At the end of 2021, a historic piece of legislation- the Local Content Act- was signed into law by President Irfaan Ali. This law has been hailed by private sector players, many of whom were involved in consultative processes for the creation of the legislation, and now, those players have 40 specified areas carved out for their benefit. 

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Generally, the legislation is geared at regulating how foreign companies should operate in Guyana’s petroleum industry. In so doing, it has outlined how Guyanese professionals and companies should be tapped to provide much-needed services in the industry. 

Essentially, the law now facilitates greater Guyanese participation in the nascent, lucrative sector. And, a key focus of the legislation is to enable local capacity development and competitiveness, while encouraging the creation of related industries that will sustain the social and economic development of Guyana.

Importantly, the First Schedule of the law sets out the targets for the 40 specified sectors and subsectors for Guyanese businesses that should be implemented by the end of 2022. 

And by the end of 2022, 100 percent of the services in the following areas should be from Guyanese businesses: immigration support, custom brokerage services, ground transportation (moving personnel), and local insurance. 

The other remaining areas have targets ranging from five percent to 90 percent but it is expected that over time, skills training and knowledge transfer could lead to increasing capacity and increased local participation. 

Importantly, too, the new law provides for the institution of a “Local Content Secretariat” that will develop and maintain a Local Content Registers of Guyanese nationals for employment and Guyanese nationals and Guyanese companies from which goods and services may be procured.

This is expected to more readily connect professionals and local companies with opportunities in the oil and gas sector. 

With the tabling of the Local Content Bill and its subsequent passage and enactment, several local private sector bodies have welcomed the opportunities it will now provide. 

In a statement, the Private Sector Commission (PSC) noted that this legislation would enable local companies to develop their capacity to meaningfully participate in the lucrative oil and gas sector. 

“The need for this legislation has been advocated by the Commission for a number of years and we see its tabling and passage as a fundamental step in fostering the growth of many local businesses and advancing Guyana’s national development.” 

“We look to many businesses, both manufacturing and services quickly embracing the opportunities that the legislation opens up,” the body said. 

The PSC is the umbrella private sector representative body in Guyana and had been integrally involved in consultations for the new law. 

Similarly, the Georgetown Chamber of Commerce and Industry (GCCI), in a statement, said that with the new law, it anticipates further improvements and reforms to both the institutional and legislative framework necessary to support the country’s development, including the establishment of the Petroleum Commission.