The Government of Suriname (GOS) officially supports and encourages business development through local and foreign investment. The overall investment climate favors U.S. investors with experience working in developing countries. To attract FDI, the authorities have planned to update the institutional and legal framework to protect investors and eliminate restrictions regarding investment income transfers and control related FDI flows.
The economy is still recovering from the 2015-2016 recession. The recovery of commodity prices and the production of the Merian gold mine contributed to the stabilization of the economy. Challenges remain as the economy still depends heavily on the mineral sector, fiscal deficits continue to rise, and public debt increased. Year on year inflation declined from 55 percent in December 2016 to single digits since 2018. Foreign currency reserves have increased. The government did not implement the Value Added Tax in July 2018 as planned, and the authorities have not committed to any new implementation date.
In October 2018, the U.S multinational mining company Newmont reached one million ounces of gold mined since it began production in 2016. Canadian mining company Iamgold increased the projected life span of its mine to 2033 based on gold reserves discovered at the Saramacca site. Media allege the Government of Suriname (GOS) is currently negotiating to sell its 30 percent stake in the mine. Major offshore oil discoveries in neighboring Guyana have raised expectations that similar discoveries will occur in Suriname and further test drilling is expected in 2019. Extractive industries will continue to boost economic activity by increasing revenue, exports, and engagement with the local community. Suriname joined the Extractive Industries Transparency Initiative (EITI) in May 2017, but failed to publish its first report and, was suspended as of February, 2019. The extractives sector has historically attracted significant foreign direct investment, but numerous factors negatively impact the investment climate as a whole. These factors include an unclear process for awarding concessions and public tenders, corruption, institutional capacity constraints, and a lack of overall transparency. There is room for improvement to the investment law, transparency of regulations and processes, and legal protections for investors.
Moody’s changed Suriname’s outlook to stable and affirmed the ‘B2’ issuer and senior unsecured ratings in February 2019. Moody’s states that liquidity pressures subsided over the past year, and that the increased scope for financing from domestic and external sources will ease funding pressures in 2019 and 2020. Both Fitch Rating and Standards and Poor’s maintained their ratings after downgrading Suriname in 2017 but raised their outlooks from negative to stable in 2018.
Table 1: Key Metrics and Rankings
|TI Corruption Perceptions Index||2018||73 of 175||http://www.transparency.org/research/cpi/overview|
|World Bank’s Doing Business Report||2019||165 of 190||http://www.doingbusiness.org/en/rankings|
|Global Innovation Index||2018||N/A||https://www.globalinnovationindex.org/analysis-indicator|
|U.S. FDI in partner country ($M USD, stock positions)||2018||N/A||http://www.bea.gov/international/factsheet/|
|World Bank GNI per capita||2018||$5,150||http://data.worldbank.org/indicator/NY.GNP.PCAP.CD|
1. Openness To, and Restrictions Upon, Foreign Investment
Policies Towards Foreign Direct Investment
The Government of Suriname (GOS) officially supports and encourages business development through foreign and local investment. The overall investment climate favors U.S. investors with experience working in developing countries. Investment opportunities exist in the extractive and agriculture sectors.
With the exception of petroleum, Suriname has no sector-specific laws or practices that discriminate against foreign investors, including U.S. investors, by prohibiting, limiting or conditioning foreign investment. In the oil sector, the state oil company, Staatsolie, maintains sole ownership of all oil-related activities. Foreign investment is possible through exploration and product sharing agreements with Staatsolie. Staatsolie executes oil exploration agreements with foreign firms through a fair and competitive bidding process.
In 2018, the GOS established a not-yet fully operational governmental entity responsible for facilitating foreign direct investment, Investsur. Investsur is described in its enabling legislation as easing the administrative hurdles of investing by serving as a one-stop agency for investment promotion, applications by foreign direct investors, dispute resolution, and guiding investors on compliance with any relevant conditions of investment. Suriname does not have a formal business roundtable or ombudsman aimed at investment retention or maintaining an ongoing dialogue with investors.
Limits on Foreign Control and Right to Private Ownership and Establishment
Foreign and domestic private entities can establish and own business enterprises and engage in all forms of remunerative activity.
There are no general limits on foreign ownership or control – statutory, de facto, or otherwise. No law requires that domestic nationals own a minimum percentage of domestic companies or that foreign nationals hold seats on the board. No law caps or reduces the percentage of foreign ownership of any private business enterprise.
Except for petroleum, there are no sector-specific restrictions applied to foreign ownership and control. Within the petroleum sector, the law limits ownership to Staatsolie, the state-owned oil company, which maintains sole ownership of all petroleum-related activities. Caribbean Single Market and Economy (CSME) countries do enjoy favored status over other sources of foreign investment, but in practice international firms from beyond the CSME are not denied investment opportunities. An Economic Partnership Agreement (EPA) with the European Union aims to provide European companies better access to Suriname.
Government ministries screen inbound foreign investments intended for the sector of the economy that they oversee. Special commissions screen all necessary legal and financial documents. Screening criteria vary, but are intended to determine a proposed investment’s compliance with local law. The screening process is neither public nor transparent, and therefore could be considered a barrier to investment. One stated goal of Investsur is to make this process more transparent and to standardize screening for investments.
There is no indication that U.S. investors are especially disadvantaged or singled out by any of the ownership or control mechanisms, sector restrictions, or investment screening mechanisms, relative to other foreign investors.
Other Investment Policy Reviews
The World Trade Organization (WTO) conducted an investment policy review of Suriname in 2013 (https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=225360,132498,128626,126127,120112,119786,119751,119189,118581,117272&CurrentCatalogueIdIndex=4&FullTextHash=371857150&HasEnglishRecord=True&HasFrenchRecord=True&HasSpanishRecord=True ) . Suriname’s third trade policy review is scheduled to take place this year. A team of the WTO secretariat visited Suriname February 11-15. Suriname’s trade officials will defend the review September 11-13, in Geneva. The OECD and UNCTAD have not conducted trade policy reviews of Suriname in the past three years. The Inter-American Development Bank published a report called Framework for Private Development in Suriname in 2013 (http://www.meetsuriname.org/wp-content/uploads/2014/04/frame-work-for-private-sector-development-in-suriname.pdf ). The World Bank Group published Suriname Sector Competitiveness Analysis, focusing on the agribusiness and extractive sectors in 2017.
The GOS has taken steps to improve business facilitation efforts. Legislation has been drafted on competition policy, limited liability company formation, electronic gazettes to reduce company startup costs, intellectual property, consumer protection, electronic transactions, and establishing a secured transaction framework. In 2017, parliament adopted new legislation regarding financial statements and reduction of licensed professions. The authorities also plan to implement procedural reforms to streamline cross-border trade. In November 2018, the government passed legislation to establish a Center for Innovation and Productivity. The center is envisioned to collaborate between trade unions, employers, and the government to promote local production and export. In February 2019, the government created a National Training Authority to implement continuing education programs based on input from the private sector.
The World Bank’s Doing Business report indicates starting a business requires 66 days. The Chamber of Commerce states it can take as little as 30 days. There is no online registration system. Companies must register with the Chamber of Commerce, which provides guidance on registration procedures. At the time of registration, the company needs a local notary’s assent to ratify the company bylaws. For non-residents, the notary also sends a request to the foreign exchange commission for approval. Applicants must obtain a tax number at the registration office of the tax department. Applications then go to the Ministry of Justice and Police and finally to the President for approval.
The government is considering ways to simplify this process. The Ministry of Trade, Industry and Tourism has hired a consultancy firm to carry out a feasibility study of an electronic single window for importers, exporters, and shipping companies. The ministry aims to have this system operational before December 2019.
The Government does not promote or incentivize outward investment.
The GOS does not restrict domestic investors from investing abroad, but there are no specific mechanisms in place to promote the practice. Due to the small size of the local market, some domestic companies have expanded to CARICOM member states, such as Guyana and Trinidad.
2. Bilateral Investment Agreements and Taxation Treaties
Suriname has signed bilateral investment protection agreements with Indonesia, Cuba, Brazil and the Netherlands.
There is no current engagement regarding a Bilateral Investment Treaty (BIT) or Free Trade Agreement (FTA).
Suriname has not signed a bilateral investment treaty with the United States.
The GOS has signed tax treaties with the Netherlands and Indonesia.
The GOS has announced its intention to implement a value added tax. There is no indication of ongoing systematic tax disputes between the government and foreign investors.
3. Legal Regime
Transparency of the Regulatory System
Suriname does not use transparent policies and effective laws to foster competition. The National Assembly has delayed its vote on a draft competition law. The Competitiveness Unit Suriname coordinates and monitors national competitiveness and is working towards establishing policies and suggesting legislation to foster competition. Current legislation such as tax, environment, health and safety, or other laws are not purposely used to impede investment, but may still form obstacles. Employment protection legislation is among the most stringent in the world. Labor laws, for instance, prohibit employers from firing an employee without the permission of the Ministry of Labor once the employee has fulfilled his or her probationary period, which by law is limited to two months. Tax laws are criticized for overburdening the formal business sector, while a large informal sector goes untaxed. Many public sector contracts and concessions are not awarded in a clear and transparent manner.
There are no informal regulatory processes managed by non-governmental organizations or private sector associations.
Rule-making and regulatory authority exist within relevant ministries at the national level. It is this level of regulation that is most relevant for foreign businesses. The government may consult with relevant stakeholders on regulations but there is no required public process. The government presents draft laws and regulations to the Council of Ministers for discussion and approval. Once approved, the president’s advisory body, the State Council, considers the draft. If approved, the government presents a draft to the National Assembly for discussion, amendment, and approval, and then to the President for signature. Legislation only goes into effect with the signature of the President and after publication in the National Gazette.
Legal, regulatory, and accounting systems are often outdated and therefore not transparent nor consistent with international norms. The National Assembly passed the Act on Annual Accounts in 2017 to create more fiscal transparency by requiring all companies, including state owned enterprises, to publish annual accounts based on the International Financial Reporting Standards (IFRS). The law will go into effect in 2020 for large companies and 2021 for Small and medium sized companies. There is no current requirement for specific accounting standards. Some companies create financial reports using The Netherlands Generally Accepted Accounting Principles (NL GAAP), some develop standards internal to the company, and some larger firms use resident international firms for their accounting needs. Not all companies prepare financial statements. There is no current requirement for companies to be audited, though some companies include it in their Articles of Association.
Suriname passed new legislation in October 2018 to professionalize and institute better standards in the accountancy profession. The legislation created the Suriname Chartered Accountants Institute (SCAI) and makes membership mandatory for accountants in Suriname. The board of the SCAI has the responsibility to monitor the quality of the profession and apply disciplinary measures.
Draft bills or regulations are discussed in view of the public and relevant stakeholders may be consulted. There is no formal public consultation process.
There is no centralized online location similar to the Federal Register in the United States where key regulatory actions are published. However, the National Assembly publishes the actual text of adopted laws on its website.
It is unclear what the regulatory enforcement mechanisms that ensure the government follows administrative processes might be, as the processes have not been made accountable to the public. The Auditor General’s office is an independent body in charge of supervising the financial management of government funds. The Supreme Audit Institution reports to the National Assembly. The Central Accountant Service exercises control on administrative processes at the ministries and reports to the Ministry of Finance. There is no centralized online location where key regulatory actions or their summaries are published, similar to the Federal Register in the United States.
Some regulatory reforms were announced this year. Suriname passed new legislation in October 2018 to professionalize and institute better standards for accountants. The legislation created the Suriname Chartered Accountants Institute (SCAI) and makes membership mandatory for accountants in Suriname. The board of the SCAI has the responsibility to monitor the quality of the profession and apply disciplinary measures. A minimum wage law and a draft public procurement law are under consider at the committee-level in the National Assembly.
Regulatory reform efforts announced in prior years have largely not been fully implemented.
Regulations are developed by ministries that have jurisdiction over the relevant area, in consultation with involved stakeholders.
It is unclear what the regulatory enforcement mechanisms are, as the process has not been made public.
Regulation is not reviewed on the basis of scientific or data-driven assessments. Scientific studies or quantitative analysis on the impact of regulations or rarely conducted and/or not publicly available for comment.
The government’s executive budget proposal and enacted budget are easily accessible to the public. Actual revenues and expenditures regularly deviate from the enacted budget, and the origin and level of accuracy of some information in the budget were not reliable. A full end-of-year report is not publicly available. The Supreme Audit Institution publishes a limited audit based on self-reporting by the ministries.
The State Debt Management Office (SDMO) is responsible for the operational management of the public debt of the government. Data regarding public debt is published every three monthsin the government gazette of Suriname and on the SDMO website.
International Regulatory Considerations
As a member of CARICOM, Suriname has committed to regionally-coordinated regulatory systems.
Suriname uses national and international standards. Standards developed by other (international/regional) standardization bodies that Suriname utilizes include: ISO, Codex Alimentarius, International Electro Technical Commission, CROSQ, ASTM International, COPANT, SMIIC (Standards and Metrology Institute for Islamic Countries), NEN (Nederland Normalisatie Instituut), ETSI, GLOBAL GAP, etc.
Suriname is a member of the World Trade Organization (WTO). The WTO Committee on Technical Barriers to Trade (TBT) lists only one notification from Suriname in 2015.
Legal System and Judicial Independence
Suriname’s legal system is based on the Dutch civil system. Judges uphold the sanctity of contracts, and enforce them in accordance with their terms. When an individual or company disputes a signed contract, they have the right to take the case to court. The judiciary consistently upholds local law, applies it, and enforces it for local and international businesses. The World Justice Project ranks Suriname 69 out of 126 countries.
Laws are defined in criminal, civil, and commercial codes and verdicts are based on the judge’s interpretation of those codes. There is no specialized commercial court. The commercial codes contain commercial legislation.
Generally, the judicial system is considered to be independent of the executive branch. With the exception of the December Murders Trial (related to political murders committed in 1982), most observers consider the judicial system to be procedurally competent, fair, reliable, and free of overt government interference. Due to a shortage of judges and administrative staff, processing of civil cases can be delayed. The Court of Justice appointed seven new judges on February 22 to ease the delay in court cases.
Draft regulations may be reviewed by involved stakeholders and they may be given the opportunity to comment. There is no formal, required public consultation process. Suriname has no general administrative law, so there are no special administrative tribunals. Judges of the regular courts also hear cases of administrative law.
Laws and Regulations on Foreign Direct Investment
The National Assembly approved the amendment of the commercial code chapter regarding the establishment of a limited liability company in 2016. Parameters addressing enforcement are forthcoming.
By State Decree on March 17, 2017, the GOS implemented the 2001 Investment Act creating Investsur, Suriname’s new investment promotion agency. The agency will create a certification system for investors or investments, forward investment applications to ministers, and advise ministers in determinations on applications. The agency is currently under development.
On September 24, 2017, Parliament passed the Act on Annual Accounts that obligates all large companies to publish annual accounts based on the International Financial Reporting Standards (IFRS) starting in 2020. Small and medium sized companies will have until 2021 to complete the transition.
There is no primary one- stop-shop website for investments that provide relevant laws, rules, procedures, and reporting requirements for investors.
Competition and Anti-Trust Laws
There are no domestic agencies currently reviewing transactions for competition-related concerns. There is a draft competition bill pending review by the National Assembly. The CARICOM competition commission is based in Suriname, and it monitors potential anti-competitive practices for enterprises operating within the CARICOM Single Market and Economy.
Expropriation and Compensation
According to Article 34 of Suriname’s constitution, expropriation will take place “only for reasons of public utility” and with prior compensation. In practice, the government has no history of expropriations. However, Article 42 of Suriname’s constitution specifically refers to all natural resources as property of the nation, and states that the nation has inalienable rights to take possession of all natural resources to utilize them for the economic, social, and cultural development of Suriname.
ICSID Convention and New York Convention
Suriname is not a party to the Convention on the Settlement of Investment Disputes between States and Nationals of other States (ICSID). Suriname has been a member of the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards since 1964, when the country was still a colony of the Netherlands. Upon becoming independent in 1975, Suriname automatically continued its membership in international conventions and treaties.
There is no specific domestic legislation providing enforcement of awards under the 1958 New York Convention and /or under the ICSID convention.
Investor-State Dispute Settlement
The government is a signatory to the Multilateral Investment Guarantee Agency (MIGA).
Suriname has no BIT or FTA with an investment chapter with the United States.
There have been no publicly known investment disputes in the past 10 years involving a U.S person or other foreign investor. Every effort is made to settle investment disputes outside the court system or via arbitration.
Judgments of foreign arbitral awards are enforced by the local courts only if Suriname has a legal treaty of jurisprudence with the foreign country involved. If not, the foreign judgment can be brought before the Surinamese court for consideration as long as the court determines it has jurisdiction and doing so does not otherwise violate any Surinamese laws. With Suriname’s participation and membership in the Caribbean Court of Justice, judgments from this court are also binding for local courts. Cases have been successfully filed against Suriname before the Inter-American Court of Justice and the Organization of American States. Judgments from these courts have been upheld by the Surinamese legal system.
There is no known history of extrajudicial action against foreign investors.
International Commercial Arbitration and Foreign Courts
Suriname’s civil law includes options for arbitration. The government reactivated the Suriname Arbitration Institute (SAI) in August 2014 to offer arbitration and mediation services. The SAI collaborates with the Dutch Arbitration Institute.
Local courts only recognize and enforce foreign arbitral awards if doing so is stipulated in the contract or agreement and it does not contradict local law. Foreign arbitration is an accepted means of settling disputes between private parties, but only if local alternatives are exhausted.
There have been no publicly known investment disputes in which state owned enterprises are involved. Court processes are in general considered transparent and non-discriminatory.
Suriname has bankruptcy legislation. Creditors, equity shareholders, and holders of other financial contracts, including foreign contract holders, have the right to file for liquidation of the debtors due to insolvency. In a case where there is a loan from a commercial bank, repayment of the bank loan takes precedence. Bankruptcy in principle is not criminalized. However, in cases where a board of directors encouraged a company to pursue bankruptcy to avoid creditors, courts have viewed these as a criminal offense. In the World Bank’s Doing Business Report, Suriname stands at 138 in the ranking of 190 economies on the ease of resolving insolvency.
4. Industrial Policies
Under current regulations, foreign investors can benefit from both tax and non-tax based incentives. Tax-based incentives include a nine-year tax holiday that can be extended by one year if the investment is at least USD 13 million; accelerated depreciation of assets; and tax consolidation. Under the Raw Minerals Act, the government grants an exemption of duties for the import of raw materials from CARICOM member countries. Exemptions are also granted in the food industry, the soft drink industry, and the fruit juice industry. In 2011, the government eliminated import duties on computers and related items. The law accords special consideration on investments exceeding USD 50 million and investments in the exploration and exploitation of bauxite, hydrocarbons, gold, and radioactive minerals. Large investments in the mining sector are subject to extensive negotiations between the government and investors. The government maintains the ability to grant incentives that depart from the provisions in the investment law, for example, incentives related to the provisions of infrastructure.
The government does not have a practice of issuing guarantees or jointly financing foreign direct investment projects.
Foreign Trade Zones/Free Ports/Trade Facilitation
There are no duty-free import zones in Suriname.
Performance and Data Localization Requirements
There are no policies that mandate hiring local employment; however, the Work Permits Act prohibits employers from employing foreigners without a work permit granted by the Ministry of Labor. Some large multinationals have specific agreements with the government mandating hiring local employees.
There are no policies requiring that senior management and board of directors should be Surinamese nationals.
There are no excessively onerous visa, residence, or work permit requirements inhibiting foreign investors’ mobility. Foreigners with short-term business in Suriname will need a business visa from a Surinamese Embassy or consulate. Business visas require a letter of introduction from the business the applicant will be working with in Suriname. Foreigners who want to work in Suriname first need to apply for a residency permit at the Ministry of Justice and Police, after which they can apply for a work permit at the Ministry of Labor. The free movement of artists, university graduates, media workers, musicians, and athletes of CARICOM origin is arranged through CSME regulations. CSME regulations also provide for the free movement for those seeking to establish or conduct business within the community.
There are no government/authority-imposed conditions on permission to invest. In practice, large foreign investments, especially in the extractives sector, require approval from the relevant Minister.
The government does not impose forced localization policies on foreign investors.
There are no enforcement procedures for performance requirements on investors.
The 2001 Investment Law authorizes the Minister of Finance to grant both tax and non-tax incentives for new investments and for the expansion of existing investments. Incentives for new investments are on a case-by-case basis at the discretion of the Ministry of Finance. Incentives are available for both domestic and foreign investors, but investors must apply for these incentives before the initial investment is made.
Foreign IT providers are not required to turn over source code and/or provide access to encryption.
There are no measures that prevent or unduly impede companies from freely transmitting customer or other business-related data outside the country’s territory.
There are no mechanisms used to enforce any rules on local data storage within the country.
5. Protection of Property Rights
Interest in property is enforced. Mortgages and liens are common. Mortgages are registered with the Mortgage Office. However, no effective registration system exists for other types of liens.
Non-residents can request to lease land from the government if they have established a company under Surinamese law. However, the process from application to approval is lengthy.
The percentage of land in Suriname that lacks a clear land title remains unknown. There is no sustained effort by the government to identify property owners and register land titles. Article 1-1 of the L-1 decree, Principles of Land Policy, states that “all land, to which others have not proven their right to ownership, is domain of the State.” Furthermore, Article 41 of the Surinamese constitution states that wealth and resources are property of the nation and shall be used to promote economic, social, and cultural development. There is no effective demarcation of substantial land claims by indigenous people in the interior.
Unoccupied, legally-purchased property cannot be reverted to other owners, such as squatters.
Intellectual Property Rights
Suriname is a member of the World Trade Organization and the World Intellectual Property Organization; however, it has not ratified the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement. Even though Suriname is party to multiple agreements, intellectual property rights (IPR) enforcement is weak. The current legal framework mentions protection of copyright, trademarks, and patents; however, that legislation dates back to 1912 (amended in 2001). Although the National Assembly passed amendments to the Music Copyright Law of 1913 in March 2015, there is no enforcement. Infringement on rights and theft are not uncommon due to the absence of enforcement capacity.
No IPR-related laws or regulations have been enacted in the past year. A draft IPR bill has been pending since 2015. Currently, patents and copyrights must be registered abroad due to a lack of local legislation.
Suriname does not track or report on seizures of counterfeit goods. IPR violations are rarely prosecuted.
Suriname is not mentioned in the United States Trade Representative’s Special 301 Report for 2019, nor is it named in Notorious Markets Report.
6. Financial Sector
Capital Markets and Portfolio Investment
The government does not promote portfolio investment.
There is a small self-regulating stock market with eleven companies registered. It meets twice a month but does not have an electronic exchange. There is no effective regulatory system to encourage and facilitate portfolio investment. At present, Suriname is facing liquidity shortfalls.
Sufficient policies do exist to facilitate the free flow of financial resources.
As an IMF Article VIII member, Suriname has agreed to refrain from restrictions on payments and transfers for current international transactions.
Credit is allocated on market terms and at market rates. Foreign investors that establish businesses in Suriname are able to get credit on the local market, usually with a payment guarantee from the parent company. The private sector has access to a variety of credit instruments. Larger companies can obtain customized credit products. There is, however, a Central Bank regulation that limits a commercial bank’s credit exposure to a single client.
Money and Banking System
The private sector has access to a variety of credit instruments. Larger companies can obtain customized credit products.
According to the IMF Article IV Consultation in 2018, the soundness of the banking sector is improving but vulnerabilities remain. The IMF recommends strengthening the monetary policy framework, allowing the exchange rate to operate flexibly as a shock absorber, and using regulatory and supervisory tools to ensure that banks meet minimum capital requirements. The IMF put non-performing loans at 12 percent of gross loans in June 2018. The IMF recommends the Central Bank ensure proper classification and provisioning of non-performing loans.
Total estimated assets of Suriname’s largest banks:
DSB Bank (semi-annual report, June 2018): USD 960 million
Hakrin Bank (semi-annual report Sept 28, 2018): USD 591.3 million
Republic Bank Limited (2018 annual report, Suriname-based assets): USD 482 million. (The Republic Bank Limited of Trinidad and Tobago acquired Royal Bank of Canada Suriname’s holdings in 2015.
Suriname has a central bank system.
Foreign banks or branches are allowed to establish operations in Suriname. They are subject to the same measures and regulations as local banks. According to the IMF assessment in 2016, banks in Suriname are among those in the region that have lost their correspondent relationships. IMF notes that though the loss of correspondent banking relationships has not reached systemic proportions, a critical risk still exists. The Central Bank admits that compliance regarding legislation and procedures is lacking and that strengthening of enforcement is needed. During its 2018 consultation, the IMF warned against further loss of correspondence relationships due to recent investigations of financial transactions related to Suriname’s financial sector.
There are no restrictions for foreigners to open a bank account. Banks require U.S. citizens to provide the information necessary to comply with the Foreign Accounts Tax Compliance Act (FATCA).
Foreign Exchange and Remittances
There are no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with an investment, such as remittances of investment capital, earnings, loan or lease payments, or royalties. There can be shortages in the availability of U.S. cash dollars at local banks, which can affect businesses.
Funds associated with any form of investment can be freely converted into a usable currency at legal market clearing rates with the permission of the Foreign Exchange Commission. However, the criteria for obtaining permissions are opaque.
The exchange rate is largely determined by commercial banks and foreign exchange bureaus directly with their customers. The national currency rate fluctuates. A parallel black market rate also exists.
There are no recent changes or plans to change investment remittance policies.
The waiting period on remittances can be relatively short for dividends; return on investments, interest, and principal on private foreign debt; lease payments; royalties; and management fees. The time needed to process the requests depends on the sector and the amount transferred. Transfers through the banking system can range from same day to one week waiting times, contingent upon approval by the Foreign Exchange Commission.
Sovereign Wealth Funds
On May 4, 2017, the National Assembly passed legislation establishing a Sovereign Wealth Fund (SWF). Minister of Finance Gillmore Hoefdraad announced the SWF began accumulating mining sector revenues in January 2019.
7. State-Owned Enterprises
State owned enterprises (SOEs) operate in the agribusiness, mining, communication, travel, energy, and financial sectors. SOEs provide little information regarding their operations. Only a few produce annual reports accessible to the public. Several have been accused of fraud or corrupt practices.
There is no public list of SOEs.
SOEs receive advantages when competing in the domestic market. These include access to government guarantees and government loans otherwise unavailable to private enterprises. Additionally, SOEs have access to land and raw materials inaccessible to private entities.
The government does not yet adhere to the OECD Guidelines on Corporate Governance for SOEs.
The GOS did announce a privatization program largely in the agricultural sector, but the only privatization was the state-owned banana company in 2014.
Foreign investors can participate in privatization programs. In 2014, the Belgium multinational UNIVEG acquired a 90 percent stake in the state-owned banana company through a public, international bidding process. The European Commission assisted with the bidding process. As this is the only successful example of privatization within Suriname, no standard privatization or public bidding processes have been established by the GOS.
8. Responsible Business Conduct
There is a growing awareness of expectations of standards for responsible business conduct (RBC) among consumers and producers. Historically, Alcoa’s subsidiary Suralco took the lead on RBC in Suriname and large multinationals such as Newmont continue to be the largest proponents of RBC. Some larger, state-owned and local companies also model RBC, including Staatsolie, Surinam Airways, Telesur, and the Fernandes Group of Companies (which holds the distribution rights for Coca-Cola, and the McDonalds franchise rights).
The government has not taken systematic measures to encourage or promote RBC. Companies are allowed to develop their own policies and standards. The government does incorporate RBC in some of its partnerships and agreements with multinational firms. For example, recent agreements between Staatsolie and foreign companies for offshore drilling include stipulations regarding RBC. The government has no national point of contact or ombudsman for stakeholders to acquire information or raise concerns about RBC. The GOS has not conducted a National Action Plan on RBC and/or Business and Human Rights. It is not known if RBC policies are part of the government’s procurement decisions.
There have been no recent high profile controversial instances of private sector impact on human rights, though indigenous land rights in the interior is an ongoing issue.
The Labor Inspection Department from the Ministry of Labor supervises and enforces the observance of legal regulations regarding the conditions of employment and the protection of employees performing duties. Laws were enforced only in the formal sectors. Labor inspectors did not make regular occupational safety and health inspections. The government is drafting consumer and environmental protection laws.
Currently there is no legislation for corporate governance and executive compensation standards to protect shareholders. The Act on Annual Accounts will require companies to publish annual accounts based on the International Financial Reporting Standards (IFRS) starting in 2020.
Suriname Trade and Business Association has taken the lead in promoting RBC. So far no incidents have been reported indicating that those monitoring and or advocating around RBC cannot work freely.
The host government has not encouraged adherence to the OECD Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict-Afflicted and High-Risk Areas. On March 7, the government adopted legislation to join the Kimberley Process Certificate Scheme in order to become a member of the World Diamond Council Association.
Suriname became a member of the Extractive Industry Transparency Initiative on May 24, 2017. The government failed to publish its first report in 2018 and was suspended in February 2019.
There are no domestic transparency measures requiring the disclosure of payments made to governments and/or other RBC/BHR policies or practices.
Suriname’s legal code penalizes corruption, but there is virtually no enforcement. Government officials are occasionally removed from assignments, but convictions are rare. On September 1, 2017, parliament passed anti-corruption legislation, nearly 15 years after the initial draft bill was introduced to the National Assembly. The President had not signed the measured into law as of March 2019.
Existing laws that deal with corruption do not extend to family members of officials, or to political parties.
There are no laws or regulations to counter conflicts of interest in awarding contracts or government procurement.
The government does not encourage or require private companies to establish internal codes of conduct prohibiting bribery of public officials.
Private companies do not use internal control, ethics, and compliance programs to detect and prevent bribery of government officials.
Suriname has signed and ratified the Inter-American Convention against Corruption. Suriname has not yet signed and ratified the UN Convention against Corruption. Suriname is not a party to the OECD Convention on Combatting Bribery.
There are no NGOs that focus exclusively on investigating corruption.
U.S. firms have identified corruption as an obstacle to FDI. Corruption is believed to be most pervasive in government procurement, the awarding of licenses and concessions, customs, and taxation.
Resources to Report Corruption
Suriname Police Force( Korps Politie Suriname)
Havenlaan, Paramaribo, Suriname
10. Political and Security Environment
Since the restoration of democracy in 1987, Suriname has not seen politically motivated violence or civil disturbance.
There is no history of damage to projects or installations in the past ten years.
Suriname is increasingly politicized, however elections are considered to be free and fair.
11. Labor Policies and Practices
In general, both skilled and unskilled labor is available in the local market. According to the IMF Article IV report the unemployment rate is eight percent. Foreign workers are mainly active in the extractive industries and agricultural sector. Haitian immigrants fill the shortage of laborers in the agricultural sector, which Surinamers avoid because it is labor intensive and pays low wages. Documented foreign workers are protected by labor laws. According to World Bank figures, the youth unemployment rate was approximately 16.34 percent in 2018. An estimated 15 percent of the working-age population worked in the informal economy.
Heavy equipment operators, welders, and other skilled workers in the extractive industries are in high demand. In recent years Suriname recruited physicians and ER nurses from the Philippines to work in hospital emergency rooms. Because of the economic downturn, the majority of these workers have left the country, resulting in a shortage of nurses and medical staff.
There are no policies that require the hiring of nationals; however, the Work Permits Act prohibits employers from employing foreigners without a work permit granted by the Ministry of Labor.
Legislation makes it difficult for employers to respond to fluctuating market conditions. The Dismissal Permits Act prohibits employers from dismissing employees without permission from the Ministry of Labor. Collective redundancy for organizational or economic reasons is permitted in cases such as the closure or decline of a business.
Generally, when an employee is laid off, unions negotiate with the employer regarding a package and duration of social benefits. Labor organizations sometimes object to work based on contracts as opposed to full time, ongoing employment.
Labor laws are not waived to attract or retain investment. As Suriname has no special economic zones, foreign trade zones, or free ports with alternative labor policies, all entities are subject to existing legislation.
Collective bargaining agreements are wide-spread in both the private and public sector. Data regarding the percentage of the economy covered by collective bargaining agreements iss unavailable. Employees of most large multi-national firms are unionized.
Labor dispute mechanisms are in place and freely used for mediation and arbitration.
Strikes that pose an investment risk are rare. There was one strike last year at Iamgold’s Rosebel mine that lasted three days.
Suriname is a member of the International Labor Organization and recognizes international labor law in its domestic legislation. Child labor remains a problem mostly in the informal sector. The U.S. Department of Labor in the 2017 report on the Worst Forms of Child Labor found the government of Suriname made minimal advancement in efforts to eliminate the worse forms of child labor. Labor laws incorporate freedom of association and the right to organize and bargain collectively, along with prohibitions against forced labor, child labor, and employment discrimination. Existing legislation also provides for humane working conditions, occupational safety and health, and standardized working hours. The Labor Inspection Department supervises observance of labor abuses, health, and safety standards. Laws were effectively enforced only in the formal sectors. A draft bill on child labor is pending.
Suriname qualifies for the Generalized System of Preferences (GSP). The GSP framework includes clauses on labor standards.
Parliament adopted in 2018, the International Labor Organization Convention concerning equal remuneration for men and women workers for work of equal value; the Convention concerning discrimination in respect of employment and occupation, and the Convention concerning minimum age for admission to employment.
12. OPIC and Other Investment Insurance Programs
There are no OPIC programs.
Suriname signed an Investment Incentive Agreement with the United States in 1993.
The Peoples Republic of China provides significant investment financing in Suriname. In many cases, these projects are funded by China’s Export-Import Bank and completed by Chinese companies.
Government-funded investment opportunities are rarely publicly advertised.
13. Foreign Direct Investment and Foreign Portfolio Investment Statistics
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
|Host Country Statistical Source*||USG or International Statistical Source||USG or International Source of Data:
BEA; IMF; Eurostat; UNCTAD, Other
|Host Country Gross Domestic Product (GDP) ($M USD)||2018||$3,069||2017||$2,996||www.worldbank.org/en/country|
|Foreign Direct Investment||Host Country Statistical Source*||USG or International Statistical Source||USG or International Source of Data:
BEA; IMF; Eurostat; UNCTAD, Other
|U.S. FDI in partner country ($M USD, stock positions)||—||N/A||—||N/A||BEA data available at https://www.bea.gov/international/direct-investment-and-multinational-enterprises-comprehensive-data|
|Host country’s FDI in the United States ($M USD, stock positions)||—||N/A||—||N/A||BEA data available at https://www.bea.gov/international/direct-investment-and-multinational-enterprises-comprehensive-data|
|Total inbound stock of FDI as % host GDP||—||N/A||2018||63.8%||UNCTAD data available at https://unctad.org/en/Pages/DIAE/World%20Investment%20Report/Country-Fact-Sheets.aspx|
* Source for Host Country Data: Central Bank of Suriname
Table 3: Sources and Destination of FDI
Note: Suriname does not release foreign direct investment data publically. The IMF’s Coordinated Direct Investment Survey (CDIS) has no information on Suriname. There are no tax haven sources of inward FDI.
Table 4: Sources of Portfolio Investment
Note: Portfolio investment data are not available in Suriname on the IMF’s Coordinated Portfolio Investment Survey. The host government does not publish portfolio investment data.
14. Contact for More Information
U.S. Embassy Paramaribo