By Stabroek staff September 30, 2010
Berbice is slowly diversifying its economy from one that is based mainly on agriculture with a growing hospitality and services sector and an expected economic boost when the CGX oil company starts exploring for oil.
One major business in the service industry noted its high turnover rate and pointed out that this has stymied its efforts to grow. Another told Stabroek News that it has received small levels of return on investments in the sector. General Manager of Nand Persaud Company Limited Mohindra Persaud, who mills and exports Karibee rice and owns the Nand Persaud International Communications Call Centre at Tain said there are between 200 and 300 workers at any one time at the call centre. The centre was established a little over three years ago.
Persaud explained that there is a big market in this sector and growth in the service area is “unlimited”, pointing out that millions in the United States and in other developed countries use call centres. India has built an entire industry around call centres and is one of the world’s leaders in the technology sector. Persaud’s other call centre at Diamond on the East Bank has 400 workers and compared with the Corentyne location, the workforce is more stable.
With the creation of the University of Guyana Berbice Campus, the region will have more workers with university degrees or diplomas seeking jobs, so a growing service or industrial sector will create employment for these graduates, benefiting villages and communities. However, one village leader said that many students are graduating with Public Management degrees and are likely to be over-qualified for the current jobs available as well as those that are likely to pop-up. The leader also noted that the wages will not be in keeping with graduates’ expectations. This Corentyne villager also noted that persons may have to choose fields of study that will be in keeping with future and current job trends.
Earning from the sector
Imran Hamid, president of the Central Corentyne Chamber of Commerce, is very upbeat about the potential for growth in the service sector and its ability to give the Berbice economy a push. He noted that the Guyana Sugar Corporation is the number one employer on the Corentyne but he expects that when CGX, the Canadian oil company currently exploring for oil off the Corentyne shores, starts operations, the economy will be given a major boost. “I think this would be a major input in the Berbice economy” [and] things will be moving,” he said. For now, as regards job creation Hamid said there are jobs; in the police force and in shops though he said some people may not want the jobs available. He also believes that in Rosehall, where the Chamber is located, families need to return to planting their kitchen gardens.
Meanwhile on the Corentyne, investors in the services sector are waiting for their investments to pay off. An investor in an internet café in New Amsterdam believes that with more disposable income in the community, the year-old business could improve its patronage. The assistant at the café who requested anonymity, explained that the profit margin is too small in terms of the investment made to start the business.
For example, it was noted that after the business clears its expenditure of utilities, wages, internet bills and stationery supplies for its daily operation, the surplus is small. He posited that the café may have remained open until now because the investors have taken into consideration the importance of the service it provides to customers. He said too with more jobs people will have the money to use their services as the bulk of their customers currently are school-age children and young adults. It was further noted that many schoolchildren are not computer literate and need a lot of assistance, “You actually does have to do everything for them,” he said.
The owner of the café, who also did not want to be named, admitted that patronage fluctuates. She said at times it is also fairly good but she pointed out that to boost income an option was being examined to operate a Bill Express franchise, but the café is situated near to GT&T and GPL, the two main bills paid by users of that service. A second option is to install more computer systems by year end.
Sector disruptions
The service sector is very fragile and major shifts could mean disruptions that can have a domino effect. For example, Maharanie Singh, who has lived in New Amsterdam for five decades recently took over the management of a confectionary business, located in front of the GPL office and immediately in front of the Route 50 bus park.Recently her business has suffered a downturn as the bus park was relocated after a new zone – Route 56 – was established and buses relocated to the old New Amsterdam stelling bus park. The Route 56 buses have also taken over some of the routes that the Route 50 buses would have travelled which means that a fair chunk of her patronage was relocated.
For Singh and the other businesses in the area that depended on travellers for patronage, the move has made it a little harder for businesspersons.