1. Welcoming Remarks
4
2. Organizers
6
3. Supporting Organisations
10
4. Agenda
16
5. Speaker Information
18
6. About Georgia
27
7. Top reasons to do business in Georgia
30
8. Georgia facts and figures 2014
31
9. Useful Information
32
10. Useful website addresses
34
3
WELCOMING REMARKS
Dear Participants,
It gives me great pleasure to host Georgia’s Investment Outlook session
in the framework of the EBRD Annual Meeting and Business Forum in
Tbilisi. I am confident that this year’s ambitious and progressive topic:
“Georgia-Invest in Growth” will bring about a new vision for the region’s
development, through exchange of ideas among high level Government
representatives, business leaders and economic experts from Asia and
beyond.
Georgia boasts a rapidly developing democratic country, with one of
the world’s most attractive business climates. A liberal trade regime,
low taxes, and strategic location, has turned the country into a new
regional frontier for investment opportunities. Our country’s economy
is genuinely diverse, utilizing the interest of an increasing number of
investors. Industries that are demonstrating excellent growth opportunities and huge potential for attracting Foreign Direct Investment include
hydro-electric power generation, manufacturing, logistics and transport,
real estate and tourism to name but a few.
I am happy to say that Georgia has taken another big step forward by
signing the Association Agreement with the European Union – the final
step towards joining the Deep and Comprehensive Free Trade Area
(DCFTA) with the EU. DCFTA genuinely serves as a bridge to the European Market and opens up vast opportunities for our country, while
turning it into an increasingly important business hub for the region.
As Georgia continues on the road of much accelerated development
amidst various challenges, we are willing to hear your ideas on intensifying business in the region and discuss joint opportunities.
Welcome to Tbilisi!
Irakli Garibashvili
Prime Minister of Georgia
4
WELCOMING REMARKS
Dear Participants,
It is my pleasure to draw your attention to the Host Country Investment
Outlook session on the second day of the 2015 EBRD Annual Meeting
& Business Forum in Tbilisi. Do not miss the opportunity to receive firsthand updates on economic and business developments in Georgia, a
country with high ambitions.
Government and business representatives will present an overview of
achievements and challenges and engage with the audience in what
promises to be a fascinating and frank discussion. The event will offer
the opportunity to learn more about Georgia and as such may be the
first step for investors towards benefiting from the many advantages the
country has to offer. Please come and join us!
Sir Suma Chakrabarti
EBRD President
Email: [email protected]
5
ORGANIZERS
ORGANAIZERS
Government of Georgia
Ministry of Finance of Georgia
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With the lead from:
Ministry of Finance of Georgia is an executive government agency of
the country performing the public administration function in finance,
budgeting and taxation by ensuring the development and adherence
to the legislation for budgeting, inland revenue and accounting purposes, prevention of economic offences through efficient investigation and
preliminary scrutiny.
Main competences and authority of the Ministry of Finance are as follows:
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Preparation of the Annual State Budget of Georgia, along with the
major data and directions for the following 4 years;
Monitoring over the execution of the State Budget, reporting on
the budget performance, submission of the budget execution reports to the Government and Parliament of Georgia;
Public funds management for the Government of Georgia;
Definition of major directions of the tax policy and improvement of
tax legislation in the country;
Sovereign debt management;
Cooperation with international rating firms on sovereign rating of
the country;
Ministry of Finance is accountable towards the Government of Georgia
and carries out tasks envisaged in the legislation, assigned by the Government and Prime Minister of Georgia on the grounds of the country’s
legislation.
7
ORGANAIZERS
Ministry of Economy and Sustainable Development of Georgia is
responsible for elaboration and implementation of the economic development policies in the country and the main fields of its mandate
include economic policy elaboration, trade and investment promotion,
tourism promotion, state property management, urban development,
construction permits and licensing, electronic communication and IT innovations, state post and transport management, standardization and
metrology, SME development, pension fund management.
Ministry sets out the economic cooperation policy with other countries,
defines international trade development priorities, establishes and coordinates donor relations for the economic development of the country, ensures the regional economic development of Georgia, handles
cooperation with international financial institutions, defines investment
promotion policy.
8
ORGANAIZERS
The European Bank for Reconstruction and Development (EBRD) was
established in 1991 to help to develop open and sustainable market
economies in countries committed to, and applying, democratic principles. It has since played a historic role and gained unique expertise
in fostering change in the region - and beyond. The EBRD is owned
by 64 countries, the European Union and the European Investment
Bank and is active in more than 30 countries, from the Southern and
Eastern Mediterranean, to Central and Eastern Europe, to Central Asia.
Through EBRD’s financial investments, business services and involvement in high-level policy dialogue, EBRD promotes entrepreneurship,
helps businesses flourish and changes lives.
In Georgia we focus on supporting the private sector clients directly
and via private banks; investing in energy sector projects, which aim to
increase production and access export markets; supporting the introduction of modern regulatory frameworks; and investing in infrastructure, logistics, telecommunications and the financial sector to support
cross-border economic activities.
9
SUPPORTING
ORGANISATIONS
IMPLEMENTING BODY
Entrepreneurship
Development Agency
(Enterprise Georgia)
Enterprise Georgia was established in March 2014 under the Ministry of
Economy and Sustainable Development.
Enterprise Georgia is the first government institution in Georgia mandated to facilitate private sector (and in particular SME) development
through a variety of financial and technical support mechanisms, as
well as export support. At the same time the Agency is an integral part
of the new governmental program “Produce in Georgia”, initiated by the
Prime Minister Irakli Gharibashvili to encourage domestic production
and increase productivity and competitiveness of SMEs.
We know how to:
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Put in place schemes enabling easy start-up and long-term solvency of local enterprises
Encourage high entrepreneurial culture among Georgian small
and medium enterprises via training, consultations, business linkages & matchmaking
Help SMEs access information regarding the financial instruments
available locally and internationally
Provide SMEs with access to finance via different schemes (interest rate financing, collateral insurance, grants, etc)
Facilitate support mechanisms for technical assistance to local
enterprises for improving the production process, operations management & business cycle
Promote Georgian products internationally on targeted markets
via: Product exhibitions, inbound and outbound trade missions,
online marketing, product completions
Help export oriented companies access business intelligence
(market reports, access guides to targeted markets)
5/6-18 Marjanishvili str. (18 Uznadze str) 0102 Tbilisi, Georgia
Ph: +995 32 2 96 00 10
E-mail: [email protected]
www.enterprisegeorgia.gov.ge
11
HOST COUNTRY SPONSORS
Host Country Gold Sponsor
TBC Bank is a leading universal banking group in Georgia with an unmatched market share of retail deposits at 34% and retail loans at 30%.
The Bank has the second largest share in total loans and total assets
with 28% and 26%, respectively. We service more than 1,200 thousand
clients through a diversified multichannel platform that comprises 120
branches, one of the largest networks of ATMs and POS terminals in
Georgia, global award-winning internet banking, market-leading mobile,
iPad and iPhone banking, a call center and TBC Pay terminals and
kiosks. In 2014, TBC Bank was listed on the London Stock Exchange,
resulting in the largest ever IPO from Georgia and the largest ever
off-index IPO from the EMEA region - an important milestone for both
TBC Bank and the country’s economy.
www.tbcbank.ge
Host Country Bronze Sponsors
Adjara Group Hospitality is the largest and the most rapidly-growing
holding company in the hospitality sector of Georgia in both quantitative
and qualitative terms. AGH currently owns and manages three hotels
in Georgia: “Holiday Inn Tbilisi”, “Rooms Hotel Tbilisi”, and “Rooms Hotel Kazbegi” providing over 600 jobs in total. Aside from ownership of
hotels, the company specializes in progressive and extremely efficient
management practices through its seasoned and top rated staff within
the scope of the hospitality industry. Adjara Group Hospitality also plans
to open and manage the “Crowne Plaza Batumi” hotel (170 Keys) in the
second quarter of 2015 and open “InterContinental Tbilisi” hotel (250
keys) in the first quarter of 2016.
www.adjaragroup.com
12
HOST COUNTRY SPONSORS
Silknet is the leading telecommunications service provider in Georgia
offering full range of residential and business telecommunications products including Internet, TV, fixed and mobile telephone services. With
its customer-centric approach and high emphasis on delivering valuable telecommunications services, Silknet has achieved 48% of Internet market share in Georgia. Our cutting-edge TV service and exclusive
content enables 30% of Georgian market to be part of the World’s progress. In 2014 the company launched fixed 4G LTE high-speed Internet
product to cater to remote areas of the country. Silknet, with its premium
quality telecommunications services, is committed to bring more Georgians in the nation’s economy.
www.silknet.com
Liberty Bank is the third largest bank in Georgia by total assets and client balances & deposits, with a 7.8% market share by total assets and
12.0% by client balances & deposits as of 31 December 2014. Liberty
Bank has the largest retail footprint in Georgia, comprising 629 branches and distribution outlets and 386 ATMs, and serves approximately 1.5
million individuals and over 76 thousand legal entities.
www.libertybank.ge
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HOST COUNTRY SPONSORS
Host Country Sponsors
“Winery Khareba” is established upon the ancient traditions. The company works over maintenance of the unique wine culture and wine making both using Georgian traditional methods and modern technologies;
The Company produces high quality 30 types of wines. Among them
9 tipes are made by Georgian traditional method which is called qvevri
wins. The traditional Georgian method of “Qvevri” winemaking has
been given the status of a cultural heritage by the UNESCO.
The company’s priority market after Georgian Market is China, America, Great Britain and European Countries that already implies about
High quality of “winery kharebas” wines.
www.winery-khareba.com
Gulf Georgia is one of the leading oil companies on the Georgian
market. Its success is driven by high quality fuel and customer service.
This international brand has been represented officially in Georgia
by “Sun Petroleum Georgia” LLC, since March, 2010. We trace the
establishment of our world brand to 1901 in the USA. Nowadays Gulf
Oil International distributes high quality oil products to more than
100 countries and is one of the major players in the world market.
Gulf Georgia currently successfully operates 140 refueling stations
nation-wide, 43 of which are located in Tbilisi. We import fuel from the
best oil refineries in Europe whose quality control complies with world
class standards. Gulf refueling stations are distinguished with modern
equipment and western state-of-art innovative technologies.
www.gulf.ge
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HOST COUNTRY SPONSORS
Natakhtari Company is the leading beer and lemonade producer in
Georgia. Since 2008, it occupies more that 50% of Georgia beer market
share. Company offers consumers nine brands (Natakhtari, beer 34,
Karva, Mtieli, Kaizer, Kozel, Herrenhauser, Efes (imported) and Miller
(imported)) and two sub brands (Natakhtari Kasris and Natakhtari Extra) of beer and ten aromas of Natakhtari Lemonade.
Company’s top priority is to follow highest standards in food safety, as
well as to protect safety, health and welfare of employees, therefore
Natakhtari is the only company in Georgia, certified with all available
ISOs which make our product so distinctive and unique. Those internationally recognized standards we possess are: ISO 9001; ISO 22000;
ISO 17025; HACCP; ISO 50001 and most importantly OHSAS 18001.
www.natakhtari.com
LTD “Livo” was founded in 2013, January 21st. The company produces
organic juices from Georgian fruit, which is sold on local as well as
international markets. Juices are produced in the Black Sea region of
Adjara in the Batumi-based factory LTD “Citros.” Today Livo offers its
consumers juices from such fruit as lemon, orange, red orange, citrus
mix, cherry, cornel, tomato, plum and peach.
Juices are produced using direct squeezing method and are poured
into glass bottles, which maximally maintain the juices’ organic qualities.
www.livo.ge
15
AGENDA
AGENDA
Host Country Investment Outlook Session
Georgia - Invest in Growth
May 14, 2015
17:15-18:40
17:15-17:45 WELCOMING REMARKS
Irakli Garibashvili
Prime Minister of Georgia
Sir Suma Chakrabarti
President of the EBRD
Moderator: John Defterios
CNN’s Emerging Markets Editor/Anchor of Global Exchange
17:45-18:40 GEORGIAN ECONOMIC OUTLOOK
Panel Discussion
Key Speakers:
Giorgi Kvirikashvili
Vice Prime Minister / Minister of Economy and Sustainable
Development of Georgia
Nodar Khaduri
Minister of Finance of Georgia
Giorgi Kadagidze
CEO
National Bank of Georgia
Bruno Balnavera
Director for Caucasus, Moldova and Belarus
EBRD
Vakhtang Butskhrikidze
CEO
TBC Bank
Christopher D. Schlueter
Country Manager of Georgia
BP
Q&A
17
SPEAKER
INFORMATION
GEORGIAN ECONOMIC OUTLOOK
John Defterios / Moderator
CNN’s Emerging Markets Editor
John Defterios is CNN’s Emerging Markets Editor. Based in the network’s Abu Dhabi bureau his reporting focuses on the top business
stories from emerging and BRIC economies.
John is also the anchor of ‘CNN Marketplace Middle East’, a weekly
business programme featuring in-depth analysis and top newsmakers
from across the Middle East, and ‘One Square Meter’, a segment which
explores urban planning and property development in emerging markets.
Defterios has more than two decades of financial news and current
affairs experience covering some of the landmarks events during that
period including the Gulf War, the fall of the Berlin Wall, the World Trade
Centre bombings and G8/G20 summits from his postings in London,
Washington, New York, Los Angeles, Rome and the Middle East.
He is a World Economic Forum media leader and member of the Global
Agenda Council on the Arab World and has served as Chairman of the
Business Week Leadership Forums in London, Beijing and New York,
the World Islamic Economic Forum amongst others.
Defterios started at CNN in New York as correspondent on ‘Moneyline
with Lou Dobbs’, anchored CNN’s ‘World Business Today’ and the top
rated U.S. morning business program ‘Ahead of the Curve’.
Defterios has secured numerous exclusive interviews with high-level
figures in the worlds of politics and economics including: HRH Sheikh
Mohammed bin Rachid al Maktoum, Prime Minister of the UAE and
Ruler of Dubai, HRH Prince Alwaleed Bin Talal Al Saud, Ali al Naimi,
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GEORGIAN ECONOMIC OUTLOOK
Saudi Arabia Energy Minister, Mexican President Enrique Peña Nieto
and British Prime Minister David Cameron as well many of the top executives in the Fortune 100 including BP CEO Robert Dudley, former Total
CEO Christophe de Margerie and Africa’s richest man Aliko Dangote.
He travels on assignment throughout Asia, the Middle East, Africa and
Latin America.
Prior to CNN, Defterios worked for Reuters Television as European
Correspondent, West Coast Correspondent and special series producer in a joint-venture with The Nightly Business Report on PBS-TV.
He graduated from the University of Southern California with a BA in
Journalism and Political Economics.
20
GEORGIAN ECONOMIC OUTLOOK
George Kvirikashvili
Vice-Prime Minister and Minister of
Economy and Sustainable Development of Georgia
George Kvirikashvili is current Vice-Prime Minister and Minister of
Economy and Sustainable Development of Georgia. Former Professor
of Corporate Finance at Georgian Technical University Chief Executive
Officer at Cartu Bank JSC and Principal at Lenzie Fisher Hendry LLC.
He has held positions at First Commercial Bank JSC (currently TaoPrivatbank), United Georgian Bank JSC, Trade Invest Bank, United Georgian Bank. He was in charge of all aspects of strategy, development and
operations of bank. He was a Member of Parliament of Georgia. Served
as Team Leader of the Parliament’s Working Group on Georgia’s accession to WTO, responsible for educating Parliament Members on
details of the agreement and needed revisions of Georgian legislation
to meet WTO requirements, chief Policy Strategist for Economic and
Financial Matters, Developed laws on State Budget, Tax and Customs
Codes, Bankruptcy and Entrepreneurs, and Simplified Collateral Registration to increase access to finance for SMEs. He worked as a Deputy
Head of Fiscal, Monetary and Foreign Economic Relations’ Office of the
President of Georgia (State Chancellery). He obtained Finance Degree
from University of Illinois (Champaign-Urbana).
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GEORGIAN ECONOMIC OUTLOOK
Nodar Khaduri
Minister of Finance of Georgia / Vice Chair of the Board of Governors
of the EBRD
Mr. Nodar Khaduri is the Minister of Finance of Georgia since October
2012. Prior to his appointment he held various positions in the public
and private sectors and international organizations.
Mr. Khaduri holds a Ph.D. in Economics and is a full-time Professor of
Macroeconomics at the Tbilisi State University. He is the author of more
than one hundred research papers published in the United States, Hungary, Sweden, Bulgaria, Russian Federation, and Azerbaijan.
His main research interests are: Macroeconomics, Macroeconomic
Policy, Monetary and Fiscal Macroeconomics, the Georgian Economy,
Public Sector Economics, Transformation Economics.
22
GEORGIAN ECONOMIC OUTLOOK
Giorgi Kadagidze
Chairman of the NBG Board, Governor
Giorgi Kadagidze, Chairman of the Board of the National Bank of Georgia, Governor since 2009. He has a fifteen years’ experience in financial
sector. Mr. Kadagidze started his career in UBC International in 2000.
He was a member of Audit Committee of the JSV “Agro-Business Bank
of Georgia”. He headed Economic Department and Finance Department at the Office of the Prosecutor General of Georgia and in Tbilisi
City-Hall (2005-2007). He held position of Head of Georgian Financial
Supervisory Agency (2008-2009). Previously he was Head of Financial
Monitoring Service of Georgia (2007-2008). Giorgi Kadagidze, graduated from Harvard Business school (Boston USA), he also holds Masters
in Public Administration (Georgian Institute of Public Administration).
“The Banker” named Giorgi Kadagidze as the Central Banker of the
year 2014 for Europe.
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GEORGIAN ECONOMIC OUTLOOK
Bruno Balvanera
Director for Caucasus Moldova and Belarus
European Bank for Reconstruction and Development
Bruno Balvanera joined the EBRD in 1996; currently he is Director for
Caucasus Moldova and Belarus, based in Tbilisi. His experience covers
wide variety of sectors, countries and products.
From 2008 to 2013 Bruno was the EBRD Head of Regional Development, based in Moscow responsible for the network of offices the
EBRD has in each of the seven Federal Districts. For the 2 previous
years, he was the Head of St. Petersburg office.
Previous moving to Russia, Bruno was the Head of Business Development where he had the opportunity to engage with numerous potential
investors into the EBRD Countries of operations.
Mr. Balvanera has extensive experience in structuring and negotiating
the financing of the investments in developing countries including Latin
America, and Central and Eastern Europe. He has been member of the
Managing Board of different Companies.
Before joining the EBRD, Bruno Balvanera worked for Development
Banks in Mexico as Investment Manager for projects both in the country
and other jurisdictions mainly in Latin America and Caribbean.
Bruno majored as an Industrial Engineer, and he then had a specialization in Finance and in Political Analysis. Few years later he obtained a
Master in Business Administration from University of Chicago.
24
GEORGIAN ECONOMIC OUTLOOK
Vakhtang Butskhrikidze
CEO TBC Bank
Mr Butskhrikidze graduated from Tbilisi State University in 1992 with
a degree in Economics and holds post graduate qualifications from
the Institute of Economics, Academy of Sciences of Georgia and the
European School of Management in Tbilisi. He obtained an MBA from
the European School of Management in Tbilisi in 2001.
Between 1993 and 1994, he acted as Junior Specialist at the Institute
of Economics, Academy of Sciences of Georgia, as well as Assistant
to the Minister of Finance of Georgia. Mr Butskhrikidze joined TBC as
a Senior Manager of the Credit Department in 1993 and was elected
as Deputy Chairman of the Management Board in 1994. He became
Chairman of the Management Board in 1996. Since 1998, he has held
the position of CEO of TBC Bank and has headed a number of TBC’s
committees.
Mr Butskhrikidze is also a member of the Supervisory Boards of the
Association of Banks of Georgia and the Georgian Stock Exchange and
is Chairman of the Financial Committee of the Business Association of
Georgia. Since 2011 he has also held the position of member of the
Supervisory Board of the Partnership Fund, Georgia.
In 2001,Mr Butskhrikidze was honored with the “Best Businessman of
the Year” award by Georgian Times Magazine and in 2011 he was
recognized as the “Best Banker 2011” by GUAM – Organization for
Democracy and Economic Development award. Mr Butskhrikidze
was also named as the CEO of the Year 2014 in Central and Eastern
Europe and the CIS by EMEA Finance magazine.
25
GEORGIAN ECONOMIC OUTLOOK
Christopher D.Schlueter
BP Country Manager, Georgia
A graduate from the California Institute of Technology in Chemical Engineering, Chris has been with BP over 30 years with assignments in
USA Alaska’s arctic, UK’s North Sea, Russia’s East and West Siberia,
Angola’s offshore deep-water and presently Georgia, specializing in oil
and gas production and pipeline operations, engineering, development
projects and management.
BP and its partners constitute the Country’s largest foreign investor,
year in and year out. BP has been in Georgia almost 20 years, spending over $100million annually in Country. As head of BP in Georgia,
Mr Schlueter overseas three existing pipelines transiting the Country
carrying approximately 1% of world hydrocarbons to market, as well as
an additional $2billion SCPX gas pipeline expansion now under construction, Georgia’s portion of the new Southern Gas Corridor for transit
of gas from Azerbaijan’s Shah Deniz, through and to Georgia, Turkey,
Greece, Albania and Italy for markets throughout Southern Europe.
26
ABOUT GEORGIA
ABOUT GEORGIA
INTRODUCTION TO GEORGIA
Since re-gaining the independence in early 90’s, Georgia has become
the regional champion in terms of reforms, economic development and
progressing of democratic institutions. Striving to succeed on the path
of Euro-Atlantic integration, country is oriented towards positioning itself as a hub for doing business in the region and developing advanced
international business environment and relations.
Located at the juncture of Europe and Asia and being the shortest transportation route between two regions, Georgia is uniquely positioned to
capitalize on increasing trade flows between Europe, the Caspian Region, Central Asia and East Asia. One of the lowest and easy manageable tax regime, improving political stability and business climate, coupled with relatively low operational costs and an increasingly supportive
government, have made Georgia an attractive investment destination.
After the signing of the Deep and Comprehensive Fee Trade Agreement with EU (enacted on September 1, 2014) the country embarking
on its journey towards integration with the European Union.
Overview of the Economy
Industrial Manufacturing and Processing
Georgia provides significant investment opportunities in manufacturing
sector, which has attracted more than USD 0.5 billion foreign direct
investments since 2010 – 2014*. New opportunities are expected to
be grasped by Greenfield investments in export oriented manufacturing
sectors, for which access to the European market would be attractive.
The share of industry sector in Georgia’s GDP is 17.1% in 2014*.
There are significant business opportunities in processing of the primary agricultural goods into a higher value added products and supplying
equipment and services (greenhouses, storage, deep-freeze facilities,
packaging, etc.). Georgian agriculture offers foreign businesses the opportunity to invest in areas of unmet market demand, significant cost
efficiencies and strong profit potential.
Tourism and Retail Sector
Tourism is another field, which witnessed significant growth in recent
years and is considered to be an important driver of economic development and the creator of jobs as well as generator of revenues.
The industry offers a wide diversification in terms of its sub-industries:
summer sea resorts, four season mountain resorts (including skiing),
spa-wellness, gaming and more. In fact From 2003 year to 2014 the
number of international visitors to Georgia has increased from 300
thousand to 5,5 million.
28
ABOUT GEORGIA
According to Hotel Market Report, prepared by Colliers International,
the highest average occupancy rates in Tbilisi are in international midscale brand hotels 75% and in international upscale brand hotels 74%.
In addition, the ADR (Average Daily Rate) for International upscale hotels is - 203 USD.
With 17.4% of National GDP in 2014, trade is one of the largest economic sectors in Georgia. Annual per capita retail expenditure has
doubled over the past decade. More than 9% out of total international
visitors visited Georgia for shopping purposes in 2013 year.
Energy Sector
Energy sector is attractive from the perspective of both existing natural resources and developing infrastructure, as the country possesses
huge hydro resources and offers untapped potential for investment. For
the last years, Georgian has become net exporter of electricity and currently utilizes only 18% of its vast hydro resources. Georgian power
grid is connected to the grids of all of neighboring countries, which are
faced with either a structural power deficit or expensive power generation. From 2010 to 2014* Georgian energy sector has attracted almost
USD 750 mln.
Transport and Logistics
Georgia is in a highly strategic location: It serves as an entry gate to the
Caucasus and Central Asia as well as a stepping stone to the region.
The country is the shortest route between the Black Sea and the Caspian Sea region. Construction of Baku-Tbilisi-Kars new railway line is
on the final stage and it will further advance trade of goods in the whole
region. The government is investing heavily in the development of road
infrastructure-highways as well as local roads. At this stage, the government has negotiations with potential investors to build a new deep
sea port in Anaklia on Black sea, with an ability to receive vessels of at
least 6,500 TEU capacity. The new port will bring Georgia’s logistical
capabilities to a new level. Therefore, Georgia wants and can be the
best place for regional offices, regional stocks, and a part of various
value chains.
29
TOP REASONS TO DO BUSINESS IN GEORGIA
TOP REASONS TO DO BUSINESS IN
GEORGIA
The World’s Leading Performer. Georgia is consistently ranked as
the TOP performer in country policy and institutional assessments
(CPIA) complied by international financial institutions (WB, ADB, ETC.)
Corruption Free - According to the Transparency International Global
Corruption Barometer Georgia is perceived as a corruption free destination.
Best Place to Start a Business - Georgia is in top 15 best Doing Business Destinations in according to World Bank
Reasonable Tax Policy - According to 2009 Tax Misery & Reform Index, released by Forbes Business & Financial News, Georgia is the
fourth least tax burden country after Qatar, UAE and Hong Kong.
Strategic location - Located at the crossroads of Europe, Central Asia,
Middle East and Africa Georgia is a key link in the shortest transit route
between Western Europe and Central Asia for transportation of oil and
gas as well as dry cargo.
Stable macroeconomic environment - In recent years, Georgian
GDP has a growth tendency.
Liberal and free market oriented economic policy - The Government
of Georgia implemented reforms in tariff policy as well as in technical
regulations sphere. As a result, nowadays Georgia has one of the most
liberal foreign trade policies in the world, which implies the facilitated
foreign trade regimes and customs procedures, low import tariffs and
minimal non-tariff regulations.
Developed infrastructure - One of the top priorities for the Government of Georgia is coordinated functioning of transport fields, modernization-construction of transport infrastructure in accordance with international standards. The Government of Georgia is being implementing
important infrastructure projects, which shall facilitate new cargo volumes through Georgia and increase effectiveness of functioning of
transport systems.
Enhanced Economic Prospects following signing of the AA with European Union. Agreement incorporates elements which will encourage
improvements in the rule of law and in effective governance, as well as
further moves towards a well-functioning market economy through the
removal of tariff and non-tariff barriers.
30
USUFULL INFORAMATION
GEORGIA FACTS AND FIGURES
Area:
Population (2015E):
69,700 sq km
4.5mln
Life expectancy:
76 years
Official language:
Georgian
Literacy:
Capital:
Currency (code):
GDP 2014:
GDP real growth rate 2014:
GDP per capita 2014:
FDI Inflows 2014:
Unemployment Rate 2013
99.7%
Tbilisi
Lari (GEL)
US$ 16.5 bln
+4.7%
US$ 3,681
US$ 1,272.5 mln
14.6%
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USEFUL INFORMATION
GENERAL INFORMATION
Climate and weather
The climate of the country is extremely diverse, considering the nation’s
small size. The Greater Caucasus Mountain Range plays an important role in moderating Georgia’s climate, protecting the nation against
cold air from the north, while the Lesser Caucasus Mountains protect
against the very dry, hot air from the south. Average temperatures in
summer range from 19 °C to 22 °C, and in winter from 1.5
°C to 3 °C.
Average daytime air temperature in May: +20° C (+68° F) Average
nighttime air temperature in May: +12° C (+54° F)
Electricity
Electrical current – 220 Volts, 50 Hz. EU standard plugs work throughout Georgia.
Time Zone - GET (UTC +4)
FOREIGN EXCHANGE
The official currency in Georgia is the Georgian Lari usually indicated as
GEL. The Lari is subdivided into 100 Tetri. There are exchange desks in
many areas of Tbilisi. Major hotels accept credit cards but please check
outside the main cities. Cash point machines are available throughout
major towns and cities.
The exchange rate is approximately (May, 2014):
2.32 GEL per 1 USD
2.64 GEL per 1 EUR
COMMUNICATIONS
The country code is +995 and the area code for Tbilisi is
322. Georgian mobile operators (Geocell, MagtiCom and Beeline) cover almost the whole territory of the country and there are many WI-FI
zones that enable visitors to use the internet for free
32
USEFUL INFORMATION
HEALTH AND MEDICAL SERVICES
As with undertaking any form of travel, adequate insurance is strongly
advised. Georgia has excellent medical facilities. For the emergency
services please call 112, which is 24 hour emergency response center,
under the Georgian Ministry of Internal Affairs.
“112” receives emergency calls from all over Georgia via single emergency number – 1-1-2 and it unites three emer- gency response centers
in Georgia including:
Fire / Rescue Patrol Police Medical Emergency
1-1 reachable from both mobile and fixed phones, even if there is no
balance on the phone or SIM-card is missing on mobile phone. All calls
to 1-1-2 are free of charge
We suggest that participants bring any medications that they take regularly with them. If participants feel uncomfort- able or ill during the workshop, please do not hesitate to notify the organizers immediately.
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USEFUL WEBSITE ADDRESSES
GOVERNMENT OF GEORGIA
Government of Georgia
www.government.gov.ge
Ministry of Finance of Georgia
www.mof.ge
Ministry of Economy and Sustainable Development of Georgia
www.economy.ge
Ministry of Foreign Affairs of Georgia
www.mfa.gov.ge
Ministry of Energy of Georgia
www.energy.gov.ge
State Minister of Georgia on European and Euro-Atlantic Integration
www.eu-nato.gov.ge
Ministry of Culture and Monument Protection of Georgis
www.culture.gov.ge
Ministry of Agriculture of Georgia
www.moa.gov.ge
Ministry of Internal Affairs of Georgia
www.police.ge
BUSINESS INFORMATION
Enterprise Georgia
www.enterprisegeorgia.gov.ge
Partnership Fund
www.fund.ge
National Bank of Georgia
www.nbg.gov.ge
Georgian Co-Investment Fund
www.gcfund.ge/en/home
Georgian National Investment Agency
www.investingeorgia.org
Association of Banks of Georgia
www. abg.org.ge
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USEFUL WEBSITE ADDRESSES
BUSINESS STATISTICS AND DIRECTORIES
National Statistics Office in Georgia
www.geostat.ge
ENERGY
Electricity System Commercial Operator
www.esco.ge
Georgian State Electrosystem
www.gse.com.ge
INTERNATIONAL FINANCIAL INSTITUTIONS
European Bank for Reconstruction and Development
www.ebrd.com/pages/country/georgia.shtml
ADB
www.adb.org/countries/georgia/main
World Bank
www.worldbank.org/en/country/georgia
IMF
www.imf.org/external/country/geo/rr
Millennium Challenge Corporation
www.mcc.gov/pages/countries/program/georgia-compact
Business Association of Georgia
www.bag.ge
Georgian Chamber of Commerce and Industry
www.gcci.ge
Amcham
www.amcham.ge
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USEFUL WEBSITE ADDRESSES
ICC Georgia
www.icc.ge
EU-Georgia Business Council
www.eugbc.net
ABOUT GEORGIA
Georgian National Tourism administration
www.gnta.ge
Tbilisi Infomap
www.info-tbilisi.com
Georgian National Museum
www.museum.ge
Georgia About
www.georgiaabout.com
National Environmental Agency
www.meteo.gov.ge
Forbes
www.forbes.ge
Georgia Today
www.georgiatoday.ge
Georgian Times
www.geotimes.ge
The Messenger
www.messenger.com.ge
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