Tucked away on the north coast of South America sits Guyana, a laid-back former English colony with a distinctly Caribbean vibe. Although this tiny nation has fewer than a million people, thanks to the recent discovery of vast off-shore oil reserves, it's now the world's "fastest growing economy"—a distinction that has made it the epicenter of intense international military, diplomatic, and private sector interests.
Last year, Guyana's GDP grew by an astounding 62.3 percent, the highest in the world according to the International Monetary Fund (IMF), and this rapid clip of formidable double digit yearly growth is expected to continue for the foreseeable future. And with all this newfound wealth, coupled with its key geographic position as a neighbor to both Venezuela and Brazil, largescale multinational corporations from across the world are scrambling to plant their flags in the country.
But where are all the Americans?
Aside from the energy sector, which is being developed by a consortium led by ExxonMobil, major American companies are largely absent from the Guyanese scene. This is creating a vacuum that other foreign interests, namely Chinese-backed businesses, are more than willing to step in and fill. Ceding ground to China in this strategically important economy could prove to be a major problem for U.S. geopolitical interests in the region.
Dr. Tenpao Lee, the professor emeritus of economics at Niagara University, closely tracks Chinese global economic expansion across the developing world. "Guyana is not only on China's radar, but the country is a major focal point of its Caribbean and Latin American investment strategy," Lee explained to Newsweek. "And although the United States ought to be its preferred natural business partner given that they are both English-speaking and so close geographically, I expect China to be very competitive, investing in key sectors by offering terms and conditions that many American companies may find tough to match."
Dr. Lee continued, "The U.S. should really be doing more to educate and incentivize American companies about the opportunities in Guyana and the need to move quickly and seize first-mover advantage."
The Biden administration could be doing a lot more when it comes to Guyana, especially given that it is poised to join the U.N. Security Council as a non-permanent member in 2024. Although the U.S. military is engaged around the geopolitical importance the country holds, outside of the energy sector, the CEOs of many major American companies are still seemingly asleep at the wheel. And this void is creating an opening for foreign interests, namely Chinese state-backed enterprises, to gain an important foothold in the country.
I asked Guyana's President Dr. Mohamed Irfaan Ali for his assessment of American private sector engagement with key sectors outside of oil and gas.
"Guyana is open for business. We invite the world to invest in our land of untapped potential. But American investors must seize this opportunity before it slips through their fingers," Ali said. "With vast natural resources, an educated workforce, and a commitment to democracy, we offer stability, legal protections, and the convenience of being just a four-hour flight from Miami. Guyana, however, is not waiting on anyone. The United States needs to intensify its efforts to encourage American businesses to invest in Guyana."
Already China's presence in Guyana is unmistakable. China Harbour and Engineering Corporation is leading several strategic infrastructure projects including a major expansion and renovation of the Guyana's main airport. China Railway Construction Corporation Limited, another major player, is slated to build a key bridge in the country's capital, Georgetown. In health care, Sinopharm has signed on to build six new hospitals in the country. And Huawei, China's global technology juggernaut, is quickly becoming Guyana's go-to partner for a whole range of IT needs, a relationship underscored by President Ali's visit to the company's headquarters on his recent state visit to China earlier this year.
ExxonMobil, together with its partners Hess and CNOOC, a Chinese state oil company, have already invested over $40 billion in Guyana. Alistair Routledge, who leads Exxon's operations in the country, told Newsweek that, "Every chance we get, we encourage other American companies—especially those outside of the energy sector—to come to Guyana and see for themselves what's going on. In 2022, trade between the U.S. and Guyana reached nearly $4 billion, and this is a number that will only grow."
Let's hope that more American CEOs will take Routledge's advice.
"And although it's still early days in terms of Guyana's economic transformation, we are really encouraged by what we have seen so far—especially the country's approach to fostering diversified development. There are tremendous opportunities for U.S. companies across a whole range of sectors here," added Routledge.
China, after all, isn't just waiting in the wings.
Arick Wierson is a six-time Emmy Award-winning television producer and served as a senior media and political adviser to former New York City Mayor Michael Bloomberg. He advises corporate clients on communications strategies in the United States, Africa, and Latin America.
The views expressed in this article are the writer's own.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
In Guyana U.S. Businesses Risk Losing Ground to China
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01.11.2023
Tucked away on the north coast of South America sits Guyana, a laid-back former English colony with a distinctly Caribbean vibe. Although this tiny nation has fewer than a million people, thanks to the recent discovery of vast off-shore oil reserves, it's now the world's "fastest growing economy"—a distinction that has made it the epicenter of intense international military, diplomatic, and private sector interests.
Last year, Guyana's GDP grew by an astounding 62.3 percent, the highest in the world according to the International Monetary Fund (IMF), and this rapid clip of formidable double digit yearly growth is expected to continue for the foreseeable future. And with all this newfound wealth, coupled with its key geographic position as a neighbor to both Venezuela and Brazil, largescale multinational corporations from across the world are scrambling to plant their flags in the country.
But where are all the Americans?
Aside from the energy sector, which is being developed by a consortium led by ExxonMobil, major American companies are largely absent from the Guyanese scene. This is creating a vacuum that other foreign interests, namely Chinese-backed businesses, are more than willing to step in and fill. Ceding ground to China in this strategically important economy could prove to be a major problem for U.S. geopolitical interests in the region.
Dr. Tenpao Lee, the professor........
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