline showing Consumption, Utilization and Cost patterns. This study was followed immediately in June with an Energy Audit involving live In-Plant measurements to derive variance analyses between actual and rated consumption levels. With all data combined, recommendations will be made for corrective actions, be they technological, structural or procedural.
According to the project designer and Administrator, Clement Duncan, The data derived from the two studies and workshops will be morphed into a national business model that will be applicable to the wide spectrum of enterprises in the Guyanese business community.
The Awareness and Sensitization aspects of the GMSA/IDB Energy Efficiency project include three (3) Workshops, the second of which was held on Thursday 4th July 2013. The final workshop scheduled for September 2013 has been designed specifically for company executives and decision makers in the Financial sector who are crucial to this new drive to introduce new methods of energy management and spearhead the evolution of renewable energy sources in Guyana.
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UK Trade Adviser meets GMSA..
The Guyana Manufacturing and Services Association (GMSA), on March 6th, engaged in a discussion with the Caribbean’s Regional Trade Adviser of the UK’s Department of International Trade (DIT) and Department for International Development (DFID), Ms. Rachel Wilson. She met with members of the Forestry Sub-sector (of the GMS), specifically those exporting to the UK.
Those in attendance included GMSA’s President, Mr. Shyam Nokta, Executive Member, Mr. Ramesh Dookhoo, Chairman of the Forestry & Wood Products Sub-sector, Mr. Rafeek Khan, and representatives from Barama Company and Variety Woods.
Ms. Wilson explained that the UK is currently in the process of transforming economic partnership between the European Union (EU) and the CARIFORUM to the UK and the CARIFORUM. She claimed that they are hoping to have that in place for the end of March 2019. She also stated that currently, no agreement has been made. Additionally, she iterated that in the case of there being no deal for Brexit, there will be a fall back on the UK-CARIFORUM agreement. However, this has not been signed yet. Furthermore, she lamented that there is a risk that there would not be an agreement in place.
Ms. Wilson informed the GMSA representatives that there can be a possible situation where there may be a trading gap in terms of market access and duties. She further stated that Guyana would only be subjected to tariffs in the case of no withdrawal agreement and no EPA agreement signed.
Mr. Nokta alluded to the fact that Guyana has been exporting to the UK for a period, but in the last few years, Guyana now faces the situation where a decision was taken by the UK to require certification and other measures for Greenheart lumber. Furthermore, he claimed that attaining FSC Certification for manufacturers in the forestry sector is a challenge because of the system of multiple resource use. However, Ms. Wilson was in no position to give an update about the UK’s recent ban on the Greenheart lumber.
Mr. Khan hoped that Brexit would give the UK a chance to work independently with Guyana regarding the recent restriction on greenheart lumber. He shared the same concerns as Mr. Nokta in that many operators in Guyana have not been able to acquire FSC certification and this proves to be a challenge for the Forestry sector as a whole.
Ms Wilson stated that the UK-EPA is currently designing a fund for firms that are affected by Brexit. She claimed that this would be in the form of a Grant. However, the UK-EPA are still in the process of designing the criteria for access of these funds.
The following below are resource links for members who are currently trading or wish to trade with the UK following the scheduled Brexit. The resources are as follows:
- Technical Notices: A set of papers developed by HM Government to provide detail on how to prepare for Brexit if there is no deal. Section on importing and exporting likely to be of particular relevance: https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal
- Business Readiness Tool: A tool, including a set of questions, to direct businesses to the most relevant information and to outline the steps they should take ahead of the EU exit: www.euexit.campaign.gov.uk
- Partnership Pack: HMRC produced pack to support businesses preparing for day one if the UK leaves the EU without a deal, particular focus on issues at the border: https://www.gov.uk/government/publications/partnership-pack-preparing-for-a-no-deal-eu-exit
- Online Enquiry Tool: Use this if you still have questions after having visited all of the above websites: www.great.gov.uk/eu-exit-news/contact/.
VICE PRESIDENT & MINISTER OF FOREIGN AFFAIRS CARL GREENIDGE UPDATED BUSINESS COMMUNITY ON GOVT’S RESPONSE TO VENEZUELAN AGGRESSION
Minister of Foreign Affairs, Vice President Carl B. Greenidge was the featured speaker at the GMSA’s mid-year Business Luncheon held on Monday 20th July, 2015 at the Guyana Pegasus. The Minister had recently accompanied President David Granger to the CARICOM Heads of Government Summit. There the President, in his inaugural address to this august body, strongly advocated for the region’s support against Venezuela’s aggressive moves to subsume the entire Essequibo county (5/8 of Guyana’s land mass) and all of our maritime Exclusive Economic Zone (EEZ).
The Nicolas Maduro government had by then made a series of aggressive pronouncements against Guyana and the US-based Exxon Mobil oil exploration company which had last May announced a significant find of hydrocarbons in the Stabroek Block. He followed up by recalling his Ambassador in Guyana, Reina Margarita Arratia Diaz, while threatening to issue Venezuelan identification cards to Essequibians.
After the CARICOM conference of Heads, President Granger made a stirring appeal to the community of world leaders at the September General Assembly of the United Nations in New York. This was his maiden address to the UNGA. In addition, he has taken Guyana’s appeal to the Commonwealth of Nations and to UNASUR, some of whose members including Colombia have also engaged Venezuela about the inclusion of their EEZ’s in Maduro’s 2015 decrees.
Minister Greenidge, in a Power-Point assisted discourse, brought the local and expatriate business community and the Diplomatic Corps up to date on the measures the Government was taking to address Maduro’s threat to the nation’s progress.
PRESIDENT McLEAN’S WELCOME TO OUR BUSINESS LUNCHEON
(Extract) “Apart from a limited labour force, the high cost of doing business in Guyana keeps the investors away. We’re referring here to astronomical energy charges, high Customs fees and long, undue delays to process import and export documents. We were pleased to learn that the new government is going to confront these issues in the short term.
The Private Sector is now more committed than ever to changing the business landscape from reliance on the sale of raw products to promoting new businesses that process rice, fruits and vegetables, meat and milk, wood, bauxite by-products, and the amazing variety of medicinal plants into secondary and tertiary products. Our in-country market is small by comparison, so the emphasis has to be placed on sourcing external markets alongside improving procedures at the GRA.
We renew our pledge to the Government and the Guyanese people to unreservedly support all programmes towards national development. We look forward to playing any role that will enhance the ability of our entrepreneurs to earn more than subsistence level revenue, and to eliminate the barriers to external trade which our exporters have been dealing with for many years.”
