In an article by Kejal Vyas, the Wall Street Journal visited Guyana’s Stock Exchange ahead of a huge year for the nation.
With first oil barely a month away, Guyana is poised to undergo a seismic shift: the 7 billion barrels of oil could propel the economy to 86% growth in 2020, according to the International Monetary Fund.
Mr. George Edwards, the General Manager of the Guyana Stock Exchange, hopes this means a new life for domestic equity market - and more diversification and profits for shareholders.
Pomeroon Trading is preparing to join the exchange - the first company in more than a decade. The WSJ visited Pomeroon to see first-hand the company’s progress.
Pomeroon Trading COO Jared Kissoon at the company’s 700-acre coconut estate (photo credit: Oscar B. Castillo for The Wall Street Journal)
“Guyana’s transition to the world’s newest petrostate has stirred fierce debate here over how a country with weak institutions and frequent troubles with corruption will manage its funds without abandoning its traditional farming sector”
We believe agriculture is critical to Guyana’s success as a sustainable economy. It provides jobs for people lower down the economic pyramid. It reduces reliance on expensive imports. It boosts GDP and diversifies the country’s revenues. Moreover, Guyana’s oil-wealth will not be felt by everybody immediately. Guyanese agriculture should be celebrated and we predict significant foreign direct investment in this space.
“Oil won’t have an impact on these guys’ lives for another two generations,” he said. “These are people of the soil. You can’t just take them and put them on an oil rig. Farmers need to farm.”
You can read the full article here.