For many, Suriname is a relatively unfamiliar country. Albert Ramdin, who became minister of foreign affairs, international business and international co-operation in July 2020, describes Suriname as a “well-kept secret” from the world. 

After four years at Newmont Mining Corporation, the country’s largest foreign investor, Mr Ramdin joined president Chan Santokhi’s administration to spearhead efforts to attract investment and diversify the resource dependent economy. He spoke with fDi about plans to improve the ease of doing business as Suriname prepares for a boom in its offshore oil industry.

Q: How would you describe Suriname to someone who has never visited?

A: It is an unknown territory for many people who confuse Suriname with countries located in Africa. In terms of the country itself, people will experience immediately the highly welcoming, hospitable and helpful attitude of Surinamese people. We are a small nation of 600,000 people, with a diverse ethnic composition, languages, cultural background and different histories that come together. Regrettably, we went through a difficult period of military dictatorship in the 1980s, which has its own background. But today the country has natural beauty, is tropical and welcoming.

Q: What are the greatest opportunities for foreign investors?

A: We have four sectors that are relevant to the country. First, gold mining, which is responsible for the majority of our tax revenues and export earnings. There are two international mining companies — Newmont from the US and Zijin from China — which are producing 15,000–18,000kg of gold every year. This is carried out under very strict conditions to minimise the environmental impact. Small-scale gold mining has its own challenges in terms of the use of mercury, and the government is fighting against that.

We also have onshore gas and oil primarily, which provide for a certain amount of revenues through Staatsolie, our state-owned company. Other sectors which are relevant and have potential are agriculture and fisheries, but also animal husbandry, meat production and poultry. In the context of food security, this sector will remain a prime area for investments, because we have sufficient, fertile land.

Tourism is another sector which we can thrive on. We have a reasonably well-organised tourism sector, with most travellers coming from Europe. But we see more diversity there such as targeted nature tourism like birdwatchers coming from the US. 

Q: How is the offshore oil industry developing in Suriname after discoveries were made by Apache Corporation in 2020?

A: There is no final investment decision as yet, but this is not so much a concern. I am convinced that it will come. The sooner the better, because then we can start earning from that resource. But at the same time, the delay could be a blessing in disguise. 

In the meantime, we can focus on getting ourselves better prepared for this very complex sector. We need to look at capacity, expertise, finances, legal aspects and the sub-sectors connected to the oil and gas industry. While it is critically important, we do not want to only focus on oil and gas. We’re not going to fall for the same Dutch Disease trap. We will continue to develop other sectors in our society, like agriculture, water supply, processing and tourism.

We also need to continue discussing our strategic collaboration in the region with surrounding countries like Guyana, Barbados, Trinidad, but also Brazil. The natural resources of Suriname will belong to the people and they will be the first to benefit from it. But to develop those resources, we need to enter into partnerships.

Q: How do you balance this oil and gas boom with the need to decarbonise industry and mitigate the climate crisis?

A: We want to approach this in a very balanced manner. We understand the need to mitigate the climate crisis and experience the impact as well. But at the same time, oil and gas provides an opportunity for us to make a transition into a green economy. 

We have a longer-term vision for the next 50 years and will have to make a transition to a different economy. As a carbon-negative country, we want to maintain that status. We want to make sure that our environment is protected, return as many damaged areas back to their previous status and secure biodiversity.

We see options for carbon trading, because we have a high level of forest coverage in Suriname at 93%. The carbon trading will become a sector on its own in terms of earnings given the strategic location of the capital city, Paramaribo, but also because we plan to invest in shore bases, harbours and port facilities. I also see the possibility for Suriname to transition into a supply chain hub.

Q: What are you doing to improve the ease of doing business in Suriname?

A: We need to improve our ease of doing business. Because of dealing with the financial crisis, debt burden and reforming the Surinamese economy, the issue of ease of doing business was not immediately a priority in the first year of the Santokhi administration. Now it is, because we have been able to set up a platform upon which investments can be made and attracted. We are already in discussion with commercial banks to address issues faced by international businesses, working to simplify work permits and trying to expedite discussions around bilateral double taxation agreements with different countries. This extended period of not having a final investment decision as of yet provides all the time to put those things in order. 

Q: Any final thoughts?

A: Investors should not look only at oil and gas, but on the economy as a whole. The country has much more to offer in terms of agriculture and fisheries. Food and water security will continue to be critical issues. We have an abundance of sweet water that can be made into potable water.

This interview has been edited for clarity and brevity