Forestry sector production increased by over $15.6B since 2020
Through a series of comprehensive programmes and policies, Guyana’s forestry sector has experienced significant growth since 2020. Production within forestry increased by over $15.6 billion.
This increase is remarkable against the backdrop of the sector’s abysmal state prior to 2020, when more than 15,000 forestry jobs evaporated.
According to President Dr Mohamed Irfaan Ali, not only has the forestry regained its 15,000-strong workforce, but thanks to government policies and investments, more than 25,000 persons are now employed in the sector.
President Ali described this as a remarkable turnaround during a live broadcast on Sunday afternoon.
He explained that more than 550 small foresters occupy in excess of 2.5 million hectares of land today, a clear sign that the sector is enjoying a period of rapid revitalisation.
“And 22 medium-scale foresters occupy 2.7 million hectares of land. If you check it, more than five million hectares of land is occupied by the small and medium-sized foresters,” the president explained.
Highlighting some of the measures implemented to sustain the sector, the president said that his government is exploring new, niche and high-yield markets for foresters, while ensuring that local yields match the highest international standards.
Additionally, between 2021 and 2024, the government issued over 150 small concessions and five large forestry concessions.
President Ali reminded Guyanese that during the previous administration’s tenure, a 118 per cent increase in fees placed a over-sized burden on small and medium-sized foresters.
“When we came back into office, we removed the VAT on machinery and equipment. They imposed VAT on machinery and equipment, not only the fees, but all the incentives to support the small and medium-sized foresters. They had the VAT on exports, and they had VAT on hinterland travel. Can you imagine that?” the president said.
He further stated, “We removed the VAT on these things and offered those as incentives to the small, medium-sized and large-scale operators in the forestry sector. The government also amended the log export policy to allow sawmillers to export logs. Sawmillers could go directly to the international markets and export their log.”
These interventions, he stressed, were made following consultations with all stakeholders in the sector.
To complement these measures, in 2022 the government established a $900 million revolving fund for small and medium-scale loggers to increase production in the forestry sector.
President Ali said the fund has already empowered 13 persons with access to almost $300 million from this fund.
“Since returning to power, the PPP has rescued the [forestry] commission, paying off all its debts. All the debts we inherited, we paid off. And the workers today are being paid on time and not delayed for months and in alphabetical order,” the president said.