The Guyana government is weighing legislative updates to its landmark Local Content Act, including a potentially stricter definition of a “Guyanese company.” This move follows growing concerns about firms exploiting loopholes in the current law to appear compliant on paper while failing to deliver the intended benefits to local businesses and citizens.
Under the existing law, passed in 2021, a company must be at least 51% beneficially owned by Guyanese nationals and have a substantial number of Guyanese in its management structure to be certified as a “Guyanese company” by the Local Content Secretariat. This certification is critical, as it entitles companies to preferential treatment in acquiring contracts in the oil and gas sector.
However, as the law stands, there are signs that shady practices are diluting its intended impact. “One of the critical areas that we have been looking at with considerable thought is the issue of who is a Guyanese… and who is a Guyanese company,” said Michael Munroe, Legal Officer at the Ministry of Natural Resources, during his address at the 2025 Local Content Summit in April.
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