Guyana’s Timber Industry Demonstrates Robust Growth

Guyana’s forestry sector has experienced a remarkable resurgence since 2020, transitioning from a period of significant decline to a period of robust growth and expansion. This revival is largely attributed to strategic government interventions, including policy reforms, financial support, and market access initiatives. Prior to 2020, the sector faced considerable challenges, resulting in the loss of over 15,000 jobs. However, under the leadership of President Irfaan Ali, the industry has not only recovered these lost jobs but also added over 10,000 more, bringing the total number of forestry-related jobs to over 25,000. This turnaround underscores the significant contribution of the forestry sector to Guyana’s economy and its potential for further growth and development.

The foundation of Guyana’s forestry sector lies in its rich biodiversity. The country’s forests are a treasure trove of over 1,000 tree species, many of which hold significant commercial value. Among the most sought-after timber species are Wamara (also known as Brown Ebony or Ironwood), Greenheart, Purpleheart, Shibadan, Mora, Kabukalli, Darina, Tatabu, Tonka Bean, Wamaradan, and Wallaba. These timbers are harvested and processed for export to a diverse range of international markets, contributing significantly to Guyana’s export earnings. Logs are primarily exported to China and India, while sawn wood and other processed timber products reach a wider global market. Key export destinations include the United States, China, India, Trinidad & Tobago, Barbados, the Netherlands, New Zealand, Singapore, and the United Kingdom, demonstrating the global reach of Guyana’s timber industry.

The government’s proactive approach to revitalizing the forestry sector has been instrumental in its recent success. A key element of this strategy has been the empowerment of small and medium-scale foresters. Currently, over 550 small foresters manage over 2.5 million hectares of forest land, while 22 medium-scale foresters operate on 2.7 million hectares, totaling over five million hectares under the stewardship of these crucial stakeholders. This focus on empowering local operators demonstrates the government’s commitment to inclusive growth and sustainable forest management.

Furthermore, the government has actively pursued new and profitable markets for Guyana’s timber products, ensuring that local standards align with international expectations. This commitment to quality and market diversification has positioned Guyana’s timber industry for sustained growth and competitiveness in the global market. The issuance of over 150 small forestry concessions and five large concessions between 2021 and 2024 further underscores the government’s efforts to promote sustainable forest management and expand the sector’s reach.

The government’s approach also involves addressing past policy shortcomings that had negatively impacted the forestry sector. President Ali criticized the previous administration for implementing policies that burdened smaller foresters, including a substantial increase in fees and the application of VAT on essential equipment, exports, and hinterland travel. These measures hampered the growth and profitability of the sector. In response, the current administration has removed these burdensome taxes and revised the log export policy, providing sawmillers with direct access to international markets, thereby boosting their competitiveness and profit margins.

Financial support mechanisms have also played a vital role in the sector’s recovery. A $900 million revolving fund was established in 2022 to provide crucial financial assistance to small and medium-scale loggers. This fund serves as a lifeline for these operators, enabling them to invest in their operations, upgrade equipment, and expand their businesses. The fact that 13 individuals have already accessed nearly $300 million from this fund demonstrates its effectiveness in supporting the sector’s growth. Moreover, the government has addressed inherited debts of the forestry commission and ensured timely payment of workers’ salaries, further stabilizing the sector and boosting morale. The combined effects of these policy reforms, financial support, and market access initiatives have propelled Guyana’s forestry sector from a state of decline to a position of strength, promising continued growth and prosperity for the industry and the country as a whole. This revitalization underscores the importance of strategic government intervention in fostering economic growth and sustainable resource management.