Forestry sector production increased by over $15.6B since 2020 – Pres. Ali

In a live broadcast on Sunday, President Dr. Irfaan Ali detailed the revitalisation of Guyana’s forestry sector under his administration.

He emphasised that production in the sector has seen an impressive cumulative increase of more than $15.6 billion since 2020, marking a turnaround from the decline experienced during the APNU+AFC Coalition tenure.

The Head of State highlighted the state of the forestry sector during the APNU+AFC government – 2015-2020 – describing it as a period of severe mismanagement and economic hardship.

He cited key statistics and examples to illustrate the sector’s collapse during that time.“During the APNU+AFC period, the forestry sector suffered devastating losses,” President Ali stated. “Exports declined by 35 per cent, dropping from a peak of 500,000 cubic metres in 2015 to 400,000 cubic metres by 2020.

Employment fell from over 22,000 to less than 14,000. Thousands of jobs were lost, and communities, especially in Regions like Region 10, were left in economic turmoil.”The President attributed much of the decline to what he described as “onerous policies” implemented by the previous administration.

These included a 118 per cent increase in fees for small and medium-sized loggers, the imposition of VAT on machinery, equipment, and exports, and the removal of critical incentives that supported the sector.

“Under their rule, the Guyana Forestry Commission, which had reported a surplus of $215 million in 2014, was left unable to pay staff, utility bills, or even meet basic operational costs. Employees were paid in alphabetical order due to a lack of funds,” Dr. Ali revealed.

Upon returning to office in 2020, the People’s Progressive Party/Civic (PPP/C) administration introduced a series of reforms aimed at reviving the forestry sector. These included a $900 million revolving fund to assist small foresters in regenerating capital, the removal of vat on machinery, equipment, ATVs, exports, and hinterland travel was abolished.Moreover, tax concessions were provided for small and medium-sized loggers.

“These measures have been transformative,” President Ali noted. “Today, over 550 small foresters occupy more than 2.5 million hectares of land, and 22 medium-scale foresters manage an additional 2.7 million hectares. Employment in the sector now exceeds 25,000, surpassing pre-2015 levels.”

President Ali shared his government’s vision for sustainable growth in the forestry sector, highlighting the adoption of international standards and the development of the Guyana Timber Legality Assurance System.

This initiative aims to secure a forest license under the European Union’s Forest Law Enforcement, Governance, and Trade (FLEGT) program by 2026, ensuring access to higher-paying international markets.“Our focus is not only on the present but also on securing the future of the forestry sector,” Dr. Ali said. “We are adopting the highest international standards to enter new markets and ensure long-term sustainability.”

The President also underscored the importance of consultation and collaboration with stakeholders. “Every step we’ve taken has been through engagement with foresters, associations, and other stakeholders. This collaborative approach is the foundation of our success.”