Guyana is undergoing an economic transformation driven primarily by the recent discovery of vast offshore oil reserves. Historically one of the poorest nations in the western hemisphere, it is now one of the fastest-growing economies in the world, recording 63 percent GDP growth in 2022. However, rapid economic change presents challenges, especially for local businesses that lack the skills, resources, and networks to fully benefit from the burgeoning energy sector.
Challenge
These businesses face barriers such as limited access to information, insufficient training in industry standards, and difficulty navigating the regulatory landscape. Typically, small and medium-sized enterprises (SMEs) struggle to compete with larger, international companies for lucrative contracts in the oil and gas industry. For the Guyanese people to benefit from their country’s economic boom, the country needs to ensure equitable access to opportunities in the energy sector, create an enabling environment for long-term, sustainable development, and reduce dependence on external entities.
The Centre for Local Business Development, established with funding from the Stabroek Block partners under the Greater Guyana Initiative, supports local enterprises to benefit from the growing opportunities in the energy and non-energy sectors.
Approach
The Centre operates as a support hub for enterprises aiming to participate in Guyana's growing economy, including its oil and gas sector. It provides a comprehensive suite of services for local businesses, such as training and mentorship, consultancy, and investor facilitation to ensure they can meet international standards and join the oil and gas supply chain. But the Centre is building local operating capacity in critical fields that go beyond the energy sector, including health, safety, security, and environmental standards, project management, procurement processes, entrepreneurship, and financial management.
Solution
Starting in 2017, the Centre began by offering training and education to businesses, helping to improve their capacities in procurement, health and safety, and environmental management. These programs were designed to equip local firms with the skills required to compete in the energy sector.
Through business engagement events and missions, the Centre facilitated connections between local companies and international stakeholders. This network-building bridge helped local businesses gain visibility and establish partnerships crucial to their growth in the competitive market. It also developed a business hub where local and international businesses could view opportunities in the oil and gas sector and build their networks, and offered hands-on mentorship and consultancy services to help businesses to develop robust safety systems, compliance mechanisms, and strategic plans so they could operate effectively and sustainably.
The Centre advocated for access to finance and new financial products for Guyanese entrepreneurs, serving as a bridge between local businesses and potential investors. It developed an investor entry package including market research, compliance guidance, and networking opportunities, enabling businesses to attract the investment needed for growth.
Results
After seven years of operations, the Centre has had a significant impact on the local business landscape in Guyana and has boosted the competitiveness and capacity of hundreds of local businesses. More than 1,500 businesses have taken the capacity building courses, helping them meet international safety and operational standards, which are crucial for operating in the oil and gas industry, reducing risks, and improving sustainable business practices. Local firms are increasingly represented in the oil and gas supply chain, enhancing their economic viability and growth prospects.
Program Impact
By supporting local businesses and entrepreneurship, the Centre has played a pivotal role in diversifying Guyana’s economy beyond oil and gas. The Centre Hub has registered more than 7,000 companies on its platform, 67 percent of them local. This platform is not only a leading resource for advertising contracts, finding partners, and staying informed on the oil and gas sector but also a portal into sectors such as mining and agriculture.
At the end of 2024, the Centre evolved its business model to become a self-sustaining entity, offering its programs and new services as revenue-generating products to local and international businesses. As the Centre looks forward to its new chapter, it knows that its success will mirror that of the numerous Guyanese businesses it has assisted to reap the benefits of the country’s growing opportunities.
