How would you describe the current business climate in Suriname, and what key trends are shaping its economic landscape?
Mr. Andrew Tom:
I think the market is currently opening up to a lot of potential investors. The business environment is positive, and the outlook is definitely encouraging. We see more awareness from the government regarding the steps that need to be taken. For instance, they have developed a green development strategy and established a team to strategize on how to best utilize the oil revenue coming into the country. They're focusing on how to avoid the resource curse and the Dutch disease that often accompany such a boom. There's a desire to encourage investment and ensure that Suriname can benefit most from it. But we’re still in the early stages, and there is a lot more work to do.
Mr. Rudolf Elias:
It’s important to note that Suriname has already made significant oil discoveries. To date, we have nine discoveries. However, only two of these—Sapakara and Krabdagu—are being developed in the first phase of development under the Granmorgu project. This leaves seven discoveries still undeveloped. The second, third, and fourth phases of development are expected to follow over the next five to ten years. With this growth, the country’s revenue is projected to multiply six to seven times, which could see our GDP rise from $4 billion to over $20 billion within the next decade. However, as I always stress, we must manage this growth carefully. If not, we risk falling into the resource curse, which could lead to issues like illegal immigration. If managed well, though, this growth can drive the economic development we aspire to.
Can you share an overview of EY’s role in Suriname’s economic development and some of the major projects you're involved in?
Mr. Andrew Tom:
EY Suriname is part of the EY Caribbean network, which spans across eight territories in the Caribbean. We have offices in Trinidad, Barbados, Jamaica, Curacao, Aruba, St. Lucia, Guyana , and Suriname the newest addition to our EY Caribbean family. We opened our doors here in June 2019. What's unique about EY Caribbean is that we operate as an operational and financially integrated entity. This means that we have access to over 1,000 employees across the region who can support our clients in Suriname.
In Suriname, we’ve built our practice from scratch, and now we have 35 employees. We provide services in assurance, tax, advisory, and strategies and transactions. We work with large organizations and the government. For example, we’ve been involved with the Suriname government in some major projects, including working on carbon credits, where we collaborated with our colleagues from EY France to help Suriname gain accreditation for its carbon credits under the UNFCCC.
Ms. Kimberly Schreuders:
We've also been working closely with the government on the SARA project, which stands for Semi-Autonomous Revenue Agency. This project aims to increase the efficiency and effectiveness of Suriname’s tax system. It’s an important step forward because the Suriname tax authorities are becoming more autonomous, which should help in generating more revenues for the country. Additionally, we’ve been engaged in discussions around a country roadmap to help Suriname capitalize on the oil and gas boom while ensuring sustainable growth.
What are the key regulatory challenges that international investors should be aware of when entering Suriname’s market, and how can they best navigate them?
Mr. Rudolf Elias:
One of the main regulatory challenges in Suriname is outdated legislation. The tax and legal systems need to be updated to align with modern international standards. This is something that the business community here often expresses concern about. The good news is that some reforms are in the works. For example, new civil codes are being introduced soon, which is a positive step forward.
Another challenge is bureaucracy. Like many developing countries, Suriname has inefficiencies within its institutions, which can sometimes slow down processes. Strengthening these institutions is essential as the economy grows. There’s also the issue of regulatory compliance, particularly in areas like financial reporting. For instance, the Financial Statement Act was introduced a while back, but its criteria were based on an exchange rate of seven to one. With the current exchange rate closer to 36 to one, most organizations now fall under the large company category, which means they need audits. However, there are not enough licensed accountants to handle the growing demand, and this presents a challenge.
Ms. Kimberly Schreuders:
In addition to that, international investors need to be aware of Suriname's foreign exchange regulations. There’s a desire to bring money into the country, but investors also want the flexibility to get their money out. This can be a concern, particularly if the exchange rate fluctuates drastically. Immigration is another area where regulations could present challenges. Investors should seek out local partners who understand these regulations well and can help navigate the system.
Mr. Andrew Tom:
I think another key challenge is the lack of qualified human resources. Suriname is a small country, and there are limited resources in terms of skilled labor. As more international companies enter the market, there will be a high demand for skilled workers. This issue ties into the broader challenge of ensuring that the local economy can support the increased activity from oil and gas revenues.
At the same time, we have an opportunity to shift from a "brain drain" to a "brain gain." Suriname has seen many of its skilled professionals leave in search of better opportunities abroad, but with the growth of the oil and gas sector, we can create the right conditions to attract these individuals back. By investing in education, training, and creating a conducive business environment, we can harness the skills of our diaspora and foster local talent development. This can transform Suriname into a hub for skilled professionals, fueling innovation and ensuring long-term sustainable growth.
What sectors do you see benefiting most from Suriname’s oil and gas revenues in the next decade?
Mr. Andrew Tom:
The immediate sectors that will benefit from the oil and gas boom are those closely related to the industry. These include the construction, engineering, and real estate sectors, as well as suppliers of food and services. We’re already seeing growth in these areas. For instance, the real estate market is likely to pick up as expats flood into the country. Additionally, there will be opportunities in agriculture, tourism, and renewable energy if Suriname can manage the resources wisely. If the government can design a roadmap, we can see growth in these areas while balancing environmental sustainability.
Mr. Rudolf Elias:
It’s important for Suriname to not just focus on oil and gas but also diversify its economy. We need to look at sectors like agriculture and tourism, where Suriname has a lot of potential. Our forests, for instance, are one of our greatest natural resources, and we must ensure that we protect them while developing the economy. We also have opportunities in renewable energy, especially solar and hydropower. These sectors could really benefit from the revenue generated by oil and gas, but only if we manage it properly and avoid the mistakes made by other countries.
Finally, what message would you give to international investors considering Suriname as a potential investment or tourism destination?
Mr. Andrew Tom:
I would say that Suriname is a country full of opportunities. The business community here is very entrepreneurial, and the government and private sector businesses are becoming more open to collaboration with international investors. However, you need to be here on the ground. It’s important to understand the culture, build relationships, and find local partners who can help you navigate the market. The local business community is very receptive to new ideas and collaboration, so international companies should take advantage of that. You also need to stay updated on regulatory changes and engage with reputable service providers who can guide you through the processes.
Ms. Kimberly Schreuders:
I’d add that it’s important to keep in mind that Suriname is a small market. But what it lacks in size, it makes up for in opportunities in key sectors like agriculture, tourism, and renewables. The oil and gas revenues will provide a massive boost to the economy, and we need to ensure that these resources are managed properly. But the business community is open to working together, and it’s a very exciting time to be involved in Suriname.
Mr. Rudolf Elias:
I would say that Suriname is a diamond in the rough, and over the next 20 years, it could become a paradise if we manage our resources well. The key is to preserve our rainforests and use the oil revenue wisely. If we do that, Suriname has the potential to grow into a successful and sustainable economy.
