ANY DISCUSSION ABOUT Suriname’s economic potential cannot ignore the offshore oil industry. It is a capital-intensive sector and there is a great need for related services. There are companies that build drilling platforms and make related equipment. They are in the first circle around the sector, there is no Surinamese framework for that.
The second circle contains companies that provide services to foreign companies and oil companies; from insurance to food to transporting materials and more. There are some local companies that have already entered into all kinds of partnerships with foreign companies that have the knowledge and certification to do the work properly.
But what is clear is that Suriname, despite the fact that Guyana has already gone through this development, still does not know what is coming its way
What falls outside this scope are the entrepreneurs who have to provide services to employees of those companies. This includes food, transport, housing and entertainment. The appeal of Suriname is also increasing enormously. All kinds of foreign companies and people understand what will happen in Suriname. They have seen it work in different places and they come flying to the honey pot like bees.
It is almost surreal: Suriname will make money from a product that will apparently never reach shore and yet it will transform its economy. Not enough is known about this transformation among the citizenry. While Guyana is experiencing the advantages and disadvantages of the oil industry firsthand. And because Guyana is located right next to Suriname, there are opportunities to learn from the country and to partner with organizations in those countries that have known this industry for a number of years now.
It is remarkable that there are two stories going around. One of prosperity and well-being: good roads, good salaries, more housing, better education and better health care. Another side of the story is: high prices, companies losing employees to the oil industry and related services, weak sectors are dying and more and more migrants are not adhering to the rules of the country.
The question is precisely which of these two stories Suriname is prepared for. Entrepreneurs who have experienced this development in Guyana advise to invest in houses and plots. They foresee a huge shortage of housing and storage capacity in Suriname. They also expect prices of houses and plots to skyrocket. So taking a loan now will be money well spent.
This will certainly apply to the owners of houses and plots. But the majority in Suriname have built up little property and live in rented houses. In Guyana, rental prices increased by an average of 300 percent due to the demand for houses and many people moved to the suburbs of Georgetown.
Will that also happen in Suriname? It’s like watching coffee grounds. But what is clear is that, despite the fact that Guyana has already undergone this development, the country still does not know what lies ahead. More attention should be paid to this.
