PRESENTATION

PRESENTATION

Paramaribo, November 2011

Doing Business in Suriname

Doing Business in Suriname

Suriname Trade & Industry AssociationAddress: Prins Hendrikstraat #18Paramaribo- SurinameTel: 597-475286/ 597475287Fax: 597-472287Email: vsbstia@sr.netWebsite: www.vsbstia.org

CABINET OF THE REPUBLIC OF SURINAME2010-2015

THE EXECUTIVE

PRESIDENT: Mr. D.D. BouterseALSO CHAIRMAN COUNCIL OF STATE; 15 members

VICE-PRESIDENT: Mr. R. Ameerali,Chairman of the Council of Ministers

SOCIAL ECONOMIC COUNCIL: 14 members

(4 private sector, 4 union, 5 government)

(in active at the moment)

COUNCIL OF MINISTERS: 17

COUNCIL OF MINISTERS: 17

1. Agriculture, Animal Husbandry and Fisheries, Mr. H. Setrowidjojo (previous Government

2. Defense, Mr. L. Latour3. Education and Community Development, Mr. R. Sapoen4. Finances and Planning, Mrs. A. Wijnerman5. Foreign Affairs, Mr. W. Lackin6. Health, Mr. C. Waterberg (previous Government)7. Home Affairs, Mr. S. Moestadja8. Justice and Police, Mr. M. Misiedjan9. Labor, Technological Development and Environment, Mr. G. Kromosoeto10. Natural Resources, Mr. J. Hok11. Physical Planning, Land- and Forestry Management, Mr. S. Martosatiman 12. Public Works, Mr. R. Abrahams13. Regional Development, Mr. L. Diko14. Social Affairs and Housing, Mrs. A. Amafo15. Sport and Youth Affairs, Mr. P. Abena16. Trade & Industries, Mr. M. Miskin17. Transport, Communication and Tourism, Mr. F. Pinas

The LegislativeThe Legislative

The National Assembly: 51 members

Coalition: 36 seats (MEGA Combination (23), A- Combinatie (7), Volksalliantie (6)

Oppostion: 15 seats {New Front: NPS (4), VHP (8), DA ‘91 (1), SPA (1)}, DOE, 1.

The JudiciaryCourt of Justice

Record Office of District-Court

Public Prosecutor’s Department of Procurer-General

Republic SurinameRepublic Suriname Capital: Paramaribo Area: 163,820 km2

Suriname is part of the Wild Coast, the Guyana’s

Situated on the north coast of the South American continent, bordering – The Atlantic Ocean on the north, – Guyana on the west, – French-Guiana (EU) on the east, – Brazil on the south.

The climate is tropical, warm and humid, moderated by trade winds

Basic FactsBasic Facts Languages

– Dutch (official), English, Sranang Tongo (native language), Chinese (various dialects), Hindustani, Javanese.

Population of 500,000 Literacy

– Male: 95%– Female: 91%

Export partners– Canada, US, Norway, Netherlands, France, Japan,

UK Import partners

– US, Netherlands, Trinidad & Tobago, Japan, China, UK, Brazil

Currency: Surinamese Dollar (SRD)

Macro economy (Source: Ministry of Finance; General Bureau of Statistics; Central Bank of Suriname)

Macro economy (Source: Ministry of Finance; General Bureau of Statistics; Central Bank of Suriname)

Gross Domestic Product (GDP)

(US$ 3.800 mln) (2010)

Income per capita US$ 5100, est. (2010)

Inflation 18.0 % est. (2011)

Unemployment rate 12 % (2011)

Lending rate 11 % (2011)

Exchange rate 3.25 (US$) (2011)

Exports of goods 1.769 mln. US$, est. (2011)

Import of goods 1.653 mln US$, est. (2011)

GDP real growth 4.5 % (2010)

Credit ratingTrade Balance in USDMonetary reserve

B+ (2010)402 mln US$ (2010)757 mln US$ (2010)

Conducive Investment Climate

Conducive Investment Climate

The investment climate for investors is favorable

Environment– Large areas for industries– Clean air & healthy environment– Independent judiciary system

Infrastructure– Adequate network of roads– Reasonable shipping & airline connections– Telecom services– Utilities (Water, Electricity and Telecom)– Modernization Seaport & international

airport

Investment Climate (continued)

Investment Climate (continued)

Human Resources

– Highly educated workforce– Disciplined workforce– Multi lingual and cultural society– Education & training

Other Assets

– Abundance of fresh water and fertile land

– Fast developing private sector– Untapped hydro electric power

Companies en Tax RatesCompanies en Tax Rates

Corporate income tax: 36% (effective rate: 20%)

Personal income tax : 8-35% Value added tax: 8 -10%

International RelationsInternational Relations

Member of CARICOM Member of OAS (Organization of

American States) Member of IDB (Inter American

Development Bank) & ISDB (Islamic Development Bank)

Member of ACP (African, Caribbean & Pacific) countries and partners of the European Union in the EPA agreement

Various Bilateral agreements (China; India; Brazil, Indonesia)

Structure Private Sector of Suriname

Structure Private Sector of Suriname

The social & economic partners Employers (Suriname Trade & Industry Association) Unions (Ravaksur) The Government

Suriname Trade & Industry Association represents: A. Multinationals B. Large unionized companies C. Parastate companies D. The Domestic Private Sector

Small & medium sized enterprises E. The Civil Society

Micro enterprises

Business Forum/ Suriname Business

Centre

Business Forum/ Suriname Business

Centre Public Private Partnership National strategy for development of the

domestic private sector Priority actions developed at macro / meso /

micro level Suriname Business Centre :One- stop – window Training, seminar, courses EU /IDB/ IsDB/OAS/financial instruments for private

sector development Organizing sector trade fairs and matchmaking activities Advising the government on issues regarding the

Business climate for the domestic private sector

Suriname Trade & Industry Association

Suriname Trade & Industry Association

Established in March 1950

235 members (Banking;Industry;Timber;Agriculture; Mining;Tourism;Transport;Insurance;Commercial services; Trade)

Member of the International Organization Employers (IOE), International Labor Organization (ILO), Caribbean Employers Confederation (CEC)

Five(5) policy clusters: Government; Industrial Relations; Services to the member companies; Regional & International Economic Integration; Internal policy of the Organization.

SERVICES TO MEMBERS

- To promote members’ interests in national bodies as State & Economic Council, IFONS, Labor Advisory Council and Suriname Business Forum

- To issue newsletters and ”De Werkgever”- To issue certificates of merit- To issue medals of long employment- To make use of the PR-office of the STIA-secretariat- To receive information and advice on request- Advise on industrial relations matters

Important SectorsImportant Sectors

Mining: AluminaMining: Alumina

The mining sector remains our country’s principal currency earner

One large multinational company is dominating the market: Suriname Aluminum Company (Suralco), a subsidiary of Alcoa-USA

Last ten 10 years: average export of 1,5 million ton Alumina to USA(20%), Norway(60%), France & The Netherlands (15%)

1.5 million metric tons of alumina produced in 2010

Bauxite reserve, Nassau & Bakhuys presently untapped.(500 mln. tons)

Gold SectorGold Sector

Iamgold is one of the major players in the gold mining industry in Suriname

Production 2010: approx 12.000 kgs of gold Large-scale gold mining operations in the

Rosebel mine Gold is the first largest export product of

Suriname Joint venture Suriname Aluminum Company

with the U.S. owned Newmont Mining Corporation (Surgold) start-up 2014.

Small gold mining by local/garimpeiros, estimated production 15.000 kgs (2010)

Oil IndustryOil Industry

State Oil Company started its activities in 1980

The oil industry is the third largest mining industry in our economy

A production of 16,000 barrels a day, 2010 Onshore drilling will continue 2010-2012 State Oil company has agreements with Repsol

YPF; Occidental Oil; Maersk Oil Products: crude oil; diesel; asphalt bitumen Electricity is a new product of State Oil Company

(28 MW) Offshore drilling by January 2010 and up Extension of refinery as of 2011 (USD 1 B.)

Agriculture SectorAgriculture Sector

– Banana (export value USD 50 m, 2010)– Rice (export value USD 37 m, 2010)– Fisheries (estimated export value USD 50 m,

2010)Shrimp catch from Coastal areaShrimp from Aqua culture Sea fisheries & river fisheries

– Forestry (94 % tropical jungle)Timber production (250.000 m3, 2010)Tourism activities (estimated 210.000 p.,

2010)– Horticulture, Vegetables and Fruit (estimated

export 2010, USD 20 m)

Tourism IndustryTourism Industry

Eco tourism

– Central Suriname Nature Reserve & Coastal area – Paramaribo on the world heritage list– Cuisine / various dishes– Different Cultures– Various tourist products:

Nature toursBusiness toursHistorical toursCulture toursAdventure tours

Key growth sectorsKey growth sectors Mining

Kaolin; Granite; Water

Manufacturing Food processing Pharmacy; aromatic products Bio- energy

Agriculture & Agro industry Fruits ; horticulture; flowers; herbal industry Aqua –culture ; fish processing

Lumber & Furniture Industry Furniture; building materials

Tourism Eco tours; culture tours; business tours; entertainment parks

Services Sector Financial services; construction services; engineering

consultancy; management consultancy; transport ICT out sourcing; call centers Health sector; medical facilities & health care

THANK YOUTHANK YOU