GEORGETOWN, Guyana, CMC – President Irfaan Ali says Guyana is entering a decisive phase of industrial and manufacturing growth and is urging local production to expand to meet the rising demand of a rapidly growing economy.
Delivering the feature address at the commissioning of the Banks DIH’s new GUY$13.7 billion (One Guyana dollar=US$0.004 cents) malt production plant on the East Bank of Demerara on Sunday, President Ali said the facility, capable of producing 400,000 cases of beer per month, symbolises the confidence driving Guyana’s economic renewal.
He told the audience that as the economy expands, rising incomes and consumer spending will fuel even greater demand for food, beverages, and other goods, underscoring that the country now stands at a decisive crossroads.
“The question before us is simple but profound. Who will meet that demand? Will we rely increasingly on imports, or will we see expanded local production?” he asked.
High energy costs have historically constrained industrial expansion and reduced competitiveness, discouraging investments in manufacturing, but that is likely to change this year with the landmark Gas-to-Energy (GTE) project being developed in Wales, Region Three. President Ali said that lower energy costs would make local manufacturing more viable, allowing both new industries and existing companies to expand. That is why he emphasised that the period between now and later this year is critical.
“Companies must prepare. They must plan. They must position themselves for this new era. They must begin to produce more food, more beverages, more consumer goods, not only for local demand, but for export, “President Ali said.
Using Banks DIH as an example, he said established Guyanese companies have a vital role to play in shaping the country’s manufacturing future.
“The example of Banks DIH shows us what is possible. It shows that Guyanese brands can achieve international recognition, that quality made here can stand confidently on shelves abroad,” he said, noting that legacy companies bring experience, strong brands, and financial capacity, placing them in a better position to invest over the long term and manage large-scale industrial projects.
Ali said this is why the government has engaged large companies to work with the Guyana Development Bank to empower small businesses through financial literacy and other empowerment programmes.
“The future of manufacturing in Guyana will therefore not be built from scratch. It will and must be built on the foundations laid by these established enterprises,” he said, assuring the private sector that government support will continue and that targeted measures for manufacturing and industrial development will be announced in the upcoming national budget.
Meanwhile, Banks DIH chairman, Clifford Reis, says the Guyana Stock Exchange (GSE) is undervaluing Banks DIH’s shares even as he flagged the possibility of conflict of interest.
He told the commissioning ceremony that the competitor’s share price was GUY$200, while Banks DIH’s was GUY$155.
“This does not reflect this company’s share value on the stock exchange, which we have estimated to be between GUY$400 and GUY$450 per share,” he said, noting that available figures call into question the integrity of the stock exchange.
“Any reasonable person will consider that the stock market in Guyana cannot be taken seriously,” he said, adding that raises the question about his company’s shares being sold at a lower price and the competitors for their actual value.
He also questioned whether there was a conflict of interest.
“I think this is the time to ask the question: Who are the shareholders of the broker companies buying and selling shares? Is there a conflict of interest, and what is the financial matrix being used to value the shares on the Stock Exchange of this company?” he said.
Reis said that, for the period 2021-2025, Banks DIH’s revenue increased by 45 per cent and its profits by 54 per cent. He said that the share price was GUY$300 in March 2022 and GUY$155 in December 2025.
“This bulk of information I just mentioned, ladies and gentlemen, serves to emphasise the inherent contradiction in the downward movement of Banks Holdings’ share price while at the same time the revenue and profits are increasing,” he said.
Reis said that the share value relative to profit shows that the pre-tax profit at the end of its financial year was GUY$17.6 billion. Still, he cautioned that selling 1,000 shares at GUY$1.00 below the opening price would reduce Banks DIH’s market capitalisation by GUY$849 million.
“This will have a serious financial implication for large shareholders,” he said, noting that Banks DIH’s earnings per share are GUY$12.75. At the same time, the “other” companies are GUY$12.69, while the dividend being paid by his company is GUY$3.00 per share versus GUY$2.00 by the “other competitor”.
Reis said Banks DIH’s debt-equity ratio is zero, as demonstrated by the fact that the construction cost for the new malt bottling plant was funded by the company’s cash flow “without any borrowing or selling of shares.”
The competitor’s net profit is GUY$5.5 billion, while Banks DIH’s is GUY$10.5 billion.
“We are GUY$5 billion and 92 per cent more than the other company, and there is no other company in this country on the Stock Exchange that makes more profit than Banks DIH Limited,” he said.
He said the regulatory body, the Guyana Securities Council, is empowered by law to address the situation, adding, “It is not rocket science or needs a genius to figure out the inconsistencies of Banks DIH shares trading on the stock exchange.”
The Banks DIH chairman reiterated the need for an odd-lot market, or failure to do so would affect the development of the capital markets.
Reis said he had raised his concerns with President Ali, a former Banks DIH employee, who assured him that he would “look into this matter” and that the government would make changes to the capital markets.
In his address, the Guyanese leader said he would not divulge announcements to be made by finance minister Dr Ashni Singh, but promised that, after consultations with the private sector, there would be stock exchange reforms, including the establishment of a junior stock exchange.
“Over the next coming weeks, you would see a massive push towards the modernisation of this whole financial architecture that includes, of course, the stock market,” he said, adding that discussions between himself and Reis also focused on “ensuring shareholders believe that they are getting dividends that are reflective of the growth of the company and their belief that the share value is also reflective of the growth of the company’s assets and shares”.