Guyana Plans Second Major Power Plant to Boost Energy and Manufacturing

Guyana is set to issue a Request for Proposals (RFP) for a second large-scale power plant, aiming to significantly increase the nation's energy capacity. President Dr. Irfaan Ali announced that this initiative is part of the government's strategy to expand the local manufacturing sector by leveraging abundant natural resources and a skilled workforce. The first 300-megawatt natural gas-fired power plant at Wales is expected to be operational by 2025, reducing electricity costs by half. The second plant will further position Guyana as a competitive manufacturing hub and may enable energy exports to neighboring countries like Suriname and northern Brazil. An International Business Conference scheduled for October 15-17 in Georgetown offers investors an opportunity to explore these developments.

Saipem Launches Empowerment Programs for Women in Guyana

Italian energy firm Saipem has unveiled its 2024 Local Community Initiatives Plan in Guyana, focusing on empowering women and single mothers through education and skill development. In partnership with the NGO Women Across Differences, Saipem will provide computer literacy training to five unemployed women aged 18-30 and support eight single mothers in returning to school at institutions like the Government Technical Institute and the Carnegie School of Economics. The programs aim to bridge the digital divide and enhance career prospects for participants. Additionally, Saipem will continue its internship program for students from technical vocational schools and the University of Guyana, reinforcing its commitment to community development and social impact.

ExxonMobil's New Projects in Guyana to Add $19 Billion to Investment Costs

ExxonMobil's upcoming oil projects in Guyana are projected to add $19 billion to the company's cost recovery "cost bank," with $7 billion still pending recovery from past investments, according to Vice President Bharrat Jagdeo. The new projects include the Yellowtail, Uaru, and Whiptail developments, along with a pending Hammerhead project. These significant investments highlight the accelerating pace of Guyana's offshore oil industry, signaling potential growth in related sectors and opportunities for local businesses. However, they also raise discussions about revenue sharing and the economic implications for Guyana under existing production agreements.

Business Opportunities Based On Today’s Developments

1. Expansion of the Energy Sector and Manufacturing Opportunities

Development: Guyana plans to issue a Request for Proposals (RFP) for a second large-scale power plant, aiming to significantly increase the nation's energy capacity. The first 300-megawatt natural gas-fired power plant at Wales is expected to be operational by 2025, reducing electricity costs by half. This initiative is part of the government's strategy to expand the local manufacturing sector by leveraging abundant natural resources and a skilled workforce.

Opportunities:

• For Small and Medium Enterprises (SMEs):

  • Manufacturing Ventures: Lower energy costs make local manufacturing more competitive. SMEs can explore setting up or expanding operations in agro-processing, textiles, construction materials, and other light manufacturing sectors.

  • Supply Chain Participation: Provide goods and services needed for the construction and maintenance of the power plants, such as raw materials, catering, transportation, and security services.

  • Energy Efficiency Solutions: Offer products and services that help businesses and households reduce energy consumption, like energy-efficient appliances and consulting.

• For Large Enterprises:

  • Infrastructure Development: Participate in the construction and financing of the new power plant and associated infrastructure projects.

  • Energy Export Opportunities: With increased capacity, explore exporting energy to neighboring countries like Suriname and northern Brazil.

  • Industrial Parks: Develop industrial zones or parks that leverage the increased energy capacity to attract manufacturers and investors.

Notes: The upcoming International Business Conference in Georgetown (October 15–17) presents an ideal platform for investors to explore these opportunities and form strategic partnerships.

2. ExxonMobil's Increased Investment in Oil and Gas

Development: ExxonMobil's new projects in Guyana are projected to add $19 billion to investment costs, indicating an acceleration in the offshore oil industry.

Opportunities:

• For SMEs:

  • Local Content Services: Offer services such as logistics, catering, accommodation, and transportation to support ExxonMobil's operations.

  • Training Programs: Establish training centers to develop skills needed in the oil and gas sector, partnering with educational institutions.

• For MEs and LEs:

  • Joint Ventures: Form partnerships with international oil and gas companies for exploration, drilling, and support services.

  • Support Services: Provide specialized services like engineering, environmental assessments, and legal consultancy.

Notes: Ensure compliance with local content policies to maximize opportunities and contribute to national development.

3. Saipem's Empowerment Programs for Women

Development: Saipem has launched initiatives to empower women and single mothers through education and skill development in Guyana.

Opportunities:

• For SMEs:

  • Training and Development: Collaborate with Saipem or similar organizations to offer training programs, focusing on areas like IT, vocational skills, and entrepreneurship.

  • Employment Opportunities: Hire graduates from these programs, enhancing workforce diversity and social responsibility profiles.

• For MEs and LEs:

  • Corporate Social Responsibility (CSR): Invest in community programs that support women's empowerment and education.

  • Supply Chain Diversity: Encourage supplier diversity by partnering with women-owned businesses.

Notes: Supporting such initiatives can improve brand reputation and meet CSR objectives.

4. Expansion of Treated Water Access by GWI

Development: Guyana Water Inc. (GWI) is undertaking major projects to ensure complete access to treated water in Regions Five and Six, including drilling new wells and upgrading systems.

Opportunities:

• For SMEs:

  • Subcontracting: Provide services in construction, plumbing, and maintenance for water infrastructure projects.

  • Supply of Materials: Offer supplies like pipes, valves, and water treatment chemicals.

• For MEs and LEs:

  • Technology Solutions: Implement advanced water treatment technologies and management systems.

  • Public-Private Partnerships: Collaborate with GWI on large-scale projects through investment and expertise.

Notes: Improved water infrastructure enhances public health and can stimulate economic activities in these regions.

5. Financial Services Expansion in Wismar Market

Development: The Linden Mayor and Town Council plans to install an ATM at the Wismar Market to stimulate economic activity.

Opportunities:

• For SMEs:

  • Retail Expansion: Set up shops or kiosks in the market to capitalize on increased foot traffic.

  • Mobile Payment Solutions: Introduce mobile payment and fintech services to facilitate transactions for vendors and customers.

• For MEs and LEs:

  • Banking Services: Financial institutions can expand services in underserved areas, including microloans and financial literacy programs.

  • Security Services: Provide security solutions for the new ATM and surrounding businesses.

Notes: Enhancing financial inclusion can boost local economies and create a more vibrant marketplace.

6. CARICOM's Call to Retain Healthcare Workers

Development: CARICOM urges a unified approach to address the significant migration of healthcare workers, which poses a threat to healthcare quality and economic stability.

Opportunities:

• For SMEs:

  • Healthcare Training: Establish or expand training institutes for nurses, technicians, and other healthcare professionals.

  • Wellness Services: Offer services that improve job satisfaction for healthcare workers, like mental health support and professional development.

• For MEs and LEs:

  • Healthcare Infrastructure: Invest in modern clinics and hospitals to improve working conditions and retain staff.

  • Technology Integration: Develop telemedicine platforms and healthcare IT solutions to enhance efficiency and reach.

Notes: Investing in the healthcare sector can lead to long-term benefits for the workforce and overall economy.

7. Opportunities in the Sports and Entertainment Sector

Development: The Caribbean Premier League (CPL) has launched ticket promotions, and Guyana is participating in international sports events like the South American Women’s and Men’s Classic Powerlifting Championship.

Opportunities:

• For SMEs:

  • Merchandising: Sell sports merchandise and memorabilia to fans.

  • Hospitality Services: Offer accommodations, food, and entertainment for visitors attending events.

• For MEs and LEs:

  • Sponsorships: Sponsor teams, athletes, or events to increase brand visibility.

  • Event Management: Organize large-scale events and festivals around sporting activities.

Notes: Capitalizing on sports tourism can lead to increased revenue in hospitality, retail, and service sectors.

8. Security Services Demand

Development: Increased security measures have been implemented at the Guyana Society for the Blind, highlighting a need for enhanced security services.

Opportunities:

• For SMEs:

  • Security Firms: Provide security personnel and consulting services to NGOs, businesses, and residential clients.

  • Technology Solutions: Install security systems like surveillance cameras, alarms, and access control in vulnerable areas.

• For MEs:

  • Integrated Security Services: Offer comprehensive security solutions combining physical security and advanced technology.

Notes: As businesses and organizations prioritize safety, the demand for professional security services is likely to grow.

9. Empowerment of Persons with Disabilities

Development: The Human Services Ministry trained 19 persons with disabilities in garment construction, aiming to increase opportunities for this vulnerable group.

Opportunities:

• For SMEs:

  • Inclusive Employment: Hire trained individuals, promoting diversity and social responsibility.

  • Social Enterprises: Start businesses that produce and sell goods made by persons with disabilities, tapping into ethical consumer markets.

• For MEs and LEs:

  • CSR Initiatives: Support programs that train and employ persons with disabilities.

  • Supplier Diversity: Include disability-owned businesses in supply chains.

Notes: Fostering inclusivity can enhance company reputation and open up new market segments.

10. Development in the Agricultural Sector

Development: While not directly mentioned, the expansion of energy and water infrastructure can significantly impact agriculture, a key sector in Guyana.

Opportunities:

• For SMEs:

  • Agri-Business Ventures: Use improved energy and water access to enhance production, storage, and processing of agricultural products.

  • Organic Farming: Capitalize on global trends by producing organic and sustainable products.

• For MEs and LEs:

  • Export Markets: Invest in large-scale farming and agro-processing for export.

  • Technology Integration: Implement smart farming techniques using IoT and data analytics.

Notes: Strengthening agriculture supports food security and can position Guyana as a significant player in regional markets.

Final Thoughts:

The current developments in Guyana present a dynamic environment ripe with opportunities across various sectors. Businesses should consider:

• Strategic Partnerships: Collaborate with government agencies, NGOs, and other enterprises to maximize impact.

• Sustainability and Compliance: Adhere to local regulations and focus on sustainable practices to ensure long-term success.

• Community Engagement: Invest in community development to build brand loyalty and fulfill corporate social responsibilities.

By aligning with national priorities and leveraging these opportunities, enterprises can contribute to Guyana's growth while achieving their business objectives.

Side Hustle Ideas Based On Today’s Developments

1. Online Education and Skill Training Services

Leverage the push for education and digital literacy in Guyana.

• What to Do: Offer online tutoring, workshops, or courses in areas like computer literacy, vocational skills, or professional development.

• Why It's High-Value:

  • Growing Demand: With companies like Saipem launching empowerment programs and the government's focus on education (e.g., training for persons with disabilities), there's a rising need for accessible learning.

  • Flexible Schedule: You can conduct sessions after work hours or on weekends.

  • Low Startup Costs: Utilize free or low-cost platforms (Zoom, Google Classroom) to reach students.

• How to Start:

  • Create a curriculum based on your expertise.

  • Advertise through social media and local community groups.

  • Partner with NGOs or educational institutions to reach a wider audience.

2. Rental Services for Accommodations

Capitalize on the influx of workers due to the booming oil and gas industry and infrastructure projects.

• What to Do: Rent out spare rooms, apartments, or properties to professionals coming to work on projects like ExxonMobil's new ventures or the construction of power plants.

• Why It's High-Value:

  • High Demand: There's a shortage of quality housing for incoming professionals.

  • Premium Rates: Business travelers and expatriates are willing to pay higher rates for comfortable accommodations.

  • Passive Income: Once set up, it requires minimal time investment.

• How to Start:

  • List your property on platforms like Airbnb or local real estate websites.

  • Ensure your accommodation meets safety and comfort standards.

  • Offer additional services like housekeeping or meal options for added value.

3. Small-Scale Manufacturing or Craft Production

Take advantage of reduced energy costs and increased market access.

• What to Do: Start producing handcrafted items, artisanal goods, or processed foods to sell locally or online.

• Why It's High-Value:

  • Lower Operating Costs: Upcoming power plants will reduce electricity costs, making home-based manufacturing more affordable.

  • Market Growth: Initiatives like the new ATM at Wismar Market will boost local commerce, providing more sales opportunities.

  • Unique Products: There's a growing appreciation for locally made, unique items.

• How to Start:

  • Identify a product that you're skilled at making and that has market demand.

  • Source local materials to keep costs low.

  • Sell your products at local markets, online marketplaces, or partner with shops.

Final Thoughts:

• Align with Economic Trends: These side hustles are designed to tap into Guyana's expanding economy and the specific developments occurring right now.

• Manageable Commitments: Each idea is suitable for individuals with full-time jobs seeking additional income without overwhelming time commitments.

• High Potential for Growth: Starting small allows you to test the market and scale up as demand increases.