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Home Op-ed

The Resurgence of Cocaine Czars in Oil-Rich Guyana–The Wild West Risks to Investors

Staff Writer by Staff Writer
March 16, 2025
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Guyana’s newfound oil wealth was supposed to usher in a new era of prosperity, governance, and global investment. Instead, it appears to have revitalized the country’s darkest underworld, the drug trade. Two major cocaine busts in the past month, involving Guyana-linked vessels trafficking tons of narcotics, are a stark reminder that despite economic progress, the nation remains a Wild West, where criminal empires thrive under weak oversight.

The recent arrest of four Guyanese nationals off the West African coast, following the seizure of 6.3 tonnes of cocaine on a Guyana-registered vessel, is just the latest sign that the country’s notorious drug networks are far from dismantled. Days earlier, authorities in Trinidad seized over $254 million worth of cocaine on a vessel that had traveled from Guyana, its illicit cargo destined for St. Martin. These incidents confirm what many in law enforcement and business circles have long suspected—Guyana’s growing economy has done little to curb the influence of its cocaine czars. If anything, the influx of oil wealth has created more opportunities for corruption, money laundering, and organized crime.

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Guyana’s strategic location on South America’s northeastern shoulder has always made it a prime transshipment point for cocaine moving from Colombia to Europe and North America. For decades, weak institutions, porous borders, and corrupt officials have allowed the drug trade to flourish. The difference now is that the stakes are higher.

The country’s oil boom, with production expected to reach 1.2 million barrels per day by 2027, has injected billions into the economy. But instead of strengthening governance, the rapid inflow of wealth seems to have emboldened criminal enterprises, which now operate with even greater sophistication. The same smuggling routes that once funneled illegal gold and contraband are now being used to transport vast quantities of cocaine, often with the tacit cooperation of those in power.

While international companies have flocked to Guyana to capitalize on its oil reserves, the resurgence of the drug trade poses a serious reputational and financial risk. Investors seeking stability and security in emerging markets are increasingly wary of doing business in environments where organized crime has deep roots.

Global financial watchdogs have already flagged Guyana’s vulnerability to money laundering, and the latest drug busts will likely reinforce concerns that illicit funds are being funneled through the country’s expanding banking and real estate sectors. The risk isn’t just to the financial system, foreign businesses operating in Guyana could find themselves entangled in corruption scandals or, worse, inadvertently financing criminal networks.

The government’s response to these drug busts has been disappointingly muted. Statements from the Ministry of Home Affairs confirm Guyana’s cooperation with French authorities but offer little indication of a serious crackdown on the local networks enabling these operations. This raises the question; Does the government have the political will to take on the drug lords, or is the influence of illicit wealth too entrenched?

International pressure is mounting. The United States, which has long been concerned about the role of Caribbean nations in drug trafficking, will likely push for greater oversight and enforcement. But without a serious commitment from local authorities, the drug trade will continue to flourish, tarnishing Guyana’s reputation and making it an increasingly volatile environment for both investors and citizens.

 

 

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