Since the Local Content Act was enacted in December 2021, the financial success of Guyanese sub-contractors and entrepreneurs in the oil and gas sector has been remarkable. Collectively, they have amassed close to US$1 billion from their engagements with oil and gas companies, a testament to the tangible benefits of the Local Content Act.
Over the years, the revenue generated by registered companies has steadily increased, reflecting the growing success of Guyanese businesses in the oil and gas sector. In 2022, the revenue was approximately $440 million, which climbed to $524 million in 2023, marking a nearly 20 percent increase in earnings.
In an exclusive interview with the Department of Public Information (DPI), Dr. Martin Pertab, CEO of the Local Content Secretariat, lauded the significant success Guyanese entrepreneurs experienced following the implementation of this legislation.
Dr. Pertab shared inspiring success stories of Guyanese entrepreneurs, illustrating the transformative power of the Local Content Act. He mentioned how some entrepreneurs have gone from owning one car to thirty cars and from one apartment to multiple apartments, all because of the opportunities provided by the Act. These stories serve as a testament to the Act’s effectiveness and can inspire other entrepreneurs to register on the Local Content Register.
As of April 2024, over 800 companies have received approval and are now listed in the Local Content Register.
Procurement activities 2024 are projected to draw in over half a billion US dollars, marking a five percent rise from the previous year’s figures.
“The 40 sectors that we carved out this year are expected to attract $550 million in businesses, including accommodation, transportation, laydown yard facilities, and all those sectors that we have listed under the First Schedule of the law,” the director said.
He highlighted the Secretariat’s emphasis on ensuring that farmers outside of Georgetown reap the rewards of the oil and gas sector’s demand for food products. The objective is establishing a coalition of farmers to engage with a food processing company, supplying produce directly to oil and gas firms. Additionally, collaborations will be fostered with catering companies to utilize produce sourced from these farmers.
The Local Content Bill was approved in the National Assembly following heated discussions on December 29, 2021. Guyanese business proprietors can access information regarding the necessary documentation for registration on the Local Content Register here.
The Local Content Act has been an excellent success for Guyana. Minister of Natural Resources Mr. Vikram Bharrat and Dr. Martin Pertab, Director of the Local Content Secretariat, should be praised for their dedication and support for local companies in Guyana. In addition, it shows that the present government is dedicated to creating and encouraging new opportunities for startup businesses in Guyana.