ECONOMY

 

The World Bank has ranked Suriname as the 17th richest country in the world in terms of natural resources. Being already one of the world’s top suppliers of bauxite, the raw material for the production of aluminum, Suriname also possesses other natural resources, such as timber, kaolin, oil, gold, diamonds, platinum, uranium, manganese, copper, nickel and iron ore, most of which are still unexplored.

 

Exploitation of these vastly untapped resources is, however, dependent upon investment. The Surinamese Government and the business community are ardently looking for establishing joint ventures as well as much needed technology transfer.

 

The Chamber of Commerce & Industry and the Suriname Trade & Industry association are  strongly promoting the development of small and medium sized companies as it believes that in Suriname this is the best basis for development of the entire economy of the country.

 

A major objective is to reduce Suriname’s over-reliance on bauxite mining, which provides 80% of the export earnings.

The bauxite industry produces more than 1.6 million tons of alumina a year for export, mainly to the United States of America, Europe, Russia and South Africa.

 

Plans are to extend gold mining and oil production, each currently contributing to exports worth 25 million US dollars yearly. Suriname is also planning for the development of the (eco) tourism sector, albeit with a sensitive touch. Suriname is keen to protect its natural environment, which includes one of the largest remaining areas of untouched rain forests in the world.

 

With its wealth in natural resources, foreign investors will have no trouble in finding possibilities and investment opportunities in Suriname.

 

In order to enhance investment, Suriname is now developing state-of-the-art domestic and offshore banking laws, while it has adjusted its import and export licensing and tax incentives for investors, along with creating a new Investment Act, that will provide investors with the necessary legislation to protect their rights and facilitate their access to the market.

 

 

Principle Items of Export from India to Suriname

 

Spices,

Footwear of Leather,

Primary and Semi-Finished Iron & Steel,

Cotton Yarn,

Fabrics,

Ready-Made Garments,

Transport Equipments,

Metal Products,

Drugs,

Pharmaceuticals and Fine Chemicals,

Machinery and Instruments,

Cosmetics / Toiletries,

Rubber Products.

 

Potential Areas for Suriname–India Joint Ventures and Collaborations

 

Agro-Industry

Pharmaceuticals,

Information Processing,

Wood Products,

Textiles and Garments,

Mining and Minerals Processing,

Eco-Tourism and Hotel Development,

Oval:    Go Top Automobile Parts and Components.

 

 

 

 

 

POLITICAL AND ECONOMIC DEVELOPMENTS

 

According  to the World Economic Outlook Report 2006 of the International Monetary Fund (IMF) the global economic outlook over the 2006 is positive.

Suriname is benefiting from the boom in global commodity markets. Growth remains strong, fueled by investment and exports in the gold, bauxite, and oil industries. The completion of major investments in the mining sector and the strength in global commodity prices supported buoyant growth in exports and an increase in foreign exchange reserves. Macroeconomic policies remain broadly appropriate. The central bank has absorbed liquidity created by a reduction in reserve requirements in the last two years by placing Treasury bills in the market. As a result, reserve money growth has slowed and private sector credit growth is projected to decline to 16 percent in 2007. The estimate for 2006 is for 6.4 percent growth, while a 5.3 percent expansion is forecast for 2007. The inflation rate is 5% for the year 2006.

 

This significant expansion is due to the favourable international context and robust demand for gold, alumina and petroleum, its three main exports. Political stability has contributed to an increase in foreign investments, while fiscal restraint and monetary expansion have boosted domestic demand. The National Assembly approved the 2006-2011 five-year multi -annual plan in August 2006. Same decisive economic policy initiatives, such as the public sector reform and sector development programmes, are being implemented within the framework of projects conducted jointly with the IDB or bilateral cooperation with the Government of Netherlands.

 

Besides the enormous revenues generated from the mining sector the agriculture sector and other sectors have contributed to the tax incomes of the government and employment. The European Union has a credit facility available for the rice sector of 3.2 million Euro.

There was practically no change in the exchange rate policy and the rate remained at between SR$2.7 and SR$2.8 to the United States dollar. The monetary authorities adopted a more expansionary policy. The interest rate on treasury bonds and the rate paid for the reserve requirement in local currency fell from 12.5 percent to 10 percent. In turn, the reserve requirement was reduced from 30 percent to 27 percent. As a result, the commercial  banks were able to reduce the interest rates and increase the flow of credit to the public.

 

According to the projections by the National Planning Office, the most buoyant sectors after mining are construction and transport. The latter has benefited from the progressive liberalization of air transport. Heavy rains in central and southern regions of the country in May caused several rivers to overflow their banks. Such high water had not been seen since 1949. Almost 200 indigenous and Maroon communities in the interior of the country were flooded out. More than 300,000 people (6 percent of the population) were affected.

 

Prospective developments for 2007

            - On Shore and Offshore drilling of State Oil Company together with international companies

            - Extension Plant and Electricity

            - Suriname Alumina Company and BHP Billton are going to explore the West Surname Project

            - 20 Megawatt Power will

            - Investments of New Mont :  Gold Company

            - Jai - Tapanahony Project to upgrade the energy capacity that will result in an increase of 60 Megawatt electricity

            - Rehabilitation and Upgrading Port facilities

            - MCP - irrigation project West Suriname for the rice sector

            - Roads

            - Renovation of the Cathedral

 

 

 

 

 

 

Macro economy

(Source : Ministry of Finance; General Bureau of Statistics; Central Bank of Suriname)
Gross Domestic Product (GDP) in 4856 mln SRD      (2005)           
Inflation 5% (2006)
Unemployment rate 10% (2005)
Lending rate 15.8% (2006)
Exchange rate 2.75 (US$) (2006)
Exports of goods 727 mln US$ (2005)
Export of services 204 mln US$ (2005
Import of goods 769 mln US$ (2005)
Import of services 352 mln US$ (2005)
GDP real growth 6% (2005)
Credit rating B / Positive  

           

 

 

 

 

Starting a Business in Suriname

Nature of Procedure
Deposit paid-in minimum capital
Verify uniqueness of company name
Obtain extract and nationality declaration from the Civil Registry of each founder
Pay fee at the Accountancy and Finance Department of the Ministry of Justice and Police
Pay fee at the Districts Commissioner
Notarize company's articles of association
Apply for company registration at the Trade Register in the Chamber of Commerce
Obtain approval of the act by the President
Publish statement of no objection in Official Gazette
Register copy of approved act with the Trade Register of the Chamber of Commerce and Industry
Register company for taxes at the tax office of the Ministry of Finance
Register employees with an accident insurance
Obtain trade license

 

 

 

Last Updated : October 2007