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USAID Economic Security Program Quarterly Report

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USAID Economic Security Program Quarterly Report USAID Economic Security Program – Contract No. 72011419C00001 USAID Economic Security Program Quarterly Report (FY20 Q3: April - June 2020) DO Number and Name: DO2 – Inclusive and sustainable economic growth Activity Start and End Dates: April 17, 2019 – April 16, 2024 AOR/COR/Activity Manager Name & Office: David Tsiklauri, USAID/Georgia Economic Growth Implemented by: DAI Global Subcontractors: Solimar, PMCG Submission Date: July 15, 2020 1 USAID Economic Security Program – Contract No. 72011419C00001 Table of Contents List of Abbreviations ............................................................................................... 3 List of Annexes ........................................................................................................... 5 I. SUMMARY OF PROGRESS AND CHALLENGES ...................................... 6 II. PROGRAMMATIC TRENDS ........................................................................... 10 III. UNRESOLVED BUREAUCRATIC/ADMINISTRATIVE CONST……..11 IV. STATUS OF WORKPLAN COMPLETION ................................................ 11 V. STATUS OF PERFORMANCE INDICATORS ........................................... 46 VI. SUMMARY OF GRANT ACTIVITIES ........................................................... 53 VII. ENVIRONMENTAL MANAGEMENT AND MONITORING................ 55 VIII. FINANCIAL ANALYSIS .................................................................................... 55 IX. ANNEXES ............................................................................................................. 55 2 USAID Economic Security Program – Contract No. 72011419C00001 LIST OF ABBREVIATIONS ADS Association Design Georgia AMCHAM American Chamber of Commerce APA Agency of Protected Areas APS Annual Program Statement ATSU Akaki Tsereteli State University A2F Access to Finance B2B Business to Business BA Business Association BAG Business Association of Georgia BDS Business Development Services BPM Business Process Management BPO Business Process Outsourcing BSO Business Support Organizations C&W Cushman & Wakefield COP Chief of Party COVID-19 Corona Virus 2019 CU Caucuses University D&G Democracy and Governance DFC Development Finance corporation DMO Destination Management Organization EBRD European Bank for Reconstruction and Development EDA Export development association EG Economic Growth EOI Expression of interest FDI Foreign direct investment G4G USAID Governing for Growth GDA Global Development Alliance GDP Gross domestic product GEOSTAT Georgia Office of Statistics GHCA Georgian Heritage Crafts Association GITA Georgia Innovation and Technology Agency GITOA Georgian Incoming Tour Operators Association GIZ German Development Agency GMGA Georgian Mountain Guides Association GNCC Georgian National Communications Commission GNTA Georgia National Tourism Agency GOG Government of Georgia GPA Georgian Packaging Association GTA Georgian Tourism Association GTIA Georgian Tourism Industry Alliance GTG Green Team Global GWU The George Washington University ICT Information/Communications Technology ISET International School of Economics at Tbilisi ISO International Standardization Organization KMS Key Management Solutions LEPL Legal entity of public law MoESD Ministry of Economy and Sustainable Development MOU Memorandum of Understanding MRDI Ministry of Regional Development and Infrastructure MRDC Mountain Resorts Development Company MSME Medium, Small, and Micro Enterprises 3 USAID Economic Security Program – Contract No. 72011419C00001 NACHP National Agency for Cultural Heritage Preservation NASP National Agency for State Property NGO Non-Governmental Organization OCAP Organizational Customized Assistance Program PDF Partnership Development Fund PMAG Packaging Manufacturing Association of Georgia PMCG Policy and Management Consulting Group PPD Public Private Dialogue PPP Public-Private Partnerships RFA Request for application RFP Request for proposal SME Small and medium-sized enterprises SOE State of Emergency STTA Short-Term Technical Assistance T4L Training for Life TVET Technical and Vocational Education Training UAG United Airports of Georgia UNDP United Nations Development Programme UNWTO United Nations World Tourism Organization US MAC US Market Access Center VC Value chain WWT WG Women Who Tech Working Group 4 USAID Economic Security Program – Contract No. 72011419C00001 LIST OF ANNEXES 1. PARTNERSHIP OPPORTUNITY PIPELINE 2. C&W FEASIBILITY STUDY 5 USAID Economic Security Program – Contract No. 72011419C00001 I. SUMMARY OF PROGRESS AND CHALLENGES Quarterly Highlights The USAID Economic Security Program’s traction this quarter continued despite two months of lockdown and continued restrictions due to the COVID-19 pandemic. The Program was able to quickly pivot its work environment and activities to embrace the challenges caused by the lockdown and therefore was able to provide on-time and effective programming that focuses on addressing the economic realities of the pandemic as well as in queuing up post-recovery initiatives to re-establish economic growth in its target sectors and value chains. This quarterly report, therefore, reflects continued progress toward the Program’s impact targets and it is anticipated that this project will continue in future quarters as long as it has the flexibility to move programming in the direction necessary to embrace the new economic reality that will engulf Georgia (as well as the world). The Program’s trajectory will be positively influenced by the modification of its contract that was finalized this quarter and added $5.2 million in funding to address economic growth in new and expanded sectors and value chains. Solid Waste Management (SWM) and Recycling was added as a new target sector and significant expansion is expected in the areas of e-commerce and Information and Communications Technology (ICT). New value chains were added as well, including construction materials and Personal Protective Equipment (PPE) under light manufacturing. Wooden educational toys were added as an expanded business activity under the furniture value chain. These new and expanded sectors and value chains offer a plethora of opportunities for inter and intra-sectoral linkages that are already being explored and that will be discussed later in this report. In terms of e-commerce and ICT, the Program launched major initiatives in both areas during this quarter, one of which was the initiation of a partnership with the global e-commerce website for artisans, Etsy, that was facilitated through collaboration with the USAID-funded E-Trade Alliance. Through this partnership, the Program worked directly with the Etsy team to launch a pilot project that allowed for the creation of two initial e-shops on the platform. Georgian artisans Saini and Silkroom were selected from 22 nominations to be integrated into the platform. After the pilot project’s success, Etsy and the Program expanded the partnership to include the onboarding of between 100-150 Georgian artisans onto the platform over the next two months. These artisans, which will be identified by the Program’s artisan association partners, will receive direct technical assistance from the Etsy team on how best to utilize the platform, as well as how to market their artisan products to a target demographic of discerning, high-income customers around the world. The Program also facilitated the creation of e-commerce opportunities for Georgian Medium, Small, and Micro Enterprises (MSMEs) whose traditional methods of sales were interrupted by the COVID-19 pandemic, thereby creating a new reality that will likely include a blend of both online and conventional customer outreach in the future. Through a grant to the E-Commerce 6 USAID Economic Security Program – Contract No. 72011419C00001 Association/Georgia, the Program provided vital information to MSMEs on key topics related to e-commerce, including the development of online shops and/or customer platforms. The Program was privileged this quarter to highlight its strategy and impending initiatives in Shida Kartli through facilitation of a visit by U.S. Ambassador Kelly C. Degnan. On Ambassador Degnan’s first site visit since the onset of travel restrictions related to the pandemic, she toured Gori Fortress and was briefed on the Program’s partnership with the Shida Kartli Governor’s Office, Gori Municipality, and the National Agency for Cultural Heritage Preservation of Georgia (NACHP). During the site visit, the Program discussed its tourism initiatives within the region and highlighted the positioning of Gori Fortress as a primary attraction to draw high-value tourists. This will occur through its transformation into a living history and high-tech interpretive museum that highlights its iconic status within the country’s cultural heritage. The Program also showcased activities in agri- business, gastronomy, and artisans by highlighting beneficiaries of the USAID Zrda Activity and the USAID Agriculture Program. The Program’s support of the tourism sector remained robust, with both the continuation of prior activities and the initiation of pivot activities to assist the sector both during the pandemic and in the recovery period. Green Team Global (GTG), one of the Program’s subcontractors, worked with agencies under the Ministry of Economy and Sustainable Development (MoESD) to develop specific tourism products aimed at both domestic and international audiences. This work resulted in the identification of 24 (six per agency) potential products and the short-listing
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