Locals will have Govt.’s full support to be competitive in oil sector – Pres. Ali

Apr 29, 2021 News

By Kiana Wilburg

President, Irfaan Ali.

Kaieteur News – Though several local businesses may be hamstrung by varying factors that hinder their competitiveness in the oil sector, President Irfaan Ali has given all assurances that Guyanese entrants will have the support they need to be successful when going up against foreign entities. Ali gave this guarantee during a Press Briefing yesterday morning at State House.
As he made his presentation on his government’s plans for economic growth, the President disclosed his intention to have oil companies use local services once they are deemed as competitive. With this in mind, Kaieteur News informed the Head of State that several local businesses have been struggling to break into the industry and maintain competitive rates especially when they are made to go head to head with seasoned foreign companies that enjoy concessions galore.
While he acknowledged this state of affairs, the President was quick to note that the government will be providing support in terms of training and certification. He was keen to note that he has seen a behaviourial shift in the private sector, particularly as it relates to businesses putting in the work that is required to meet the standards expected in the new sector. While he deems this to be commendable, the President said his overarching belief is that certain jobs must go to Guyanese.
The President also hinted that there needs to be another shift in the mindset of local companies. He said it is not only about meeting the standards via training or getting the necessary certificates. According to the President, companies need to understand that they can increase their competitiveness by entering partnerships with each other too. “We have a history of family owned businesses and we don’t have a history of consortium type of activity. I have explained this to the private sector…We are too small most times so we need to come together to build partnerships to compete,” Ali stated.
In terms of his overall vision for local content, the President said he will not accept local companies being relegated to an associate position in any partnership with a foreign company, while little benefit is going to the Guyanese. “That is not true local content,” Ali expressed.
The President said he wants Guyanese to go after big opportunities in the sector while reiterating that the government will provide the support that is needed. The Head of State said too that he wants to see certain services in the sector such as those related to logistics being provided by locals alone. By the same token, the President said he understands that Guyanese would need help in enhancing their capacity so that they can provide effective services to the sector. In this regard, the President said, “Logistics requires a company to provide various services while being nimble and flexible…It must have a health arm, brokerage arm, transportation arm, etc., and that is what we have to develop. That is the type of capacity we have to build in order to get that competitiveness.”
Further to this, Ali said there has to be a frank discussion about what the oil companies need in terms of goods and services over a period of time along with a needs assessment of what Guyanese can supply and what they would need to do to address any deficiencies.
In closing, President Ali said Guyana’s Local Content Policy will seek to address these matters while ensuring that the relevant human resources are in place to grow other industries.