Guyana Unveils Record $1.382 Trillion Budget with Economic Growth Projections

The 2025 national budget is Guyana's largest ever, with $1.382 trillion allocated to drive economic growth and improve citizens’ well-being. Key measures include tax reductions, cash grants, and expanded support for education and healthcare. The income tax threshold was raised to $130,000, and PAYE taxes reduced from 28% to 25%. Workers will benefit from non-taxable overtime and second-job income. Notable investments include $88 billion for energy projects, including the transformative Gas-to-Energy initiative, and $112 billion for housing development to exceed a goal of 80,000 house lots by year-end. Guyana’s non-oil economy is projected to grow 13.8%, with 10.6% overall growth expected in 2025, maintaining its position as one of the world’s fastest-growing economies.

Agriculture and Business Get Relief in Guyana’s 2025 Budget

Agricultural and rural businesses stand to gain from the removal of VAT on agricultural machinery, electricity generators, and backup systems, saving over $1 billion annually. These measures aim to reduce operational costs for farmers and businesses, particularly in remote areas, boosting productivity and economic activity. Additionally, support for poultry farmers through improved tax policies highlights the government’s commitment to enhancing food security and supporting Guyana’s agri-economy.

Business Opportunities Based On Today’s Developments

Business Opportunities for Small Enterprises (SEs)

1. Renewable Energy Installation Services

With the government’s focus on energy efficiency, including the removal of VAT on backup generators and the rollout of the Gas-to-Energy (GtE) project, small enterprises can capitalize on providing renewable energy solutions. Opportunities exist in selling, installing, and maintaining solar panels, small-scale wind turbines, and energy-efficient appliances.

• Note: Focus on rural areas where energy reliability remains a challenge. Bundle energy solutions with affordable financing options to attract low-income households and small businesses.

2. Agricultural Equipment Rentals

The removal of VAT on agricultural machinery presents an opportunity to establish equipment rental services for small-scale farmers who cannot afford outright purchases. This could include tractors, harvesters, and automated poultry pens.

• Note: Build partnerships with local farming cooperatives to ensure consistent demand. A mobile app for equipment reservations could differentiate your service.

3. Nighttime Sports Facility Rentals

The government’s $2 billion allocation for community grounds, including $1 billion for lighting installations, creates an opportunity to manage and rent out facilities for nighttime sports. Entrepreneurs can offer value-added services like coaching, refreshments, and event hosting at these venues.

• Note: Partner with local sports organizations and schools to promote community engagement and secure recurring business.

Business Opportunities for Medium Enterprises (MEs)

1. Hospitality and Event Management Services

The expansion of the Cheddi Jagan International Airport terminal and upgrades to hinterland airstrips signal increased tourism potential. Medium enterprises can invest in boutique hotels, lodges, or event management services catering to the growing inflow of visitors.

• Note: Differentiate offerings by highlighting eco-tourism or unique cultural experiences. Explore partnerships with tour operators and travel platforms.

2. Construction and Real Estate Development

With significant investments in housing (targeting 80,000 house lots) and infrastructure (e.g., the new Corentyne and Berbice River Bridges), medium-sized enterprises can seize opportunities in subcontracting for construction, providing building materials, or developing affordable housing.

• Note: Focus on regions like Region Six and Region Ten, where regularization and development projects are underway. Ensure alignment with government housing standards for approvals.

3. Digital Skills Training and Recruitment Services

As the government invests in IT infrastructure and education, businesses that offer digital skills training—such as coding, social media marketing, or e-commerce—can thrive. Recruitment services for skilled labor in these fields will also be in high demand.

• Note: Align training programs with the government’s education initiatives and consider adding certifications that are recognized internationally.

Business Opportunities for Large Enterprises (LEs)

1. Manufacturing Hub for Agricultural Processing

With VAT removed on agricultural machinery and a focus on food security, large enterprises can establish facilities for processing agricultural goods like rice, poultry, or aquaculture products. This can include setting up advanced mills, automated poultry plants, or aquaculture packaging facilities.

• Note: Leverage tax benefits and explore export markets in CARICOM for processed goods. Invest in modern machinery to ensure high efficiency and compliance with international standards.

2. Renewable Energy Infrastructure Development

The $88 billion allocation for energy projects, particularly the GtE initiative, presents opportunities for large enterprises to build large-scale renewable energy infrastructure, such as solar farms or wind farms, to complement the gas-to-energy projects.

• Note: Partner with international firms for technology and expertise while securing long-term energy contracts with the government.

3. Logistics and Distribution Networks

With infrastructure upgrades like new bridges, expanded airstrips, and the Parika hub transformation, large enterprises can establish or scale logistics networks to improve the movement of goods within Guyana and beyond. This includes cold storage facilities for agriculture and pharmaceuticals.

• Note: Incorporate smart logistics technologies, such as GPS tracking and automated inventory systems, to improve efficiency and attract business clients.

Key Thoughts

• Timing is critical: With many initiatives planned for 2025, early movers will secure better positioning and partnerships.

• Focus on alignment: Ensure that proposed business ventures align with government priorities, such as sustainability, energy efficiency, and infrastructure development.

• Leverage public-private partnerships (PPPs): Many of these opportunities can be amplified by collaborating with the government and benefiting from funding or tax incentives.

• Diversify revenue streams: Identify multiple ways to monetize investments, especially for medium and large enterprises, to reduce risk and maximize ROI.

Side Hustle Ideas Based On Today’s Developments

1. Specialty Mobile Food and Beverage Service

With the government’s focus on improving community grounds and hosting nighttime sports, a mobile food and beverage cart offering specialty items like fresh juices, local snacks, or even gourmet coffee could thrive. The upcoming expansion of tourism, the airport, and local events also provide lucrative opportunities for mobile food vendors.

• Why It Works: Low startup costs compared to brick-and-mortar establishments. You can target sports events, construction workers, or tourists near popular sites.

• Pro Tip: Use local ingredients to appeal to both tourists and locals. A branded, eco-friendly cart can stand out, and offering pre-orders via social media can help streamline operations.

2. Drone Photography and Surveying

With extensive infrastructure projects (e.g., new bridges, housing developments, and gas-to-energy sites), there’s a growing demand for drone services to capture progress photos, conduct land surveys, or provide marketing material for real estate.

• Why It Works: A drone is a one-time investment, and the service can be offered on a flexible schedule. Construction companies, real estate agents, and event organizers are potential clients.

• Pro Tip: Invest in a mid-range drone with decent imaging and surveying capabilities, and get trained and certified (if necessary) to add credibility to your service.

3. Agricultural Micro-Farming for High-Demand Crops

With VAT removed on agricultural machinery and rising food security concerns, small-scale cultivation of high-value crops like herbs (e.g., basil, cilantro), mushrooms, or exotic vegetables can yield high returns. These crops have short growth cycles and are in demand by upscale restaurants and export markets.

• Why It Works: Micro-farming requires minimal land and can be done part-time. Leveraging local farmers’ markets or selling directly to chefs and retailers ensures good margins.

• Pro Tip: Use innovative techniques like hydroponics or vertical farming to maximize output on a small scale. Partner with agricultural cooperatives to lower input costs and access shared resources.

Key Takeaways

• Scalability: Each side hustle has the potential to grow into a full-time business as demand increases.

• Flexibility: These ideas allow individuals to work around their primary job schedules.

• High ROI: By targeting niche, high-demand markets (e.g., events, real estate, upscale food markets), these side hustles offer significant profit margins.

Starting small and reinvesting profits can lead to sustainable income streams in Guyana's rapidly growing economy.