Foreign Direct Investments (FDI) in Guyana increased from US$58M in 2016 to US$212M in 2017 as a result of the oil and gas related activities.
This is according to a report by the Economic Commission for Latin America. The document notes that Guyana has bucked the trend for the region with FDI flows to Latin America and the Caribbean contracting for the third year in a row in 2017, to US$161.6B. This is 3.6% down on the 2016 figure and 20% less than in 2011.
In 2017, Guyana’s energy and mining were the two main recipients for FDIs. It was noted that total FDI represented 6% of Guyana’s Gross Domestic Product (GDP).
The report states that “FDI grew in all sectors, except in manufacturing. The energy sector received US$90 million, as part of the first wave of inward FDI related to ExxonMobil’s discovery of major oil reserves off Guyana’s coast. While it continues with its successful exploration efforts, ExxonMobil decided to launch the first development phase of the Liza field, with an investment of US$4.4 B; the group aims to begin extraction in 2020 (ExxonMobil, 2017).”
The report said, too, that the Government of Guyana hopes to take advantage of the international interest in the recently discovered oil reserves to promote other sectors, such as agriculture and mining. It also highlighted that Canadian mining company First Bauxite Corporation (FBX) announced a bauxite production project valued at US$50 million, with the construction of facilities set to begin in 2018.