Oil and gas companies are being encouraged to pay Guyanese suppliers ahead of the usual 30 to 45-day deadline, a move that could boost local cash flow and empower businesses to grow and seize new opportunities.
Director of Local Content Michael Munroe issued this call at the Guyana Supplier Forum held on Wednesday, spotlighting supplier financing as a practical tool that industry players can use to fuel the sustainable growth of local businesses.
Munroe encouraged companies to seek out ways to clear invoices before the usual deadlines, noting that quicker payments could give suppliers the working capital to keep their operations running, invest in growth, and pursue more contracts.
Protracted payment periods have been a concern of many local companies. In 2022, the government instructed companies to pay locals within 45 days. Before that, payments could take up to 90 days.
“If you are able to clear an invoice earlier, what benefits should redound to you? But importantly, it allows working capital and space to be given to your supplier so they can continue to fund and invest in their business,” he said.
He pointed out that it is time for the oil and gas industry to shift from questioning Guyanese companies’ capacity to participate, and instead focus on how these businesses can grow sustainably and build lasting operations.
Calling the forum’s theme, “From Capability to Growth,” both timely and fitting, Munroe said Guyana should strive to build a powerful business brand defined by active participation in the petroleum sector, resilient companies, and the export of local expertise across the region.
“We are no longer discussing are Guyanese businesses capable. We are now discussing how Guyanese businesses can grow in a manner that is sustainable and in a manner that confers longevity in Guyana’s petroleum story,” he said.
Munroe emphasised that reaching this goal will demand intentional collaboration between oil and gas operators, current local suppliers, aspiring businesses, and the Government through the Local Content Secretariat.
He stated that petroleum companies have a vital role in shaping an environment where local businesses can thrive, especially by opening up procurement processes and expanding available opportunities.
He urged operators to give early notice of upcoming procurement opportunities, giving Guyanese businesses the time they need to prepare, build their skills, and position themselves to compete successfully.
He also called on companies to thoughtfully design their Requests for Information (RFIs) and Requests for Quotations (RFQs), making sure that procurement requirements do not inadvertently shut out capable local suppliers.
“If you package it wrongly, then you are indirectly creating a barrier for Guyanese companies to participate and grow within your supply chain,” he cautioned.
Munroe further encouraged oil and gas companies to invest in proven local suppliers, pointing out that a range of strategies could help these businesses reinforce and expand their operations.
.png)
