The Digital Economy in Guyana
The digital economy in Guyana is currently underdeveloped but has the potential to expand rapidly. Amid the economic shift occurring in the country, the digital economy is emerging as a crucial component of Guyana’s broader economic development strategy. The Government of Guyana has recognized the importance of developing a robust digital economy as a foundation for sustainable growth. The national focus on digital transformation is reflected in various policies and initiatives aimed at modernizing infrastructure, enhancing digital literacy, and promoting innovation.
Key government initiatives include the forthcoming “ICT Masterplan 2030,” which, once publicly released, will outline strategic priorities such as expanding broadband access, improving e-government services, and fostering a culture of innovation through partnering with the private sector. The plan will also emphasize the need for digital inclusion, particularly in remote and rural areas, to ensure that all citizens benefit from technological advancements.
Projected Digital Growth
Guyana’s digital economy is poised for significant growth in the coming years. The expansion of fiber, broadband infrastructure, driven by both government and private sector investments, is expected to be a major catalyst for this growth.
As of 2024, Guyana’s internet penetration rate stands at approximately 52%, but with ongoing efforts to improve access, this figure is projected to increase to 75% by 2030. The mobile phone market, already experiencing high penetration, will continue to grow as 4G LTE and limited 5G networks are rolled out, providing faster and more reliable internet access.
E-commerce, digital banking, and fintech solutions are expected to be among the fastest-growing sectors within Guyana’s digital economy. The growth of these sectors will be supported by the government’s push to create a more enabling regulatory environment (e.g., the country’s new Single Window Platform for the construction sector) and the increasing adoption of digital payment systems.
Market Challenges
Despite the promising outlook, Guyana’s digital economy faces several significant challenges:
Infrastructure Limitations
While progress is being made, Guyana still suffers from infrastructure limitations, particularly in rural areas. The country’s vast, often rugged terrain makes it difficult to deploy the necessary infrastructure to ensure universal broadband access. This digital divide is a major barrier to achieving inclusive digital growth. Satellite internet providers will play a key role in bringing connectivity to rural and isolated communities.
Regulatory and Policy Gaps
Guyana’s regulatory framework for the digital economy is still evolving. There are significant gaps in legislation related to data protection, AI regulation, cybersecurity, and digital trade that need to be addressed to create a more secure and predictable environment for businesses and consumers.
Human Capital Constraints
Despite strides being made bridge the gap, a shortage of skilled professionals in the ICT sector is another significant challenge. The lack of digital literacy and advanced technical skills among the workforce limits the capacity of local businesses to fully leverage digital technologies and participate in the digital economy.
Limited Access to Capital
Many small and medium-sized enterprises, particularly start-ups in Guyana face challenges in accessing capital to invest in digital transformation. This is compounded by the relatively underdeveloped financial sector and stock market as well as a lack of venture capital and angel investors focused on tech startups.
Third Country Influence
Chinese ICT companies enjoy the full support of the Chinese Communist Party, do not adhere to normal market forces, and often engage in corrupt business practices. Companies like Huawei supply hardware to private telecommunication companies as well as government entities. U.S. companies should be mindful of unfair tactics employed by their Chinese competitors in Guyana.
Digital Trade Opportunities for U.S. Companies
Despite the challenges, Guyana’s digital economy presents several opportunities for U.S. companies:
Data Privacy & Cross Border Data Flows
Guyana passed Data Protection Act No. 18 on August 16, 2023. The law regulates the collection, keeping, processing, use, and dissemination of personal data. The law includes mechanisms to facilitate the transfer of data across international borders, which creates space for Guyana to join international forums like the Global Cross-Border Privacy Rules Forum which support the free flow of data and effective data protection and privacy globally. Companies certified under the system have access to a mechanism that enables safe data transfers between participating jurisdictions.
ICT Infrastructure Development
There is a growing demand for advanced ICT infrastructure, including fiber optic networks, data centers, and cloud services. U.S. companies with expertise in these areas can play a pivotal role in helping Guyana modernize its digital infrastructure.
e-Government Solutions
The Guyanese government expresses its interest in enhancing its e-government services, presenting opportunities for U.S. firms specializing in software development, cybersecurity, and digital transformation services. U.S. companies can also assist in developing secure platforms for digital identity, electronic voting, and public service delivery.
Fintech and Digital Payments
The expansion of digital banking and fintech presents opportunities for U.S. companies to introduce innovative financial solutions tailored to the Guyanese market. With the government’s support for digital financial inclusion, there is a significant opportunity for U.S. fintech firms to establish a presence in Guyana.
e-Commerce Platforms
As Guyana’s e-commerce sector grows, there is a need for more sophisticated and secure online shopping platforms. U.S. companies can capitalize on this by providing e-commerce solutions and digital marketing services. However, the solutions must also include logistic and delivery support to local businesses and consumers.
Artificial Intelligence (AI) and Digitization
In 2024, the Inter-American Development Bank hosted an AI and Digitization event in Guyana to highlight opportunities that technology can bring to the market. A similar event is in the works for the first quarter of 2025.
With a labor market under pressure and traditional methods of operations that is prevalent in an emerging economy, leapfrog opportunities exist for companies that offer AI and digitization solutions which can increase efficiency in business operations. These include integrable technologies that allow for multiple application linkages, for example in commercial banking, data analytics, digitization and mechanization technologies for agriculture, environmental analysis and monitoring. Price sensitivities and user friendliness will be key factors when approaching potential customers.
Education and Training
Given the skills gap in the ICT sector, there is a strong demand for education and training services. U.S. educational institutions and tech companies can partner with the Guyanese government and local businesses to offer training programs in digital literacy, coding, cybersecurity, and other relevant fields.
Conclusion
Guyana’s digital economy is at a critical juncture, with the potential to significantly contribute to the country’s economic diversification and long-term development. While challenges remain, the government’s commitment to digital transformation and the projected growth of the digital economy present numerous opportunities for U.S. companies. By leveraging their expertise in ICT infrastructure, e-government solutions, fintech, and education, U.S. firms can play a crucial role in shaping the future of Guyana’s digital landscape.