The Government of Guyana has taken a more aggressive stance in promoting local business in the procurement of goods and services with the Local Content Bill 21 of 2021. This legislation prioritizes obtaining commodities and services from Guyanese nationals and companies providing government relations and orientation, construction management, procurement and logistics, employee relocation, recruiting and human resources and expert accounting among others.
Ultimately, the goal is to ensure that the Guyanese will benefit from the boom of the country’s petroleum economy and sustain development through competitiveness and the creation of related industries. The importance of this legislation and support in the business community was highlighted at the recent International Energy Conference and Expo.
With this new law, Guyanese nationals and companies qualified to render goods and services in partnership with international investors are required to register online. If the organization is not registered in this database, their goods and services will not be included in a Local Content Master Plan that contractors, sub-contractors, or licensees must submit containing plans for employment, procurement, and capacity development. They also have to regularly submit reports that outline compliance to the bill including the approved minimum local content levels.
To ensure that the Guyanese are well-equipped to provide the goods and services at par with national and international standards, the bill also enables local capacity development. Additionally, government procurement requirements will also incorporate local content in the bid evaluation criteria.
Local Content Bill 21 creates and defines the roles of the Minister and the Local Content Secretariat that would serve as an oversight in the implementation of this new law. To ensure compliance, the Secretariat will conduct monitoring, evaluation, and auditing activities and assess contractors, sub-contractors, or licensees. For any offenses, corresponding penalties will also apply.
Given this new trajectory, it is important to have a local partner that knows the ins-and-out of Guyanese laws as well as local resources and employment. Excel Guyana with its undisputed expertise in supporting businesses is excited to help out local and international investors in navigating the new bill and exploring opportunities that this new law creates.
Excel Guyana is building Guyana’s future through strategic partnerships for a brighter, more prosperous future for our local and international clients and local partners. We bring a diverse team, committed to working with integrity for all of our stakeholders. For more than three decades, our leadership team has been consulting with companies in the CARICOM region, with a local presence in Guyana since 2010.
If you are looking for a business partner to help guide you through the world of opportunity in Guyana, contact us to schedule a call today.