GEORGIAN HAZELNUTS STRIKE A LETTER FROM NEWLY- MEET MIZ-MASK: THE BACK – THE NEAR DEMISE AND ELECTED AMCHAM PRESIDENT ELECTRONIC RESPIRATOR REBIRTH OF GEORGIA’S SECOND SARAH WILLIAMSON STARTUP KILLING CORONA FAVORITE CROP WITH UV

Investor.A Magazine Of The American Chamber Of Commerce In Georgia geISSUE 76 DEC.-JAN. 2020/21

Fending off Covid: Georgia goes back into lockdown

                ! "" #$$ #% "& ' ! "" #$$ #% "& ( )*  +  , - ...,  +  ,

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 3 Investor.ge CONTENT 6 Investor news

10 A letter from newly-elected AmCham President Sarah Williamson

12 Georgian snack start-up Enkeni’s journey to make a healthier chip – from apples

14 Rebound: how Georgia can learn from the pandemic and build a more resilient economy

16 Georgian hazelnuts strike back – the near demise and rebirth of Georgia’s second favorite 12 crop 20 Amendments to the Labor Code of Georgia – further advancements towards employee protection

22 Farm (to internet) to table – Covid-19 and the digitization of agriculture

24 Meet MIZ-MASK: the electronic respirator startup killing Corona with UV

25 Georgian aesthetic medicine firm Aptos receives US FDA green light

25 26 Moedani, A Place To_____: revitalizing Tbilisi’s Avlabari district

28 Mikheil Lomtadze – the Georgian who became a Kazakh billionaire

30 Prospects and public concerns in the pension fund’s new investment guidelines

32 Remotely from Georgia: are the digital nomads flocking yet?

36 TBC Capital report on automotive sector points to 28 sector growth on the horizon 38 Georgian education system taking important steps forward with USAID support

40 Long horizons, local talent and luxurious upgrades – how Silk Hospitality is riding out the pandemic

32 NEWS ...... 46

4 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 5 GEORGIA REINSTATES PARTIAL INVESTMENT LOCKDOWN MEASURES FOLLOWING STEEP SPIKE IN INFECTION RATES NEWS The Georgian government announced INVESTOR.GE a series of new coronavirus restrictions on November 26 following a jump in the PROVIDES A number of daily cases. The new regula- does not apply to direct international BRIEF UPDATE tions will be in force for two months, ÀLJKWVWKDWDUHFDUULHGRXWRUVFKHGXOHG ON INVESTMENTS between November 28 and January between Tbilisi International Airport AND CHANGES 31. and the following destinations: Munich, IN GOVERNMENT Curfew will be observed between Paris, Riga, Doha, Warsaw, Athens, Am- 9:00 p.m. and 5:00 a.m., to be lifted sterdam, Berlin, Vienna, and Milan. This POLICY THAT COULD temporarily on December 31 and January restriction also does not apply to sched- IMPACT THE BUSINESS 6. Meanwhile, municipal and intercity XOHGÀLJKWVEHWZHHQ.XWDLVL,QWHUQDWLRQDO ENVIRONMENT. transport has been suspended, including Airport and the following airports: Riga, INFORMATION IN the Tbilisi metro, and classes and lectures .DWRZLFH9LOQLXVDQG'RUWPXQG*HRU- THIS ISSUE WAS in all schools and universities will be JLDFRPSOHWHO\VKXWGRZQDLUWUDI¿FLQWKH held remotely. country on May 21 in order to slow the TAKEN FROM Cultural and sporting events have spread of the coronavirus. AGENDA.GE AND been suspended, while all restaurants, OTHER SOURCES. bars and cafés can only operate through GEORGIA EXPECTING $6 BILLION delivery, takeaway and drive-thru ser- IN TOURISM REVENUE IN 2024 vices. Georgia expects 10.5 million inter- Many shops will be forced to close: national visitors in 2024 and $6 billion all retail shops must transfer to online in earnings from the tourism sector in operations, except for shops selling 2024, the Head of the Georgian Tourism food products and home essentials, vet- $GPLQLVWUDWLRQ0DULDP.YULYLVKYLOL erinarian, agricultural or pharmaceutical said in an early October press release. products. Strategic entities providing From 2012 to 2020, the number of visi- electricity, water, gas, gasoline and diesel tors entering the country increased from will remain open, as will press booths. 4.7 million to 9.4 million, while earnings Gyms, swimming pools and spas will were $3.3 billion in 2019. The share have to temporarily shutter, along with of tourism in the country’s economy entertainment venues. exceeded 8% that year, in which more The private sector has also been than 150,000 people were employed in strictly recommended by Prime Minister the tourism industry. Gakharia to work remotely wherever possible. GEORGIA SHOWS IMPROVEMENT ON WORLD BANK SURVEY IN NEW INTERNATIONAL FLIGHTS GOVERNANCE WILL NOT RESUME UNTIL AT LEAST Georgia has shown improvement in NEW YEAR’S IN GEORGIA the World Bank’s Worldwide Gover- Regular international flights will nance Indicators (WGI) study released not resume in Georgia until December in early October in terms of government 31, 2020, the Georgian Civil Aviation effectiveness and regulatory quality. Agency has announced. This restriction Georgia received 77% from the total

6 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 100% scale for government effectiveness The World Bank announced readi- Finance Ministry said that in order to and 83% for regulatory quality, which ness to help Georgia purchase Covid-19 be granted the status of an international assesses reforms carried out by the gov- vaccines as soon as an effective one company in Georgia, it is necessary for a ernment for the development of the pri- becomes available. The World Bank has ¿UPWREHUHJLVWHUHGLQ*HRUJLDDQGKDYH vate sector. The Worldwide Governance already provided $80 million to Georgia at least two years of work experience in Indicators project reports aggregate and under the Fast Track Covid-19 Facility the country. After obtaining the status individual governance indicators for over to mitigate the health and social impacts of an international company, a company 200 countries and territories over the of the Covid-19 pandemic in April 2020. will enjoy reduced property (but not period 1996–2018, for six dimensions ODQG SUR¿WGLYLGHQG IXOOH[HPSWLRQ  of governance, including voice and ac- 100,000 GEORGIAN CITIZENS DQGLQFRPHWD[HVZLWKSUR¿WDQGLQFRPH countability (in which Georgia received LOSE SOURCE OF INCOME taxes reduced to 5%. 53%), political stability and absence of DURING PANDEMIC YLROHQFH  JRYHUQPHQWHI¿FLHQF\ As of mid-October about 100,000 SEPTEMBER 2020: MONEY (76%), regulatory quality (82%), rule of Georgians have lost their source of in- TRANSFERS TO GEORGIA UP 28% law (62%), control of corruption (74%). come during the pandemic, the Finance Georgia received $192.7 million Ministry says. This estimate was based from abroad in September 2020, which FRUIT EXPORTS REACH NEW on the number of people receiving 1,200 is 28.7% more than the amount in Sep- HEIGHTS DESPITE PANDEMIC GEL over the course of six months per tember 2019, says the National Bank of Georgia exported 25,000 tonnes of the government’s social support plan, Georgia (NBG). Russia, Italy, and the peaches and nectarines for a total of or individuals employed in the informal United States were the largest remit- $21.3 million between May 1 and Oc- sector or the self-employed, who have re- tance senders to Georgia in September tober 4—a 100% year-over-year bump ceived one-time assistance of 300 GEL. 2020. Georgia received $35 million from for the otherwise small industry in the Russia, $29 million from Italy and $23 country. Georgian peaches and nectarines NEGATIVE TRADE BALANCE million from the United States. were mainly exported to Russia, Armenia DECREASES SLIGHTLY IN After Russia, Italy, and the United and Azerbaijan. Meanwhile, Georgia JANUARY-OCTOBER 2020 YEAR- States, other countries regularly sending exported 2,149 tonnes of apples worth OVER-YEAR money transfers to Georgia in September $947,000 between August 1 and October Georgia had a negative trade bal- 2020 included: Greece ($21.4 million), 11, announced the Georgian Ministry of ance of $3.7 billion in January-October Israel ($13.9 million), Turkey ($10.6 Agriculture and Environmental Protec- 2020, which constituted 40.7 percent of million), Germany ($7.5 million), Azer- tion. The volume of apple exports is its share in external trade turnover. One baijan ($7.4 million), Ukraine ($13.2 six times higher than it was in the same \HDUHDUOLHUWKHWUDGHGH¿FLWRI*HRUJLD million), Spain ($4.8 million), Poland period of 2019, while the value of exports amounted to $4.3 billion over the same ($2.6 million), France ($2.9 million) and increased by $713,000, said the ministry. time period, and amounted to 41.4 WKH8. PLOOLRQ  percent of total trade turnover. Turkey, In September 2020, remittances leav- WORLD BANK TO HELP GEORGIA China, and Russia remain Georgia’s ing Georgia totalled $25.1 million, which PURCHASE COVID-19 VACCINES largest trade partners. is a 22.4% increase year-on-year.

INTERNATIONAL IT, MARITIME BAG INDEX: 50% OF COMPANIES COMPANIES TO ENJOY TAX HAVE LOW LEVEL OF TRUST, OR BENEFITS IN GEORGIA NONE AT ALL, IN THE GEORGIAN Companies that offer IT and maritime JUDICIAL SYSTEM services will be able to enjoy favorable About 41% of Georgian companies terms of taxation in Georgia if they have a low level of trust in the Georgian obtain the status of an international judicial system, while 9% have none at company in the country. Announcing all, shows the Business Association of WKHEHQH¿WVRQ2FWREHUWKH*HRUJLDQ Georgian (BAG) Index. Only 18% of

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 7 those businesses surveyed indicated a loan in late October to support Georgia’s of electricity and 200 cubic meters of high level of trust in Georgian courts. recovery from the coronavirus disease natural gas per month. Electricity will Moreover, 33% of companies assess SDQGHPLFE\ODXQFKLQJD¿VFDOUHVLOLHQFH be covered for more than approximately WKH*HRUJLDQMXGLFLDOV\VWHPDVHI¿FLHQW and social protection support program. 1.2 million households, while natural gas RUYHU\HI¿FLHQWZKLOHWKLQNWKDW This program is aimed at ensuring mac- utilities bills will be covered for approxi- WKHV\VWHPLVLQHI¿FLHQWRUYHU\LQHI¿- roeconomic stability in the medium to mately 650,000 households. cient. Legal and administrative barriers long term while continuing to protect were cited as one of the main factors the livelihoods of those most affected NEW LOCAL AIRLINE COMPANY hindering business activity, with the by the crisis. AIR GEORGIA TO START judicial system highlighted by many as a The ADB program also aims to OPERATIONS IN 2021 sub-factor within this category. Respon- strengthen the management of public ex- The Georgian air market is expand- dents saw a need for improvement with SRVXUHWR¿VFDOULVNVDQGGHHSHQGRPHV- ing with a new local airline company; respect to tightening deadlines (76%) and tic markets for government securities. Air Georgia, which plans to start opera- increasing competence (57%). These measures seek to reduce tions in the Georgian aviation market in the share of general government debt 2021. Air Georgia plans to carry out NAMAKHAVANI HPP COULD denominated in foreign currency and ÀLJKWVWR(XURSHDQG&HQWUDO$VLD7KH PROVIDE A 12% BOOST TO PLQLPL]HSXEOLFH[SRVXUHWRUH¿QDQFLQJ airline company has already applied to GEORGIAN ENERGY SUPPLY and currency risks that threaten macro- the Georgian Civil Aviation Agency for economic stability. DÀLJKWSHUPLW7KHUHKDYHSUHYLRXVO\ The program will also help ensure the been only two local airline companies ¿VFDOVXVWDLQDELOLW\RIVRFLDOSURWHFWLRQ in Georgia—Georgian Airways, which programs that were expanded during was established in September 1993, and the crisis. Myway Airlines, which started opera- In May this year, the ADB approved a tions in 2018. The Namakhvani hydroelectric $100 million loan to support the govern- power plant (HPP), being built in the ment’s anti-crisis measures, including tax NATIONAL BANK OF GEORGIA Tskaltubo municipality, will provide deferments for small and medium-sized KEEPS REFINANCING RATE Georgia with 12% of its electric energy businesses, temporary payments for UNCHANGED AT 8% needs once completed, Economy Minis- pandemic-affected workers, and free The National Bank of Georgia (NBG) ter Natia Turnava said at a late-October access to Covid-19 diagnostic and treat- KDVGHFLGHGWRNHHSWKHUH¿QDQFLQJUDWH press conference. The plant will have an ment services. unchanged at 8% at its last Monetary Pol- installed capacity of 430 MW, and will icy Committee meeting in late October. bring in $800 million in foreign direct STATE TO COVER UTILITY FEES ³$QQXDOLQÀDWLRQNHHSVGHFUHDVLQJ investments, Turnava noted, adding that FOR CITIZENS BASED ON and it amounted to 3.8% in September,” up to 1,600 Georgian citizens may be CONSUMPTION LEVELS says the NBG, noting that based on its employed by the project carried out by IRUHFDVWWKHDQQXDOLQÀDWLRQUDWHZLOO Turkish company Enka. By the end of DSSURDFKWKHWDUJHWHGLQÀDWLRQUDWHE\ 2020, nine HPPs with a total installed 2021. The bank says that the decrease in capacity of 31 MW will have been put LQÀDWLRQLVFDXVHGE\DGHFUHDVHRIZHDN into operation. aggregate demand, noting that external GHPDQGLVTXLWHVLJQL¿FDQW ADB APPROVES $200 MILLION The state will cover the utility fees “Against the backdrop of increased POLICY LOAN TO SUPPORT of certain citizens starting in November coronavirus cases and the anticipated GEORGIA’S ECONOMY for four months based on their levels of extension of the pandemic, the global RECOVERY consumption of power and gas. Electric- economic recovery in 2021 is expected The Asian Development Bank (ADB) ity fees will be covered for households to be slower than previously forecasted, approved a $200 million policy-based which consume less than 200 kWh which will have downward impact on

8 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 external demand,” the NBG said, noting that the Monetary Policy Committee also took into account the uncertainty associ- ated with the acceleration of the virus spread and the increase in geopolitical risks.

INFLATION FOR ESSENTIAL ITEMS INCREASED AT A FAIRLY NORMAL PACE IN GEORGIA IN OCTOBER of a new breakwater, 400 meters of quay very important pillars of the Georgian The prices of food and non-alcoholic wall and dredging of up to 13.5 meters of economy. Strict virus containment mea- beverages, clothing and footwear, trans- ship draft, while PNTC will invest in the sures, imposed in March 2020, hit do- port, health, have increased in Georgia construction of a new dry bulk terminal mestic demand and many small service month-on-month, the latest inflation which will include a patio area and rail providers,” the EBRD notes. GDWDIURPWKH1DWLRQDO6WDWLVWLFV2I¿FH connection to Poti. “The hospitality sector, the main of Georgia (Geostat) show. “It is an important milestone in driver of robust economic growth in The prices of food and non-alcoholic reaching our ambition to develop the recent years, has become a key source beverages increased 0.9%, while it went best-in-class logistics solution at Poti of vulnerability during the Covid-19 up 5.4% for clothing, and 3.2% for port, which involves a modern dry bulk pandemic,” the EBRD says, ascribing footwear. facility capable of accommodating Pana- much of the dip in GDP due to the col- Transport prices increased by 0.8%. max vessels and handling various types lapse of the hospitality sector. Health related costs also went up by of cargo on 25 hectares of the custom In turn, the International Monetary 1.2%. The prices increased for medical area. This infrastructure will make the Fund still predicts 4.3% growth in 2021 products, appliances and equipment VXSSO\FKDLQPRUHHI¿FLHQWDQGHIIHFWLYH “as the effects of the pandemic fade, but (2.9%). for local and regional cargo owners,” said considerable downside risks remain.” Overall, in October 2020, the con- Managing Director of APM Terminals sumer price index increased by 0.8% 3RWL.HOG0RVJDDUG&KULVWHQVHQ GEORGIA RANKS 53RD OF 167 compared to the previous month, while The new dry bulk terminal will be ON LEGATUM PROSPERITY INDEX WKHDQQXDOLQÀDWLRQUDWHDPRXQWHGWR EXLOWGXULQJWKH¿UVWSKDVHRIWKHSRUW 2020 3.8%. construction project and will create an Georgia ranks 53rd of 167 countries :LWKUHJDUGWRDQQXDOFRUHLQÀDWLRQ additional capacity of approximately 10 on the Legatum Prosperity Index 2020 which is calculated by excluding the million tonnes for bulk cargo. which assesses countries’ political, so- groups of food and non-alcoholic bever- cial, economic and environmental stand- ages, energy, regulated tariffs, and trans- EBRD PREDICTS 3.5% GROWTH ings. Since 2010, Georgia has moved port from the consumer basket, prices FOR 2021 IN GEORGIA, IMF up the rankings by 11 places, the index increased by 5.4%, while the annual core EXPECTS 4.3% shows. Georgia’s rankings by category LQÀDWLRQZLWKRXWWREDFFRDPRXQWHGWR In its 2020-2021 transition report, were: Safety and security (73), personal 5%, Geostat said. the European Bank for Reconstruction freedom (61), governance (51), social and Development (EBRD) forecasts capital (111), investment environment NEW DRY BULK TERMINAL TO BE economic growth for Georgia at 3.5%, (41), enterprise conditions (53), market BUILT IN POTI PORT predicting a contraction of 5% in 2020. access and infrastructure (56), economic A new dry bulk terminal will be built The Covid-19 pandemic is particu- quality (82), living conditions (89), on the north side of the Black Sea Poti larly disruptive for the small and open health (82), education (55), and natural port per an agreement signed between Georgian economy, says the report. environment (115). APM Terminals Poti (APMT) and Poti “The impact of the external pandemic The biggest improvement in the in- New Terminals Corporation (PNTC). shock was wide-ranging, hitting export dex compared to a decade ago came in APMT will invest in the construction of goods, tourism and remittances, all safety and security.

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 9 A letter from newly-elected AmCham President Sarah Williamson

Dear AmCham Members and Friends,

,KRSHWKLVOHWWHUÀQGV\RXKHDOWK\DQGSHUVHYHULQJWKURXJKWKHWU\- LQJWLPHVIDFLQJXVDOOKDVFHUWDLQO\EHHQD\HDURIXQIRUHVHHQ FKDOOHQJHV:KLOHWKHVHDUHQRWWKHFLUFXPVWDQFHVWKDWDQ\RIXVKRSH IRU,DPKXPEOHGWRKDYHEHHQHOHFWHGWROHDGRXUHIIRUWVDWDWLPH ZKHQ$P&KDP·VUROHKDVQHYHUEHHQPRUHYLWDO :HDUHGHDUO\PLVVLQJWKHRSSRUWXQLWLHVRIIDFHWRIDFHHQJDJH- PHQWQHWZRUNLQJHYHQWVDQGDFWLYLWLHVWKDWZHFRXOGSUHYLRXVO\WDNH IRUJUDQWHG1RQHWKHOHVV,DPGHWHUPLQHGWRVHHXVFRQWLQXHWRFUH- DWHZD\VWRZRUNWRJHWKHUDFURVVZKDWHYHUSODWIRUPVSRVVLEOH,QWKLV ZD\RYHUWKHFRPLQJPRQWKVZHZLOOZRUNWRNHHSWKHPHPEHUVKLS LQIRUPHGVXSSRUWPHPEHUVLQGLIÀFXOW\DQGHQVXUHWKDWOLQHVRIFRP- PXQLFDWLRQDUHFOHDUEHWZHHQWKHSULYDWHVHFWRUDQGJRYHUQPHQW 0RYLQJIRUZDUGRXUSULRULW\ZLOOEHWRKHOSHQVXUHWKDW*HRUJLDLV UHDG\WRWDNHDGYDQWDJHRIHYHU\SRVVLEOHRSSRUWXQLW\DVZHFRPH RXWRIWKHJOREDOSDQGHPLF,QSDUWLFXODUZHZLOOQHHGWRZRUNKDUGHU WKDQHYHUWRNHHS*HRUJLD´RQWKHUDGDUµRIRXUFRXQWHUSDUWVDEURDG ,FRQWLQXHWREHOLHYHWKDWWKHFRXQWU\·VGHYHORSPHQWDVDGHPRF- UDF\DQGLQIRUPLQJWKHZRUOG·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·VUHSHUFXVVLRQVQRWZLWKVWDQGLQJRXU&KDPEHUUHPDLQV LQDKHDOWK\ZHOORUJDQL]HGDQGZHOOPDQDJHGSRVLWLRQWKDQNVLQQRVPDOOSDUWWRWKHLUVXSUHPHHIIRUWV ,DOVRZDQWWRWDNHWKLVRSSRUWXQLW\WRERWKWKDQNRXUVXSHUERXWJRLQJ%RDUG0HPEHUVDQGFRQJUDWXODWH DOOWKRVHRQWKHQHZ%RDUG$VDOZD\VWKHUROHRIWKHHQWLUH%RDUGZLOOEHHVVHQWLDO,KDYHEHHQH[WUHPHO\ IRUWXQDWHRYHUWKH\HDUVWRZRUNZLWKDQH[FHSWLRQDOJURXSRIGHGLFDWHGDQGGLYHUVHERDUGPHPEHUV, DPKDSS\WRVHHWKDWWKHQHZERDUGFRQWLQXHVWRÀWWKDWGHVFULSWLRQ,ORRNIRUZDUGWRZRUNLQJZLWKWKHP ,QFORVLQJ,WKDQN\RXDOOIRUWKHIDLWK\RXKDYHHQWUXVWHGPHZLWK,ZLOOFRQWLQXHWRUHSUHVHQW$P&KDPLQ DPDQQHUWKDWHQVXUHVRXUSODFHDVWKHVWURQJHVWDQGPRVWUHVSHFWHGIRUHLJQEXVLQHVVDVVRFLDWLRQLQ*HRU- JLDDVZHOODVLPSURYHVRXUDELOLW\WRDGYRFDWHIRURXUPHPEHUV·FROOHFWLYHQHHGVWKHUHE\VWUHQJWKHQLQJ RXUPHPEHUVKLSDQGRXUFKDPEHU

6LQFHUHO\

Sarah Williamson 3UHVLGHQW$PHULFDQ&KDPEHURI&RPPHUFHLQ*HRUJLD 6HQLRU9LFH3UHVLGHQW8*7*URXS

10 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 11 1RQLDVKYLOLSXWVLWDWWKH$JULFXOWXUDO8QL- YHUVLW\RI*HRUJLD NQRZQWRPDQ\DVWKH )UHH8QLYHUVLW\ ZKHUHWKH\ZHUHVWXG\LQJ IRRGVFLHQFHDQGEXVLQHVV,QRQHOHFWXUH WKH\OHDUQHGDERXWGU\LQJIUXLWVDQG´ZH ZHUHVRIDVFLQDWHGE\LWWKDWZHVWDUWHG H[SHULPHQWLQJZLWKWKHSURFHVVRXUVHOYHVµ 3HUVLVWHQFH ZDV NH\ LW WRRN WKHP VHYHUDO PRQWKV RI WHVWLQJ WR DFKLHYH DSSOH FKLSV WKDW DV 1RQLDVKYLOL SXWV LW ´KDGJUHDWHUÁDYRUZHUHFUXQFKLHUDQG PRUHHQMR\DEOHWRHDWµ2QFHWKDWZDVLQ SODFHWKHWKUHHHQWUHSUHQHXUVGHFLGHG WR VWDUW EXLOGLQJ ),7 ´D KHDOWK\ VQDFNV FRPSDQ\µ7ZRRIWKHIRXQGHUV1RQLDVK- YLOLDQG0G]LQDUDVKYLOLKDGVSHFLDOL]HGLQ IRRGWHFKQRORJ\ZKLOH6KHLWQLVKYLOLVWXGLHG EXVLQHVVDGPLQLVWUDWLRQ $WWKHKHDUWRI(QNHQLLVDQLQQRYDWLYH GU\LQJPHWKRGVD\V0G]LQDUDVKYLOLZKLFK VHHNVRQO\WRUHPRYHWKHZDWHUIURPWKH DSSOHVZKLOHOHDYLQJDOOWKHYLWDPLQVDQG QXWULHQWVLQWKHFKLSV7KHFULVSLQHVVFRPHV IURPPDNLQJWKHFKLSVYHU\GU\$OPRVWDOO WKHZDWHUFRQWHQW³DERXWRIDW\SL- FDODSSOH³LVUHPRYHGDQGWKHFKLSVRQO\ UHWDLQDPRLVWXUHOHYHO7KHUHDUHQR DGGLWLYHVRIDQ\NLQG7KHWHDPXQGHUWRRN H[WHQVLYHPDUNHWUHVHDUFKWDVWLQJIUXLWDQG YHJHWDEOHFKLSVIURPFRPSDQLHVDURXQG WKHZRUOG7KH\IRXQGWKDWFRPSDUHGWR WKHLURZQFKLSVWKHVHLQWHUQDWLRQDOSURG- Georgian snack start-up XFWVW\SLFDOO\UHOLHGPRUHRQKDUGEDNLQJ UDWKHUWKDQWHQGHUGU\LQJWKDWWKH\KDG WKLFNHUVOLFHVDQGZHUHYLVXDOO\GDUNHU7KH\ Enkeni’s journey to make IRFXVHGRQGHYHORSLQJ(QNHQLDVDQDOWHU- QDWLYH WKLQQHU ZLWK DQ DWWUDFWLYH YLVXDO DSSHDUDQFH DQG D XQLTXH WH[WXUH DQG a healthier chip – WDVWHFRPELQLQJDSSHDOIXQDQGKHDOWK 7KH FDVH RI ),7·V (QNHQL LOOXVWUDWHV WKDWEXVLQHVVVXSSRUWFDQKHOS\RXQJHQ- from apples WUHSUHQHXUVWRGHYHORSWKHLULGHDV7KHVH VWDUWXSSURJUDPV6KHLWQLVKYLOLVD\V´JDYH AN INNOVATIVE DRYING METHOD, SCIENTIFIC XVHQRUPRXVSUDFWLFDOH[SHULHQFHDQGWKH RSSRUWXQLW\WRFUHDWHDVWURQJWHDPµ7KH CURIOSITY AND THE SEARCH FOR A HEALTHIER (VWRQLDQ6PDUWBXSB*HRUJLDSURJUDP KHOSHG WKH WHDP WR FRQVWUXFW D GULHU BUT EQUALLY DELECTABLE CHIP HAS LED THREE SURWRW\SH DIWHU WKH\ SODFHG DW WKH WRS YOUNG GEORGIAN ENTREPRENEURS TO THE IURPDPRQJPRUHWKDQSDUWLFLSDQWV +DYLQJIROORZRQVXSSRUWKHOSHGLQ DISCOVERY OF A CRISPY, INNOVATIVE SNACK. WKHWHDPZRQWKH´76)XQGµFRPSHWLWLRQ FRQVWUXFWHG D PRUH HIÀFLHQW GU\HU DQG HANS GUTBROD RQHVXFKSURGXFW³DWWUDFWLYHO\SDFNDJHG SXUFKDVHG D SDFNLQJ PDFKLQH :LWK DSSOH FKLSV IURP *RUL RUFKDUGV LQ UHG WKHVHEXLOGLQJEORFNVLQSODFHWKHWHDP RUPDQ\RIXVWKHUHLVDVPDOOKRSRI JUHHQDQG\HOORZYDULHWLHV SURFHHGHGWRZLQVXSSRUWIURP´6WDUWXS MR\ZKHQZHGLVFRYHUDQLFHORRNLQJ 7KUHH\RXQJHQWUHSUHQHXUVDUHEHKLQG *HRUJLDµ7KHSUL]HPRQH\DOORZHG),7 F*HRUJLDQSURGXFWRQWKHVKHOYHVRI WKH SURGXFW 1RQD 1RQLDVKYLOL 7DPDUL WR EXLOG D VPDOO IDFWRU\ LQ WKH YLOODJH RI D ORFDO VXSHUPDUNHW DPLG WKDW ZDOO RI 6KHLWQLVKYLOL DQG 6KDOYD 0G]LQDUDVKYLOL 'LWVLLQWKH*RULUHJLRQWRSXUFKDVHIXUWKHU LWHPVWKDWFRPHIURPIDUDÀHOG(QNHQLLV 7KH\ EHJDQ WKHLU ´VWDUWXS MRXUQH\µ DV PDFKLQHU\DQGHTXLSPHQWWRWDNHLWVÀUVW

12 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 SDFNDJHGSURGXFW ,GDUHGDSSOHFKLSV  7KH\FDQVXSSO\),7ZKLFKLQWXUQFDQ WRWKHPDUNHWDQGWRGHYHORSLWVGLVWULEX- SURFHVV IUXLW ZKHQ WKHUH LV SHDN VXSSO\ tion network. IURP DSSOH RUFKDUGV :KHQ VHOHFWLQJ ,QWKLVVWRU\WKHUHLVDZDUQLQJWRRWKHU DSSOHV WKH ),7 WHDP ILUVW SHUIRUPV D VWDUWXSVWRR³PXFKPRUHWKDQDJRRG YLVXDO WHVW DQG WKHQ VHOHFWV VDPSOHV IRU LGHDLVQHHGHGWRGHYHORSDYLDEOHEXVL- IXUWKHUODEDQDO\VLVLQDFFUHGLWHGSDUWQHU ness. ODERUDWRULHV2QO\WRSTXDOLW\DSSOHVDUH 1RQLDVKYLOLVD\VWKDWWKUHHOHVVRQVVWDQG VXLWDEOHZKHQFUHDWLQJWRSTXDOLW\FKLSV RXW IRU KHU WKDW PD\ EH XVHIXO WR RWKHU ),7ZDQWVWRGHYHORSPRUHSURGXFWV IRXQGHUV 7KH EHGURFN LV ´ORYHFRPPLW- DQG UHDFK PRUH PDUNHWV 7KH IRXQGHUV PHQWWRWKHVWDUWXSµWRVHH\RXWKURXJK DUJXHWKDW´KHDOWK\WUHQG\DQGLQQRYD- WKHLQHYLWDEOHUHYHUVDOV7RGHYHORSTXLFNO\ WLYHVQDFNVIRUDPRGHUQVRFLHW\µDUHSDUW DQG HIÀFLHQWO\ WLPH PDQDJHPHQW DQG RIDJURZLQJWUHQGLQ*HRUJLDDQGDFURVV ,GHDOO\ 1RQLDVKYLOL VD\V WKH\ ZRXOG VSHFLDOL]DWLRQ LV FUXFLDO

Dr. Hans Gutbrod teaches at Ilia State University. Guga Chomakhidze contrib- uted background research to this article. Know of other promising start-ups de- livering exciting innovative products? Let the Investor.ge team know. We’d love to feature growth stories from Georgia.

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 13 *HRUJLDFDQXVHWKHSDQGHPLFDQGSRVW SDQGHPLFSHULRGVWRLPSURYHZRUNIRUFH HGXFDWLRQ DQG DFFHOHUDWH GLJLWDOL]DWLRQ REBOUND: HIIRUWV 7KLV LQFOXGHV WKH DFFHOHUDWLRQ RI WKH SULYDWH VHFWRU·V DGRSWLRQ RI GLJLWDO WRROVDQGEXVLQHVVPRGHOV How Georgia can 7KH UHSRUW XQGHUVFRUHG WKH QHHG WR DFFHOHUDWH FDSLWDO PDUNHWV UHIRUP DOUHDG\ D SULRULW\ DUHD IRU WKH 3URJUDP DQGWRXVHWKHSDQGHPLFSHULRGWRHQVXUH learn from the ZRUNHUVUHFHLYHWKHWUDLQLQJWKH\QHHGWR WUDQVLWLRQIURPORZHDUQLQJZRUNWRPRUH VNLOOHGSURIHVVLRQV pandemic and 7KHH[SHUWVQRWHGWKDWVHYHUDOH[LVWLQJ WUHQGVKLJKOLJKWWKHQHHGIRUWKHJRYHUQ- PHQWWRSULRULWL]H´VZLIWEROGLQYHVWPHQWV build a more LQGLJLWDOL]DWLRQZRUNIRUFHGHYHORSPHQW DQGFRUHLQIUDVWUXFWXUHµ ´&29,'KDVFUHDWHGQHZRSSRUWX- QLWLHVIRU*HRUJLDWRVWLPXODWHLWVHFRQRPLF resilient UHFRYHU\DQGORQJWHUPUHVLOLHQFHWKURXJK GHHSHQLQJLQWHJUDWLRQZLWKJOREDOVXSSO\ FKDLQVµWKHH[SHUWVZURWH economy ´7R FDSLWDOL]H *HRUJLD PXVW IRFXV WKH QH[W SKDVH RI SROLF\ RQ SRVLWLRQLQJ KLJKSRWHQWLDOVHFWRUVWRFRPSHWH³KLJK YDOXHORZYROXPH PDQXIDFWXULQJ VHJ- PHQWVDQGVHOHFWEXVLQHVVVHUYLFHV³DQG FUHDWLQJ DQG HQDEOLQJ HQYLURQPHQWV IRU AN INTERVIEW WITH ,QUHVSRQVHWKH3URJUDPHQJDJHGDWHDP ORFDOEXVLQHVVHVWRDGDSWµ RILQWHUQDWLRQDOHFRQRPLFH[SHUWVWRKHOS ´,QYHVWLQDOWHUQDWLYHWUDLQLQJDQGH[- USAID ECONOMIC GHYHORS WKH HFRQRPLF UHFRYHU\ SODQµ SDQGRQWKHMREXSVNLOOLQJDVZHOODVGHHS- QRWHG1DWDOLD%HUXDVKYLOLZKRKHDGVWKH HU HPSOR\HU HQJDJHPHQW LQ ZRUNIRUFH GOVERNANCE 86$,'(FRQRPLF*RYHUQDQFH3URJUDP GHYHORSPHQWµWKHUHSRUWUHFRPPHQGHG PROGRAM CHIEF 7KH H[SHUWV ZHUH UHFRPPHQGHG E\ DGGLQJWKDWWKHJRYHUQPHQWVKRXOGHYDOX- 'HORLWWH&RQVXOWLQJ2YHUVHDV3URMHFWV//& DWHEXVLQHVVLQWHUHVWLQDOWHUQDWLYHWUDLQLQJ OF PARTY NATALIA LPSOHPHQWHURIWKH86$,'(FRQRPLF*RY- SURJUDPVVXFKDVDSSUHQWLFHVKLSVWHUPHG BERUASHVILI HUQDQFH3URJUDPDQGZHUHDJUHHGXSRQ VXEVLGLHV IRU QHZ KLUHV DQG IXQGLQJ IRU ZLWKWKH3ULPH0LQLVWHU·V2IÀFH WUDLQLQJ 7KH WHDP VWXGLHG GDWD IURP EHIRUH 7KHH[SHUWVDOVRIRFXVHGRQWKHQHHG HIRUH WKH RQVHW RI WKH FRURQDYLUXV DQGGXULQJWKHSDQGHPLFLQFOXGLQJWKH WRDFFHOHUDWHWKHGLJLWDOL]DWLRQSURFHVVLQ SDQGHPLFWKH*HRUJLDQHFRQRP\ LPSDFWRIWKHORFNGRZQDQGWKHSRWHQWLDO WKHFRXQWU\ BKDGEHHQRQLWVZD\WRDEXPSHU FRQVHTXHQFHV RI LQFUHDVHG SXEOLF ERU- ´6XSSRUWGHPDQGVLGHGHYHORSPHQW \HDU WRXULVP QXPEHUV ZHUH KLJK WUDGH URZLQJ WR IXQG HPHUJHQF\ DVVLVWDQFH WKURXJKDQLQFHQWLYHVSURJUDPHQDEOLQJ ZDVXSDQGSODQQHGSXEOLFLQYHVWPHQW ZULWLQJ LQ WKHLU UHSRUW ´*HRUJLD HQWHUHG GLJLWDO XSJUDGHV IRU EXVLQHVV LQFOXGLQJ ZDVUREXVW WKHSDQGHPLFLQDVWURQJSRVLWLRQEDFNHG DFFHVVWRÀQDQFLQJDQGFRQVXOWDQF\VHU- %XWE\0DUFKLWZDVFOHDUWKHYLUXVZDV E\ DQ HIIHFWLYH UHIRUP DJHQGD VWURQJ YLFHVDVZHOODVLQFHQWLYHVWRHQFRXUDJH LQIHFWLQJHYHU\DVSHFWRIWKHHFRQRP\ LQWHUQDWLRQDO UDQNLQJV D VWHDG\ JURZWK SDUWLFLSDWLRQLQ,&7UHODWHGWUDLQLQJµWKH HVSHFLDOO\WKHYXOQHUDEOHVHFWRUVRIWRXU- WUDMHFWRU\DQGVXVWDLQDEOHÀVFDODFFRXQWV report stated. LVPDQGKRVSLWDOLW\2WKHUDUHDVZHUHDOVR ,WVFHQWUDOEDQNHQDFWHGVRXQGPRQHWDU\ ORRNLQJJULP SROLF\ DQG HIIHFWLYH LQÁDWLRQ WDUJHWLQJ ACTION TO AID RECOVERY $VWKHLPSDFWRQWKHHFRQRP\JUHZ DQG VWUXFWXUDO UHIRUP WR WKH ILQDQFLDO 7KH 86$,' (FRQRPLF *RYHUQDQFH WKH*HRUJLDQJRYHUQPHQWDVNHGWKH86- VHFWRUµ 3URJUDP LV DOUHDG\ ZRUNLQJ RQ VHYHUDO $,' (FRQRPLF *RYHUQDQFH 3URJUDP WR %DVHGRQWKHLUDQDO\VLVWKHH[SHUWVGH- UHIRUPVDQGLQLWLDWLYHVWKDWIROORZWKHH[- KHOSGHYLVHDUHFRYHU\SODQWRPLWLJDWH WDLOHGUHFRPPHQGDWLRQVIRUWKHQHFHVVDU\ SHUWV· UHFRPPHQGDWLRQV DQG DGGUHVV WKHHIIHFWVRIWKHSDQGHPLF VWHSVWRIRVWHUUDSLGUHFRYHU\ KDUGKLWVHFWRUV ´7KH*RYHUQPHQWRI*HRUJLDDVNHGIRU 7KHUHFRPPHQGDWLRQVUXQWKHJDPXW )RU LQVWDQFH WKH 3URJUDP·V ZRUN RQ WKH3URJUDP·VVXSSRUWLQGHVLJQLQJSRVW RI HFRQRPLF DQG ILQDQFH SROLF\ PDN- FDSLWDO PDUNHWV UHIRUP³LQFOXGLQJ WKH &29,'HFRQRPLFUHFRYHU\PHDVXUHV LQJ LQFOXGLQJ LQQRYDWLYH LGHDV IRU KRZ QHZ ,QYHVWPHQW )XQGV /DZ DQG VXSSRUW

14 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 IRU WKH UHIRUP RI WKH )RUHLJQ ([FKDQJH +HOSLQJEXVLQHVVDVVRFLDWLRQVDQGFLYLO $VVRFLDWLRQ KDV EHHQ ODXQFKHG WR UDLVH DQG PRQH\ PDUNHWV³DOLJQV ZLWK WKH VRFLHW\RUJDQL]DWLRQVEHFRPHPRUHVXV- DZDUHQHVV DPRQJ ZRPHQ DERXW HFR- H[SHUWV· UHFRPPHQGDWLRQ WR HQDEOH WDLQDEOHDQGEHWWHUDEOHWRDGYRFDWHIRU QRPLF LVVXHV DQG WR HQFRXUDJH SDUWLFL- EXVLQHVVLQYHVWPHQW,WDOVRUHLQIRUFHVWKH WKHQHHGVRIWKHLUPHPEHUVKDVDOVREHHQ SDWLRQLQDGYRFDF\DFWLYLWLHVWRLQFUHDVH UHFRPPHQGDWLRQ WKDW WKH JRYHUQPHQW DSDUWRIWKH3URJUDP·VZRUN WKH UROH RI ZRPHQ LQ HFRQRPLF SROLF\ DQGWKH1%*VKRXOGFRQWLQXHPHDVXUHVWR ´7KH3URJUDPSURYLGHGWHFKQLFDODV- SODQQLQJDQGLPSOHPHQWDWLRQ IDFLOLWDWHWKHEURDGHQLQJDQGGHHSHQLQJ VLVWDQFHWRKHOSVHYHUDOWRXULVPLQGXVWU\ ´&62V >FLYLOVRFLHW\ RUJDQL]DWLRQV@ RIFDSLWDOPDUNHWVIRUODULGHQRPLQDWHG EDVHG DVVRFLDWLRQV FUHDWH DQ DOOLDQFH VKRXOGSOD\DSRZHUIXOUROHVXSSRUWLQJDQG ÀQDQFLDODVVHWV WRDGYRFDWHIRUWKHUHIRUPVDQGSROLFLHV DGYRFDWLQJ IRU WKHLU WDUJHW DXGLHQFHV ´7KH3URJUDP·VVXSSRUWIRULQVROYHQF\ QHHGHGWRVDYHWKHLQGXVWU\IROORZLQJWKH LQFOXGLQJZRPHQ7KH3URJUDPLVKHOSLQJ UHIRUP XQGHUVFRUHV WKH H[SHUWV· UHFRP- SDQGHPLFµ%HUXDVKYLOLVDLG &62V REWDLQ WKH VNLOOV DQG WUDLQLQJ WKH\ PHQGDWLRQ WR HQDEOH WKH UHF\FOLQJ RI 7KH 3URJUDP LV ZRUNLQJ FORVHO\ ZLWK QHHGWRKHOSZRPHQDQG\RXQJSHRSOH YDOXDEOHDVVHWVEDFNLQWRWKHHFRQRP\µ FLYLO VRFLHW\ RUJDQL]DWLRQV LQ SDUWLFXODU PRUHDFWLYHO\SDUWLFLSDWHLQSROLF\PDNLQJ %HUXDVKYLOLVDLG´,QDGGLWLRQWKH3URJUDP·V WKRVHGHYRWHGWRKHOSLQJZRPHQDQGWKH SURFHVVHV DQG EHWWHU XQGHUVWDQG KRZ ZRUNWRVXSSRUWWKHHFRPPHUFHSROLF\ \RXWKHPSKDVL]LQJVXVWDLQDELOLW\2QHRI SROLF\DIIHFWVWKHLUOLYHVµ%HUXDVKYLOLVDLG GHYHORSPHQWUHLQIRUFHVWKHUHFRPPHQ- LWVPDLQJRDOVLVWRSURPRWHZRPHQDQG ´7KH SDQGHPLF KDV KLJKOLJKWHG WKH GDWLRQWRVXSSRUWDQGDFFHOHUDWHGLJLWD- \RXWKHPSRZHUPHQWWKURXJKHGXFDWLRQ YXOQHUDELOLWLHV LQ *HRUJLD·V HFRQRP\ ,W OL]DWLRQLQWKHHFRQRP\µ 7KH3URJUDPGHYHORSHGDQRQOLQHVXPPHU KDVDOVRXQGHUVFRUHGWKHQHHGIRUDV\V- $7KLQN7DQN&RQVXOWDWLYH*URXSZDV VFKRROIRUXQLYHUVLW\VWXGHQWVGHYRWHGWR WHPLFDSSURDFKWRDQDO\]HDQGDGGUHVV FUHDWHGDVDSODWIRUPWKDWEULQJVWRJHWKHU HQKDQFLQJ \RXQJ SHRSOH·V NQRZOHGJH FKDOOHQJHV WR VXVWDLQDEOH JURZWK³DQG HFRQRPLFDQDO\VWVDQGJRYHUQPHQWRIÀ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µ

ADVERTISEMENT

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 15 NAZI BERIDZE

or a while during the mid-2010s, hazelnuts were Georgia’s star Fagricultural product, on track to outstrip even wine—the country’s call- ing card—in exports, generating $183 million in revenue in 2014 and bringing the two export categories neck and neck in value. Georgia was also occasionally among the top five largest global hazelnut exporters. But in 2015-16, reports be- gan creeping in that the Asian brown marmorated stink bug was beginning to wreak havoc in the country’s western, Georgian hazelnut-growing regions, and that it might chew through the harvest of the precious nut, a crop that supports some hazelnuts strike back 50,000 growers and processors in the country. By 2018, the hazelnut harvest had reached a historic low. – the near demise and rebirth of But this year, many are already breathing a sigh of relief. The August- Georgia’s second favorite crop late November harvest data show that NEXT TO WINE, HAZELNUTS ARE ONE OF GEORGIA’S MOST IMPORTANT nearly 11,000 tonnes of hazelnuts were CROPS. BUT BESIEGED BY THE STINK BUG AND OTHER PLANT DISEASES, exported, up a whopping 37% over the THE PRIZED NUT HAS HAD A HARD TIME OF LATE, UNTIL THIS YEAR’S same period in 2019, generating $59.3 HARVEST million in revenue (+47% y/y), com- pared to last year’s paltry $38.8 million. Hazelnut growers predict this year’s total exports will exceed 50,000 tonnes, and given that despite the pandemic, prices for nuts are up 7% as well, the ¿QDO\HDUHQGGDWDDUHOLNHO\WRUHÀHFWD bumper year.

A GROUP EFFORT The Georgian Hazelnut Growers As- sociation, which has more than 25,000 hazelnut-farmer members and covers at least half of all hazelnut production in the country, did much of the heavy lifting in recent years, in partnership with USAID and the Georgian Ministry of Agricul- ture, to put the industry back on its feet. The Executive Director of the Geor-

16 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 17 gian Hazelnut Growers Association, has taught its farmers proper techniques ment Project (G-HIP). Giorgi Todua, told Investor.ge that work to administer pesticides and to work “It’s at this point that we expanded on combating both the stink bug and out timetables for spraying, important to the 25,000 [members] we are now, fungal diseases began back in 2017, because pest control is carried out six with our partners helping the association when the group had just several hundred times a year, both against the stink bug purchase the technical equipment and farmers. and other plant diseases. pesticides it needed,” Todua explains. By joining, hazelnut farmers are “Membership comes with respon- With the program, 14,000 farmers given access to the association’s agrono- sibility, however,” Todua notes. “If a joined the association and were given mists, who consult with farmers on a farmer is slacking and not keeping up 1,450 spraying machines free of charge. daily basis throughout the season, giv- their end of the bargain, [the farmer is] The successful implementation of the ing recommendations and monitoring refused further services and assistance. program has led to both a qualitative work in hazelnut orchards. In addition to This is in line with the association’s improvement of the hazelnut crop, Todua agronomist services, members of the as- ‘group-work’ method, which allows says, as well as an increase in hectare VRFLDWLRQHQMR\RWKHUEHQH¿WVLQFOXGLQJ members to share their practical experi- yields and, consequently, an increase in soil research, provision of pest-control HQFHDQG¿QGZD\VWRVROYHSUREOHPV farmers’ incomes. equipment, crop sorting/drying/storage together. Each group has a lead farmer.” The program continued into 2020, services, and others. The association In 2019, the Association launched during which the association was joined also provides members with access to the Hazelnut Crop Survival Program, by an additional 10,000 hazelnut- ¿QDQFLQJWRIDFLOLWDWHWKHSXUFKDVHRI which is funded by the state, the United producing farmers who were given 910 the necessary fertilizers, pesticides and States Agency for International Develop- SHVWFRQWUROXQLWVZKLFKKDGDVLJQL¿FDQW inventory. ment (USAID/Georgia), Ferrero, and the impact on the quality and quantity of Most importantly, the association CNFA Georgian Nut Sector Develop- hazelnuts produced in the country. The

ADVERTISEMENT

Headline here

Yuo di con ped quide natempo reprepedi cus, sandus se porum, tessimil et illo quis aciliqui re nonsed et hariam, eos adis moluptae molores mollore pudignis essin nos erovid quidelite pori non nonsequi odis expelentia simusa quosam es autemque nostemos aceperum lorem ipsum dolor nullabo. www.deloitte.com

[Insert the Standard legal description] Caption vel doloreet wisit acincil iquatem dio odigna feugiamcommy nim vulput adip exerosto essi. Rud min ver sed magna ate tat, vendigna conulputat. Ulput pratie ming et, commy nos et nim il et at. Ut aliquipit amcommy nullaore endrem er incilla conse feu facin venisi. 18 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 [Click here for more information about the DTTL Language & Style Guide]

© [Year] [Legal entity name]. sion itself, but that the sector was slow to react to it. “Since the state began developing programs in 2017, farmers have now UHDOL]HGWKDWSUHYLRXVPHDVXUHVWR¿JKW the stink bug are not enough. Fortunately, the government has gained the trust of the farmers, and has developed a policy and strategy that has withstood the test of years.” Hazelnut farmers have to spray their crop six times a year to prevent stink bug infestations .KDQLVKYLOLVD\VWKDW*HRUJLDDOVR other diseases has serious prospects in the hazelnut volume of the harvest exceeded the pro- volume, accounting for tens of millions processing industry. jected 50,000 tons, thus Georgia regained of GEL losses every year. “We have the potential to create a its position on the world market prior to Improving the image of Georgian processing environment here in Georgia the stink bug epidemic. hazelnuts abroad is another goal on the that would match world standards. With to-do list. Due to the current processing the exception of pest-control chemicals, FUTURE FRUIT and sales cycle, there is no proper trace- all other parts of the production depend And while the future of hazelnuts ability, meaning batch problems cannot on local resources. is now looking rosier than it did a year EHLGHQWL¿HGDQGFRQWDLQHGLQDWLPHO\ Thus, the added value that will be ago, the Association still has quite a bit manner, which affects the entire sector. FUHDWHGLVPDFURHFRQRPLFDOO\VLJQL¿- of work cut out for it. This leads to distrust toward Georgian cant. The 14-million-dollar increase in One problem to be tackled is low hazelnuts, causing low competitiveness hazelnut exports has benefited the yields. and lower market prices. country’s economy and attracted large “Currently, hazelnuts are cultivated To solve this issue, the Georgian foreign exchange resources. The increase in Georgia on a total area of 72,000 hect- Hazelnut Growers Association has de- is very important for residents of western ares, of which about 40,000 hectares are veloped a hazelnut traceability mecha- Georgian after years of low income due orchards with an area of 0.5 to 1 hectare. nism, which involves standardizing crop to poor harvest of hazelnuts.” The yield of these types of orchards is processing and sales with the help of Georgia already ranks high on the list below 450-500 kg. Our goal is to increase drying and warehousing centers. Each of hazelnut producing nations, ranking the average yield of these small orchards center provides for the drying of 1,000 ZLWKLQWKHWRS¿YHLQUHFHQW\HDUVZLWK to 1,500 kg over the next 3 years,” Todua tons of hazelnuts and storing 500 tons Turkey as the undisputed leader, fol- says, noting that “if this goal is achieved, of hazelnuts. The quality management lowed by Italy and Azerbaijan. But the the Georgian hazelnut sector will be is done by modern quality management government has more ambitious plans for able to double the volume of exported laboratories located in the centers. In Georgia: “In the coming years, we have hazelnuts and significantly improve these centers, each batch of hazelnuts is the prospect of being the second largest the [crop’s] average quality, which will registered and given quality and origin producer of hazelnuts in the world after bring additional annual income of 1 bil- FHUWL¿FDWHV Turkey. This is a three-to-four-year plan. lion GEL to Georgian farmers and the We have two state programs: one aims country’s economy.” MOVE OVER, ITALY to increase hazelnut yields on the farms, Another issue the Association wants First Deputy Minister of Environ- the other targets cultivation of high- to address is waste and damaged crops. mental Protection and Agriculture Giorgi TXDOLW\DQGHI¿FLHQWKD]HOQXWYDULHWLHV´ The Association says the share of crop .KDQLVKYLOLDOVRZHLJKHGLQRQWKLV VD\V.KDQLVKYLOLDVHQWLPHQWVXSSRUWHG damaged due to the use of primitive tech- year’s harvest and the positive trends in by the Georgian Hazelnut Growers As- nologies in the post-processing stages of the industry. sociation’s Todua: “if farmers do their the hazelnut harvest and the improper .KDQLVKYLOLKLJKOLJKWHGWKDWWKHPDLQ best to compete with Italy, we could be storage reaches 25% of the total crop problem has not been the stink bug inva- harvesting up to 100,000 tons by 2023!”

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 19 ([FHOOHQFH,1:+$7:('2

PcX\_a^eX]VT\_[^hTTbcPcdbPbfT[[Pb_a^eXSX]V _a^cTRcX^]PVPX]bcd]UPXacaTPc\T]cP]SSXbRaX\X]P 0\T]S\T]cb cX^] X] cWT f^aZ_[PRT fPb X]XcXPcTS X] ! " P]S aTbd[cTSX]P_PRZPVT^UP\T]S\T]cbc^cWT;PQ^da c^cWT 2^STX]9d]T^UcWTbP\ThTPa7^fTeTaPbTeXST]RTS QhcWTVa^fX]V]d\QTa^U[PQ^a[PfSXb_dcTbbX]RT cWTaTU^a\RTacPX]_a^Q[T\bWPeT_TabXbcTS ;PQ^da2^ST CWTRdaaT]cP\T]S\T]cbPaTP[^VXRP[R^]cX]dPcX^]^U cWT! "aTeXbX^]P]SPS^_cTSfXcWcWTPX\c^UdacWTa P__a^gX\PcT6T^aVXPb[PQ^a2^STfXcWaT`dXaT\T]cb ^U6T^aVXP° X\_^bTSQhcWT325C03TT_P]S2^\_aTWT]bXeT5aTT 4Z^BeP]XSiT CaPST0VaTT\T]cfXcWcWT4DPbfT[[PbcWT4da^_T P]D]X^]0bb^RXPcX^]0VaTT\T]ccWTaTU^aTPX\X]Vc^ BT]X^a0bb^RXPcT UdacWTaPSeP]RT\T]cb 2^a_^aPcT;PQ^da c^fPaSbT\_[^hTT_a^cTRcX^] QTccTa _a^cTRc  T\_[^hTTb CWT ! !  P\T]S\T]cb fTaT X]XcXPcTS U^a SXbRdbbX^] Qh cWT _Pa[XP\T]c ^U 6T^aVXP^]0_aX[!&! ! P]SbfXUc[hfT]ccWa^dVWP[[ 6T^aVXPb;PQ^da2^STPS^_cTSQPRZX]! PbP_Pac cWaTTaTPSX]VbP]S_a^\d[VPcX^]bcPVTfXcWX]U^da ^U\PY^aaTU^a\bPX\TSPcX\_a^eX]VcWTX]eTbc\T]c \^]cWbP]SR^\X]VX]c^U^aRTX]TPa[h>Rc^QTa! !  R[X\PcT X] cWT R^d]cah WPb QTT] aTRT]c[h UdacWTa CWT R^a]Tabc^]T ]^eT[cXTb X]ca^SdRTS Qh cWT ! !  X\_a^eTSQhcWT[PcTbcP\T]S\T]cbcWPcRP\TX]c^ P\T]S\T]cbPaTPbU^[[^fb) U^aRT^]%cW^U>Rc^QTa! !  㾎 ATVd[PcX^]b_a^WXQXcX]VSXbRaX\X]PcX^]WPeT CWT X]XcXP[ !  TSXcX^] fPb _aX\PaX[h QPbTS ^] cWT QTT]bXV]X¼RP]c[hQa^PST]TS°cWTaTXb]^[^]VTaP] _aX]RX_[T^UUaTTS^\^UR^]caPRccWdb_a^eXSX]VPQa^ TgWPdbcXeT [Xbc ^U _a^cTRcTS R[PbbTb Qdc aPcWTa P] PS PeT]dT U^a X]cTa_aTcPcX^] P]S b^Uc WXaX]V¼aX]V ^_T]T]STS^]T3XbRaX\X]PcX^]Xb_a^WXQXcTSPcP]h _^[XRXTb bcPVT^UT\_[^h\T]cX]R[dSX]VQdc]^c[X\XcTSc^cWT _aTT\_[^h\T]c bcPVT Pb fT[[ Pb d_^] _a^\^cX^] C^ R^d]cTaQP[P]RT T\_[^hTa SXbRaTcX^] 6T^aVXP] cTa\X]PcX^]TcRCWT^Q[XVPcX^]c^_a^eXSTT`dP[_Ph R^dacbWPeTR^]bXbcT]c[h_dabdTSP_PcW^U_a^cTRcX]V WPbQTT]X]ca^SdRTSP]ScWT_aX]RX_[T^UATPb^]PQ[T T\_[^hTTb c^ cWT QTbc TgcT]c _^bbXQ[T cWa^dVW 0SYdbc\T]cWPbP[b^QTT]aTR^V]XiTS^Q[XVX]VcWT RaTPcXeTaTPb^]X]Vc^bd__^acYdSVT\T]cbX][PQ^aRP T\_[^hTac^fWTaT_^bbXQ[TPSYdbcXcb_aPRcXRTbc^ bTbRd[\X]PcX]VX]fWPcWPbQTR^\TP\^RZ_WaPbT) PRR^\\^SPcT _T^_[T fXcW SXbPQX[XcXTb cT\_^aPah cWTT\_[^hTTXbP[fPhbaXVWc _Ta\P]T]c\TSXRP[R^]SXcX^]bP]Sb^^]<^bc]^ >]cWT^cWTaWP]ScWT! TSXcX^]^UcWTR^STWPb cPQ[hX]cWTRPbT^UPSXbRaX\X]PcX^]R[PX\cWTQdaST] QTT] WTPeX[h RaXcXRXiTS Qh X]cTa]PcX^]P[ cWX]Z cP]Zb ^U_a^^UbWP[[aTbcd_^]cWTT\_[^hTa fW^R^]bXSTaTSXcc^^T\_[^hTaUaXT]S[hP[[^fX]VU^a 㾎 ?aTeX^db[h STaTVd[PcTS ch_Tb ^U f^aZ cWTPQdbT^UT\_[^hTTaXVWcbP]SSXbRaX\X]PcX^] ]P\T[h_PaccX\Tf^aZP]SX]cTa]bWX_bPaT]^faT 8]aTb_^]bTc^cWTPQ^eTcWT¼abc\PY^aaTU^a\PX\TS Vd[PcTS?PaccX\Tf^aZXbT]R^daPVTSfWX[TSXbRaX

20 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 \X]PcX^]QPbTS^]_PaccX\TT\_[^h\T]cXbTg_[XRXc[h BdQ^aSX]PcT c^ cWT eTaP[[cWTX]cT]c^UcWT[TVXb[Pc^aXbR[TPa[hc^fPaSb ^a XU bdRW Xb ]^c PePX[PQ[T cWa^dVW P b_TRX¼RP[[h fTbcTa] bcP]SPaSb ^U cWT [PQ^da [Pf P[XV]X]V cWT T[TRcTSPdcW^aXiTST\_[^hTTaT_aTbT]cPcXeTb0cXcb 2^ST c^fPaS QTbc _aPRcXRTb PRRT_cTS X] cWT R^aTcWXbP\T]S\T]cXbPX\TSPcbcaT]VcWT]X]VT\_ STeT[^_TSR^d]caXTb [^hTT d]X¼RPcX^] X] bTRc^ab cWPc fTaT caPSXcX^]P[[h d]X]e^[eTSX]d]X^]PRcXeXchTV^U¼RTf^aZTabCWT 0bPaTbd[cT\_[^hTTbbWP[[T]Y^hQTccTa_a^cTRcX^] T\_[^hTaXb^Q[XVTSc^aTVd[Pa[hX]U^a\cWTT\_[^hTT PVPX]bc_^bbXQ[T\XbcaTPc\T]cPcf^aZcWdbaTbd[ aT_aTbT]cPcXeTb ^U cWT R^aT XbbdTb aT[PcTS c^ cWT cX]V X] P \^aT R^\\XccTS P]S \dcdP[[h QT]T¼RXP[ PRcXeXch ^U cWT T]cTa_aXbT X]R[dSX]V P\^]V ^cWTab aT[PcX^] fXcW cWT T\_[^hTa W^_TUd[[h QaX]VX]V cWT cWTTR^]^\XRbcPcT^UcWTT]cTa_aXbTP]SXcbTbcX\P TR^]^\h^U6T^aVXPc^]TfWTXVWcbPbfT[[ cTSSTeT[^_\T]cP]hXbbdTbcWPc\XVWcPUUTRcT\_[ ^hTTb_Ph^a^cWTacTa\b^UT\_[^h\T]cP]hbcadR cdaP[RWP]VTbTcRBdRWX]U^a\PcX^]Xbc^QTST[XeTaTS    ]  ?[TPbTP__[hU^acWT_a^UTbbX^]P[PSeXRT_aX^a ]]  aTPb^]PQ[hX]PSeP]RTPc[TPbc" SPhbBW^d[SX]cT] c^aT[hX]V^]cWTX]U^a\PcX^]VXeT]X]cWXb STSRWP]VTbQTU^d]Sc^PUUTRcT\_[^hTTX]cTaTbcb W]]E PacXR[T1;2P]SXcbcTP\bWP[[QTaTPShP]S Ÿ aT[TeP]cX]U^a\PcX^]Xbc^QTST[XeTaTSX]faXcX]Vc^ `I¡ Ÿ:7/]G28Ÿ42060-0+7 _[TPbTSc^_a^eXSTP]hX]U^a\PcX^][TVP[ bdRW TgcT]c Pb c^ P[[^f cWT T\_[^hTTb PST`dPcT[h ]:0%-7+747%)`)I%0*@G7Ÿ PSeXRTP]Sb_TRX¼RaTR^\\T]SPcX^]baTVPa 0+&E$¡¡BJII¡IIK¡`% P]P[hiTcWTXbbdT SX]VcWTXbbdTbR^eTaTSWTaTX] I¡I))D %I)))K¡` 㾎 8]RaTPbTX]_^fTa^UcWT;PQ^da8]b_TRcX^] -+.O-+.&G0-+.&G0 ;TVP[ 4]cXch ^U ?dQ[XR ;Pf ;PQ^da 8]b_TRcX^]

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 21 Farm (to internet) to table – Covid-19 and the digitization of agriculture

THE PANDEMIC HAS of Georgia’s most stringent anti-corona- years down the road. RADICALLY ALTERED virus regulations between April and May. “During the pandemic, in particular CONSUMER BEHAVIOR At that time, the Georgian Farmers’ in March-May 2020 when strict quar- TOWARD ONLINE SHOPPING Association (GFA) conducted a study to antine measures were declared in the FOR AGRICULTURAL assess the impact of Covid-19 on agri- country, the number of orders increased PRODUCE, HABITS WHICH culture, which showed that the decrease tenfold. In the past, we’ve only had a MAY STICK AROUND in demand for the hospitaity sector led similar peak of orders in the pre-New ONCE THE CORONAVIRUS to an increase in e-commerce and home Year period,” Ninikelashvili told Inves- PANDEMIC HAS BLOWN consumption, given that fewer people tor.ge. OVER. were dining out. The conditions of the pandemic, Natia Ninikelashvili is the founder including curfews, transportation limi- TAMAR KHURTSIA of Soplidan.ge [Geo. from the village], tations and other regulations, posed a a company which has been selling ag- series of challenges for Soplidan.ge, -commerce has taken Georgia ricultural products online since 2015. bringing about further integration of the by storm in recent years, with Soplidan.ge acts as a ‘bridge’ between agricultural produce business into the Enew online vendors popping up rural vendors of agricultural goods and country’s e-commerce scene, in addition almost on the daily and offering a wide urban areas, simplifying the process of to a change in the business management range of goods. Agricultural goods and selling and buying agricultural goods model—for good: groceries, however, have remained an from the village with the help of their “The pandemic made me see that we item that consumers have preferred to online platform. had to outsource distribution completely buy in person, perhaps a function of a Judging by the amount of activity and order from delivery service compa- desire to control for quality. on the Soplidan.ge website, Ninikelas- nies, such as Wolt, Glovo and others,” But Covid-19 and the necessity hvili told Investor.ge, the epidemic has Ninikelashvili said. of maintaining social distancing have drastically changed the behavior and the 'HVSLWHWKHGLI¿FXOWLHVRIWKHEHJLQ- changed these habits for many, and likely thinking of consumers. So much so, that ning of the lockdown, Soplidan.ge made for good—Georgian consumers are now the growth the company experienced the best of it, revamped the website and actively buying produce online. during the early stages of the pandemic its offerings. Initially, the site offered This trend took off during the period was only expected by the business four some 15 products, largely regional spe-

22 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 cialty products, such as Gouda cheese IURP7XVKHWL.DNKHWLDQVXQÀRZHURLO 7KH*)$VWXG\WRDVVHVVWKHLPSDFWRI&RYLGRQ*HRUJLDQDJULFXOWXUHDOVRIRXQG churchkhela, village eggs and poultry. WKDWPRUHWKDQRIIDUPHUVVXUYH\HGVDLGVDOHVIHOOGXHWRWKHVKXWGRZQRIWKH KRVSLWDOLW\VHFWRUGXULQJWKHORFNGRZQ$QGRIWKHIDUPHUVVXUYH\HGRQO\ Now, the site offers more than 250 prod- IDUPHUVVDLGWKH\VWDUWHGORRNLQJIRUQHZNH\FKDQQHOVWKDWWKH\KDGQRWXVHG ucts, whose origins are visible, as are the EHIRUHDQGWKDWWKHVHZHUHPRVWO\RQOLQHSODWIRUPV$WWKHVDPHWLPHVDLG identities of suppliers. Soplidan.ge now WKDWWKH\DUHUHDG\WRVHOOWKHLUSURGXFWVRQRQOLQHSODWIRUPV intends to launch a mobile application in the coming months. reaction is needed to survive, a long-term and whether online or not, retail sales at Moving forward, Soplidan.ge is view will make winners,” Berechikidze markets will still increase, he says. working to retain loyal customers—who said. Nestan Mermanishvili, the GFA’s are mostly young families—and provide Already some agricultural-product Association Development Specialist of them with information about new prod- companies are seeing signs of this the Safety and Quality Investment in ucts, improved services and discounts trend, and say online sales have fallen Livestock (SQIL) project funded by the through social media and websites. again since the more severe lockdown U.S. Department of Agriculture, says Customer retention will be crucial for regulations were relaxed, including milk most dairy and cheese industry sales are e-commerce grocery sites, the Georgian processing and cheese company Shiraqi, in crisis, but that producers have begun Farmers’ Association report noted, as which also experienced a boost in online to move substantial portions of their changing consumer behaviors over the sales during the initial lockdown period. business online. ORQJWHUPLVGLI¿FXOWDQGDWVRPHSRLQW “During the lockdown period, I re- “Industrial entrepreneurs supply consumers of Georgian farm products ceived 35 orders a day, Now, I receive their products to supermarkets, so dur- will be able to return to tasting cheeses XSWR¿YHRUGHUV>DGD\@,QRUGHUWR ing the pandemic, especially during the while buying wines in person, and will deliver products to the customer on the lockdown, they did not have problems no longer be daunted by the idea of going same day, I even acquired some scooters in this area, and their brands are well to the grocery store. (motorcycles), but now they’re sitting known in the community. SMEs [small Marketer Giorgi Berechikidze says around unused. I spent a lot of money and medium-sized enterprises] began this is indeed a concern for the industry, on online marketing, but still I’ve been online sales during this period, but their as an eventual slowdown in the pandemic unable to increase sales,” said Nikoloz knowledge and experience is very low in may entail another change in consumer Beniaidze, owner of Shiraqi. this regard”, said Mermanishvili. behavior, moving from online shopping However, Berechikidze believes The SQIL project is implemented by back to retail. that investing in online marketing will America-based company Land O’Lakes “Companies need to increase brand still bring results for companies. In the Venture37 in partnership of Georgian awareness in the online space, in which long run, bold companies that invest Farmers ’Association that unites about case businesses will be able to retain new ambitiously and timely in their online 4,000 farmers across Georgia. customers and secure them on the list business are likely to emerge as market Shako Iosava, Marketing Manager of loyal customers. While a short-term leaders. Brand awareness will increase, DWIRRGGHOLYHU\VHUYLFH*ORYRFRQ¿UPV that demand for agricultural products KDVLQFUHDVHGVLJQL¿FDQWO\GXULQJWKH pandemic and quarantine period. “Bread and eggs became the top- selling products. During this period especially, many agribusinesses were added to the Glovo platform. Sales in the food category in general increased by about 60% during the lockdown period. Of course, sales have declined since the lifting of the lockdown, but consumer demand remains high,” Iosava said.

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 23 ´2QHSUREOHPWKDWPDQ\FRPSDQLHV KDYHUXQLQWRLVWKDWWKH\XVHEODFNÀOWHUV ZLWKDFWLYHFDUERQZKLFKFDQVWRSPXFK Meet MIZ-MASK: RIWKHYLUXVE\DEVRUELQJLWEXWLWGRHVQ·W NLOO WKHP PDNLQJ LW QHFHVVDU\ WR VWHULOL]H WKHPDVNLWVHOIDVZHOODQGSRVLQJDULVNµ 0L]PDVNLVVWHULOL]HGFRQVWDQWO\7RSUR- YLGHWKLVIXQFWLRQDOLW\0L]DQGDULVD\VWKH the electronic 0L]PDVNWHDPZRUNHGWLUHOHVVO\WRFKRRVH WKH FRUUHFW FRPELQDWLRQ RI WKH FRORUHG respirator PDWHULDOVÀOWHUVDQGWKLFNQHVVDVZHOODV SROLVKHGDOXPLQLXPWKDWLVDEOHWRUHÁHFW RIWKH89OLJKWVHQGLQJWKHVWHULOL]LQJ startup EHDPV WKURXJKRXW WKH HQWLUH GHYLFH ZLSLQJLWFOHDQRIDQ\DQGDOOELRKD]DUGV

killing Corona PRODUCTION 1HJRWLDWLRQV ZLWK SRWHQWLDO PDQX- IDFWXUHUVLQ*HRUJLDDUHRQJRLQJDVDUH with UV WDONVZLWKSULYDWHLQYHVWRUVDQG0L]DQGDUL VD\VKHKRSHVWREHJLQVDOHVRQWKHORFDO PDUNHWLQPLGRI-DQXDU\ :KLOH VKLUWV ZLWK FXWRXW FORWK WKDW ,ZDVGRLQJRQWKHPDUNHWVR,WRRNP\ 67&'HOWDZLOOKDYHDFDSDFLW\RI FDQ GRXEOH DV D IDFH PDVN LQ WLPHV RI SURMHFWDQGVXEPLWWHGLWWR*,7$·VFDOOIRU XQLWVSHUGD\LQWKHEHJLQQLQJ QHHGPD\VHHPIDVKLRQDEOHWKH\·UHQRW LQQRYDWLYHVWDUWXSLGHDVGXULQJWKHFULVLV 7KHPDVNZLOOEHSULPDULO\WDUJHWHGWR IXQFWLRQDO1RUDUHHQWLUHDTXDULXPERZOV DQGZRQ0\SDUWQHUDQG,UHFHLYHG ÀUVWDGDSWHUVPHGLFDOZRUNHUVDQGRWKHU UHSOHWHZLWKR[\JHQWDQNV$QGWKRXJKD ODULDQGZHZHQWIURPWKHUHµ0L]DQGDUL SXEOLF ZRUNHUV VXFK DV SROLFH RIILFHUV IDFHVKLHOGPLJKWSUHVHQWPDNHXSVWDLQV VD\V DQGLQGLYLGXDOVZKRDUHXQDEOHWRZRUN E\LWVHOILWFDQ·WVWRSWKHUHOHQWOHVVFUXVDGH  YHUVLRQV DQG VL[ PRQWKV RI ZRUN UHPRWHO\ 0,=0$6. LV FXUUHQWO\ WU\LQJ WR RI&RYLG ODWHUDZRUNLQJSURWRW\SHZDVERUQRIIHU- PDUNHW WKH PDVN WR WKH JRYHUQPHQW DV %XW'DYLG0L]DQGDULIRXQGHURI*HRU- LQJFRPSOHWHDLUERUQHWKUHDWSURWHFWLRQWR ZHOO ² WR ERUGHU VHUYLFH HPSOR\HHV WKH JLDQVWDUWXS0,=0$6.FODLPVKHKDVDQ XVHUVERDVWLQJVL[ÀOWUDWLRQVWHSVWKHDELOLW\ PLOLWDU\EXVGULYHUVDQGVRRQ RSWLRQ WKDW HYHU\RQH FDQ JHW EHKLQG WR DGDSW WR LQGLYLGXDO EUHDWKLQJ UK\WKP 7KHFRVWZLOOEHDERXW ²OLWHUDOO\ DQGGRXEOH1VWDQGDUGDLUÀOWUDWLRQ 0,=0$6. KDV EHHQ FDUU\LQJ RQ QH- $OUHDG\DSURYHQLQQRYDWRURQ*HRU- 7KHGHYLFHLVIXOO\FKDUJHDEOHZLWKLQ JRWLDWLRQVZLWK86FRPSDQLHVWKDWGHDOLQ JLD·VVWDUWXSVFHQHWKHIRXQGHURIELOHWHEL MXVWKRXUVFDQUXQIRUVL[DQGKDVDO- PHGLFDOHTXLSPHQWDVZHOODQGLVWU\LQJ JH DQG D VWDUWXS WKDW DLPV WR SHUIHFW UHDG\UHFHLYHGDQXPEHURIDWWHVWDWLRQV WREHJLQSURGXFWLRQLQWKH8QLWHG6WDWHV WKH SURGXFWLRQ RI *HRUJLD·V ZRHIXOO\ WRLWVHIÀFDF\LQFOXGLQJIURP7ELOLVLEDVHG XQGHUSURGXFHG FOD\ ZLQH YHVVHO WKH GHIHQFHDQGSHUVRQDOSURWHFWLRQHTXLS- AFTER THE VIRUS TYHYUL WKLQNDPEHUZLQH YLD'SULQWLQJ PHQWSURGXFHU'HOWDLQ7ELOLVL :LWKVHYHUDOELRÀUPVKDYLQJDOUHDG\ 0L]DQGDULWROG,QYHVWRUJHWKDWZKHQWKH 7KH86EXLOW/XJDU/DERUDWRU\KDVDOVR DQQRXQFHGWKHHQGRISKDVHWKUHHWULDOV FRURQDYLUXVÀQDOO\PDGHLWVZD\WR*HRU- JLYHQ WKH JUHHQ OLJKW WR WKH PDVN DIWHU DQGYDFFLQHHIÀFDF\UDWHVEH\RQG JLDKLVÀ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´7KHUH ZDV D GHÀFLW RI PDVNV LQ WKH 7KH GHVLJQ LV VR JURXQGEUHDNLQJ WKHSURGXFWZLOOFRQWLQXHWRKDYHDYDULHW\ YHU\EHJLQQLQJDQGWKHUHZHUHFRQFHUQV 0L]DQGDULVD\VWKDWDOHDGLQJODELQWKH RIDSSOLFDWLRQV DERXW WKH HIILFDF\ RI QRUPDO PHGLFDO ILHOG 1HOVRQ /DEV WROG 0L]PDVN LW ZDV ´7KH PDVNV ZLOO VWLOO ILQG D XVH )RU PDVNV SDUWLFXODUO\ IRU SHRSOH ZRUNLQJ XQDEOHWRRIIHUDFHUWLÀFDWHRIDSSURYDO H[DPSOH LQ ELRGHIHQVH LQ WKH PLOLWDU\ RQWKHIURQWOLQHVRIWKHYLUXV·RIIHQVLYH, JLYHQ WKDW WKH\ KDG QR WHVWLQJ SURWRFRO $OO PLOLWDULHV VKRXOG KDYH VXFK GHYLFHV EHJDQUHVHDUFKLQJWKHSUREOHPLPPHGL- IRUWKHSURGXFW $OVRQRZZHNQRZWKDWVXFKEODFNVZDQ DWHO\,DVVHPEOHGDPDVNSURWRW\SHWKDW 0L]DQGDULVD\VVLPLODUDSSURDFKHVZLWK HYHQWVFDQ DQGGR KDSSHQ7KHUHZLOOEH XVHV89OLJKWDVLWVPDLQZHDSRQDJDLQVW 89 OLJKW HOVHZKHUH KDYH QRW ZRUNHG XS FRQWLQXRXVGHPDQGLQFDVHZHVKRXOGEH WKHYLUXV7KHUHZDVQRWKLQJVLPLODUWRZKDW XQWLOQRZGXHWRGHVLJQLVVXHV IDFHGZLWKDVLPLODUHYHQWLQWKHIXWXUHµ

24 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 Georgian aesthetic medicine firm Aptos receives

U.S. FDA green THE APTOS THREAD LIFTING METHOD OFFERS A THIRD OPTION BETWEEN SURGICAL INTERVENTION AND CHEMICAL INJECTIONS. ALREADY WELL- (67$%/,6+('$&52667+(:25/',1025(7+$1&28175,(6$3726,6 light NOW SETTING ITS EYE ON THE U.S. MARKET.

KRXJK PDQ\ PD\ KDYH KHDUG RI ZDVWKDWPDQ\FRVPHWLFSURFHGXUHVDUH *HRUJLDWKURXJKZKDWDUHEHFRPLQJ RQO\DSSURSULDWHIRUFHUWDLQDJHJURXSV TKRXVHKROGZRUGVVXFKDVNKDFKDSXUL ZKLFK OHIW VRPH SDWLHQWV ZLWKRXW D VXLW- DQG 6DSHUDYL WKH *HRUJLDQ VFLHQFHV LQ DEOHVROXWLRQ UHFHQW\HDUVKDYHEHHQGRLQJWKHLUSDUW 7KHÀUVWVXFFHVVIXODSSOLFDWLRQRIWKH WRJHWWKHZRUGRXWDERXW*HRUJLDDVZHOO WKUHDGZDVXVHGE\*HRUJH6XOPDQLG]H·V *HRUJLDQ DHVWKHWLFPHGLFLQH ILUP IDWKHULQLQ5XVVLDZKHUHWKHFRP- $SWRV LV FRQWLQXLQJ WKH WUHQG E\ KDYLQJ SDQ\·V ILUVW IDFWRU\ ZDV VHW XS /DWHU UHFHQWO\ UHFHLYHG SHUPLVVLRQ IURP WKH PDQXIDFWXULQJSODQWVZHUHHVWDEOLVKHGLQ 86)RRGDQG'UXJ$GPLQLVWUDWLRQ )'$  WKH86 LQLQ$QDKHLP&DOLIRUQLD  WREHJLQGLVWULEXWLRQRILWVXQLTXHVXUJLFDO DQGLQ,WDO\DVZHOO VXWXUHV WKDW RIIHU DQ DOWHUQDWLYH WR LQYD- $SWRVLVQRZEXLOGLQJDIDFWRU\LQ*HRU- VLYHFRVPHWLFVXUJHULHVWRWLJKWHQDQGOLIW JLDZLWK(XURSHDQ%DQNIRU5HFRQVWUXFWLRQ WKH IDFH DQG WR FKHPLFDO PHWKRGV RI DQG'HYHORSPHQW (%5' ÀQDQFLQJDQG ZLWKLQD\HDUµ6XODPDQLG]HVD\V UHMXYHQDWLRQ KHOS IURP (QWHUSULVH *HRUJLD DQG LV RQ ´7KHLGHDWRXVHVXUJLFDOVXWXUHVKDV WUDFNWREHFRPSOHWHGE\)HEUXDU\ FDA APPROVAL EHHQ DURXQG LQ WKH PHGLFDO OLWHUDWXUH 4XDOLW\ FRQWURO IRU DOO $SWRV SURGXFWV $SWRV JRW WKH JUHHQ OLJKW IURP WKH VLQFH DURXQG WKH ODWH Vµ $SWRV 'L- SURGXFHGJOREDOO\LVDOUHDG\FDUULHGRXW )'$WKLVSDVW6HSWHPEHUDIWHUÀYH\HDUV UHFWRU*HRUJH6XODPDQLG]HWROG,QYHVWRU LQ*HRUJLD RIKDUGZRUN JH´EXWWKHSRWHQWLDOZDVRQO\KDUYHVWHG ´%HLQJDQ$PHULFDQFRPSDQ\ZRXOG ZKHQP\IDWKHU0DUOHQ6XOPDQLG]HZDV A THREAD APART KDYHPDGHLWHDVLHU$VDIRUHLJQFRPSD- DEOHWRFUHDWHDUHOLDEOHHIIHFWLYHDSSOL- 7RGD\$SWRVLVWKHOHDGHULQLWVÀHOG Q\LWWRRNXVPXFKLQYHVWPHQWGRFXPHQ- FDWLRQIRUWKHPLQDHVWKHWLFSODVWLFVXUJHU\ VHOOLQJLQFRXQWULHV´GHVSLWHDQXPEHU WDWLRQDQGDWWHQWLRQWRRXUPDQXIDFWXULQJ E\SURGXFLQJDWKUHDGLQWKHVZLWK RIFRS\FDWFRPSDQLHVWKDWKDYHVSURXWHG SURFHVV :H·YH EHHQ LQWHUHVWHG LQ WKH WLQ\HPEHGGHGKRRNVZKLFKOLJKWO\VQDJ XSDFURVVWKHZRUOGµ6XODPDQLG]HQRWHV $PHULFDQ PDUNHW VLQFH  0\ IDWKHU WKHVNLQMXVWEHORZWKHVXUIDFHOLIWLQJLWXSµ VWUHVVLQJWKDWLWLVWKH´EUHDGWKDQGGHSWK DQG,ÁHZWKHUHHYHU\WKUHHPRQWKVSUH- 7KH DSSOLFDWLRQ SURFHVV JHQHUDOO\ RIRXUH[SHUWLVHDQGWKHGLYHUVLW\RIRXU VHQWLQJ DOO WKH WLPH 1RZ WKDW ZH KDYH WDNHVOHVVWKDQKDOIDQKRXUGRHVQRWUH- SURGXFW OLQH WKDW VHWV $SWRV DSDUW IURP DSSURYDO ZH DUH GHEDWLQJ ZKHWKHU WR TXLUHDQDHVWKHVLDQRUGRHVLWVLJQLÀFDQWO\ FRPSHWLWRUVµ RSHQRXURZQRIÀFHRUWRJRWKURXJKD DOWHUWKHVNLQEHORZDOORZLQJIRUDGUDVWLF $SWRVKDVWZRJURXSVRISURGXFWVDE- ORFDOSDUWQHUµ GHFUHDVHLQUHFRYHU\WLPHDVFRPSDUHG VRUEDEOHZKLFKGLVLQWHJUDWHDIWHU\HDUV $IWHU KDYLQJ EURXJKW $SWRV WKURXJK WRWUDGLWLRQDOVXUJLFDOPHWKRGV DQGQRQDEVRUEDEOHZKLFKODVWIRXURUÀYH WKHSURFHVV*HRUJH6XODPDQLG]HUHFRP- 6XOPDQLG]H·V WHFKQLTXH DGGUHVVHG EXWDUHXQVXLWDEOHIRUUHSHDWRSHUDWLRQV PHQGVWKDW*HRUJLDQFRPSDQLHVORRNLQJ WZRELJSUREOHPVLQWKHDHVWKHWLFPHGL- ´2XUFRPSHWLWRUVKDYHEHHQXQDEOH WRH[SRUWWRWKH86ÀQGORFDOSDUWQHUVDQG FLQHLQGXVWU\´2QHZDVWKDWFODVVLFDHV- WR UHSOLFDWH WKH VWUHQJWK DQG GXUDELOLW\ FRPHXSZLWKDQDLUWLJKWEXVLQHVVSODQIRU WKHWLFPHGLFLQHXSXQWLOWKDWSRLQWKDG RI RXU DEVRUEDEOH SURGXFWV >IRU@ ZKLFK WKHLPSRUWDQFHRIZKLFKKHSRLQWVWRWKH RIIHUHGMXVWWZRPDLQDSSURDFKHV³RQH \HDUVSRVWRSHUDWLRQPRUHWKDQ IDFWWKDWWKH(%5'KDVGHFLGHGWRVSRQ- VXUJLFDORQHFKHPLFDO%RWK>DUH@UDWKHU RIWKH>VXWXUH·V@GLDPHWHUUHPDLQVLQWKH VRU$SWRVDQGÀQDQFHDQHDUO\ GUDVWLFDQGOHIWRSHQDQLFKHIRUDPRUH WLVVXH&RPSDUHGWRRXU&KLQHVHFRPSHWL- PDUNHWHQWU\VWUDWHJ\IRUWKHFRPSDQ\³ QDWXUDODSSURDFKµ6XOPDQLG]HH[SODLQV WRUVWKHLUSURGXFWVGLVLQWHJUDWHWRDVLPLODU RQO\ WKH WKLUG LQ *HRUJLD IRU ZKLFK WKH Another pain point to be addressed H[WHQWZLWKLQMXVWVL[PRQWKVZKLOHRWKHUV (%5'KDVHYHUGRQHVR

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 25 SALLY WHITE DQG (VWRQLD &RPSDQ\ SUHVV UHOHDVHV UHIHU WR RSSRUWXQLWLHV ´DFURVV &HQWUDO LNKHLO /RPWDG]H FDQ·W EH $VLDDQGWKH&DXFDVXVµ WKH RQO\ *HRUJLDQ ZKR FDQ ,QWHUQDWLRQDO UDWLQJV DJHQF\ MUHPHPEHU JRLQJ RXW ZLWK KLV 0RRG\·VOLNLQJWKHORRNRI.DVSLN]DQG IDWKHU GXULQJ KDUG WLPHV WR EX\ DQG LWVPDQDJHPHQWUHFHQWO\XSSHGLWVUDW- VHOOJRRGVWRUDLVHPRQH\IRUWKHIDPLO\ LQJRI.DVSLN]7KHVFRSHIRUJURZWKLV EXGJHW+HVD\VKHZDVWKHRQHWRGR KXJHVWDWHV0RRG\·VLQLWVUHSRUWVLQFH WKHVHOOLQJ³KHHYHQHQMR\HGLW WKHPLOOLRQLQ&HQWUDO$VLDDUHPDLQO\ +RZHYHU QRW WKDW PDQ\ WHHQDJH XQEDQNHGDQGDUHKLJKO\GLVWUXVWIXORI *HRUJLDQ WUDGHUV KDYH JRQH RQ WR WKHIRUPDOEDQNLQJVWUXFWXUH&RQVXPHU ODXQFKDELOOLRQFRPSDQ\RQWKH ÀQDQFHDFFRXQWHGIRURQO\SHUFHQW /RQGRQ6WRFN([FKDQJHEHFRPLQJD RI .D]DNK *'3 LQ  FRPSDUHG WR PXOWLELOOLRQDLUHDWDJH7KDWLVZKDW SHUFHQWLQ7XUNH\DQGSHUFHQW /RPWDG]H GLG LQ 2FWREHU ZLWK .DVSL in China. N].D]DNKVWDQ·V WRS ÀQWHFKJURXS RI 2QJURZWKDQG0RRG\·VLPSURYHG ZKLFKKHLVIRXQGHUDQGFKDLUPDQ RXWORRN /RPWDG]H FRPPHQWHG ´$V 7KH FRPSDQ\·V ,32 ZLWK WKH VDOH ZH FRQWLQXH WR GHYHORS QHZ LQQRYD- RISHUFHQWRIWKHVKDUHVUDLVLQJ WLYHSURGXFWVDQGVHUYLFHVDQGSOD\D PLOOLRQ86'ZDVRQHRIWKHODUJHVWHYHU PDMRUUROHLQ.D]DNKVWDQ·VGLJLWDOWUDQV- ÀQWHFKÁRDWVRQD(XURSHDQVWRFNH[- IRUPDWLRQZHH[SHFWRXUUHOHYDQFHWR FKDQJH .DVSLN] LV DW WKH IRUHIURQW RI FRQVXPHUVDQGPHUFKDQWVWRLQFUHDVH GLJLWDOL]DWLRQ LQ .D]DNKVWDQ 8QNQRZQ IXUWKHUZLWK.DVSLN]FRQWLQXLQJWRVHH EHIRUH LW EXUVW RQ WKH /RQGRQ 6WRFN VWURQJUHYHQXHDQGSURÀWDELOLW\JURZWK 0DUNHW LW RSHUDWHV DQ HFRV\VWHP LQWRWKHPHGLXPWHUPµ FRPSRVHG RI WKUHH PDUNHWOHDGLQJ ,QWHUQDWLRQDO LQYHVWRUV QHYHU H[- Mikheil SODWIRUPVSD\PHQWVPDUNHWSODFHDQG SHFWHGWRVHHDFRPSDQ\RIWKLVFDOLEHU ÀQWHFK ZKLFK DUH DFFHVVLEOH YLD WKH HPHUJLQJIURP.D]DNKVWDQDQHPHUJ- .DVSLN]6XSHU$SS³WKHPRVWSRSXODU LQJ PDUNHW ZKLFK KDV EHHQ SULPLQJ Lomtadze— PRELOHDSSLQ.D]DNKVWDQ LQYHVWRUVIRUDGHOXJHRIROGZRUOGSULYD- .DVSLN] HDUQHG  PLOOLRQ LQ QHW WL]DWLRQVIURPDPRQJLWVPLQLQJDYLDWLRQ LQFRPH RQ  ELOOLRQ LQ UHYHQXH ODVW DQG WHOHFRPPXQLFDWLRQV VHFWRUV )RU \HDUDQGLWVSDFHRIJURZWKWKLV\HDU LQWHUQDWLRQDOHPHUJLQJPDUNHWLQYHVWRUV the Georgian KDVTXLFNHQHGKHOSHGE\&RYLGDQG ORRNLQJ IRU VRPHWKLQJ FKHDSHU WKDQ QHZSURGXFWV,WKDVDURXQGDWKLUGRI WKH86·V1$6'$4PDUNHWDQGZKLFK WKHFRQVXPHUORDQEXVLQHVV³WKHODUJ- SURPLVHGWKDWUDUHUHZDUGDGLYLGHQG who became HVW PDUNHW VKDUH LQ .D]DNKVWDQ³DQG &KULVWPDVKDVFRPHHDUO\ SHUFHQWRIGLJLWDOSD\PHQWYROXPHV 7KH ILUVW FOXH KLQWLQJ RI LWV IXWXUH $QQRXQFLQJ .DVSLN]·V  4 UH- VXFFHVV ZDV WKDW .DVSLN] KDG EHHQ a Kazakh VXOWVLQPLG1RYHPEHU/RPWDG]HVDLG PHQWRUHG E\ RQH RI WKH ROGHVW DQG WKDW DFWLYH XVHUV ZHUH XS  SHUFHQW LQWHUQDWLRQDOO\PRVWUHVSHFWHGIXQGVLQ RYHU D \HDU DJR WR UHDFK  PLOOLRQ WKH&,6UHJLRQ0RVFRZEDVHG%DULQJ UHYHQXHZDVXSE\SHUFHQWDQGQHW 9RVWRN ZKLFK KDV D VWURQJ UHFRUG LQ billionaire LQFRPHE\SHUFHQW\HDURYHU\HDU ÀQWHFKDQGWHFKQRORJ\DFFRUGLQJWR ZLWKWKHQHWLQFRPHPDUJLQUHDFKLQJ (XUDVLDFRQVXOWDQWV0DUFR$GYLVRU\,W KAZAKHSTAN’S MOST POPULAR SHUFHQW\HDURYHU\HDU ZDVDOVRZKHUH/RPWDG]HVSHQWPXFK MOBILE APP KASPI.KZ, OF 7KDW KLJKO\ SRVLWLYH WUHQG ORRNV VHW RIKLVWLPH.DVSLZDVDVPDOOLVKEDVLF WHICH LOMTADZE IS THE CO- WR FRQWLQXH 0LNKHLO /RPWDG]H WROG .D]DNKEDQNFDWHULQJPDLQO\WRDPL[ FOUNDER, WAS ADMITTED TO LQYHVWRUV ´/RRNLQJ LQWR  ZH ZLOO RIVPDOOWRPLGVL]HGFRPSDQLHVORRN- THE LONDON STOCK EXCHANGE FRQWLQXDOO\ DGG QHZ DQG LQQRYDWLYH LQJIRUORDQV7KHQLQ%DULQJ9RVWRN IN LATE OCTOBER, ACHIEVING GLJLWDO SURGXFWV DQG VHUYLFHV WR RXU DFTXLUHGDPDMRULW\VWDNHDQGLQVWDOOHG A MARKET CAPITALIZATION OF .DVSLN]6XSHU$SS.DVSL7UDYHOZLOOEH /RPWDG]HDV&(2 ODXQFKHGLPPLQHQWO\DQGZH·UHUDSLGO\ /RPWDG]H KDG DUULYHG DW %DULQJ %,//,2121,76),567'$< UROOLQJRXW.DVSL3D\DQG.DVSL45RXU 9RVWRNDIWHUEXLOGLQJDFDUHHULQ7ELOLVL OF CONDITIONAL TRADING 45FRQWDFWOHVVSD\PHQWVVROXWLRQµ +H KDG VWDUWHG ZRUNLQJ DQG FRQVXOW- THROUGH A DUAL LISTING ON .DVSLLVDOVRGLYHUVLI\LQJJHRJUDSKL- LQJ RQ SURMHFWV YHU\ HDUO\ :KLOH VWLOO THE LONDON STOCK EXCHANGE FDOO\DFTXLULQJSODWIRUPVLQ$]HUEDLMDQ D VWXGHQW DW WKH (XURSHDQ 6FKRRO RI AND ASTANA INTERNATIONAL ZKLFKKDVWKHIRXUWKODUJHVWHFRQRP\ 0DQDJHPHQWKHZDVKLUHGWRMRLQ*LD EXCHANGE. LQWKH&,6DQGKLJKPRELOHSHQHWUDWLRQ  %D]JDG]H DQG .RQVWDQWLQH 5L]KLQDVK-

26 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 ADVERTISEMENT

YLOLO·V*HRUJLDQ&RQVXOWLQJ*URXS QRZSDUWRILQWHUQDWLRQDO DFFRXQWLQJDQGFRQVXOWDQF\JURXS(UQVW 

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 27 SPONSORED CONTENT be for commercial spaces—restaurants, Moedani, bars, cafes, galleries, coworking spaces, vlabari has long been one of and other businesses that the Moedani Tbilisi’s neglected jewels, administration will ‘curate.’ a place Aexperiencing little of the re- The businesses ‘let into’ the square vitalization that many of Tbilisi’s even will be selected to represent a broad to _____: more suburban and less exotic districts array of cuisines and entertainment, have been privileged to in recent years. because “the objective is not to simply Development company Moedani build another housing development, but revitalizing wants to put an end to the trend, and to create a new go-to location in the city, give Avlabari the chance at a vibrant to transplant the soul of an Italian-style urban life it deserves—it was, after all, piazza into Tbilisi,” Moedani Director Tbilisi’s a former center of Tbilisi’s cultural and Vakhtang Gurgenidze told Investor.ge, economic life. Moedani plans to do so noting that a thorough study of the mar- Avlabari by enclosing a sprawling square with ket conducted by the developer showed four low-rise buildings with 220 apart- that there were few if any developments ments, as well as a 100-room hotel in in Tbilisi that have combined residential district D¿IWKEXLOGLQJ7KHJURXQGOHYHOZLOO and commercial spaces in a seamless,

28 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 aesthetically pleasing manner. and one of Tbilisi’s nightlife districts, proaches to living spaces in Tbilisi are Moedani chose to construct low-rise Shardeni Street. more than in demand,” Gurgenidze says, buildings to ensure that the development Entrance into the square will be free commenting on the development com- will blend in with the rest of the district and open to the public, but measures will SDQ\¶VGHFLVLRQWRUHRSHQLWVVDOHVRI¿FH and not distort the architecture and atmo- be in place to ensure security and peace during these uncertain times. sphere of Old Tbilisi. of mind for residents as well. Few purchasers made use of the The name of the development proj- Apartments have proven popular Georgian government’s offer to subsidize HFWUHÀHFWVWKHVSLULWRIZKDWLWLVWU\LQJ with investors, which have accounted the interest rate on the purchase of new to accomplish: Moedani in Georgian for about 70% of purchasers, Gurgenidze apartments during the crisis. This was means ‘square.’ In Avlabari, historically told Investor.ge, while another 30% have due to the fact that Moedani introduced a multicultural and central part of Tbilisi, bought apartments as places of residence. new purchase plans to the Tbilisi real squares were the meeting grounds for “Interest in the development and its estate market: people from all parts of the city. Moedani apartments has been soaring despite the “Purchasers are able to buy our apart- thus wants to return this old aspect of coronavirus crisis,” Moedani Director ments on truly special, unprecedented Avlabari life, only in a modern context. Vakhtang Gurgenidze says, noting “this terms. They pay just 20% up front in the Located in the heart of the district just goes to show that there was pent-up ¿UVWWZR\HDUVDQGWKHQDQRWKHU on Nikifore Irbakhi Street near Avlabari demand for new Avlabari offerings.” DIWHUWKHÀDWLVKDQGHGRYHUSD\DEOH metro station, the area is convenient for “Sales are proceeding far better than either in full or through a partner bank.” both vehicle and pedestrian access, and we predicted. We even broke the goals Construction of the project is sched- located within walking distance to both we set for ourselves before the pandemic uled to be completed by the summer of the Holy Trinity Cathedral [Sameba] set in—a clear indicator that new ap- 2022.

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 29 WKH&HQWUDO'HSRVLWRU\RI$UPHQLD 7KH IRUPHU GLUHFWRU RI WKH 3HQVLRQ $JHQF\/HYDQ6XUJXODG]HZKRUHVLJQHG ODVW \HDU VD\LQJ KH ZRXOG ´SUD\ IRU WKH IXQGµDQGZKRVHKLVWRU\LQFOXGHVWRSSRVL- tions in Wall Street at major international EDQNV VXFK DV 'HXWVFKH %DQN %DUFOD\V DQG 8%6 UXQQLQJ IXQGV DQG KHDGLQJ ULVN FRQWURO KDV D GLIIHUHQW WDNH RQ WKH ULVNFRQWURO PHFKDQLVPV VSHFLÀHG LQ WKH GRFXPHQW WHOOLQJ ,QYHVWRUJH WKDW WKH LQYHVWPHQWSROLF\GRFXPHQW´FRPSOHWHO\ FRQIXVHVWKHIXQFWLRQVRIULVNFRQWUROµ ´,QLWLDOO\ WKH VWUXFWXUH RI WKH 3HQVLRQ $JHQF\ SURYLGHG IRU LQGHSHQGHQW ULVN FRQWUROPHFKDQLVPVDQGLWZDVDSSURYHG E\ WKH 6XSHUYLVRU\ %RDUG EXW XQIRUWX- QDWHO\WKLVVWUXFWXUHKDVEHHQFRPSOHWHO\ FKDQJHGDQGSUDFWLFDOO\DEROLVKHG7KLV Prospects and public concerns in the GRFXPHQW GRHVQ·W UHÁHFW LQGHSHQGHQW ULVNFRQWURODWDOO2QWKHFRQWUDU\LWPHQ- pension fund’s new investment guidelines WLRQVWKDWLWKDVEHFRPHGHSHQGHQWXQGHU RQHYHUWLFDO 7KLV LV DEVROXWHO\ LPSHUPLVVLEOH DQG ANA MEZVRISHVILI RIULVNFRQWURODQGSURWHFWLRQDVIROORZV GRHV QRW FRPSO\ ZLWK DQ\ LQWHUQDWLRQDO ´7KHÀUVWOLQHLVWKHLQYHVWPHQWVHUYLFH VWDQGDUGVµ 6XUJXODG]H VD\V QRWLQJ LW KH *HRUJLDQ 3HQVLRQ $JHQF\ UH- LWVHOI ZKLFKLV UHVSRQVLEOH IRULQYHVWPHQW ZRXOG EH EHWWHU IRU WKH VSHFLDOL]HG GH- OHDVHGDORQJDZDLWHGGRFXPHQWDW DQGWKHPDQDJHPHQWRIRSHUDWLRQDOULVNV SRVLWDU\WRDFWDVWKHDJHQF\·VFHQWUDOGH- TWKHHQGRI6HSWHPEHUVSHOOLQJRXWWKH DULVLQJLQWKHSURFHVV7KHVHFRQGOLQHLVWKH SRVLWRU\VLQFHWKHFUHDWLRQRIDVHSDUDWH SURFHVVE\ZKLFKWKHIXQGZLOOGHWHUPLQH FKLHIULVNRIÀFHUZKRLQGHSHQGHQWO\FRQ- GHSDUWPHQW ZLOO RQO\ FUHDWH DGGLWLRQDO KRZWRLQYHVWLWVUHVRXUFHVDQGKRZWREHVW WLQXRXVO\ FKHFNV WKH FRPSOLDQFH RI WKH H[SHQVHVIRUWKHSHQVLRQIXQG SURWHFWLWVFRQWULEXWRUV·KDUGHDUQHGFDVK LQYHVWPHQWSRUWIROLRDQGWUDQVDFWLRQVDQG ´,WKLQNWKLVH[WUDH[SHQVHIRUWKHSHQ- 7KH GRFXPHQW ZDV GHYHORSHG RYHU WKHDXGLWVHUYLFHDVWKHWKLUGOLQHRISUR- VLRQIXQGZLOOEHDQXQQHFHVVDU\DQGSRLQW- WKHSHULRGRID\HDUDQGDKDOIE\WKH,Q- WHFWLRQJLYHVDFRPSOHWHO\LQGHSHQGHQW OHVVH[SHQVHWKDWZLOOEXUQWKHIXQGDQG YHVWPHQW&RXQFLORIWKH3HQVLRQ$JHQF\ DVVXUDQFHWKDWWKHLQYHVWPHQWRIÀFHDQG WKHUHIRUHKDYHWREHSDLGRXWRISHRSOH·V ZKLFKVD\VWKHXOWLPDWHJRDORIWKHJXLGH- WKHFKLHIULVNRIÀFHUDUHZRUNLQJSURSHUO\µ SRFNHWµ6XUJXODG]HH[SODLQV OLQHVLVWRFRPEDWLQÁDWLRQ VD\V0HOLNLG]H 2WKHU H[SHUWV TXHVWLRQ WKH GRFX- 7KHDJHQF\ZKLFKDVRIHDUO\2FWREHU 7KH GRFXPHQW DOVR VHWV RXW WKH UH- PHQW·V DELOLW\ WR JDLQ WKH WUXVW RI WKH LVPDQDJLQJDERXWELOOLRQ*(/LQIXQGV TXLUHPHQWV WR EH PHW E\ ÀQDQFLDO LQVWL- SRSXODWLRQGXHWRFRQFHUQVDERXWKLJK KDVDERXWRILWVDVVHWVLQGHSRVLWFHUWLÀ- WXWLRQV RU ÀQDQFLDO LQVWUXPHQWV LQ ZKLFK LQÁDWLRQDQGFXUUHQF\ULVNVFKDUDFWHULVWLF FDWHVZLWKDQHIIHFWLYHDQQXDOLQWHUHVWUDWH FLWL]HQV·VDYLQJVFDQEHLQYHVWHG RIWKH*HRUJLDQHFRQRP\ RIDQGDWHUPRIÀYH\HDUV )RUH[DPSOHWKHIXQGVDFFXPXODWHG $ ODFN RI SUHGLFWDELOLW\ LQ WKH LQYHVW- 7KLV LV VWLOO D ZD\V RII XQWLO  WKH LQWKHSHQVLRQIXQGPD\QRWEHLQYHVWHG PHQWHQYLURQPHQWPDNHVLWGLIÀFXOWWRHV- 3HQVLRQ$JHQF\ZLOORQO\LQYHVWLQORZULVN LQ D FRPSDQ\ ZLWKRXW D VSHFLÀF LQWHU- WLPDWHDQH[SHFWHGUHWXUQVRPHH[SHUWV LQYHVWPHQWSRUWIROLRVZKLFKDWWKLVVWDJH QDWLRQDOUDWLQJDQGÀQDQFLDOLQVWUXPHQWV VD\ QRWLQJ WKLV TXHVWLRQ RI UHOLDELOLW\ ZLOO LPSOLHVPRVWO\FRPPHUFLDOEDQNGHSRVLWV PXVWKDYHDFUHGLWUDWLQJDVVLJQHGE\DW EHFRPH HVSHFLDOO\ UHOHYDQW RQFH FRQ- &RPH  KRZHYHU SHQVLRQ SODQ OHDVWRQHJOREDOUDWLQJDJHQF\ 6WDQGDUG VXPHUV IDFH WKH FKRLFH IURP   RI HQUROOHHV ZLOO EH DEOH WR H[HUFLVH WKHLU  3RRU·V 0RRG\·V )LWFK 5DWLQJV 6FRSH ZKHUH WR SODFH WKHLU VDYLQJV 0RUHRYHU ULVNDSSHWLWHDQGFKRRVHEHWZHHQORZ 5DWLQJV  IRU WKLV VFKHPH WR ZRUN WKH SRSXODWLRQ PHGLXPDQGKLJKULVNSRUWIROLRVGHÀQHG ,QDGGLWLRQWRWKHYDULRXVOD\HUVRILQWHU- QHHGVWRHQWHUWKLVSKDVHRIWKHSHQVLRQ E\WKHQHZJXLGHOLQHV QDOFRQWUROLQWKH$JHQF\LVLQWURGXF- VFKHPH ZLWK D PXFK KLJKHU GHJUHH RI 7KHGRFXPHQWKDVDOVRVHWRXWDVR LQJD´VSHFLDOL]HGGHSRVLWRU\µZKLFKZLOO ÀQDQFLDO DZDUHQHVV LQ RUGHU WR SURSHUO\ FDOOHG ´WKUHHOLQH SURWHFWLRQ SULQFLSOHµ EHUHVSRQVLEOHIRURYHUVHHLQJLQYHVWPHQW XQGHUVWDQGWKHULVNVDVVRFLDWHGZLWKHDFK GHWDLOLQJ KRZ WKH IXQG·V UHVRXUFHV DUH DFWLYLWLHVDQGHQVXULQJWKHVDIHNHHSLQJRI SRUWIROLRDQGPDNHDQLQIRUPHGGHFLVLRQ SURWHFWHG IURP H[FHVV WXUEXOHQFH DQG pension assets. 7KHUHIRUH WKH 3HQVLRQ $JHQF\ DQG EDGGHFLVLRQPDNLQJ $FFRUGLQJWRWKHVWDWHSURFXUHPHQW WKH1DWLRQDO%DQNZLOOKDYHDQLPSRUWDQW *RJD 0HOLNLG]H 6HQLRU ,QYHVWPHQW ZHEVLWH WKUHH ILQDQFLDO LQVWLWXWLRQV DUH UROHLQWKLVSURFHVVLQSURYLGLQJDVPXFK 2IÀFHURIWKH,QYHVWPHQW&RXQFLORIWKH FRPSHWLQJIRUWKHVWDWXVRIWKHVSHFLDOL]HG LQIRUPDWLRQ DV SRVVLEOH WR SHQVLRQIXQG 3HQVLRQ $JHQF\ GHÀQHV WKH WKUHH OLQHV GHSRVLWRU\7%&%DQN%DQNRI*HRUJLDDQG HQUROOHHVDQGZLQQLQJSXEOLFWUXVW

30 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 Discover San Francisco

We are pleased to announce the launch of four weekly flights to San Francisco starting 15 December 2020, offering more options to the USA with a total of 60 weekly flights to 10 gateways.

Fly with us to San Francisco and step into a world of possibilities. Whether you are travelling for business, education or leisure, explore a city of cutting-edge entrepreneurship and renowned universities or reunite with loved ones.

qatarairways.com/ge

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 31 Remotely from Georgia – are the digital nomads flocking yet? WHEN FIRST PRESENTED, REMOTELY FROM GEORGIA WAS TOUTED AS A STRATEGY TO MAKE UP FOR FALLEN TOURIST NUMBERS. BUT HOW MANY DIGITAL NOMADS, INDIVIDUAL ENTREPRENEURS AND REMOTE WORKERS HAVE ACTUALLY ENTERED GEORGIA ON THE PROGRAM, AND WHAT +$6%((17+(,5(;3(5,(1&(62)$5"

ANDREW BRAUN WHAT IS REMOTELY FROM *HWDQDSSURYDOUHMHFWLRQRUIROORZ GEORGIA? XSDVNLQJIRUPRUHLQIRUPDWLRQ XDQ &DUORV 5HVWUHSR &DQWRU RULJL- 5HPRWHO\ IURP *HRUJLD UXQ E\ WKH (QWHU*HRUJLDXVLQJWKHGRFXPHQWV QDOO\ IURP &RORPELD ZDV ZRUNLQJ *HRUJLDQ1DWLRQDO7RXULVP$GPLQLVWUDWLRQ SURYLGHG JLQ1RUZD\RQDQH[FKDQJHIURPKLV *17$ DQGWKH0LQLVWU\RI(FRQRPLFDQG 4XDUDQWLQHIRU RUPRUH GD\VLQD XQLYHUVLW\LQ,FHODQGZKHQ&29,'KLW 6XVWDLQDEOH 'HYHORSPHQW 02(6'  DO- JRYHUQPHQWDSSURYHGTXDUDQWLQHKRWHO :LWKWKHSDQGHPLFFRPSOLFDWLQJKLV1RU- lows remote workers to pass the otherwise 2QFHTXDUDQWLQHLVRYHUYLVLWRUVDUH ZHJLDQYLVDKHVWDUWHGORRNLQJIRUGLJLWDO FORVHGERUGHUVZLWKDQHQWU\SHUPLW³QR- IUHHWR VDIHO\ HQMR\*HRUJLDIRUDVORQJ QRPDGIULHQGO\ FRXQWULHV +H ÀUVW VHWWOHG WDEO\QRWDYLVD7KHRQO\PDMRUFRQGLWLRQ DVWKHLUYLVDDOORZV RQ9LHWQDPEXWDIWHUWKHSDQGHPLFFXW LV WKDW WKH\ PXVW HDUQ DW OHDVW  D 0RVWDSSOLFDQWVIHHOWKHSURFHVVLVIDLUO\ WKDW URXWH RII KH VWDUWHG ORRNLQJ HOVH- PRQWK*LYHQWKDW*HRUJLDJUDQWVD\HDU HDV\WRJHWWKURXJKOLNH6WHYH$YLODDQ ZKHUH 7KDW·V ZKHQ *HRUJLD FDXJKW KLV RIYLVDIUHHVWD\WRDURXQGFRXQWULHVWKLV $PHULFDQZKRFDPHWR*HRUJLDRQWKH attention. VFKHPHKDVSURYHQSDUWLFXODUO\DWWUDFWLYH SURJUDP ´+RQHVWO\ LW·V D YHU\ VWUDLJKW ´,ZDVEHWZHHQ*HRUJLDDQG8NUDLQHµ WRSHRSOHORRNLQJIRUDORQJWHUPKRPH IRUZDUGSURFHVVµKHVD\V´WKDW@H[SDWV WKHÀUVWQLQHPRQWKVRIVDZRYHU UHPRWHZRUNHUVKDYHEHHQGHDOLQJZLWK DQG QRPDGV RQOLQH VSHDN VR KLJKO\ RI D  GHFUHDVH LQ LQWHUQDWLRQDO YLVLWRUV VLQFH WKH SDQGHPLF VWDUWHG 7UDYHO UH- WKHFRXQWU\µ DFFRUGLQJWRWKH*17$ VWULFWLRQV YLVD H[SLUDWLRQV DQG UDSLGO\ 5HPRWHO\IURP*HRUJLDLVLQWHQGHGWR FKDQJLQJ SXEOLF KHDOWK VLWXDWLRQV KDYH HOW DOES REMOTELY FROM RSHQXSWUDYHOVSHFLÀFDOO\IRULQGLYLGXDOV PDGH OLYLQJ DEURDG FRQVLGHUDEO\ PRUH GEORGIA WORK? ZLWKKLJKHUVSHQGLQJSRZHUZKRDVWKH FRPSOH[WKDQLWRQFHZDV (YHU\RQHYLVLWLQJ*HRUJLDWKURXJKWKH JRYHUQPHQWSUHVVUHOHDVHVD\V´ZLOOKDYH *HRUJLDLVQRH[FHSWLRQDVWKHERU- 5HPRWHO\ IURP *HRUJLD SURJUDP JRHV WKHPHDQVDQGWKHRSSRUWXQLW\WRWUDYHO GHUVKDYHEHHQFORVHGIRUPRVWRI WKURXJKWKHVDPHEDVLFSURFHVV WRGLIIHUHQWSDUWVRIWKHFRXQWU\ZLWKWKHLU 7KDW·V ZKHUH 5HPRWHO\ IURP *HRUJLD )LOORXWWKHRIÀFLDODSSOLFDWLRQIRUP IDPLO\PHPEHUVWRPDNHXVHRIYDULRXV FRPHVLQ DWUHJLVWUDWLRQJRYJH VHUYLFHV DQG WR JHW DFTXDLQWHG ZLWK

32 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 WKH ORFDO FXOWXUH DQG FXLVLQH ZKLFK ZLOO SOXVRQHRUDIDPLO\ZLWKWKHPPHDQLQJ DPRQJWKHWRSÀYH,W·VXQFOHDUZKHWKHU IDFLOLWDWHWKHUDSLGUHFRYHU\RIRXUSULYDWH WKDW WKH  DSSURYHG DSSOLFDWLRQV DF- WKHVHFRXQWULHVUHPDLQWKHUH VHFWRUµ WXDOO\ LQFOXGHV PRUH WKDQ  SRWHQWLDO 6RKRZ·VLWJRLQJ"$FFRUGLQJWRWKH entrants. % of % of 2019 0LQLVWU\ 2I (FRQRP\ DQG 6XVWDLQDEOH 3HRSOHIURPDOPRVWGLIIHUHQWFRXQ- Remotely Tourists 'HYHORSPHQW 02(6'  WKH SURJUDP WULHVKDYHVHQWLQDSSOLFDWLRQV$FRPSOHWH Nationality from Georgia Statistics from UHFHLYHG  DSSOLFDWLRQV EHWZHHQ OLVWZDVQ·WDYDLODEOHEXWDFFRUGLQJWRWKH Applicants GNTA.ge $XJXVW  DQG 1RYHPEHU  RI ZKLFK *17$WKHVHDUH´DPRQJWKHWRSµ DSSUR[LPDWHO\  ZHUHDSSURYHG 5XVVLD   DQG  ZHUHUHMHFWHG7KHUHPDLQ- % of % of 2019 %HODUXV   LQJDSSOLFDWLRQVDUHSUHVXPDEO\EHLQJ Remotely Tourists SURFHVVHG2IWKHDSSURYHGDSSOLFD- Nationality from Georgia Statistics from :KLOH WKH EXON RI YLVLWRUV WR *HRUJLD WLRQVDSSOLFDQWVKDGHQWHUHG*HRUJLD Applicants GNTA.ge JHQHUDOO\ FRPH IURP WKH QHLJKERULQJ DVRI1RYHPEHU USA   FRXQWULHV RI 5XVVLD $]HUEDLMDQ 7XUNH\ :KLOH WKLV GRHVQ·W DGG XS WR PXFK DQG$UPHQLDDSSOLFDQWVWRWKH5HPRWHO\ United FRPSDUHG WR SUHYLRXV WRXULVP QXPEHUV   IURP *HRUJLD WHQG WR EH PRUH VSUHDG .LQJGRP WKH OHQJWK RI HDFK YLVLW LV OLNHO\ WR EH RXW7KLVVHHPVWRVRPHZKDWSRLQWWRWKH VXEVWDQWLDOO\ ORQJHU WKDQ WKH DYHUDJH Ukraine   SURJUDP·VVXFFHVVLQLQFUHDVLQJWKHUDWLR QLJKWVWD\RIYLVLWRUV:LWKSDUWLFL- Canada   RI KLJKYDOXH YLVLWRUV HQWHULQJ *HRUJLD SDQWVRIWHQVWD\LQJVL[SOXVPRQWKVLQWKH 7KH86IRUH[DPSOHRQO\PDGHXS FRXQWU\ WKHLU HFRQRPLF LPSDFW LV OLNHO\ Japan   RIYLVLWRUVLQEXWZHLJKVLQDWRI WRIDUH[FHHGWKHDYHUDJHWRXULVWHYHQLI SDUWLFLSDQWVRIWKH5HPRWHO\IURP*HRUJLD WKH\SDUWLFLSDWHLQIHZHUWUDGLWLRQDOWRXU- $GGLWLRQDOO\ ,Q 2FWREHU ZKHQ RQO\ SURJUDPDQGWKH8.-DSDQDQG&DQDGD LVPDFWLYLWLHV  DSSOLFDWLRQV KDG EHHQ VXEPLWWHG KDYHPDGHVLPLODUJDLQV Another minor boost is that the pro- YHUVXVWKHFXUUHQWO\VXEPLWWHG WKH 2IYLVLWRUVUHJLVWHUHGDVVHOIHP- JUDPDOORZVLQFRPLQJZRUNHUVWREULQJD *17$·VÀJXUHVOLVWHGWZRRWKHUFRXQWULHV SOR\HGVDLGWKH\DUHIXOOWLPHUHPRWH

ADVERTISEMENT

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 33 EHHQDGUHDPRIRXUVWROLYHLQWKHPRXQ- WDLQVDQGPDNHZLQHµ 6WDUWLQJDEXVLQHVVLVDQLWHPRQTXLWHD IHZSHRSOH·VOLVWVOLNH(GZDUG:KLWHKHDG D6RXWK$IULFDQFRPLQJIURP7XUNH\+H·V DFWXDOO\ FRQVLGHULQJ PXOWLSOH YHQWXUHV LQFOXGLQJD*HRUJLDEDVHG,7FRQVXOWDQF\ ÀUPDQGDQDSSIRUFOHDQLQJVHUYLFHV :LWK*HRUJLDUDQNLQJWKRYHUDOOLQWKH :RUOG%DQN·V(DVHRI'RLQJ%XVLQHVV UDQNLQJVDQGQGLQWKHZRUOGIRUHDVHRI VWDUWLQJ D EXVLQHVV LW·V HDV\ WR VHH ZK\ VWDUWLQJ D EXVLQHVV LV RQH RI WKH WRSLFV RQUHPRWHZRUNHUV·PLQGV(DV\UHJLVWUD- WLRQDQGIDYRUDEOHWD[UDWHVKDYHPDGH *HRUJLDDGHVWLQDWLRQHYHQIRUWKRVHZKR PLJKWQRWKDYHRWKHUZLVHFRQVLGHUHGVWDUW- LQJDEXVLQHVV &DOHE )RUQDUL ZKR ZDV DFFHSWHG HPSOR\HHVDQGOLVWHGWKHPVHOYHVDV DFWLYHO\FRQVLGHULQJ*HRUJLD·VORZFRVWRI EXW HQGHG XS QRW WDNLQJ DGYDQWDJH RI HQWUHSUHQHXUV OLYLQJJUHDWKRVSLWDOLW\DQGORZWD[HVDVDQ WKH SURJUDP GXH WR KLV )LOLSLQD JLUOIULHQG 0DQ\SDUWLFLSDQWVKDGEHHQKRSLQJWR LQFHQWLYHWRVWD\ORQJHUWKDQWKHLQLWLDOVL[ QRW EHLQJ HOLJLEOH VHHV SRWHQWLDO LQ WKH FRPHWR*HRUJLDEHIRUHWKHSDQGHPLF WRPRQWKVWKDWWKH\PD\KDYHRULJLQDOO\ WHFKVSDFH´,GLGKRSHWRSHUKDSVKLUH VR5HPRWHO\IURP*HRUJLDLVVLPSO\PRY- SODQQHGµ DIHZSURJUDPPHUVDQGVWDUWDVPDOORI- LQJXSWKHLUWLPHOLQHVDQGPLWLJDWLQJWKH ÀFHIRUP\VRIWZDUHEXVLQHVVLQ7ELOLVLµKH &RYLGWRXULVPVOXPSVRPHZKDW WHY GEORGIA? VD\V´7KH WD[ UDWHV DUH YHU\ UHDVRQDEOH Others, like Restrepo and Howard, 6WHIDQLD *XJOLHOPL D WUDYHO EORJJHU DQGZKLOHWKHWDOHQWSRROLVVPDOO*HRUJLD DUH ILUVWWLPH YLVLWRUV VSHFLILFDOO\ GUDZQ IURP ,WDO\ KDG YLVLWHG 7ELOLVL IRU D IHZ KDV VRPH YHU\ GHGLFDWHG DQG WDOHQWHG KHUHE\WKHSURJUDPZKLFKSRLQWVWRWKH PRQWKV EHIRUH WKH SDQGHPLF WKHQ GH- SURJUDPPHUVµ FDPSDLJQ·V VXFFHVV LQ PDLQWDLQLQJ WKH FLGHGWRUHWXUQVRPHWLPHODWHURQWKH5H- )RU ,JRU -RYLF D GLJLWDO QRPDG IURP FRXQWU\·VWUDYHOSURÀOH PRWHO\IURP*HRUJLD3URJUDP´*HRUJLDµ 6HUELD *HRUJLD·V RWKHU SHUNV PDNH GR- *HRUJLDZDVDOUHDG\RQWKHPDSIRU VKHZULWHV´ERDVWVVRPHIHDWXUHVWKDWDUH LQJEXVLQHVVKHUHDQREYLRXVFKRLFH´)RU WKH GLJLWDO QRPDG FRPPXQLW\ WKRXJK SDUWLFXODUO\DWWUDFWLYHIRUGLJLWDOQRPDGV DQ\RQH ZKR FDQ OLYH KHUH IRU VL[SOXV WKH  1RPDG 6XPPLW ZDV SXVKHG $ORZFRVWRIOLYLQJFRPELQHGZLWKDKLJK PRQWKVSHU\HDULWPDNHVQRVHQVHWR127 WR  GXH WR WKH SDQGHPLF DQG WKH TXDOLW\RIOLIHDORZWD[DWLRQUDWHDQGD UHJLVWHUDEXVLQHVVKHUHDQGEHFRPHDWD[ 5HPRWHO\ IURP *HRUJLD SURJUDP KDV JURZLQJ H[SDW FRPPXQLW\ DUH D IHZ RI UHVLGHQWLQ*HRUJLDµKHVD\V´$KHDOWK\ JRWWHQ QXPHURXV PHQWLRQV LQ QRPDG WKHPµ:KLOHIRRGZLQHDQGQDWXUHDUH H[SDWVFHQHDPD]LQJVFHQHU\DQGIRRG JURXSV DQG SXEOLFDWLRQV $OO WKLV PDNHV ELJGUDZVIRUFRQYHQWLRQDOWRXULVPORQJ DQGWKHEHVWRIDOO²KRZPXFK\RXVDYHLQ WKH VKRUWWHUPHFRQRPLFVWLPXOXV RQO\ D WHUPUHPRWHZRUNHUVDOVRWHQGWRORRNIRU WD[HV«:KDW·VWKHUHQRWWROLNH"µ SDUW RI WKH SURJUDP·V SRWHQWLDO LPSDFW LQIUDVWUXFWXUHDQGDFFHVVLELOLW\ DV LWV KHOS LQ PDLQWDLQLQJ DZDUHQHVV RI 'DYLG0RUULVDWUDYHOHUIURPWKH8QLWHG CHALLENGES *HRUJLDDVDWUDYHOGHVWLQDWLRQPD\KDYH 6WDWHVZDVDOVRORRNLQJIRUDJRRGSODFH $VZLWKDQ\SURJUDPWKHUHKDYHEHHQ SRVWSDQGHPLFSD\RIIV WRVWD\ZKLOHWKHSDQGHPLFFRQWLQXHGWR D IHZ LVVXHV ZLWK 5HPRWHO\ IURP *HRU- :RUNHUV ZKR VSHQG RYHU VL[ PRQWKV OLPLWZRUOGWUDYHO´,ZDVLQ*HRUJLDWKUHH JLD³WKRXJK PRVW WUDYHOHUV VHH WKHP DV LQ *HRUJLD ZLOO DOVR WHFKQLFDOO\ EH WD[ WLPHV ODVW \HDU DQG ORYHG P\ H[SHUL- UHODWLYHO\PLQRU UHVLGHQWVDQGVRPHPD\HQGXSWDNLQJ HQFHµKHVD\V´HVSHFLDOO\WKHZLQHDQG %\IDUWKHPRVWFLWHGLVVXHZDVDODFN DGYDQWDJHRI*HRUJLD·VEXVLQHVVIULHQGO\ KRVSLWDEOHSHRSOH.QRZLQJ,FRXOGVWD\ RIFRPPXQLFDWLRQDQGLQIRUPDWLRQ/LNH HQYLURQPHQW 7KLV LV FHUWDLQO\ VRPHWKLQJ RQH \HDU PDGH WKLV D VLPSOH GHFLVLRQ PDQ\ RWKHUV 7HWLDQD 9RORVK\QD UHFRP- *HRUJLD FRXOG HQFRXUDJH E\ SURYLGLQJ 2UGLQDULO\ , ZRXOG DYRLG ZLQWHU DQG QRW PHQGVWKDWDSSOLFDQWVFKHFN)DFHERRN LQIRUPDWLRQRQWD[DQGEXVLQHVVRSWLRQV VWD\ORQJHUWKDQWKUHHPRQWKVEXWWKHVH JURXSVIRULQIRUPDWLRQWKRXJKVKHKHUVHOI EXW LQ WKH PHDQWLPH WKLV JDS LV ODUJHO\ DUHQRWRUGLQDU\WLPHVµ DUULYHGEHIRUHWKHUHZDVDORWRILQIRUPD- EHLQJ ÀOOHG E\ SULYDWH RUJDQL]DWLRQV OLNH $QGLH(JJLPDQQZKRFDPHWR*HRU- WLRQDYDLODEOHRQOLQH´7KH\GRQ·WUHSO\WR ([SDW+XEJHDQG6LJPD*URXS JLD ZLWK KHU KXVEDQG DQG FKLOGUHQ KDV \RXU HPDLOVµ VKH VD\V DQG FDOOLQJ LVQ·W 7RP:LOOLDPVDPDQDJLQJSDUWQHUDW EHHQ GUDZQ WR *HRUJLD VLQFH EHIRUH PXFKEHWWHU´:KHQWKH\DQVZHUDQGKHDU ([SDW+XE VD\V WKH SURJUDP ´KDV GHÀ- WKHSDQGHPLFWKRXJK´,IHOOLQORYHZLWK DTXHVWLRQLQ(QJOLVKWKH\KDQJXS«RU QLWHO\OHGWRDQLQÁX[RILQWHUHVWDQGQHZ *HRUJLDRQDWULSH[DFWO\WZR\HDUVDJR \RXUHDFKWKHPDQGDVNDTXHVWLRQEXW HQTXLULHVWRRXUWHDPDW([SDW+XE>KWWSV WKLV2FWREHUµVKHVD\V´$WWKDWWLPHP\ WKH\GRQ·WNQRZWKHDQVZHUµ H[SDWKXEJH@ERWKIURPWKRVHZKRZLOOEH KXVEDQGDQG,GLGQRWZRUNUHPRWHO\EXW 7KRXJKWKLVLVGHÀQLWHO\DQLVVXH³DQG KHUHWHPSRUDULO\DVZHOODVPDQ\ZKRDUH ,ORYHG7ELOLVLDVDFLW\DQGLWKDVDOZD\V RXU DWWHPSWV WR FRQWDFW 5HPRWHO\ IURP

34 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 *HRUJLD WKURXJK RIILFLDO FKDQQHOV DOVR QRWLFHRIWKH*17$$IWHUEHLQJUHOHDVHG DOOSODQQHGRXW,ÀJXUHG,PLJKWDVZHOOMXVW IDLOHG³LW·V QRW D GHDOEUHDNHU $V -DFN KH UHPDLQV XSEHDW DQG VD\V KH LV ´IUHH Á\RXWEXWLIWKHVHQXPEHUVZHUHSUHVHQW +RZDUGVD\V´:HGLGKDYHVRPHWURXEOH QRZ DQG DOUHDG\ HQMR\LQJ P\ WLPH LQ DWWKHDSSOLFDWLRQWLPH,·GSUREDEO\KDYH JHWWLQJUHVSRQVHVIURPWKHRIÀFLDOHPDLO 7ELOLVLµ :KHWKHU RU QRW WKH SURFHGXUH ZDLWHGXQWLOVSULQJµ DGGUHVVEXWWKDW·VSUHWW\XQGHUVWDQGDEOH KDV FKDQJHG VLQFH 0RUULV· H[SHULHQFH VHHLQJDVWKHUHVHHPVWRKDYHEHHQDORW WKRXJKLVQRWFOHDU THE FUTURE OF REMOTELY FROM RILQWHUHVWDQGWKH\ZRXOGEHUHFHLYLQJD GEORGIA SUHWW\KXJHYROXPHRIHQTXLULHVµ COVID-19 CONCERNS +RZORQJ5HPRWHO\IURP*HRUJLDUXQV 7RP :LOOLDPV DJUHHV FLWLQJ WKH SUR- :KHQ5HPRWHO\IURP*HRUJLDRSHQHG GHSHQGVRQKRZORQJLW·VQHHGHG,GHDOO\ JUDP·VLPSUHVVLYHO\IDVWUROORXWDVDIDFWRU DSSOLFDWLRQVLQ$XJXVW*HRUJLDZDVVHH- *HRUJLDZLOOEHDEOHWRRSHQLWVERUGHUV EHKLQG WKH LQIRUPDWLRQ LVVXHV ´2YHUDOOµ LQJ D IHZ GR]HQ FDVHV RI &RYLG SHU VRRQDQGQRUPDOWUDYHODQGWRXULVPFDQ KH VD\V ´, FRQVLGHU WKH SURJUDP WR EH GD\%\1RYHPEHULWZDVRIWHQH[FHHG- UHVXPH VXFFHVVIXOEXWXQGHUVWDIIHGµ LQJ 8QWLOWKHQWKHSURJUDPZLOOOLNHO\FRQ- $QRWKHU FRQFHUQ LV WKH SURWRFRO IRU 7KLV KDV SUREDEO\ LPSDFWHG WUDYHO- WLQXH WR DSSHDO WR WUDYHOHUV ORRNLQJ IRU PDQDJLQJDQHQWUDQWZLWKDSRVLWLYH&R- HUV· LQWHUHVW LQ WKH SURJUDP EXW WKRVH RSHQ GHVWLQDWLRQV LQ D UHVWULFWHG JOREDO YLGWHVW'DYLG0RUULVWKHÀ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ÀFLHQW´7KLVZLQWHUZLOOEHWRXJKIRUWKH KDVEHHQDVXFFHVVVRIDUDQGUHJDUGOHVV wasn’t allowed. ZKROHUHJLRQQRWMXVW*HRUJLDµ+RZDUG ZKHWKHU LW FKDQJHV IRUP RU VLPSO\ VKXWV )RUWXQDWHO\ KLV VLWXDWLRQ LPSURYHG VD\V´DQGZHNQHZWKDWFRPLQJLQµ GRZQ DIWHU WKH ERUGHUV UHRSHQ LW·V FHU- DIWHU KH SRVWHG RQ VRFLDO PHGLD DQG ,JRU-RYLFDOVRFDPHEXWDELWPRUH WDLQO\KHOSHGERRVW*HRUJLD·VUHSXWDWLRQ FRQWDFWHG KLV HPEDVV\ DWWUDFWLQJ WKH UHOXFWDQWO\´6LQFH,DOUHDG\DSSOLHGJRWLW DVDWUDYHOZRUNDQGEXVLQHVVGHVWLQDWLRQ

ADVERTISEMENT

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 35 TBC Capital report on Georgian automotive sector points to sector growth on the horizon

www.tbccapital.ge Sponsored content

Just. before Covid hit, Georgia was the 6th largest This was ultimately the primary reason for the re-exporter of light vehicles in the world due to its áŅĭł
ĆĤ
ŮèĂĆÛĜè
èŴłĭŅŕŌ̇
ĭû
ůĂĆÛĂ
ʂʁʁͼ
ĆŌ
Ņè̥èŴ- ŕŅÁĤŌĆŕ
łĭŌĆŕĆĭĤ
ĆĤ
ŕĂè
ŒĭśŕĂ
ÁśÛÁŌśŌ
ĭƠèŅĆĤü
port in Georgia. routes into Armenia, Russia and Azerbaijan. Before the pandemic, the sub-category of car As borders across the world began to close this trade accounted for 68% of turnover in the auto- past spring and given the largely informal nature ģĭŕĆŮè
ĆĤáśŌŕŅŵ̇
ůĂĆĜè
ʃʈͼ
ůÁŌ
üèĤèŅÁŕèá
Úŵ
ŕĂè
of the industry, the country’s automotive sector spare part trade and just 5% in car services. began to shut down as well – and it wasn’t just vehicle herders that were out of jobs. TURNOVER BY SUB-CATEGORIES, GEL BN

ʅ HĤ
ŕĂè
ƨŅŌŕ
ʊ
ģĭĤŕĂŌ
ĭû
ʃʁʃʁ̇
ĆģłĭŅŕŌ
ÁĤá
3,8 Car trade exports of light vehicles into Georgia fell by 31% ʁ̇ʂʉ Spare Parts and 37% respectively, TBC Capital’s recently Service ʂ̇ʁ 3 released Automotive Sector Market Watch ʃ̇ʉ reports. ʁ̇ʂʂ

TRADE OF LIGHT & HEAVY VEHICLES, USD MLN ʁ̇ʊ ʃ 1,6 1 5ʁʁ ʁ̇ʁʉ Export Light Export Heavy 1,3 ʂ
ʄʃʂ ʁ̇ʅ Import Light Import Heavy ʃ̇ʇ ʁ̇ʁʅ 1 ʁ̇ʅ 1 ʃʁʁ 1,7

ʂ
ʁʁʊ 1,1 ʊʆʄ ʁ̇ʉ

ʊʁʁ -31% 788 ʁ ʈʇʃ YoY ʃʁ18 ʃʁ1ʊ 1H ʃʁ1ʊ 1H ʃʁʃʁ 663 655 583 6ʁʁ ʆʃʃ During the pandemic, it was the service sub-sec- ʅʇʅ -38% tor turnover that took the biggest dive, falling 71% YoY ʄʃʃ ĆĤ
„ʃ
ʃʁʃʁ̌
ÁŅ
ŕŅÁáè
ûèĜĜ
Úŵ
ʅʉͼ
ĆĤ
ŕĂè
ŌÁģè
ʃʇʇ 3ʁʁ ʂʊʈ 181 period, while sales of spare parts decreased just 17%.

ʁ ʃʁ15 ʃʁ16 ʃʁ17 ʃʁ18 ʃʁ1ʊʊM ʃʁ 1ʊʊM ʃʁ ʃ ʁ However, expectations for real GDP and external ŕŅÁáè
üŅĭůŕĂ
ŌŕÁŅŕĆĤü
ĆĤ
ʃʁʃʂ
ÁŅè
ĭłŕĆģĆŌŕĆÛ
ûĭŅ
But it wasn’t all due to Covid. Much of the dip is >èĭŅüĆÁ
ÁĤá
ŕĂè
èŴŕèĤáèá
ŅèüĆĭĤ̇
ĭƠèŅĆĤü
Á
łĭŌĆ- attributable to new customs regulations intro- tive outlook for the domestic automotive sector duced in Armenia, which essentially shut down and the external trade of cars if the Armenian ŕĂĆŌ
èŴłĭŅŕ
ģÁŅęèŕ
ûĭŅ
>èĭŅüĆÁ
ĆĤ
ʃʁʃʁ
ÁûŕèŅ
Á
market is substituted. brief one-time surge in demand at the end of ʃʁʂʊ̌
Once the motor of the world economy gets TURNOVER BY SUB-CATEGORIES, GEL BN revving again, there will be plenty of upside to ʅ look forward to in the country’s automotive 3,8 Car trade sector. ʁ̇ʂʉ Spare Parts Service

ʂ̇ʁ 3 For starters, compared to regional countries and ʃ̇ʉ certainly compared to Europe, the number of ʁ̇ʂʂ light vehicles per inhabitants is low in Georgia the ʁ̇ʊ TBC Capital report points out, indicating the ʃ 1,6 łĭŌŌĆÚĆĜĆŕŵ
ûĭŅ
ŌĆüĤĆƨÛÁĤŕ
ûśŅŕĂèŅ
łèĤèŕŅÁŕĆĭĤ
ĭû
ʁ̇ʁʉ 1,3 ʁ̇ʅ sectoral growth. ʃ̇ʇ ʁ̇ʁʅ 1 ʁ̇ʅ NUMBER OF LIGHT VEHICLES PER 1,000 INHABITANTS* 1,7 1,1 7ʁʁ ʁ̇ʉ

Italy ! ʁ Poland Finland R ͪ
ʁ̇ʅʈʊʆ 6ʁʁ ʃʁ18 ʃʁ1ʊ 1H ʃʁ1ʊ 1H ʃʁʃʁ Slovenia Germany

Estonia Spain Sweden And yet a third indicator that there is considerably 5ʁʁ Czechia Belgium Switzerland Greece France Netherlands more growth to be had: the number of active Lithuania UK Bulgaria US drivers license holders exceeds the number of ʅʁʁ Slovakia Croatia Denmark active registered vehicles, indicating an upside for Latvia Hungary local sales. 3ʁʁ

Number of light vehicles Romania Georgia Global data too largely points at a sector on the ʃʁʁ mend. Major automotive company prices have Turkey been recovering steadily on the back of the news Azerbaijan 1ʁʁ - 15
ʁʁʁ 3ʁ
ʁʁʁ ʅ5
ʁʁʁ 6ʁ ʁʁʁ 75 ʁʁ ʁ ʊʁ ʁʁʁ ĭû
ŕĂè
èƣÛÁÛŵ
ĭû
ŕĂè
‚ƨżèŅ
ŮÁÛÛĆĤè̇
ÁĤá
łŅĆÛèŌ
ûĭŅ
GDP per capita industry inputs such as aluminium, steel, copper Another factor pointing to an uptick in the auto- and rubber have all passed the pre-Covid levels as motive industry in Georgia is the fact that 87% of of the end of October. cars in the country are more than 11 years old ģÁęĆĤü
>èĭŅüĆÁ̱Ō
ÛÁŅ
ƫèèŕ
ĭĤè
ĭû
ŕĂè
ĭĜáèŌŕ
ĆĤ
TBC Capital put together data on the most in-de- Europe, and indicating an upside through substi- mand brands in Georgia in its report as well. With tution. its highly demanded Prius and Camry models, Toyota has a leading position in new registrations TRADE OF LIGHT & HEAVY VEHICLES, USD MLN of light vehicles,

1 5ʁʁ NUMBER OF LIGHT VEHICLES PER 1,000 INHABITANTS* Export Light Export Heavy ʂ
ʄʃʂ Import Light Import Heavy 7ʁʁ

1 ʃʁʁ Italy ! Poland R ͪ
ʁ̇ʅʈʊʆ 6ʁʁ Finland ʂ
ʁʁʊ Germany ʊʆʄ Slovenia Estonia Spain ʊʁʁ -31% Sweden 788 Czechia Belgium Switzerland ʈʇʃ YoY 5ʁʁ Greece France Netherlands 663 655 Lithuania UK 583 Bulgaria US 6ʁʁ ʆʃʃ ʅʁʁ Slovakia ʅʇʅ -38% Croatia Denmark YoY Latvia Hungary ʄʃʃ 3ʁʁ

ʃʇʇ Number of light vehicles 3ʁʁ Romania ʂʊʈ 181 Georgia ʃʁʁ

ʁ Turkey ʃʁ15 ʃʁ16 ʃʁ17 ʃʁ18 ʃʁ1ʊʊM ʃʁ 1ʊʊM ʃʁ ʃ ʁ Azerbaijan 1ʁʁ - 15
ʁʁʁ 3ʁ
ʁʁʁ ʅ5
ʁʁʁ 6ʁ ʁʁʁ 75 ʁʁ ʁ ʊʁ ʁʁʁ This phenomenon, the report points out, has GDP per capita already started to a degree. The average age of newly registered light vehicles has been decreas- however its decreasing share has been dragging ĆĤü
ŌĆĤÛè
ʃʁʂʈ̇
ÁŌ
ŕĂè
ŌĂÁŅè
ĭû
ĤèůĜŵ
ŅèüĆŌŕèŅèá
down the share of hybrid light vehicles since ĜĆüĂŕ
ŮèĂĆÛĜèŌ
ŕĂÁŕ
ÁŅè
ʂʁ
ŵèÁŅŌ
ÁĤá
ŵĭśĤüèŅ
ʃʁʂʉ̇
ůĂĆĜè
łèŕŅĭĜèśģ
èĤüĆĤèŌ
ĂÁŮè
ÚèèĤ
ĭĤ
ŕĂè
èŴÛèèáŌ
ʉʁͼ̌ ŅĆŌè
ÁĤá
ĆĤ
ŕĂè
ƨŅŌŕ
ĤĆĤè
ģĭĤŕĂŌ
ĭû
ʃʁʃʁ
ŅèÁÛĂèá
Û̌
ʆʃͼ
ĭû
ÁĜĜ
ĤèůĜŵ
ŅèüĆŌŕèŅèá
ŮèĂĆÛĜèŌ̌ USAID is partnering with Georgia to build a more student-centered education system that prepares young people to succeed as professionals and contribute as responsible citizens. USAID/Georgia Georgian education system taking important steps forward with USAID support

V *HRUJLDQ VWXGHQWV DFURVV WKH 7KLV NLQG RI SDUWQHUVKLS H[HPSOLILHV RQ OLWHUDF\ QXPHUDF\ SUREOHP VROYLQJ FRXQWU\ UHWXUQHG WR VFKRRO WKLV 86$,'·V QHZ VWUDWHJ\ RI HPSRZHULQJ DQGFULWLFDOWKLQNLQJVNLOOV ASeptember both online and in *HRUJLDQVRFLHW\WROHDGLWVRZQGHYHORS- 7KH WUDLQHUV ZLOO DOVR KHOS VFKRROV SHUVRQ86$,'DFFHOHUDWHGZRUNXQGHULWV PHQWDJHQGD GHYHORS LQVWUXFWLRQDO PHWKRGV WR EHWWHU QHZ%DVLF(GXFDWLRQ3URJUDPDIRXU\HDU ´%RWK*HRUJLDDQGWKH8QLWHG6WDWHV PHHWWKHHGXFDWLRQDOQHHGVRIJLUOVHWKQLF LQLWLDWLYH WR SURPRWH VWXGHQWFHQWHUHG UHFRJQL]H WKDW 86$,' DVVLVWDQFH LV DQ PLQRULWLHV DQG FKLOGUHQ ZLWK GLVDELOLWLHV HGXFDWLRQ LQ SULPDU\ JUDGHV DFURVV WKH LQYHVWPHQWLQ*HRUJLD·VVHOIUHOLDQWIXWXUH HQVXULQJ WKDW \RXQJ SHRSOH IURP DOO FRXQWU\ DQG KHOS \RXQJ SHRSOH JDLQ :KHUHSRVVLEOHZHDUHFRFUHDWLQJFRVW EDFNJURXQGVKDYHRSSRUWXQLWLHVWRFRQ- WKHNQRZOHGJHVNLOOVDQGFULWLFDOWKLQNLQJ VKDULQJDQGFRLQYHVWLQJZLWKRXU*HRU- WULEXWHWR*HRUJLD·VVRFLDODQGHFRQRPLF QHHGHG WR JURZ LQWR VXFFHVVIXO SURIHV- JLDQSDUWQHUVERWKSXEOLFDQGSULYDWHWR GHYHORSPHQW VLRQDOVDQGHQJDJHGUHVSRQVLEOHFLWL]HQV KHOS*HRUJLDFUHDWHLWVRZQVROXWLRQVWR ,QDGGLWLRQWRKHOSLQJSULPDU\JUDGH  (GXFDWLRQ UHIRUP LV D SULRULW\ XQGHU GHYHORSPHQWFKDOOHQJHVµ:LHEOHUVD\V VWXGHQWV LPSURYH WKHLU OLWHUDF\ DQG QX- 86$,'·V QHZ VWUDWHJ\ IRU VXSSRUWLQJ PHUDF\ VNLOOV 86$,' LV KHOSLQJ *HRUJLD *HRUJLD·VGHYHORSPHQWDSRLQWVWUHVVHG ADVANCING STUDENT-CENTERED HPSRZHULWVHPHUJLQJJHQHUDWLRQRIDF- E\86$,'*HRUJLD0LVVLRQ'LUHFWRU3HWHU EDUCATION IN MORE THAN 2,000 WLYHDQGUHVSRQVLEOHFLWL]HQV Wiebler: SCHOOLS ´$PRGHUQVWXGHQWFHQWHUHGHGXFD- ,Q6HSWHPEHUWKHSURJUDPEHJDQD EMPOWERING GEORGIA’S WLRQ V\VWHP ZLOO KHOS *HRUJLD DGYDQFH PRQWKORQJ´7UDLQLQJRI7UDLQHUVµFRXUVHIRU ‘FUTURE GENERATION’ TO BUILD A WRZDUG DOO WKUHH NH\ JRDOV H[SUHVVHG LQ WUDLQHUVIURPHLJKWSDUWQHUXQLYHUVLWLHV CITIZEN-CENTERED DEMOCRACY RXUQHZVWUDWHJ\KHOSLQJ*HRUJLDEXLOG DQG WZR 1*2V 7KH FRXUVH FRQGXFWHG *HRUJLD LV KRPH WR D YLEUDQW FLYLO UHVLOLHQFH WR PDOLJQ LQÁXHQFH VXSSRUW- UHPRWHO\WRFRPSO\ZLWK&29,'UHJXOD- VRFLHW\EXWPDQ\FRPPXQLWLHVODFNSODW- LQJ FLWL]HQFHQWHUHG GHPRFUDF\ DQG WLRQVJDYHWKHWUDLQHUVDFFHVVWRVWXGHQW IRUPV IRU FLYLF HQJDJHPHQW HVSHFLDOO\ HQDEOLQJ HFRQRPLF JURZWK WKDW UHVXOWV FHQWHUHGHGXFDWLRQFXUULFXODDQGPHWK- DPRQJ\RXWK)RUWKHFRXQWU\WRFRQWLQXH LQKLJKHUSD\LQJMREVIRUZRUNHUVIDPLOLHV RGRORJLHVDQGQHZVNLOOVWREHWUDQVIHUUHG DGYDQFLQJ WRZDUG D FLWL]HQFHQWHUHG DQGFRPPXQLWLHVµ WR WHDFKHUV DQG VFKRRO DGPLQLVWUDWRUV GHPRFUDF\  RQH ZKHUH FRPPXQLWLHV 86$,'GHYHORSHGWKHSURJUDPLQSDUW- DFURVV*HRUJLD DUHFRKHVLYHDQGUHVLOLHQWDQGZKHUHDOO QHUVKLSZLWK*HRUJLD·V0LQLVWU\RI(GXFD- 2YHUWKHQH[WIRXU\HDUVWKHWUDLQHUV FLWL]HQVDUHHQJDJHGLQWKHGHYHORSPHQW WLRQ6FLHQFH&XOWXUHDQG6SRUWGHVLJQ- ZLOO ZRUN ZLWK VFKRRO DGPLQLVWUDWRUV DQG MRXUQH\  D PRUH FLYLFDOO\ DFWLYH \RXQJ LQJDFWLYLWLHVWRVXSSRUWWKH*RYHUQPHQW SULPDU\ JUDGH WHDFKHUV LQ  SXEOLF JHQHUDWLRQLVQHHGHG RI*HRUJLD·VRQJRLQJHIIRUWVWRUHIRUPWKH VFKRROV DFURVV *HRUJLD KHOSLQJ GHVLJQ 86$,'LVHPSRZHULQJ*HRUJLD·V\RXWK FRXQWU\·VHGXFDWLRQV\VWHP DQGGHOLYHULQWHUDFWLYHFXUULFXODIRFXVHG WKURXJKLWV0RPDYOLV7DRED ´)XWXUH*HQ-

38 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 HUDWLRQµ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À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·VUHJLRQV VHWRIVNLOOVIRUWKHVHVHFWRUVWRUHDFKWKHLU SRUWHGFLYLFVHGXFDWLRQLQURXJKO\RI WKHRSSRUWXQLW\WRJDLQYDOXDEOHSURIHV- SRWHQWLDODVGULYHUVRIORQJWHUPHFRQRPLF *HRUJLD·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·VQHZÀYH\HDUGHYHORSPHQW *HRUJLDQODZVFKRROV7KLV\HDU352/R* VWXGHQWVLQWRWKUHHPRQWKSDLGLQWHUQVKLSV VWUDWHJ\IRU*HRUJLD VXSSRUWHGWKHHVWDEOLVKPHQWRIDQHZKX- WRSURYLGHDGPLQLVWUDWLYHPDUNHWLQJDQG *HRUJLD·VQH[WJHQHUDWLRQRIODZ\HUV PDQULJKWVFKDLUDW6XONKDQ6DED2UEHOLDQL WHFKQRORJLFDOVXSSRUWWR060(VLQ7ELOLVLDV ZLOO SOD\ DQ LPSRUWDQW UROH LQ EXLOGLQJ 7HDFKLQJ 8QLYHUVLW\ 6DED8QL  LQ 7ELOLVL ZHOO DV ,PHUHWL $GMDUD 6DPHJUHOR DQG D WUXO\ LQGHSHQGHQW WUDQVSDUHQW DQG 6DED8QL ZLOO QRZ SURPRWH WKH WHDFKLQJ 6KLGD.DUWOL7KHSURJUDPLVFXVWRPL]HGWR DFFRXQWDEOH OHJDO V\VWHP WKDW HQVXUHV RI KXPDQ ULJKWV ODZ LQ XQGHUJUDGXDWH PHHWWKHVSHFLÀFQHHGVRIHDFKSDUWLFL- HTXDOULJKWVSURWHFWLRQVIRUDOO*HRUJLDQV DQG JUDGXDWH SURJUDPV LQ *HRUJLD·V SDWLQJEXVLQHVV$VDUHVXOWRIWKLVSDUWQHU- 7KDW·V ZK\ VXSSRUW IRU WKH 5XOH RI /DZ UHJLRQV GHYHORSLQJ FRXUVH FXUULFXOD VKLS86$,'LVFDWDO\]LQJHFRQRPLFJURZWK DQGIRUHQKDQFHGOHJDOHGXFDWLRQLVD RQ DQWLGLVFULPLQDWLRQ ODZ HTXDO ULJKWV LQ WZR ZD\V  VXSSRUWLQJ WKH JURZWK RI NH\HOHPHQWRI86$,'·VQHZGHYHORSPHQW SURWHFWLRQ DQG GLVDELOLW\ ODZ  7KH QHZ LQGLYLGXDOEXVLQHVVHVZKLOHKHOSLQJ\RXQJ VWUDWHJ\IRU*HRUJLD FKDLUZLOOFRPSOHPHQWWKHORQJVWDQGLQJ SURIHVVLRQDOV JDLQ LQYDOXDEOH RQWKHMRE 'HVSLWHWKHFKDOOHQJHVRI&29,' ZRUNRIWKHKXPDQULJKWVFKDLUDW,OLD6WDWH WUDLQLQJ  86$,'·V SDUWQHUVKLS ZLWK WKH 86$,'KDVUHFHQWO\WDNHQLPSRUWDQWVWHSV 8QLYHUVLW\ DQG WKH OHJDO HWKLFV FKDLU DW ,&'& LV RQO\ WKH ÀUVW VWHS LQ DGYDQFLQJ WR HPSRZHU *HRUJLD·V IXWXUH ODZ\HUV 1HZ 9LVLRQ 8QLYHUVLW\  86$,'VXSSRUWHG *HRUJLD·VVNLOOVGHYHORSPHQWZLWKDIRFXV :LWK WHFKQLFDO DVVLVWDQFH IURP 86$,'·V LQVWLWXWLRQV WKDW KDYH UDLVHG DZDUHQHVV RQHFRQRPLFJURZWK86$,'LVFXUUHQWO\ 3URPRWLQJ5XOHRI/DZLQ*HRUJLD 352- DQGLQFUHDVHGOHJDOHGXFDWLRQVWDQGDUGV GHYHORSLQJ D QHZ IXOO\ SULYDWHVHFWRU /R* 3URJUDP*HRUJLD·V1DWLRQDO&HQWHU DWXQLYHUVLWLHVDFURVV*HRUJLD RULHQWHG LQGXVWU\OHG VNLOOV GHYHORSPHQW SURJUDPVFKHGXOHGWRJRRQOLQHLQ About USAID in Georgia: As the leading development agency of the U.S. Govern- ment, USAID supports Georgia to build the FDSDFLW\ WR SODQ ÀQDQFH DQG LPSOHPHQW its own solutions to development challenges. USAID has worked in Georgia since 1992, supporting the country’s transformation into a developing democracy that is increasingly integrated into Western political, security, and economic institutions. More than 35 US- AID programs strengthen Georgia’s resilience WRPDOLJQLQÁXHQFHFRQVROLGDWHGHPRFUDWLF gains through enhanced citizen responsive governance, and enable high-value employ- ment through increased economic growth. For more information, please visit: https:// www.usaid.gov/georgia. U.S. Ambassador to Georgia Kelly C. Degnan and USAID/Georgia Mission Director Peter Wiebler at the launch of the USAID Basic Education Program. USAID/Georgia DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 39 Long horizons, local talent and luxurious upgrades: how Silk Hospitality is riding out the pandemic

LON+RVSLWDOLW\ZDVRQHRIWKH¿UVW of the Silk Road Group’s assets under can we grow our hospitality holdings to open the doors of its hotels to Silk Hospitality, gathering management, and appeal? I said, ‘Only by using local SCovid quarantine guests when it human resources and administration of expertise.’ The locals know the people became clear back in March that Georgia the holding company’s hospitality assets better. Perhaps a decade ago this was less wasn’t going to remain a “corona-oasis” under one roof, in addition to overseeing true, and we needed to import expertise for long. But since that period came to its new services as a hospitality operator. from abroad, policies, procedures. But an end in June, Silk Hospitality has set The process began two years ago, now, 11 years on, we have invested in its eyes on new challenges and is busy but is still being brought to a conclusion, future talents and can employ them in adapting to new circumstances. .XLMWVD\VQRWLQJSHUKDSVWKHELJJHVW WKHVHUROHV´.XLMWH[SODLQV One lasting effect of coronavirus change will entail the inclusion of more When tourism gets moving again and RQ6LON+RVSLWDOLW\LWV&(2-RUGL.XLMW local talent into its administration, and it has become less daunting to go out for told Investor.ge, has been to quicken the weaning of the holding’s hospitality a meal, Silk Hospitality assets will be processes that had already been set in assets off relying on foreign expertise. staffed more than ever before by local motion before the coronavirus pandemic. “When I first came to SRG [Silk Georgian talent.

SPONSORED CONTENT This has entailed the consolidation Road Group], the question was: how But why move in this direction amid

40 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 a global pandemic? “Why should someone pay 25-30 “If people want to get out of hospital- /RFDOWDOHQW.XLMWVD\VZLOOKHOSWKH dollars for breakfast, when around the ity now, which some people are thinking holding pursue an aim that the global corner they can have an authentic meal, of doing because the business was purely tourism industry is facing as an inevi- and a more exciting experience? Don’t an investment to begin with, then we tability, but one which Silk Hospitality expect your audience to come to you at would say okay, don’t sell your invest- has decided to tackle as a welcome and that price. The future of restaurants needs ment, because we can manage it, and it much-needed change: that of pivoting to to be locally based and oriented, because will cost you just a fraction of what you local clients and customers. whatever happens, it is the locals that will SD\QRZ´.XLMWH[SODLQV For example, Filini, the Italian res- come—then you can count on a solid As for its own assets, Silk Hospitality taurant and café located on the premises future in the business.” has been steadily investing in upgrades of the Radisson Blu Iveria Hotel, has The focus on local customers went and improvements during the downturn, enough space to feed 500 guests at break- into the design of Silk Hospitality’s including the installation of a large, four- IDVW+RZHYHU.XLMWVD\VWKLVPRGHORI Republica complex on First Republic season pool (!) at the Radisson Collection quick and industrial dining is one that Square (formerly known as Rose Revo- Hotel Tsinandali with a retractable roof, leaves much to be desired, especially for lution Square) across the way from the experimenting with tech to connect staff local diners, who, if they come at all, will Radisson Blu, including a modern take and clients on the Tsinandali Estate, and come to a hotel restaurant strictly for the on a Georgian diner, Republic 24, the FRQWLQXHGZRUNRQɌHOHJUDSK+RWHO atmosphere and food—not because they menu of which is curated by renowned which will see one of Tbilisi’s hallmark are captive in the hotel to begin with. Georgian chef Tekuna Gachechiladze. buildings on Rustaveli transformed into a Now that hospitality venues have to The facility also includes a concert space URRP¿YHVWDUKRWHOE\ make due without foreign tourists, at- and rooftop lounge and restaurant. When asked why Silk Hospital- tracting local clients is vital. This means The coronavirus pandemic has not ity chose such uncertain times to plow that instead of spaces which are limited been a time for Silk Hospitality to slow DKHDGZLWKDPELWLRXVSODQV.XLMWVD\V (by the aesthetics of their design) to down, shutter up and stop its operations. the answer is simple: feeding hundreds of guests, such areas Instead, Silk Hospitality has chosen to “Anything in hospitality and tourism, VKRXOGEHXVHG.XLMWVXJJHVWVDVFRP- take this time to reassess its long-term any business idea or plan, is long-term. munal spaces where people are brought horizon, and prepare for a post-corona- $KHDOWK\ORQJWHUPYLVLRQLV¿YHWR together, not processed. virus world. years. If you don’t understand that, you Hotels have to pivot to the local con- Part of this process has been to further shouldn’t get into the business. There is VXPHU.XLMWVD\VDQGLW¶VQRWVLPSO\D roll out hospitality-management services no return on an investment by tomorrow, matter of the pandemic. in response to an uptick in industry exits: or even in one year.”

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 41 NEWS

AMCHAM’S NEW BOARD OF DIRECTORS

SARAH WILLIAMSON PRESIDENT

IRAKLI BAIDASHVILI R. MICHAEL COWGILL FIRST VICE PRESIDENT VICE PRESIDENT AND TREASURER

RADOSLAV DUDOLENSKI COLIN DONOHUE OTAR KIPSHIDZE SERGI KOBAKHIDZE JORDI KUIJT DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR

KETTI KVARTSKHAVA SANDRO SHELIA GOGA TKHELIDZE GEORGE WELTON BETSY HASKELL, DIRECTOR DIRECTOR DIRECTOR EXEC. DIRECTOR EX-OFFICIO ADVISOR

CONTENT

47 AMCHAM HOLDS VIRTUAL 49 NEW BOARD OF DIRECTORS ELECTED CONFERENCES WITH POLITICAL AT AMCHAM ANNUAL GENERAL PARTIES AHEAD OF ELECTIONS ASSEMBLY 48 THOMAS DE WAAL SPEAKS TO 50 NEW MEMBERS AMCHAM MEMBERS ABOUT 52 MEMBER DIRECTORY KARABAKH CONFLICT 56 BOARD OF DIRECTORS

42 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 NEWS

AMCHAM HOLDS VIRTUAL CONFERENCES WITH POLITICAL PARTIES AHEAD OF ELECTIONS 7KURXJKRXW2FWREHUVL[SROLWLFDOSDUWLHVDGGUHVVHG$P&KDP PHPEHUVDQGVSRNHDERXWWKHLUSROLWLFDODQGHFRQRPLFSODWIRUPV DKHDGRIWKH2FWREHUHOHFWLRQV$P&KDPPHPEHUVZHUHWKHQ DEOHWRHQJDJHLQOLYHO\4$VHVVLRQV $P&KDPYLUWXDOO\KRVWHGSROLWLFDOSDUW\/HORRQ2FWREHU UHSUHVHQWHGE\0DPXND.KD]DUDG]HDQG%DGUL-DSDULG]H (XUR- SHDQ*HRUJLDRQ2FWREHU =XUDE7FKLDEHUDVKYLOL WKH*HRUJLDQ 'UHDPRQ2FWREHU ,UDNOL.REDNKLG]HDQG1DWLD7XUQDYD WKH 8QLWHG1DWLRQDO0RYHPHQWRQ2FWREHU 1RQD0DPXODVKYLOL DQG,UDNOL.LSLDQL 6WUDWHJ\$JKPDVKHQHEHOLRQ2FWREHU *LRUJL 9DVKDG]H DQG*LUFKLRQ2FWREHU =XUDE-DSDULG]H 

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 43 NEWS

THOMAS DE WAAL SPEAKS TO AMCHAM MEMBERS ABOUT KARABAKH CONFLICT AmCham Georgia hosted a virtual PHHWLQJZLWK.DUDEDNKH[SHUW7KRPDV De Waal on October 13, who presented a short summary of his sense of the FXUUHQWFRQÀLFWLQ1DJRUQR.DUDEDNK Tom is a Senior Associati with the Carnegie Endowment for International Peace and is one of the leading international experts on the so-called µIUR]HQFRQÀLFW¶LQ1DJRUQR.DUDEDNK His book, Black Garden: Armenian and Azerbaijan through Peace and War in 2003, is one of if not the leading work RQWKHFRQÀLFW7KHWDONZDVIROORZHG by a question and answer session.

EDUCATION AND TRAINING COMMITTEE MEETING AmCham hosted a virtual meeting of its Education and Training Committee on October 29 with Nikoloz Chachkhiani from RTI International, who has recently joined AmCham. Mr. Nikoloz presented the USAID Basic Education Program, which is a four-year Program funded by USAID and implemented by RTI International in partnership with eight Georgian universities and seeks to implement sustainable student-centered reform in primary grades. The presentation was followed by a Q&A.

44 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 NEWS ANNUAL GENERAL ASSEMBLY American Chamber of Commerce in Georgia held its annual General Assembly on November 19, during which time the entire Board of Directors was elected. The new composition of the Board of Directors is as follows: Sarah Williamson, Senior Vice President & Co-owner, UGT Group – President Irakli Baidashvili, GMT Group – First Vice-President R. Michael Cowgill, Georgian American University – Vice-President and Treasurer CORP A BOARD OF DIRECTORS Colin Donohue, Optimal Digital and Startup Grind Otar Kipshidze, Dentons Georgia Sergi Kobakhidze, PwC Georgia Jordi Kuijt, SRG/Radisson Sandro Shelia, Conformity Assessment International George Tkhelidze, TBC Bank CORP B BOARD OF DIRECTORS Radoslav Dudolenski, CrossCountry Georgia Ketti Kvartskhava, BLC Law At the meeting, Michael Cowgill (outgoing president) gave a sum- mary of the year, and Irakli Baidashvili (outgoing VP and Treasurer) SUHVHQWHGWKH¿QDQFLDOUHSRUW%HWV\+DVNHOOZDVDSSURYHGDV H[RI¿FLRDGYLVRUWRWKHERDUG7KH*HQHUDO$VVHPEO\ZDVPRGHUDWHG by Mackenzie Rowe from the US Embassy. AMCHAM MEMBERS HOLD VIRTUAL MEETING WITH US AMBASSADOR, HE KELLY C. DEGNAN – NOVEMBER 24

AmCham Georgia hosted Her Excel- OHQF\.HOO\&'HJQDQWKH86$PEDV- sador to Georgia, at on online meeting with members on November 24. The ambassador discussed the current politi- cal situation in Georgia, the United States and the region with AmCham members and partners. The presentation was fol- lowed by a lively Q+A session.

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 45 NEWS

Research Triangle Institute Branch in Georgia Non-Profit 5HVHDUFK 7ULDQJOH ,QVWLWXWH 57,  ,Q- WHUQDWLRQDO LV DQ LQGHSHQGHQW QRQSURÀW UHVHDUFKLQVWLWXWHGHGLFDWHGWRLPSURYLQJ WKH KXPDQ FRQGLWLRQ 7KH YLVLRQ RI WKH FRPSDQ\LVWRDGGUHVVWKHZRUOG·VPRVW FULWLFDO SUREOHPV ZLWK VFLHQFHEDVHG VROXWLRQV LQ SXUVXLW RI D EHWWHU IXWXUH &RPELQLQJVFLHQWLÀFULJRUDQGWHFKQLFDO SURILFLHQF\ 57, GHOLYHUV UHOLDEOH GDWD WKRURXJK DQDO\VLV LQQRYDWLYH PHWKRGV QRYHO WHFKQRORJLHV DQG VXVWDLQDEOH SURJUDPV WKDW KHOS FOLHQWV LQIRUP SXEOLF SROLF\DQGJURXQGSUDFWLFHLQHYLGHQFH 7KHFRPSDQ\VFDOHVLWVDSSURDFKWRÀWWKH GHPDQGVRIHDFKSURMHFWGHOLYHULQJWKH SRZHURIDJOREDOOHDGHUDQGWKHSDVVLRQ RIDORFDOSDUWQHU www.rti.org NEW MEMBERS

46 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 Founded in 1995NEWS BLB celebrates the

th Anniversary

To celebrate the jubilee BLB hosted a reception that was one of the last public gatherings before COVID-19 outbreak in Georgia. The firm announced its intention to usher in the new era with the expansion of practice and the team. Rusudan Maisuradze, LSE graduate, and former counsel for TBC Group joined BLB as a new Partner. On the question of what makes BLB stand out from other firms, Rusudan says she praises BLB for the unique experience, values, and plans she shares with the firm. Rusudan says she has always been impressed with the firm’s performance that is charac- terized by a success-oriented approach, involving Rusudan Maisuradze carefully elaborated detailed plan of actions for each matter and the client; the firm is known for its unre- This team has participated in investment projects of lenting commitment to excellence and value-added historic importance for our country and they are still services to the clients. This has been demonstrated by doing a stellar job. Now when there is extreme compe- the firm’s mobilization in times of the rapid spread of tition among respectable local and international law COVID-19 when BLB created COVID-19 Resource firms, BLB manages to maintain the leading position Center and special TaskForce supporting the clients on the Georgian legal market that is evidenced by the and communities pro-bono to respond to the legal international rankings conducted by Legal 500, implications of the pandemic in an emergency Chambers, and Partners, IFLR 1000. manner. “BLB has the team with an exceptional expe- BLB has always been the respectable law firm chosen rience of guiding investors through the underdevel- by prominent investors, the firm whose name was oped legal environment of Georgia in the extremely always distinct on the Georgian legal market and I did important process of transferring into a market econo- not hesitate to make the decision on collaboration, my back in the 90s. decision was made in a flash.” – says Rusudan. Rusudan also speaks about the expectations one shall have after her collaboration with BLB: “the firm kicks off the new decade as a full-scale law firm. We are offering the clients the services from our white-collar criminal and regulatory practice led by our Partner Maya Mtsariashvili; while I will be the responsible Partner for the services the firm offers in the fields of EU Regulations, Business & Human Rights, and Media Law.” As its strategic vision for the future decade, the firm claims to be devoted to further develop state-of-the-art manners of delivering legal service, encourage innovation, welcome diversity, and to put more efforts in Pro Bono work. DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 47 AmCham Company Members as of December 2020

PATRON MEMBERS Budget Rent a Car - Otokoc Dressler Consulting GULF Georgia Georgia LLC 1664 De Mott Court/ Merrick by Sun Petrolium Georgia LLC 37 Rustaveli St. New York, 11566, USA Pixel Business Center, Tel: 2234112 Tel: +1-5169081444 34 Chavchavadze Ave. BP Exploration Georgia www.budget.com.ge www.dresslerconsulting.com Tel/Fax: 2496444 24, S. Tsintsadze St. www.gulf.ge Tel: 2593400 Capitol HPS / Best Western www.bpgeorgia.ge EY LLC Hotels & Resorts - Area Developer Hertz Georgia in Georgia 44 Kote Abkhazi St. Tel: 2439375; Fax: 2439376 1 Rose Revolution Sq. Hotel QGÀRRUE9D]KD3VKDYHOD$YH 5DGLVVRQ%OXH,YHULD*ÀRRU KPMG Georgia LLC 0186 www.ge.ey.com 5th Floor, GMT Plaza, Tel: 2723530 Tel: 2197835 www.hertz.com.ge 4 Freedom Sq., 0105 www.capitolhps.com Tel: 2935713; Fax: 2982276 F H Bertling Georgia Ltd. Room 3, 4th Floor, www.kpmg.ge Hilton Batumi Caucasus University 154 Agmashenebeli Ave. 13 Takaishvili St., Batumi .RVWDYD6W%OGWKÀ Tel: 2252287 Tel: 2377777; Fax: 2313226 Tel: 292092 PwC Georgia www.bertling.com www.cu.edu.ge www.hilton.com 12 M. Aleksidze St., 0160 King David Business Center Tel: 2508050; Fax: 2508060 Chemonics International FINCA Bank Georgia Iberia Refreshments, JSC www.pwc.com 9 N.Ramishvili St, 1st Dead End,0179 9D]KD3VKDYHOD$YHUGÀ Tetri Khevi Hesi District, Orkhevi Tel: 2227495 Tel: 2244949 Tel: 2241091; Fax: 2241090 www.chemonics.com ZZZ¿QFDJH www.pepsi.ge TBC Group 7 Marjanishvili St. Coca-Cola Company Gazelle Finance Georgia LLC ICE Ltd. Tel: 2272727; Fax: 2228503 114 Tsereteli Ave. Tatishvili st. 3/5 (Melikishvili Ave. Chavchavadze Ave. #33b www.www.tbcbank.ge Tel: 2941699, 2942609 $ZRUG%XVLQHVV&HQWHUWKÀRRU  Tel: 2990172 www.coca-cola.com Tel: 2904304 www.ice.com.ge UGT ZZZJD]HOOH¿QDQFHFRP Colliers International D&KDYFKDYDG]H$YHWKÀRRU Georgia LLC IT Consulting Georgia LLC Tel: 2220211; Fax: 2220206 11th Floor, King David Business General Electric Irakli Abashidze 36-34, Terminal www.ugt.ge Centhhzher, 12 M. Aleksidze St. 0171 5th Floor, Pixel Bulding, Gate 13 Tel: 2224477 34 Chavchavadze Ave. Tel: 599231313 www.colliers.com Tel: 2259516 / 2259505 www.spotcoin.net www.ge.com CORPORATE A MEMBERS Conformity Assessment Kavkaz Cement JSC International (CAI) LLC 29 Andronikashvili St., 0189 Geomedica Ltd. 11 Giorgi Saakadze Descent Tel: 2619090 Adjara Group Hospitality 12 First Lane, N.Bokhua St, 0131 Tel: 595690008 www.kavkazcement.ge 1, 26 May Sq., 0179 Tel: 2520035 www.ca.international Tel: 2300099 www.geomedica.ge www.adjaragroup.com KFC / Iberia Food Company &XVKPDQ :DNH¿HOG*HRUJLD 29 Chavchavadze Ave. 4th Floor, 34 l. Chavchavadze Ave. Georgian American University Alliance LLC Tel: 577043769 0179 8 Aleksidze St. 135 King Parnavaz St., Batumi www.facebook.com/KFCGeo Tel: 2474849 Tel: 2206520; Fax: 2206519 Tel: 591555757 ZZZFXVKPDQZDNH¿HOGJH www.gau.edu.ge www.alliancegroup.ge Le Meridien Batumi DAI Global (Implementer of the Intersection of Ninoshvili/Zghenti Alliance Group Holding, JSC USAID Economic Security) GMT Group Streets, Batumi 47/57 M. Kostava St., 0179 7th Floor, 34 l. Chavchavadze Ave. 4 Freedom Square Tel: 422 299090 Tel: 2424181; Fax: 2998112 0179 Tel: 2988988; Fax: 2988910 www.lemeridien.com www.agh.ge Tel: 577465059 www.gmt.ge www.dai.com M² Development LLC Alta LLC Gosselin Moving Georgia 15 Al. Kazbegi Ave., 0160 Beliashvili st. 104, 0159 Dasta Records Management 3 M/D, Didi Digomi Tel: 2444111 Tel: 2510111 15 Grigol Lortkipanidze St. Tel: 2596601/02/03; Fax: 2596600 www.m2.ge www.alta.ge Tel: 2900112 www.gosselin-moving.com/ www.drm.ge Maersk Georgia LLC Anaklia Development 12 Aleksidze St., King David Grant Thornton LLC Consortium Deloitte %XVLQHVV&HQWUHÀ 54 Ketevan Tsamebuli Ave. 6 Marjanishvili St. King David Business Center Tel: 248 66 81 Tel: 2604406 Tel: 2959910 WKÀRRU0HUDE$OHNVLG]H6W https://www.maersk.com/local- www.grantthornton.ge www.anakliadevelopment.com Tel: 2244566; Fax: 2244569 information/georgia www.deloitte.ge

Avon Cosmetics Georgia LLC Greco Group Marriott Hotels, Resorts & Suites Dentons Georgia LLC 1 Nutsubidze St. 117 Tsereteli Ave. 10 Melikishvili St. 13 Rustaveli Ave. Tel: 2226805; Fax: 2226806 Tel: 2393138; Fax: 2311107 Tel: 2779200; Fax: 2779210 Tel: 2509300; Fax: 2509301 www.greco.ge www.avon.com www.dentons.com www.marriott.com

British American Tobacco Diplomat Georgia GT Group Mars Georgia LLC 71 Vazha Pshavela Ave. 65, Kakheti Highway 48 B. Cholokashvili St. 71 V. Pshavela Ave; “BCV”, 0186 Tel: 2157500/01/02; Fax: 2157503 Tel: 2984950 Tel: 2740740 Tel: 2207507 www.bat.com www.diplomat.ge www.gtgroup.ge www.mars.com

48 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 Mastercard Radisson BLU Iveria Hotel CORPORATE B MEMBERS BGI Legal 2 Leonidze St. /1 G.Tabidze St., 1 Rose Revolution Sq. 5XVWDYHOL$YH,,ÀRRU Premises No.315, Floor 4 Tel: 2402200; Fax: 2402201 Tel: 2470747 Tel: 2900815 www.radissonblu.com AE Solar LLC www.bgi.ge www.mastercard.com 88 Avtomshenebeli St. (Hualing .XWDLVL)UHH,QGXVWULDO=RQH .XWDLVL RE/MAX Capital Tel: 2300099 Biltmore Hotel Tbilisi Meridian Express 43 Irakli Abashidze St. www.ae-solar.com 29 Rustaveli Ave. 15-17 Ketevan Tsamebuli Ave.0103 Tel: 2222424 Tel: 2727272 Tel: 2745199 www.remax-georgia.ge http://www.millenniumhotels.com/en/ www.ups.com Air Astana Airlines JSC tbilisi/the-biltmore-hotel-tbilisi/ 5th Floor, Pixel Business Center, School of Tomorrow LLC 34 Chavchavadze Ave. Tel: 2514999 Microsoft Georgia LLC 21, Petre Kavtaradze St. BLB Law Firm Business Legal www.airastana.com 34 Chavchavadze Ave. Tel: 2233199 Bureau Tel: 2970123 hwww.st.edu.ge 5/18 K.Marjanishvili St., II building, II www.microsoft.com Floor, 0102 Akustiko Tel: 2999755 Sheraton Grand Tbilisi Metechi 93 Shalva Nutsubidze st. www.blb.ge Palace Hotel Tel: 568299559

0RQGHOƝ]*HRUJLD//& 20 Telavi St. www.akustiko.ge 4th Floor, BC “Avenue”, 29 Tel: 2772020; Fax: 2772120 Chavchavadze Ave., 0179 %/&/DZ2I¿FH www.sheraton.com/tbilisi 129a D. Agmashenebeli Ave., 0102 Tel: 2200180 APM Terminals Poti www.mdlz.com Tel: 2922491; Fax: 2934526 52 Aghmashenebeli St., Poti www.blc.ge SICPA Security Solutions Tel: 0493 277777 Georgia www.apmterminals.com 2I¿FH7HFKQRORJLHV6WHHOFDVH 79 Chargali St., 0178 BMC Gorgia Dealership Tel: 2434580 140 Tsereteli Ave. 4 Freedom Sq., 0105 www.sicpa.com Aptos Tel: 2960960 Tel: 2999980, 2688229 20/4 Orbeliani St. www.gorgia.ge ZZZRI¿FHWHFKQRORJLHVJH Tel: 2 2920371 Simetria LLC www.aptos.ge 70b, Vazha-Pshavela Ave. Caucasus Online LLC Optimal Digital Tel: 2420692 71 Vazha-Pshavela Ave. Aversi Pharma 35 Razmadze St. www.simetria.ge Tel: 2000022 148/2 Aghmashenebeli Ave. Tel: 595001889 www.co.ge www.optimal.digital Tel: 2987860 Strada Motors/Jeep-Chrysler www.aversi.ge 191 Ak. Beliashvili St. Channel Energy (Poti) Limited Oracle Nederland B.V. Tel: 23073007 Georgia LLC, By Petrocas Energy Baker Tilly Georgia Ltd. 5HSUHVHQWDWLYHRI¿FH www.strada.ge Group Meidan Palace, 44 Kote Abkhazi St. Kievskoe Shosse, 22nd km, bld 52, David Agmashenebeli St., Poti 6/1,10881, Moscow, Russia Tel: 2505353; Fax: 2505353 www.bakertillyinternational.com 7HO   Tel: +74956411400 T&K Restaurants (McDonald’s www.petrocasenergy.com www.oracle.com Georgia) 1 Dzmebi Kakabadze St. Tel: 2921246; Fax: 2251422 Bank of Georgia 3 Pushkin St. Château Mukhrani, J.S.C. Orient Logic Ltd. www.mcdonalds.ge Tel: 2444134; Fax: 2983269 Sangebro St. 8 Beliashvili St. www.bog.com.ge Tel: 2201878; Fax: 2201878; Tel: 2541818 www.mukhrani.com www.orient-logic.ge TMC Global Professional Services 6001 Indian School Road NE, Suite Basis Bank JSC CMC LLC 190, Albuquerque, NM 87110, USA 1 Ketevan Tsamebuli Ave. Pace International LLC 4 Besiki St. 7HO   Tel: 2922922; Fax: 2986548 Abuladze st. First Lane 8, 0162 Tel: 2240717 www.tmcservices.com www.basisbank.ge Tel: 2914701 www.cmc.ge www.pace.ge

USAID Economic Governance Batumi International Container Crosscountry Georgia Program Terminal Floor 4, entrance 1, PepsiCo Wimm-Bill-Dann 5, Levan Mikeladze St., 0162 11, Baku Street, 6010, Batumi 29 Chavchavadze Ave. Village Ponichala, Tbilisi 0165 Tel: 599585122 Tel: 422 276452 Tel: 2475290 www.bict.ge Tel: 790420015 www.wbd.ru www.cross-cap.com Visa International Service Association BDO LLC Philip Morris Georgia 900 Metro Center Boulevard, Foster 2 Tarkhnishvili Str. Crowne Plaza Borjomi Saarbrucken Square, 0102 City, CA 94404, USA Vere Business Centre, 0179 Baratashvili Str. 9, 1200 Borjomi Tel: 2439003 Tel: 599374877 Tel: 2545845; Fax: 2399204 Tel: 995 367 220260 www.pmi.com www.visa.com www.bdo.ge www.cpborjomi.com

ProCredit Bank Willis Towers Watson Ltd. Bene Exclusive Crystal, MFO JSC 154 Agmashenebeli Ave. 17 M. Lebanidze St. 15 Kazbegi St. 72 Tamar Mepe St. Kutaisi, 4600 Tel: 2202222; Fax: 2202222-2226 Tel: 2905509 Tel: 2241515 Tel: 431253343 www.procreditbank.ge www.willis.com www.benegroup.ge www.crystal.ge

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 49 AmCham Company Members as of December 2020

Dio Ltd. Georgian Beer Company GMC Motors Kordzahia, Jgenti Law Firm 12th Km David Agmashenebeli Alley 3311 Saguramo, Mtskheta District 12km, Kakheti Highway, 0109 10 Petriashvili St. N3, Parsadani St. Tel: 2437770 Tel: 2921319 Tel: 2921878 Tel: 2361112 www.geobeer.ge www.eg.ge www.kjlaw.ge www.dio.ge

Georgian Express Gvinadze & Partners LLC Legal Partners Associated LLC Domson’s Engineering 105, Tsereteli Avenue, 0119 44 Kote Abkhazi St, 0105 2I¿FH%HVLNL%XVLQHVV&HQWHU 8a Sanapiro St. Tel: 2696060 Tel: 2438970, Fax: 2438971 4 Besiki St. 0108 Tel: 2050303 www.dhl.com www.domsons.com www.gvinadzeandpartners.ge Tel: 2200203; Fax: 2250458 www.lpa.ge

Dorche Branch Prepabrik Iapi Ve Georgian Hospitality Group Inshaat Sanai Tijaret JSC 22 Peritsvaleba St., 0103 HeidelbergCement Georgia Liberty Bank JSC 026/13 Ilia Chavchavadze Ave. Tel: 2987789 21 Al.Kazbegi Ave. 74 Chavchavadze Ave. Tel: 593472419 www.ghg.ge Tel: 2474747 www.dorce.com.tr www.heidelbergcement.ge Tel: 2555500; Fax: 2912269 www.libertybank.ge

Georgian Industrial Group LLC Duty Free Georgia GIG Plaza, 14 Gazapkhuli St., 0177 UGÀRRU%HVLNL6W Tel: 2210187 Herbalife Nutrition Bld. 4a Tamarashvili St., 0116 Lisi Development Besiki Business Center www.gig.ge 2 Tiripebi St. 0159 Tel: 2430150 Tel: 2202929 www.herbalife.com Tel: 2002727 www.dfg.ge www.lisi.ge Georgian Integrated Systems (GiS) Efes Brewery in Georgia - 2I¿FH$EDVKLG]H6W Hyundai Glovis Lomisi JSC Tel: 2243724 37/39 Kostava St. Luca Polare Village Natakhtari, Mtskhta Region www.gis.ge Tel: 2233625 54 Oniashvili St. Tel: 2357225 www.glovis.com.tr Tel: 2990399 www.natakhtari.ge www.lucapolare.com

Geo Steel LLC 36 Davit Gareji St., Rustavi, 3700 Element Construction Ltd. Imperial Tobacco Production Tel: 2243794 M & M - Militzer & Munch 13 S.Mgaloblishvili St. Ukraine www.geosteel.com.ge Georgia Tel: 2374737 35 Akademika Zabolotnoho St. Kyiv www.ec.ge 39 Ketevan Tsamebuli Ave. Tel: 2748240, 2748941 GeoWel Research http://ge.mumnet.com ExpoGeorgia JSC 36a L. Asatiani St. Insta 118 Tsereteli Ave., 0119 Tel: 2226792 8, Zakariadze St., 0177 Tel: 2341100 www.geowel.org Tel: 2202020 Maqro Construction www.expogeorgia.ge www.insta.ge 22 Panjikidze St. Tel: 2000909 Gergili www.maqro.ge Foresight Investment Group Apt. 13, Block 3, Building 7, Vaja- 2I¿FH%HVLNL6W Pshavela Ave. International Black Sea Tel: 595 559966 Tel: 2323145 University www.gergili.ge David Agmashenebeli Alley 13 km, Mercure Tbilisi Old Town 2, 0131 9 Gorgasali St., Old Tbilisi, 0105 Tel: 2595005 Gebrüder Weiss LLC Tel: 2006060 www.ibsu.edu.ge Airport Adjacent Territory, Globalink Logistics LLC www.mercure.com Kakheti Hwy 60 Sh. Nutsubidze St., 0186 Tel: 2710011 Tel: 2000238, 2208147 www.gw-world.com www.globalinkllc.com ,úEDQN*HRUJLD-6& 0*/DZ2I¿FH//& 140/B Agmashenebeli Ave., 0102 WKÀRRU3L[HOEXLOGLQJ Tel: 2310515 34 Chavchavadze Ave., 0179 GeoEngineering LLC *ORULD//& 7LÀLV3DODFH www.isbank.ge Tel: 2206633 15a Tamarashvili St. 3 Gorgasali St., 0105 www.mglaw.ge Tel: 2311788; Fax: 2311787 Tel: 2000245 www.geoengineering.ge ZZZWLÀLVSDODFHJH JTI Caucasus VII Floor, Pixel Business Center, MKD Law Geomill LLC 34 Chavchavadze Ave. 36, K. Khetagurovi St. 0102 GlovoApp Georgia 4, Chirnakhuli St. Tel: 2604111 Tel: 2553880 5 Mikheil Asatiani St., Floor 6 Tel: 2400000 www.jti.com www.mkdlaw.ge www.geomill.ge www.glovo.ge

Georgian Airways GM Capital LLC KK & Partners Moped Depot 12 Rustaveli Ave. 2 Tarkhnishvili St., 0179 2I¿FH1LQR5DPLVKYLOL6W 139 Nutsubidze St. Tel: 2999730; Fax: 2999660 Tel: 2912626 Tel: 2432227 Tel: 595 211111 www.georgian-airways.com www.gmcapital.ge kkpartners.ge www.mopeddepot.ge

50 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 Mosmieri LLC Publicis Ltd. Terabank JSC (CiDA) Civil Development 7, Bambis Rigi, 0105 17 V. Jorbenadze St. 3 Ketevan Tsamebuli Ave. Agency Tel: 2970420 Tel: 2745672; Fax: 2745671 Tel: 2507700 9/1 Pirosmani St., Rustavi, 3700 www.mosmieri.ge www.publicis.ge www.terabank.ge Tel: 341258822 www.cida.ge

Theco Ltd. Murphy Kazbegi Qebuli Climate CNFA 101, Tsereteli Ave. 16 Chikovani St. 2I¿FH0DUL%URVH6W 47 Kostava St., 0179 Tel: 2356201 Tel: 592107515 Tel: 2007107 www.tbilisia.ru Tel: 2980722 www.murphyshipping.com www.qebuli.ge www.cnfa.org

Transporter LLC Rentals LLC Eastern European Centre for 113b Beliashvili st. MyGPS 46 Rustaveli Ave.; 36 Griboedov St. Multiparty Democracy (EECMD) Tel: 2147171 6 Bokhua St., 0159 Tel: 2454567 / 2996412 7 Luarsab Sharashidze St. http://www.transporter.com.ge Tel: 2180180 www.rentals.ge Tel: 2915650 www.mygps.ge www.eecmd.org University of Georgia Resolution Insurance Brokers, 77a Kostava St. Europe Foundation NCC Ltd. Georgia LLC Tel: 2552222 3 Kavsadze St. 9, Erekle II turn 61, Gorgasali St. www.ug.edu.ge 7HO)D[ H[W Tel: 2725088 Tel: 2936305 www.epfound.ge www.ensisi.ge www.rib.ge VBAT Law Firm 2I¿FH*1LVKQLDQLG]H6W Georgia Red Cross Society Rooms Hotel Tel: 2305777 15 J. Kakhidze St. Nexia TA 14 Merab Kostava St. www.vbat.ge Tel: 2961092 4th Floor, 19 David Gamrekeli St., Tel: 2020099, 2730099 www.redcross.ge 0160 www.roomshotels.com Tel: 2242559 Vinotel (“Aigvinissakhli”) LLC Georgian Waste Managment www.nexia.ge 4 Elene Akhvlediani Ascent Association Tel: 2555888 RSM Georgia LLC 36 Mnatobi St. www.vinotel.ge 85 Paliashvili St., 0162 Tel: 599 224070 Nodia, Urumashvili & Parnters Tel: 2558899 www.facebook.com/wmageorgia 2I¿FH,9%ORFN www.rsm.ge 71 Vazha-Pshavela Ave. Wings and Freeman Capital Tel: 2207407 Green Building, 6, Marjanishvili St. Good Governance Initiative Tel: 2940051; Fax: 2940053 Pixel Center, 8th Floor, 34, www.nplaw.ge SavvY www.wfcapital.ge Chavchavadze Ave. 1st Pavilion, Expo Georgia,118 Tel: 2243111 Tsereteli Ave., www.ggi.ge Nutrimax Ltd. Tel: 2421342; Wissol Georgia 68a Rustavi Highway, 0165 www.savvy.ge 74b Chavchavadze Ave. Tel: 2305335 Tel: 2915315; Fax: 2915615 MAC Georgia www.nutrimax.ge www.wissol.ge 3 Lado Kavsadze St, 2nd Floor SEA Tel: 2197378 44 Kote Apkhazi St. www.macgeorgia.org Email: [email protected] Zarapxana LLC Paine Stevens LLC 15 Lubliana St. QSI International School of 1 Ivane Javakhishvili Sqr. Tel: 2510001 Tel: 2903211, Fax: 2903291 Georgia Silknet Ltd. www.zarapxana.ge www.painestevens.com Village Zurgovani, Tbilisi 95 Tsinamdzgvrishvili St. Tel: 2537670; Fax: 2322607 Tel: 2910345; www.qsi.org www.silknet.com PASHA Bank Georgia JSC 2 Leonidze St. / 1 G.Tabidze St. NON-PROFIT ORGANIZATIONS Research Triangle Institute Tel: 2265000 SRG Investments LLC Branch in Georgia www.pashabank.ge D&KDYFKDYDG]H$YHUGÀRRU 6 Saakadze Lower Hill, Unit 12 Tel: 2253581 American Councils for Tel.: 577991197 www.silkroad.ge International Education - Georgia www.rti.org PMO Business Consulting Chavchavadze Ave. Lane I, Building 16 Raphiel Eristavi St., 2 Floor 6, Entrance II, Floor II (Formerly San Diego State University - Tel: 2377307 T3Concept Ltd. D&KDYFKDYDG]H$YH Georgia www.pmo-bc.com 13 Radiani St., 0179 Tel: 2594901 5 Kostava St. 0108 Tel: 2434455 www.americancouncils.org Tel: 2311611 www.turner.com, www.t3concept.ge www.georgia.sdsu.edu Policy and Management Consulting Group (PMCG) TBC Leasing JSC American Friends of Georgia Transparency International $JKPDVKHQHEHOL$YHWKÀRRU 8 Bulachauri St., 0161 77 Nutsubidze St. Georgia Tel: 2921171 Tel: 2272727 Tel: 2397174; Fax: 2388495 61 Agmashenebeli Ave. 0102 www.pmcg.ge www.tbcleasing.ge www.afgeorgia.org Tel: 2932129 www.transparency.ge

Prime Concrete Tbilisi View CENN Union of Busines Ladies 11 Vazha-Pshavela Ave. 4a, Freedom Sq. 27 Betlemi St., 0105 8 D. Gamrekeli St., 0194 Tel: 2224870 Tel: 2999980 Tel: 2751903 Tel: 2308661 www.primeconcrete.ge www.tbilisiview.ge www.cenn.org www.ubl.ge

DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 51 NEWS

Board Of Directors 2020

SARAH WILLIAMSON PRESIDENT

IRAKLI BAIDASHVILI R. MICHAEL COWGILL RADOSLAV DUDOLENSKI FIRST VICE PRESIDENT VICE PRESIDENT AND TREASURER DIRECTOR

COLIN DONOHUE OTAR KIPSHIDZE SERGI KOBAKHIDZE DIRECTOR DIRECTOR DIRECTOR

AmCham Executive Director Writers George Welton Sally White, Andrew Weston Braun, Nazi Beridze, Hans Gutbrod, Ana Mezvrishvili, Tamar Khurtsia Editor in Chief Ari Neumann Special thanks to all the contributors to the magazine, especially our member Copy Editor companies for their contributions, AmCham Georgia staff and all our Alexander Melin contributors. Marketing & Promotion This magazine would not be possible without your help. Nini Kapanadze Promotional Design Levan Baratashvili Magazine Design and Layout Giorgi Megrelishvili 52 | Investor.ge ‡ DECEMBER-JANUARY 2020/21 NEWS

JORDI KUIJT KETTI KVARTSKHAVA SANDRO SHELIA DIRECTOR DIRECTOR DIRECTOR

GOGA TKHELIDZE GEORGE WELTON DIRECTOR EXEC. DIRECTOR

BETSY HASKELL, EX-OFFICIO ADVISOR

AmCham Georgia Patron Members:

‹7KH$PHULFDQ&KDPEHURI&RPPHUFHLQ*HRUJLD DULVLQJIURPWKHXVHRIDQ\SURGXFWRUVHUYLFHDGYHUWLVHGZLWKLQ $OOULJKWVUHVHUYHG1RSDUWRIWKLVPDJD]LQHPD\EHUHSULQWHGRU WKHSDJHVRIWKLVLVVXH UHSURGXFHGRUXWLOL]HGLQDQ\IRUPRUE\HOHFWURQLFPHFKDQLFDO ,QYHVWRUJHLVSULQWHGE\CEZANNE RU RWKHU PHDQV QRZ NQRZQ RU KHUHDIWHU LQYHQWHG LQFOXGLQJ $P&KDP*HRUJLD SKRWRFRS\LQJDQGUHFRUGLQJRULQDQ\LQIRUPDWLRQVWRUDJHRU rd UHWULHYDOV\VWHPZLWKRXWSHUPLVVLRQ D/DGR$VDWLDQL6WUHHW ÁRRU7HO 7KHRSLQLRQVH[SUHVVHGLQWKLVPDJD]LQHGRQRWUHÁHFWWKHRSLQLRQ DPFKDP#DPFKDPJH RIWKH$PHULFDQ&KDPEHURI&RPPHUFHLQ*HRUJLDQRULWV%RDUG HGLWRU#DPFKDPJHɕZZZDPFKDPJH 0HPEHUV RU VWDII XQOHVV RWKHUZLVH VWDWHG $P&KDP *HRUJLD QHLWKHU HQGRUVHV QRU FDQ EH KHOG OLDEOH IRU DQ\ HYHQWXDOLW\ ZZZLQYHVWRUJH DECEMBER-JANUARY 2020/21 ‡ Investor.ge | 53

Challenging the status quo in Infrastructure.

Dentons, the law firm of the future, is here.*

Otar Kipshidze Georgia Managing Partner [email protected]

Avto Svanidze dentons.com Partner © 2020 Dentons. Dentons is a global legal practice providing [email protected] client services worldwide through its member firms and affiliates. Please see dentons.com for Legal Notices. Dentons Georgia *Acritas Global Elite Law Firm Brand Index 2013-2020. 8a Melikishvili street, Tbilisi 0179, Georgia T: +995 32 2509300 F: +995 32 2509301