ON the CNFA Developing Georgian-Kazakh Business Relations
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facebook.com/ georgiatoday Issue no: 852/31 • JUNE 14 - 16, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50 In this week’s issue... The Economics of Boasting ISET PAGE 4 Wine Export Increases by 44% PAGE 5 Georgian Airways Receives EASA Permission to Fly to EU FOCUS ON THE CNFA PAGE 7 Cultivating New Frontiers in Agriculture celebrates its 10th anniversary of designing DAAD Scholarship for and implementing market-driven agricultural Higher Education and agribusiness development initiatives in Georgia PAGE 3 PAGE 11 Bank of Georgia HQ Developing Georgian-Kazakh Business Relations Building Listed Among the Best Examples of Brutalist BY EKA KARSAULIDZE Architecture ast week began with a successful Invest- ment Forum in Tbilisi, bringing together leading representatives of Kazakh and Georgian business circles to discuss eco- nomic issues, ways of cooperation and Lpotential projects. A few days later, government representatives of the two countries met in Kazakh- stan at the 8th Kazakh-Georgian Intergovernmental Commission on Trade and Economic Cooperation PAGE 12 in order to resolve existing issues and form a more favorable overall business environment for the pri- vate and public sectors. Rustavi-2 Loses Ownership The Minister of Economy of Georgia, Dimitry Kumsishvili, noted that Georgia and Kazakhstan Dispute in Appeals Court, have enjoyed close trade and tourism relations for Vows to Fight On many years. Continued on page 2 PAGE 13 Prepared for Georgia Today Business by Markets Asof10ͲJunͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP24.77 Ͳ0,9% +7,6% GEOROG05/17 101.88(YTM4.77%) +0,1% Ͳ0,3% GHG(GHGLN) GBP2.60 +2,6% +32,4% GEORG04/21 111.14(YTM4.29%) +0,5% +0,4% TBCBank(TBCBLI) US$13.00 +1,6% +20,9% GRAIL07/22 111.00(YTM5.59%) +0,3% +2,0% GEBGG07/17 103.94(YTM3.90%) Ͳ Ͳ0,3% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 50,54 +1,8% +11,0% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1274,24 +2,4% +0,7% GEL/USD 2,1282 Ͳ0,4% Ͳ3,5% GEL/EUR 2,3931 Ͳ1,4% Ͳ4,6% INDICES Price w/w m/m GEL/GBP 3,0339 Ͳ2,3% Ͳ4,7% FTSE100 6115,76 Ͳ1,5% Ͳ0,7% GEL/CHF 2,2073 +0,6% Ͳ2,3% FTSE250 16827,45 Ͳ1,4% +0,6% GEL/RUB 0,0328 +0,3% Ͳ1,8% DAX 9834,62 Ͳ2,7% Ͳ2,1% GEL/TRY 0,7270 Ͳ1,2% Ͳ2,7% DOWJONES 17865,34 +0,3% Ͳ0,4% GEL/AZN 1,4005 Ͳ1,8% Ͳ3,8% NASDAQ 4894,55 Ͳ1,0% +1,8% GEL/AMD 0,0044 Ͳ2,2% Ͳ4,3% MSCIEMEE 124,57 +1,5% +0,8% GEL/UAH 0,0852 Ͳ0,6% Ͳ2,7% MSCIEM 823,82 +0,9% +2,1% EUR/USD 0,8888 +1,0% +1,1% SP500 2096,07 Ͳ0,1% +0,6% GBP/USD 0,7015 +1,8% +1,3% MICEX 1903,61 +0,9% +1,0% CHF/USD 0,9649 Ͳ1,1% Ͳ1,1% MSCIFM 2561,09 +0,4% +2,1% RUB/USD 65,4900 +0,3% Ͳ1,2% GTIndex(GEL) 797,63 Ͳ +0,1% TRY/USD 2,9292 +0,9% Ͳ0,7% GTIndex(USD) 740,49 +0,7% +4,1% AZN/USD 1,5210 +2,0% +0,5% GEORGIA TODAY 2 BUSINESS JUNE 14 - 16, 2016 Developing Georgian- Kazakh Business Relations Continued from page 1 we are planning to take 11 million tourists annually. Moreover, we see growth among Kazakh tourists In particular, the Minister said, the Kazakh side – 12 thousand people from this country have visited invested over USD 300 million (636 million GEL) Georgia since the beginning of 2016.” from 2006 to 2015. “I understand that this amount The number of Kazakh tourists increased by 5-6 will increase at least 10 times in the near future,” times in the last three years, and the Tourism New Investment said Kumsishvili. Department of Kazakhstan has predicted 20 per- The fi rst Georgian-Kazakh Investment Forum, cent of its tourists will be coming to Georgia this jointly organized by Forbes Georgia and Forbes summer. In addition, fl ights between Georgia and Kazakhstan, invited 40 representatives of leading Kazakhstan increased to 20 times a week from June. companies of Kazakhstan to Tbilisi. At the Forum, In general, the results of the Forum were positive, the Georgian side demonstrated the potential of with both sides appreciating one important com- in Batumi the country, advantages of free trade, the tax exemp- ponent of successful business cooperation in per- tion programs like ‘Produce in Georgia,’ as well as sonal meetings and, in particular, this type of forum. the latest achievements. With the aim of resolving existing problems, Min- “Georgia’s GDP grew by 2.5 percent in 2015. This ister Kumsishvili went to the Kazakh-Georgian year, the forecast is 3 percent, but the current eco- Intergovernmental Commission on Trade and Eco- nomic indicators suggest that growth could reach nomic Cooperation in Astana a few days after the as much as 3.5 percent. In addition, our country Tbilisi Forum. Boulevard has a successful anticorruption policy and reached According to the Minister, one of the main goals 23rd place in the Index of Economic Freedom,” was to reach an agreement about Georgia’s debt Kumsishvili highlighted. to Kazakhstan, and as a result, a payment schedule Kazakh businesspersons paid special attention has been set. Issues of transport, the Silk Road Cor- to the energy, banks, real estate and tourism sec- ridor, as well as cargo transportation and increase tors. “Georgia was able to host 6 million visitors in investment were also in the spotlight during the last year,” said the Minister of Economy. “However, Commission meeting. noted that USD 520 million (1100 million GEL) BY EKA KARSAULIDZE had already been invested in the New Boulevard’s reconstruction in the fi rst quarter of 2016. There are four hotels currently under construction, and n additional USD 40 million (84 mil- another is to be added shortly. As a result, the city lion GEL) is to be invested in the will receive 1,700 new rooms in total, and about development and reconstruction of 2,600 local residents will be involved in the pro- the New Boulevard of Batumi, jects. reported the Chairman of Adjara “Investment processes in Adjara are developing AGovernment, Archil Khabadze. According to the quite actively. The New Boulevard did not func- project, various tourist facilities will be built, such tion for many years, yet now several large invest- as hotels, but 50 percent of the territory will be ment projects are underway there,” said David allocated to a tourist-recreation zone. Baladze, the Minister of Finance and Economy of 32,000 square meters of the New Boulevard of the Autonomous Republic of Adjara. “In addition, Batumi had previously been put up for auction with the recent purchase by Orbi Group once again a starting price of USD 2.3 million (5 million GEL). demonstrates the interest and economic develop- Orbi Group Millennium Construction Company ment in the region. Based on this, we may well bought it for USD 4.3 million (9.3 million GEL). say that there is an investment boom happening,” In addition, members of the Adjara Government he added. Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected] GEORGIA TODAY JUNE 14 - 16, 2016 BUSINESS 3 USAID/CNFA Celebrates 10th Anniversary in Georgia The Fair featured almost 20 grantees as a member of the CNFA Board of BY ZVIAD ADZINBAIA that are currently receiving support and Directors, emphasized the organiza- President of Georgia, Giorgi Margvelashvili, awards CNFA Europe Board Chairman, technical assistance from the USAID tion’s role in boosting entrepreneurship John Castelo with the Golden Fleece Order for his signifi cant contribution to Georgian agriculture Restoring Effi ciency to Agriculture in Georgia. “Private enterprises are what n June 7, Cultivating New Production (REAP) project, an ongoing CNFA is all about,” Kirvalidze under- Golden Fleece Order for his signifi cant staff’s commitment and passion that Frontiers in Agriculture CNFA-led program. REAP is committed scored, adding, “it assists individuals contribution to Georgian agriculture CNFA has been able to truly make a (CNFA), an international to increasing income and employment and encourages entrepreneurship.” and international assistance programs positive impact in such an incredible agricultural development in rural areas by delivering investment USAID Georgia Chief, Thomas Mor- for Georgia. country.” organization, celebrated and technical assistance to expanding ris, spoke of CNFA’s support toward The conference concluded with a The conference and grantee fair was Oits 10th anniversary of designing and the operation of existing smallholder Georgia’s western course. “We will presentation by Darejan Kanteladze, the last event of a six-day visit to Geor- implementing market-driven agricul- farmers and rural enterprises. continue supporting Georgia on its path owner of a dairy processing plant, Santa gia for seven CNFA Board of Directors tural and agribusiness development In his opening speech, Giorgi Kviri- to EU and NATO. CNFA is stimulating Ltd, who highlighted signifi cant achieve- to experience fi rsthand some of the initiatives in Georgia. The organization kashvili declared that CNFA has not just economic growth in Georgia through ments that the company has accom- work being implemented and to see the hosted a Conference and Grantee Fair been a partner but has also been a friend entrepreneurship,” Morris stated. plished as a result of working with historical impacts of CNFA-supported at Expo Georgia, inviting high-level to the Georgian farming community. The conference incorporated a num- USAID, the Millennium Challenge Cor- projects.