On 24 March, the 54th anniversary of the establishment of diplomatic relations between the People’s Republic of Bangladesh and the Co-operative Republic of Guyana would be observed. Two months earlier on 29 January, the interim government of Bangladesh announced its intention to open a new diplomatic mission in the Latin American state. Initially, the mission is planned to be small-scale, with a First Secretary or a Counsellor serving as the Charge d’Affaires and an office in Georgetown, the capital of Guyana. Located more than 15,000 km apart in two different parts of the world, Bangladesh and Guyana have shared diplomatic relations for 54 years, yet their political, economic, and cultural interactions have so far been very limited. So, why is Bangladesh now interested in expanding its ties with the Caribbean state?

Guyana, a former British plantation colony, obtained independence in 1966. Its land area amounts to 214,969 km2, and it contains approximately 950,000 people, being one of the least densely populated states of the world. Indo-Guyanese people constitute 39.8% of Guyana’s population, while Afro-Guyanese people, people of mixed origin, and indigenous peoples constitute 29.2%, 19.9%, and 10.5% of the population, respectively. The state was comparatively impoverished before the mid-2010s, with its economy being primarily based on the cultivation of sugarcane, bauxite and gold mining, and forestry. However, after the discovery of oil in 2015–2016, the state now possesses one of the fastest growing economies in the world, with its GDP growth rate being 19.3% in 2025 and its GDP per capita being $32,326 – above many European states.

Since 2017, the primary driver of economic growth in Guyana has been oil, and the country now has an oil reserve of 11 billion barrels – the 17th largest in the world. The petro-state is investing parts of its oil revenues in infrastructure development, including the construction and renovation of roads, highways, bridges, ports, oil infrastructure, and hydroelectric plants. However, with its small population, Guyana lacks the necessary skilled manpower to implement its ambitious infrastructure projects. Moreover, the agricultural and service sectors of Guyana are suffering from a shortage of manpower.

Under these circumstances, Bangladesh and Guyana can potentially develop a robust economic partnership centered around the export of manpower, investments, and water security.

First, Bangladesh has been a source of labour migrants since the late 1970s, and more than 7 million Bangladeshi citizens work abroad, including in Middle Eastern and Southeast Asian states. The country is currently looking for new destinations for the export of manpower, and Guyana can serve as such a new destination. Since there is significant labour shortages in Guyana, large numbers of Bangladeshi citizens can find employment in the country’s booming construction sector.

Second, there is a substantial demand for skilled workers in Guyana, particularly in the service sector. Accordingly, many Bangladeshi skilled workers, such as engineers, doctors, and nurses, can find employment in Guyana. In fact, Guyana has already initiated the process of recruiting hundreds of healthcare workers from Bangladesh, and the trend is likely to continue in future.

Third, Guyana possesses extensive arable land but does not have the required manpower and investments to make use of it. Bangladeshi investors can take a lead in investing in Guyana’s agricultural sector, particularly in the production of rice and sugarcane. Bangladeshi companies can obtain leases of agricultural land from Guyana, develop agro-industrial complexes, and employ Bangladeshi workers to run these projects. Through this, Guyana would be able to make use of its vast agricultural land and enhance food production, whereas Bangladesh would acquire substantial profits from the agro-industrial projects and be able to arrange for employment for many of its citizens.

Fourth, Guyana confronts a significant challenge in ensuring its water security. As a low-lying state, it is prone to flooding which can contaminate freshwater sources, and access to safe drinking water is limited in its coastal and rural areas. Accordingly, Guyana has undertaken several potable water infrastructure projects, and Bangladesh is already involved in them. For instance, the Sigma Engineers Limited, a Bangladeshi company, constructed a $700 million potable water treatment plant at Caledonia in Guyana, designed to serve 14,000 people. The company used cutting-edge technology in building the plant, and completed its work ahead of the schedule and within the stipulated budget. This demonstrates that Bangladeshi companies has the capability to actively contribute to Guyana’s water security. Bangladesh can further contribute to Guyana’s water security by sharing water purification technologies, helping in groundwater management, and building rainwater harvesting systems in remote and flood-prone areas.

Finally, both Bangladesh and Guyana are highly vulnerable to the detrimental effects of climate change, and previously, former Guyanese President David Granger had pushed for closer cooperation between the two countries on climate change. Dhaka and Georgetown, acting in concert with countries facing similar perils, can jointly agitate for increased and more rapid climate financing. Moreover, since Bangladesh has decades of experience in combating floods and other natural disasters, it can help Guyana in enhancing its disaster management capabilities by providing early warning systems for floods and storms, initiating community-centric disaster risk management programs, and assisting in coastal embankment design and management.

While Bangladesh and Guyana can potentially develop a highly fruitful and mutually beneficial economic partnership, there are some potential challenges in this regard. Most importantly, the flow of Bangladeshi labour migrants to Guyana can generate unrest and resentment among a segment of local population. It should be noted that Guyanese internal politics is considerably split along racial lines, with the incumbent People’s Progressive Party/Civic (PPP/C) drawing its support primarily from the Indo-Guyanese community, and the opposition A Partnership for National Unity (APNU) garnering support from the Afro-Guyanese community. The APNU has already alleged that the PPP/C-led government is recruiting Bangladeshi migrant workers in order to enhance its vote bank and alter the demographic balance of the country. Under these circumstances, current and potential Bangladeshi immigrants in Guyana have to carefully avoid entanglement in local politics.

In brief, Bangladesh’s engagement with Guyana represents a win-win, mutually beneficial partnership, combining Bangladesh’s expertise in labour export, skilled professions, agriculture, water security, and climate resilience with Guyana’s booming oil-driven economy, infrastructure expansion, and agricultural potential. By providing skilled workers, investment in agro-industrial projects, advanced water treatment technologies, and disaster management know-how, Bangladesh can support Guyana’s development while creating employment and business opportunities for its citizens. Ensuring this collaboration remains sustainable will require careful management of labor migration and sensitivity to Guyana’s racially polarized political landscape to avoid social tensions.

© Eurasia Review