Local manufacturers are in for a big year ahead, according to the Guyana Manufacturing and Services Association (GMSA), the premier private sector organisation representing the interests of manufacturing and services companies.
The GMSA leadership, including President Rafeek Khan and Vice President Ramsay Ali, held a press conference on Wednesday to discuss the crucial support for their sector in the $1.558 trillion budget presented on Monday.
The government intends to designate several areas as Special Development Zones that will benefit from targeted fiscal incentives. This initiative will incentivise higher levels of private investments in strategic locations.
The GMSA’s president explained that it will eliminate the hefty costs associated with manufacturing.
“With the development zone, Guyana manufacturers will benefit significantly because what it’s going to do is have consolidation of hubs around the country, whereby relevant, suitable, like-minded manufacturers could be in the same space,” Khan told reporters.
He added, “It will also bring down the cost of electricity because the government is talking about providing manufacturers, in these development zones, shared electricity costs, which will help us to become more competitive.”
Importantly, by establishing these zones, the standards and qualities of Guyanese products can be monitored more efficiently, which Khan said has been a challenge for years.
He also touched on the removal of value-added tax (VAT) on locally made jewellery and furniture, stating that this will bring down the cost for consumers.
“It allows our local manufacturers to be able to get the opportunity to sell at a price that can compete with our imports. We no longer have to charge you taxes on your doors for your home, on your moulding for your house, on your cabinets for your kitchen, on your beds,” he explained.
In the 2026 Budget, the government has committed to removing the corporate taxes on agriculture and agroprocessing businesses. The Guyana Development Bank, with an initial injection of US$100 million, is another key measure that will drive growth across the manufacturing and services industry.
The GMSA vice president said the measures will be a “game changer” for Guyanese involved in the manufacturing sector.
“We’re very excited about the budget in terms of what has been provided for agro-processing, as it is market access and expansion of the business as well as finance,” he stated.
Meanwhile, Zahid Khan and Pompey highlighted the immense potential in the construction and digital sectors, with 40,000 homes to be built over the next five years and an aggressive digitalisation agenda by the government.
Pompey said the budget shows that Guyana’s economy is diversifying to support long-term growth in these sectors.