Georgians Seek Fortune in Bitcoins
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CONTEST FOCUSES ON CRRC: HOW ARE GEORGIANS MADE IN GEORGIA: INNOVATION AND IMPACT SAVING FOR RETIREMENT? SWISS CHEESE Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 59 OCT.-NOV. 2017 Georgians Seek Fortune in Bitcoins OCTOBER-NOVEMBER/2017 Investor.ge | 3 Investor.ge CONTENT 6 Investment news 8 One Investment, Eleven Projects, Cleaner Air 10 New Awards Program to Encourage Innovation Impact Hub at Fabrika is hosting the international Social Impact Awards, a competition for students in Tbilisi and Telavi. The awards aim to encourage innovation and social entrepreneurship in Georgia. 14 Farming for Currency: Georgians Wade into 14 Bitcoin Mining Bitcoin farming—the process of using computers to mine the digital currency—is slowly catching on in Georgia, especially among IT specialists. 18 Dynamism among the Young with Retirement Planning in Georgia 20 A Tbilisi Exodus or Alarming Urban Sprawl? 20 Investor.ge looks at the growing impression that growing real estate prices, traffic congestion and air quality are pushing people to look for homes outside of Tbilisi. 24 From the Experts: Are Tbilisians leaving the city? 26 Alpine Gold: Swiss Cheese Made in the Georgian Mountains A Georgian-Swiss partnership is reviving a lost tradition of Alpine cheese manufacturing in the Georgian mountains. 33 30 Georgian Chess - A New Generation 33 A Place on the Team: A New Push for Equality in Sports 36 Tbilisi Neighborhoods: Vake 39 NEWS ...... 39 4 | Investor.ge OCTOBER-NOVEMBER/2017 ! "# $ " % ! & '$ ( ! OCTOBER-NOVEMBER/2017OCTOBER-NOVEMBER/2017 Investor.geInvestor.ge | 5 INVESTMENT NEWS INVESTOR.GE PROVIDES A BRIEF UPDATE ON INVESTMENTS AND CHANGES IN GOVERNMENT POLICY THAT COULD IMPACT THE BUSINESS ENVIRONMENT. THE INFORMATION IN THIS ISSUE WAS TAKEN FROM AGENDA.GE, A NEW AIRPORT ARRIVALS’ the priority directions of the govern- GOVERNMENTSUPPORTED TERMINAL OPENED ment. Today we already have high-speed WEBSITE, AND OTHER Georgian Prime Minister Gior- internet in Tusheti, which will support SOURCES. gi Kvirikashvili opened the new, the social-cultural development of the 12,000-square-meter arrivals terminal region and will meet the needs of tourists at Tbilisi Shota Rustaveli International that visit Tusheti,” Minister of Economy Airport on September 26. and Sustainable Development Giorgi “Development of aviation has always Gakharia was quoted as saying. been and remains as one of our main pri- orities, because the percise development GEORGIA’S AIRPORTS SEE UPTICK of the air market, airports and navigation IN PASSENGERS infrastructure, as well as increasing the More passengers traveled through LQÀRZRIWRXULVWVDQGQHZÀLJKWGHV- *HRUJLD¶VWKUHHPDLQDLUSRUWVLQWKH¿UVW tinations, are the preconditions for the eight months of 2017 than compared development of tourism in the country,” to the same period last year, agenda.ge Kvirikashvili said. reported on September 8, citing statis- The new terminal will be able to tics from the Georgian Civil Aviation serve four million people a year, accord- Agency. LQJWRWKHUHSRUWDLUFRPSDQLHVÀ\WR A total of 2.7 million passengers have 45 destinations from Tbilisi International passed through Tbilisi Shota Rustaveli Airport, agenda.ge said. International Airport, Batumi Interna- tional Airport and Kutaisi David Agh- HIGH-SPEED INTERNET INSTALLED mashenebeli International Airport in the IN GEORGIA’S REMOTE TUSHETI ¿UVWHLJKWPRQWKVRIWKH\HDU²D REGION percent increase compared to the same Twenty-four villages in Georgia’s period last year, the report said. remote Tusheti region have high-speed Tbilisi Shota Rustaveli Interna- internet access thanks to a $40,000 tional Airport has seen the most pas- project implemented by the Tusheti VHQJHUV²VOLJKWO\RYHUPLOOLRQD Development Fund and the organization 42.78 percent increase y/y. The biggest Internet Society, agenda.ge reported on LQFUHDVH²SHUFHQW²ZDVUHFRUGHG September 12. at Batumi International Airport. Batumi “The ‘internetization’ of the country, International Airport has experienced a and especially of the regions, is one of 66.36 percent increase in passengers in 6 | Investor.ge OCTOBER-NOVEMBER/2017 the past eight months compared to the same period last year. GEORGIA TO PRODUCE JEANS FOR FAMOUS The report noted that smaller airports in Georgia have also BRANDS seen more travelers this year: Queen Tamar Airport in Mestia, A new factory in Georgia’s western Guria region will pro- 6YDQHWLUHJLRQKDVVHUYHGSDVVHQJHUVZKLFKZDVD duce jeans for famous brands like Zara, Mango and Massimo percent increase y/y, agenda.ge reported. Dutti, agenda.ge reported on September 1. The factory, which will open in the town of Ozurgeti in 2018, OVER $300 MILLION IN FDI IN THE SECOND QUARTER is part of the government’s Produce in Georgia program. An OF 2017 estimated 350 people will be employed, the report said, and the Georgia received $346.6 million in foreign direct investment Turkish investor behind the project will invest 1.7 million lari. (FDI) in the second quarter of the year, agenda.ge reported on The investor is part of the Turkish textile production network September 8, citing preliminary data from the National Sta- Baykanlar; no additional details were provided in the report. WLVWLFV2I¿FH7KHFRXQWU\DWWUDFWHGPLOOLRQLQWKHVDPH period in 2016. TURKEY, RUSSIA AND CHINA ARE GEORGIA’S TOP The top three countries for FDI in Georgia in the second TRADE PARTNERS quarter were: Turkey, Russia and China are Georgia’s top trade partners $]HUEDLMDQPLOOLRQ SHUFHQWRIDOO)', LQDFFRUGLQJWRRI¿FLDOVWDWLVWLFVDJHQGDJHUHSRUWHG 7KH1HWKHUODQGVPLOOLRQ SHUFHQWRIDOO)', on August 21. Georgia’s trade turnover with European Union 7XUNH\PLOOLRQ SHUFHQWRIDOO)', member states has increased 11 percent compared to the same The majority of the foreign investments (66.3 percent) were period last year. made in three sectors: transport and communications: $130 ADVERTISEMENT million (37.6 percent of FDI); construction: $70 million (20.2 SHUFHQWRI)', DQGKRWHOVDQGUHVWDXUDQWVPLOOLRQ percent of FDI). MILLION-LARI INVESTMENT PLANNED IN KUTAISI Indian investors plan to invest 1.5 million lari in Kutaisi, the agenda.ge website reported on September 1. 7KHLQYHVWRUVZLOOEXLOGD¿YHVWRU\EXVLQHVVDQGUHVLGHQWLDO complex in Kutaisi, according to the report. The project will be implemented with the support of the government’s Produce in Georgia program and will be com- pleted in September 2018, the report said, adding that 20 jobs will be created at the new complex. OVER A MILLION VISITORS TO GEORGIA IN AUGUST 2017 Over a million people visited Georgia during the month of August 2017, agenda.ge reported on September 4. Georgia’s Ministry of Internal Affairs reported that SHRSOHDUULYHGLQWKHFRXQWU\LQ$XJXVWDQLQFUHDVH of 27.4 percent compared to the same period last year. Out of the total number of visitors, over half a mil- OLRQ²²ZHUHWRXULVWVWKHUHSRUWVDLGDQGSHU- FHQW²SHRSOH²ZHUHWUDYHOLQJWKURXJKWKHFRXQWU\ The highest number of visitors arrived from Armenia, fol- lowed by Russia, Azerbaijan, Turkey, Ukraine and Iran. OCTOBER-NOVEMBER/2017 Investor.ge | 7 It was funded by BP and its oil and gas co-venturers and One Investment, LPSOHPHQWHGE\WKH(QHUJ\(I¿FLHQF\&HQWHU*HRUJLD Funding recipients introduced a variety of changes to help reduce pollution and energy spending in their communities: UHSODFLQJLQHI¿FLHQWOLJKWLQJV\VWHPVZLWKPRGHUQ/('OLJKW- Eleven Projects, ing; installing solar thermal systems and solar PV systems; and improving energy performance of buildings. Results from the activities indicate that, by December 2016, Cleaner Air as much as 2,440,300 kWh energy have been saved, about 406,000 Kg CO2 emissions have been reduced, and energy BP AND ITS OIL AND GAS CO-VENTURERS bills have been reduced by up to 253,000 lari. FUNDED A THREE-YEAR PROJECT TO “Partnership with the municipalities within the three-year SUPPORT 11 ENERGY EFFICIENT PROJECTS HQHUJ\HI¿FLHQF\SURMHFWDOORZHGXVWRFRPELQHWKHHIIRUWVWR THAT WERE LAUNCHED IN PARTNERSHIP reduce CO2 emissions and helped introduce renewable energy WITH THE MUNICIPALITIES IN EIGHT DQGHQHUJ\HI¿FLHQF\WHFKQRORJLHVLQ*HRUJLD´&KULV6FKOXHWHU CITIES IN GEORGIA. THE CLEAN ENERGY general manager for BP in Georgia, said. TECHNOLOGIES INTRODUCED IN VARIOUS ³(QHUJ\HI¿FLHQWSURMHFWVODXQFKHGLQHLJKWFLWLHVZLOOFRQ- MUNICIPAL BUILDINGS AND OTHER WLQXHWREULQJVLJQL¿FDQWEHQH¿WVIRUPDQ\\HDUVWRFRPH7KHVH projects are good examples of BP’s successful partnership with FACILITIES IN THE COUNTRY HAVE HELPED local municipalities and long-term commitment to Georgia.” TO REDUCE ENERGY BILLS, IMPROVE THE BP and its partners have supported a total 34 projects QUALITY OF THE SUPPLIED ENERGY, AND WKDWVXSSRUWHQHUJ\HI¿FLHQF\LQ*HRUJLDUHVXOWLQJLQXS REDUCE AIR POLLUTION. to 4,354,500 kWh energy saving; about 1,012,000 Kg CO2 UHGXFWLRQVLQHPLVVLRQVDQGXSWR*(/VDYLQJLQ energy bills. From 2008 up to today, the company has invested The quality of the air, especially in capital Tbilisi, has in- LQWKHHQHUJ\HI¿FLHQF\SURMHFWVDFURVVWKHFRXQWU\ creasingly become an issue of concern. Eka Grigalava, Deputy Minister of the Environment and Georgia’s Environment Minister Gigla Agulashvili told Natural Resources Protection of Georgia believes that clean parliament earlier this year that the air quality situation in the energy projects will help Georgia’s long-term sustainable country “should not be satisfactory for us, and we are working development. to improve the situation,” OC Media reported. “Despite Georgia’s ample hydro resources we have an ob- The ministry’s report