Local Manufacturers flag Government’s move to compete in bottled water industry through GWI

Local Manufacturers flag Government’s move to compete in bottled water industry through GWI

The Guyana Manufacturing and Services Association (GMSA) has called on the Government to review its plan to establish a state-owned bottled water plant, saying that the Government’s participation in the sector can undermine private investment and discourage businesses.

Last week, the Government used its majority in the National Assembly to approve $496.3 million for a state-owned water bottling facility under Guyana Water Incorporated (GWI).

The Government has said that the facility is aimed at reducing the reliance on imported bottled water, by giving consumers another bottled water choice that will come from GWI.

But there are already a number of local manufacturers involved in the bottled water sector.

Earlier this year, the GMSA together with local bottled water manufacturers met with the Minister of Public Utilities and Aviation, Deodat Indar, and the leadership of GWI to discuss opportunities and challenges facing Guyana’s bottled water industry.

During that engagement, the Association welcomed the Government’s vision of achieving 100% locally produced bottled water. Since then, the GMSA said a number of its members have invested capital and have made business decisions to reflect the Government’s commitment.

The Association said there was a commitment to have close collaboration between the Government and private sector to bring down the cost across the industry, but it was not expecting the Government to have a state-run company compete with private local investors. 

The Association said it is concerned that direct state participation in a market already served by local manufacturers could discourage future private investment, create uncertainty for businesses that have committed substantial capital to the sector, and potentially undermine the Government’s broader agenda of promoting private sector-led growth and industrial development.

The GMSA also stated that GWI’s foundational mandate, which is to provide reliable, safe potable water delivery to every household, must remain its core priority, and any commercial diversification should be additive to, not a distraction from, that mission.

The Association now wants the Government to review the proposed investment and engage in further consultation with local bottled water manufacturers and other stakeholders before proceeding.

GMSA says it stands ready to engage directly with GWI and the Ministry of Public Utilities on behalf of its membership to help shape this initiative in a way that serves both consumers and Guyana’s private sector.

You must be logged in to post a comment Login