President of the Guyana Manufacturing and Services Association (GMSA), Rafeek Khan, says proposed Special Development Zones will significantly reduce operating costs and strengthen the competitiveness of local manufacturers.
Finance Minister Dr Ashni Singh during the presentation of the 2026 National Budget on Monday revealed plans for these zones to be established based on a strategy to promote geographically balanced development taking into account proximity to raw materials and connectivity to domestic markets.
Khan, during a press conference earlier this week, highlighted the high cost of transporting raw materials from the hinterland to manufacturing hubs.
According to Khan, the Special Development Zones are designed to address these challenges by creating consolidated manufacturing hubs across the country. These hubs would bring together relevant and like-minded manufacturers in shared spaces.
“One of the major advantages is that manufacturers will be able to operate in the same space, which will significantly reduce logistics and operational costs,” Khan said.
He added that the government’s plan to provide shared electricity services within these zones would also help lower energy costs, making manufacturers more competitive.
Khan further explained that clustering similar industries within designated zones would improve monitoring of quality and standardisation. This, he said, aligns with GMSA’s goal of ensuring consumers receive high-quality, locally manufactured products that meet consistent standards.
However, he acknowledged that local manufacturers continue to face competition from imports, particularly from countries with lower production costs.
“There has been a lot of import substitution in the economy that is affecting manufacturers that are sitting at the table here.
“Once consumers can be assured of quality and standards, they will rely more on locally-manufactured products,” Khan stated.
The GMSA president further encouraged manufacturers, regardless of size, to explore export opportunities. He urged small businesses to allocate part of their revenue towards export development, noting that access to external markets can help cushion profitability and provide foreign currency earnings.
“It doesn’t matter how small your business is or what your energy costs are… every company should be positioning themselves to utilize vehicles provided by the government to participate in export trade outside of Guyana,” Khan said.
Additionally, Khan advocated for the establishment of manufacturing hubs and business incubators to support small and medium-sized enterprises that cannot afford to set up independent factories. He said these shared facilities would help small businesses scale up production while spreading costs, similar to the macro-level Special Development Zones.
AGRO-PROCESSING GROWTH
Meanwhile, GMSA’s Vice President Ramsay Ali, says the agro-processing sector has undergone a major transformation over the past decade and is now well positioned to compete with imported products, provided that access to markets and financing continues to expand.
According to Ali, the sector’s next phase of growth depends largely on two critical areas: market expansion and access to finance. He said the National Budget provides significant opportunities for agro-processors to access both, particularly through development banking and other financial support mechanisms.
“I think this budget has significant room for them to access financing, and that will benefit the sector tremendously,” Ali said.
Beyond traditional agro-processing, he highlighted growing opportunities for specialised, high-value agricultural products, including those being developed through the shade house projects.
Between 2021 and 2026, a total of 15 agro-processing facilities and 10 cold storage facilities were established across the country. In the medium term, continued investment is planned for fruit pulping hubs, as well as modern cold storage and packaging facilities, aimed at reducing post-harvest losses and improving export readiness.
In 2025, an agri-business hub was established in Bartica, while 25 Guyana Shop corners were set up across the country and one in Barbados to promote local products. During the same period, 373 agro-processors were trained in packaging and labelling techniques, and construction advanced on the Regional Food Hub at Yarrowkabra, which is expected to be completed in 2026.
Looking ahead to 2026, the government plans to commence works on an agro-processing port facility at Parika, advance construction on the Regional Food Hub at Yarrowkabra, and a fruit pulping hub at Lethem.
To support these initiatives, $745 million has been allocated in the 2026 budget.
The post Special Development Zones will cut costs, boost competitiveness for local manufacturers – GMSA appeared first on News Room Guyana.
