An estimated $68.3 billion in revenues was earned by the Guyana Government from its extractive sectors in 2019, according to the latest report published by the Extractive Industries Transparency Initiative (EITI) Guyana.
This is a significant increase from 2018 when some $27.6 billion was generated.
It was explained that the Guyana Revenue Authority (GRA) accounted for 72 per cent of the total revenue streams generated by the sectors while the Guyana Gold Board (GGB) and the Ministry of Finance (MoF), accounted for 15 per cent and 6 per cent, respectively.
This translates to $49 billion, $9.9 billion, and $3.8 billion, respectively.
Meanwhile, in 2019, the extractive sectors contributed 19.42 per cent to the country’s GDP, 24.94 per cent to revenues, 72.66 per cent to exports, and 17.40 per cent to employment.
“In accordance with the Guyana Labour Force Survey covering the year 2019, there were 239,014 persons employed in Guyana, of whom 41,589 were employed in the forestry, fisheries, mining, oil and gas sectors…,” the report outlined.
A further breakdown shows that of the $68.3 billion earned, $43.3 billion or 63 per cent came from the oil and gas sector. The mining sector accounted for $23 billion or 34 per cent while the forestry and fisheries sectors represented 1 per cent, respectively.
In 2018, the oil and gas sector contributed $7.5 billion or 27 per cent while the mining sector contributed $18.2 billion or 66 per cent to the $27.6 billion in total earned for that year. Forestry and fisheries contributed 5 per cent and 2 per cent, respectively.
The EITI is a global Standard to promote open and accountable management of natural resources. It seeks to strengthen Government and company systems, inform public debates, and enhance trust. In each implementing country, it is supported by a Multi-Stakeholder Steering Group (MSG), which comprises Government agencies, extractive companies and civil society organisations working together.
The EITI was first announced at the World Summit on Sustainable Development in Johannesburg in 2002 (the Earth Summit 2002) and was officially launched in London in 2003. EITI is currently being implemented in 56 countries in Africa, Asia, Europe and the Americas including Guyana.
The EITI Standard sets out the requirements that countries need to meet in order to be recognised, first as EITI implementing countries and subsequently assessed against the EITI Standard.
The Standard is overseen by the EITI Board, which comprises members from Governments, extractive companies, and civil society organisations.
On 4 May 2010, the then Prime Minister of Guyana, Samuel Hinds expressed the country’s interest to implement EITI and on May 12, 2012, the Government signed a Memorandum of Understanding (MoU) with the EITI International Secretariat.
In 2014, Guyana commissioned a scoping study of the potential adoption of EITI in the country. In December 2015, the Minister of Natural Resources publicly announced the Government’s commitment to implement EITI and declared the commencement of a process to appoint the members of a Multi-Stakeholder Group (MSG).
In February 2017, the GYEITI MSG was officially formed and comprised twelve members with four representatives each from civil society organisations, extractive entities, and Government agencies. Each MSG member has a designated alternate.
The Government then set up the GYEITI National Secretariat within the Ministry of Natural Resources and appointed a National Coordinator and a Deputy Coordinator.
The Secretariat operates under the supervision of the GYEITI MSG and is tasked with carrying out the day-to-day administrative and operational functions for the EITI implementation in the country.
This 2019 report was completed by BDO LLP, a UK-based auditing firm that won the tender for the contract for the compilation of Guyana’s 3rd EITI report in an open and transparent process.
This report builds on the previous reports, for fiscal years 2017 and 2018, and shows solid progress in meeting the EITI Standard 2019. It also chronicles the progress Guyana has made in implementing the recommendations of the previous reports, some of which relate to the implementation of new ways of capturing EITI-required information from stakeholders by Government agencies, whether miners, beneficial owners, and/or taxpayers.
Work on this report commenced in October 2021 shortly after the appointment of the new MSG on September 20, 2021. As a result of the time lost awaiting the new MSG, Guyana had applied for a five-month extension of the deadline for the report’s completion.
In a statement, the Ministry of Natural Resources lauded the timely compilation and release of this latest EITI report and committed to upholding transparency and good governance in the management of the extractive sectors.
“The Ministry will continue to support the work of the Guyana EITI National Secretariat and the MSG as we seek to sustainably explore and harness the country’s natural resources for the benefit of each citizen,” the statement expressed.
