Suriname: Investing

FDI in Figures

According to the UNCTAD's 2022 World Investment Report, FDI inflows to Suriname totalled USD -164 million in 2021, and the FDI stock was estimated at USD 1.8 billion. Nevertheless, Suriname is viewed as a "rising FDI star" according to various metrics analysed by Global Finance. Gold, bauxite and oil are the main sectors that attract FDI. Recent investments have also been made in palm oil. The main investing countries are the United States, Belgium, and the Netherlands. The country has traditionally turned to European investors, but currently seeks to develop new partnerships. Over the past couple of years, there have been some significant investments made in the country, especially in the petroleum sector. Most notably, in 2019, Apache and Total formed a joint venture to develop a project off Suriname, after Apache discovered significant oil reserves offshore, with Total providing financing to further continue exploration. Also in 2019, Suriname and China announced that they would be working on a strategic partnership of cooperation in areas such as infrastructure construction, agriculture, forestry, fisheries, communications and energy, digital economy, tourism, and ocean economy. The Chinese government also said it encouraged more Chinese companies to invest in Suriname, so significant investments from China are expected in the coming years.

The Surinamese government actively supports and promotes foreign investment. To attract FDI, the government has outlined plans to modernize the country's institutional and legal frameworks to protect investors and eliminate restrictions regarding investment income transfers. Except for the oil sector, Suriname has no economic or industrial policies that discriminate against foreign investors or foreign-owned investments; oil ownership, however, is restricted by law to the State Oil Company Suriname (Staatsolie). No law requires Surinamese nationals to own a share of foreign investments nor is there a requirement for said share of foreign equity to be reduced over time. Foreigners who consider investing in Suriname are required to send a signed letter to InvestSur, the governmental institute for investments, stating their clear intentions and objectives. Major investments, particularly in the mining sector, go through extensive negotiation processes to determine their terms. For the past two years, Suriname has been publishing macroeconomic data under the IMF's enhanced General Data Dissemination System (e-GDDS) with efficient technological data transmission, which enhanced transparency and is expected to foster goodwill with investors. The low level of investment in Suriname, despite its rich natural resources, can be explained by the country's poor business environment. While the government is committed to attracting more foreign investment, there is still a need for greater transparency and disclosure in public finances, as strengthening governance should support investor confidence and promote growth. Despite the government's plans to update institutional and legal frameworks to attract FDI, the 2019 Trade Policy Review conducted by WTO determined that Suriname's investment regime remains unchanged since its previous review in 2013. Weak institutional accountability, discretionary spending and a lack of transparency erode public confidence in the legitimacy of government, but efforts are being made to create new laws that should improve the current situation.

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Latest Update: November 2023