Oil-rich Suriname’s new leader vows fiscal discipline and foreign investment welcome

Suriname is set to swear in its first female president following a complex electoral process, with experts suggesting investors have little reason for concern over the government change in the newly oil-rich country.

Jennifer Geerlings-Simons, who has pledged to pursue a more socially inclusive approach, secured the presidency after her National Democratic Party (NDP) formed a coalition with five other parties. Together, the alliance commands 34 seats in Suriname’s 51-seat parliament, combining the NDP’s 18 seats with 16 from its partners, establishing a strong majority, Caliber.Az reports, referencing foreign media.

The coalition relegates the incumbent Progressive Reform Party (VHP), known for its pro-market stance, to opposition. However, Geerlings-Simons is widely expected to continue the existing policies as TotalEnergies SE prepares to extract the first oil from reserves estimated at 760 million barrels.

Suriname’s $4.5 billion economy is forecast to grow by 3.2% this year and gradually approach 4% growth by 2027. After oil production begins, economists anticipate a dramatic surge in growth, potentially increasing more than tenfold.

“This is the golden goose. It’s the lifeline,” said Winston Ramautarsing, an economist and independent consultant based in Suriname. “They understand that. They will need the oil revenues, so they will foster cooperation with Total and encourage foreign investment.”

Suriname’s sovereign bonds have performed well this year, offering investors an 8% return and outperforming many emerging-market peers. Dollar bonds maturing in 2033 were trading at about 95.6 cents on the dollar as of June 5, according to indicative pricing data.

An NDP spokesperson confirmed the new government plans to welcome foreign investment while also emphasizing stronger local involvement in the energy sector. Meanwhile, the Progressive Reform Party, which won 17 parliamentary seats, accepted defeat but vowed to remain “determined and combative.”

Despite the political change, Geerlings-Simons, a 71-year-old former parliamentary speaker, shares similar views with outgoing President Chandrikapersad Santokhi regarding the development of Suriname’s oil industry, according to sociology professor Jack Menke.

The incoming president has committed to crafting policies based on professional advice and data from private sector experts, labor unions, and non-governmental organizations, Menke explained. The National Party of Suriname (NPS), which secured six parliamentary seats, is expected to provide the finance minister and central bank governor, with veteran lawmaker Gregory Rusland, a former natural resources minister, likely to become vice president.

“We don’t think there will be any problem,” said Menke, who teaches at Anton de Kom University in the capital, Paramaribo. “They are very professional people with integrity.”

By Tamilla Hasanova