Leading the Way on Georgia-US Relations

Leading the way on Georgia-US relations

APRIL-MAY 2021 Investor.ge | 3 Investor.ge CONTENT

6 Investor news

9 Georgia’s organic wine opportunity

10 Transatlantic leadership: US Ambassador Degnan & AmCham President Sarah Williams talk Georgia-US relations, changing role of women

15 New routes open up for Georgian SMEs as IFIs move to diversify financing options

18 How Georgian literature has made its way into 20 35 languages

20 The Enguri HPP shutdown: how it played out for Georgia and its breakaway Abkhazia region

22 TBC Capital’s macro insights: ‘still restart rather than recovery’

24 Why Tbilisi’s last Soviet-era ropeway can’t get off the ground again

26 Investor spotlight: Georgian drone startup Raven 26 looks to spread its wings come spring 29 TBC Bank’s strategy to be a leading employer, tech forerunner in the region

30 How public-private sector partnerships have transformed development in Georgia

32 Agricultural startup Kalo disseminating know- how through tech

34 BLC: Law on Entrepreneurs provides new take on capital formation, maintenance and protection

36 US-Georgian partnership proves ‘a woman’s 32 place’ is in tech

38 What Georgia stands to gain from ending food waste

40 Agronavti: USAID-funded mobile application brings innovation, efficiency to Georgian agriculture

38 NEWS ...... 42

4 | Investor.ge APRIL-MAY 2021 APRIL-MAY 2021 Investor.ge | 5 GEORGIAN GDP DOWN 6.2% IN FDUULHU:L]]$LUUHVXPHGÀLJKWVIURP Investment 2020 .XWDLVL,QWHUQDWLRQDO$LUSRUWDWWKHHQG Real growth of Georgian GDP fell RIWKHPRQWKDQGLVRIIHULQJÀLJKWVWR by 6.2% in 2020, show preliminary data destinations. One airline is entering the News IURPWKH1DWLRQDO6WDWLVWLFV2I¿FHRI PDUNHWIRUWKH¿UVWWLPHZLWK:L]]$LU INVESTOR.GE Georgia (Geostat). While most sectors $EX'KDELRSHUDWLQJÀLJKWVIURP.XWDLVL of the economy were hammered by the WR$EX'KDELWZLFHDZHHN7XUNLVK PROVIDES A epidemic, several continued to grow, $LUOLQHV3HJDVXV8NUDLQH,QWHUQDWLRQDO BRIEF UPDATE such as: health and social work (7.9%), Airlines, Flydubai, Air Arabia and Qatar ON INVESTMENTS DJULFXOWXUHIRUHVWU\DQG¿VKLQJ Airways have also resumed operations. AND CHANGES HGXFDWLRQ 7KHZRUVWKLWVHFWRUV IN GOVERNMENT were accommodation and food service TURKEY, RUSSIA, CHINA WERE DFWLYLWLHV WUDQVSRUWDWLRQDQG GEORGIA’S TOP TRADE PARTNERS POLICY THAT COULD VWRUDJH DQGDUWVHQWHUWDLQPHQW IN JAN-FEB 2021 IMPACT THE BUSINESS DQGUHFUHDWLRQ 7XUNH\ PLOOLRQ 5XVVLD ENVIRONMENT. PLOOLRQ DQG&KLQD INFORMATION IN GEORGIA OPENS AIR BORDERS million) were Georgia’s top trading THIS ISSUE WAS Georgia opened its air borders on partners in total external trade turnover )HEUXDU\DOORZLQJDOOSUHYLRXVO\ LQ-DQXDU\)HEUXDU\VKRZSUH TAKEN FROM IXQFWLRQLQJDLUOLQHVWRUHVXPHÀLJKWV liminary data from the National Statis AGENDA.GE AND Lufthansa has announced it is increas WLFV2I¿FHRI*HRUJLD *HRVWDW ,QWKLV OTHER SOURCES. LQJÀLJKWIUHTXHQF\DQGHYHQDGGLQJ reporting period Georgia’s top trading new destinations to and from Georgia. SDUWQHUVE\H[SRUWVZHUH5XVVLD airBaltic has resumed flights, as has PLOOLRQ $]HUEDLMDQ PLOOLRQ DQG $]HUEDLMDQ¶VORZFRVW%XWD$LUZD\V.D &KLQD PLOOLRQ ZKLOHWRSWUDGLQJ zakh carriers Air Astana and FlyArystan SDUWQHUVE\LPSRUWVZHUH7XUNH\ have also begun offering flights to PLOOLRQ &KLQD PLOOLRQ DQG &HQWUDO$VLDZKLOH+XQJDULDQORZFRVW 5XVVLD PLOOLRQ 2YHUDOO*HRU gia’s external trade turnover amounted to ELOOLRQLQ-DQXDU\)HEUXDU\ ZKLFKLVORZHUWKDQFRPSDUHGWR WKHVDPHSHULRGRIODVW\HDU7KHWUDGH GH¿FLWRI*HRUJLDLQ-DQXDU\)HEUXDU\ DPRXQWHGWRPLOOLRQZKLFK LVRIWRWDOWUDGHWXUQRYHU7KH YDOXHRIH[SRUWVGHFUHDVHGDQG WRWDOOHGPLOOLRQZKLOHLPSRUWV DOVRGHFUHDVHGDPRXQWLQJWR ELOOLRQ

GEORGIAN CENTRAL BANK RECOGNIZED AS MOST TRANSPARENT CENTRAL BANK IN 2020 7KH1DWLRQDO%DQNRI*HRUJLDKDV won the transparency nomination at the Central Banking Awards, which

6 | Investor.ge APRIL-MAY 2021 recognizes the outstanding performance WHFKQLFDODFWLYLWLHV±*(/ WKH86 8NUDLQH and achievements of individuals and DQG¿QDQFLDODQGLQVXUDQFHDFWLYLWLHV DQG7XUNH\ PXFKRIZKLFKLV organizations within the central banking *(/ attributable to wire transfers and other community. ,Q4RIWKHDYHUDJHHDUQLQJV electronic means of remittance. 7KHWUDQVSDUHQF\QRPLQDWLRQLQ IRUZRPHQUHDFKHG*(/ZKLOH 2YHUDOOWKHYDVWPDMRULW\ RI cludes three components: education, PHQHDUQHGDQDYHUDJHRI*(/ all money transfers from abroad came success in targeting a full range of SHUPRQWK7KHDQQXDOJURZWKRIHDUQ IURPFRXQWULHV stakeholders, and communication across LQJVIRUZRPHQDPRXQWHGWR*(/ various platforms. ZKLOHIRUPHQLWGHFUHDVHGE\*(/ SAKURA 2020: GEORGIAN WINES “When the National Bank of Georgia WIN ONE SILVER, 13 GOLD unveiled its new financial education GEORGIA, EU CONSIDER HIGH- MEDALS IN JAPAN website, FinEdu, last year, it represented VOLTAGE TRANSMISSION LINE the latest step in a series of initiatives ALONG GEORGIA’S SEABED TO aimed at revolutionizing transparency at CONNECT GEORGIA-EU ENERGY the central bank. Many of these changes SYSTEMS IROORZHGWKHDSSRLQWPHQWRI.RED Georgia and the European Union *YHQHWDG]HDVJRYHUQRULQ0DUFK´ are discussing the possibility of laying &HQWUDO%DQNLQJZURWH,QUHFHQW\HDUV a high voltage transmission line along the transparency award has been granted Georgia’s Black Sea seabed to connect to the central banks of New Zealand, the Georgian and EU energy systems, &]HFKLD&DQDGD,UHODQG,VUDHODQG *HRUJLDQ(FRQRP\0LQLVWHU1DWLD7XU Sweden. QDYDDQQRXQFHGLQPLG0DUFK 7XUQDYDVDLGWKDWWKLVZDVRQHRIWKH HOW MUCH WERE GEORGIANS LVVXHVGLVFXVVHGDWWKHWK(8*HRUJLD An international wine competition EARNING IN Q4 2020? Association Committee meeting in MXGJHGH[FOXVLYHO\E\-DSDQHVH Brussels, and that the World Bank may female wine specialists has awarded EHUHDG\WR¿QDQFHDWHFKQLFDODQGHFR *HRUJLDQZLQHVZLWKRQHVLOYHUDQG nomic study for the project. gold medals this year, announced the *HRUJLDQ1DWLRQDO:LQH$JHQF\7KH MONEY TRANSFERS TO GEORGIA winning Georgian wine companies were: UP 17.5% IN FEBRUARY 2021 GWS Winery with four golds; Chateau *HRUJLDUHFHLYHGPLOOLRQ 0XNKUDQLZLWKWKUHHJROGV.LQG]PD IURPDEURDGLQ)HEUXDU\ZKLFKLV rauli Corporation Winery with two golds; PRUHWKDQWKHDPRXQWUHFHLYHGLQ Mtevino with two golds; Schuchmann February 2020, says the National Bank Wines with one gold; Vaziani Company Average monthly nominal earnings of Georgia. with one gold; and Pavillion Wines with LQ*HRUJLDGHFUHDVHGE\*(/ ,WDO\ PLOOLRQ *UHHFH one silver. LQWKHIRXUWKTXDUWHU 4 RIDV PLOOLRQ DQG5XVVLD 0RUHWKDQZLQHYDULHWLHV compared to the same period of the pre million) were the largest sources of re IURPFRXQWULHVZHUHUHSUHVHQWHGDW YLRXV\HDUDQGDPRXQWHGWR*(/ PLWWDQFHVLQ)HEUXDU\ the eighth Sakura Japan Women’s Wine UHSRUWVWKH1DWLRQDO6WDWLVWLFV2I¿FHRI (8FRXQWULHVDFFRXQWHGIRURI $ZDUGV Georgia (Geostat). DOOUHPLWWDQFHVWR*HRUJLDDQGRIWKH 7KHKLJKHVWPRQWKO\HDUQLQJVZHUH JURZWKLQLQÀRZYROXPH,QÀRZVZHUH 2020 DATA: FOREIGN DIRECT REVHUYHGLQWKHIROORZLQJ¿HOGVLQIRU GRZQIURP5XVVLD WKH8. INVESTMENTS DOWN 52.9% IN PDWLRQDQGFRPPXQLFDWLRQ±*(/ DQG3RODQG &RXQWULHV GEORGIA \\ FRQVWUXFWLRQ±*(/ UHSUHVHQWLQJVLJQL¿FDQWVRXUFHVRILQ )RUHLJQGLUHFWLQYHVWPHQWV )', LQ SURIHVVLRQDOVFLHQWLILFDQG ÀRZVWKDWSLFNHGXSLQ)HEUXDU\LQFOXGHG *HRUJLDDPRXQWHGWRPLOOLRQLQ

APRIL-MAY 2021 Investor.ge | 7 GRZQIURP*HRVWDW provement in the government spending cumulation will support the further reports. VFRUH*HRUJLDLVUDQNHGWKDPRQJ development of the following sectors 7UDQVIHUVRIRZQHUVKLSIURPQRQUHV countries in the Europe region, and its in Georgia: textiles, furniture manufac ident to resident units in several compa overall score is above the regional and turing, construction products, plastic nies is considered to be the main reason ZRUOGDYHUDJHV´WKHLQGH[UHSRUWUHDGV products, steel products and paper and IRUWKHGHFOLQHRI)',ZKLFKUHGXFHGWKH mentioning that the Georgian economy cardboard. value of foreign direct investments by suffered “only a small setback this year ³,QJHQHUDOWKHLQWURGXFWLRQRIGLDJR PLOOLRQ7KHWRSWKUHHFRXQWULHV in its long progression to the upper ranks nal cumulation will increase the range of that invested the most in Georgia in 2020 RIWKHPRVWO\IUHHFDWHJRU\´ produce that can be exported to the EU, ZHUHWKH8QLWHG.LQJGRPZLWK ³0XOWL\HDUUHIRUPVWRUHGXFHFRU as well as it will encourage investments PLOOLRQ WKH1HWKHUODQGVZLWK ruption, cut regulation, and simplify IURP7XUNH\LQWKH*HRUJLDQHFRQRP\ PLOOLRQ DQG7XUNH\ZLWK taxes have led to upward movement in all will help to establish joint companies PLOOLRQ aspects of economic freedom. Achieving DQGFUHDWHQHZMREV´*HRUJLDQ(FRQRP\ 7KHODUJHVWVKDUHRI)',VZDVUHJ DWRSUDQNLQJKRZHYHUZLOOUHTXLUH 0LQLVWHU1DWLD7XUQDYDVDLG LVWHUHGLQWKH¿QDQFLDOVHFWRUUHDFKLQJ even more intensive efforts to improve Diagonal cumulation will not ap PLOOLRQLQWKHPLQLQJVHF perceptions of government integrity ply to agricultural produce, as customs WRUZDVWKHVHFRQGZLWKPLOOLRQ DQGMXGLFLDOHIIHFWLYHQHVV´WKHUHSRUW DJUHHPHQWVEHWZHHQWKH(8DQG7XUNH\ which was followed by the real estate continues. does not cover agricultural produce. VHFWRUZLWKPLOOLRQ Georgia scored highest in fiscal KHDOWK WD[EXUGHQ DQGWUDGH UNEMPLOYMENT INCREASED BY GEORGIA’S NEW RULES ON IUHHGRP ,WKDGLWVORZHVWVFRUHV 3.8% TO 20.4% IN GEORGIA IN INTERNATIONAL TRAVEL in property rights (66.9), government Q4 2020 *HRUJLDHDVHGHQWUDQFHUHTXLUHPHQWV LQWHJULW\ DQGMXGLFLDOHIIHFWLYH ,QWKHIRXUWKTXDUWHURIWKH for international travellers as of February QHVV XQHPSOR\PHQWUDWHLQFUHDVHGE\ )RUHLJQWUDYHOHUVPXVWQRZSUHVHQWD as compared to the same period of last FHUWL¿FDWHSURYLQJWKH\KDYHXQGHUJRQH GEORGIAN PRODUCTS WITH \HDUULVLQJWRVKRZGDWDIURP DFRPSOHWHFRXUVHRI&RYLGYDF TURKISH INPUTS TO BE EXPORTED WKH1DWLRQDO6WDWLVWLFV2I¿FHRI*HRUJLD FLQDWLRQ,IDIRUHLJQWUDYHOHUKDVQRW TO EU UNDER DCFTA (Geostat). DQGLVWUDYHOLQJIURPWKH(8,VUDHO *HRUJLDPDGHSURGXFWVWKDWLQFOXGH As for the distribution of labor be Switzerland, the U.S., Saudi Arabia, the 7XUNLVKUDZLQSXWVZLOOEHH[SRUWHGWRWKH WZHHQWKHVH[HV³7UDGLWLRQDOO\WKHXQ UAE or Bahrain, he or she can present (8³LQWKHQHDUIXWXUH´XQGHUWKH'&)7$ employment rate is higher for men than a negative PCR test result taken within diagonal cumulation, signed between IRUZRPHQ,QWKHIRXUWKTXDUWHURI the past 72 hours. For this latter group, *HRUJLD(8DQG7XUNH\RQ0DUFK WKLVLQGLFDWRULQFUHDVHGIRUZRPHQE\ foreign citizens are obliged to do another WKH*HRUJLDQ0LQLVWU\RI(FRQRP\ percentage points, while it increased by PCR test on the third day following their announced in early March. SHUFHQWDJHSRLQWVIRUPHQ´*HRVWDW entry into the country. 7KHPLQLVWU\UHSRUWVWKDWGLDJRQDO stated, commenting on the data.

2021 INDEX OF ECONOMIC FREEDOM: GEORGIA 12TH IN WORLD, 7TH IN EUROPE Georgia received an economic free GRPUDQNLQJRILQWKH,QGH[ of Economic Freedom from the Heritage )RXQGDWLRQPDNLQJLWVHFRQRP\WKHWK IUHHVWLQ ³,WVRYHUDOOVFRUHKDVLQFUHDVHGE\ SRLQWSULPDULO\EHFDXVHRIDQLP

8 | Investor.ge APRIL-MAY 2021 makers should prioritize,” notes viticulture researcher Giorgi Barisashvili. Barisashvili continues: “Organic and Georgia’s organic natural wines are not intended for the Russian or Chinese markets. White wine is not even acknowledged in China. In Russian and other former Soviet republics, they like mostly sweet and semi- wine opportunity sweet wines. We should leave this cheap segment to the big wineries in Georgia, i.e. GEORGIAN WINEMAKERS industrial winemaking, while small wineries should only work in countries with an exist- HAVE MADE SIGNIFICANT ing wine culture, and aim for the organic PROGRESS IN RECENT market,” YEARS IN INTRODUCING In addition to the supposed health EHQHÀWVDQGGLIIHUHQFHLQWDVWHRIRUJDQLF 7+(&28175<·6<($5 wines, there is a marketing issue with the HISTORY OF WINEMAKING country remaining so focused on the TO THE WORLD. BUT THE industrialized production of wine, Mariam Jorjadze, Director of the Biological Farm- NEXT FEW DECADES, ing Association Elkana, points out. “A EXPERTS SAY, WILL BE ABOUT FRXQWU\ ZLWK DQ \HDUROG XQLQWHU- ORGANIC WINE, AND IT’S rupted tradition of winemaking should not TIME FOR GEORGIA TO TAKE focus on industrial production,” she says. ,WGRHVQ·WÀWWKHQDUUDWLYHZKLFKLVRIWHQ THE FIRST STEPS TOWARD what attracts the interest of wine lovers to CONQUERING THE THIRSTY Georgian wines. AND BETTER-PAYING ,Q WKHUH ZHUH MXVW VPDOO WR mid-sized producers of organic wines in MARKETS THAT WANT THEM. Georgia, Caucascert, the country’s only RUJDQLF ZLQH FHUWLÀFDWLRQ LVVXHU WROG In- ZURA KHACHAPURIDZE This idea isn’t unique to Georgia, but vestor.ge, with real interest having been the market for organic wines is relatively GUXPPHG XS LQ WKH SDVW IRXUÀYH \HDUV eorgian wine is sold in 54 countries young and underdeveloped globally, among winemakers and a steady de- around the world and revenue with just 8.5% of European vineyards and PDQGIRURUJDQLFFHUWLÀFDWLRQLQFUHDVLQJ Gfrom Georgia’s wine exports ex- SURGXFWLRQ FHUWLÀHG DV RUJDQLF LQ DQQXDOO\ FHHGHGPLOOLRQ86'LQ,Q offering Georgia an opportunity to join Despite its serious prospects, organic WKDWÀJXUHZDVRQO\PLOOLRQ86'PDNLQJ the front-runners in a market Transparency wine production in Georgia faces an IRUDLQFUHDVHLQMXVWHLJKW\HDUV 0DUNHW 5HVHDUFK H[SHFWHG LQ LWV uphill battle. But industry specialists say that Georgia UHSRUWWRJURZDWDVWHOODUEHWZHHQ Organic vineyards in Georgia made could be making dollars by the barrel-full UHDFKLQJDPDUNHWYDOXDWLRQRI XSRQO\RIWKHFRXQWU\·VWRWDOYROXPH if only winemakers endeavored to carve ELOOLRQE\WKHHQGRIWKLVSHULRG RIYLQH\DUGVLQ,QOHVVWKDQRI a niche for themselves in organic wine. European markets are currently driving the country’s vintage came from organic Georgian winemaker Iago Bitarishvili, global demand for organic wine, which is grapes. owner of Iago’s Wine, explains the Geor- expected to account for 78% of the global TBC Research noted in a report focus- gian wine market predicament: RUJDQLFZLQHPDUNHWE\EHYHUDJH- ing on the Georgian wine industry in early “Georgia cannot compete with coun- daily.com writes. WKDWWKHFRVWVRIVZLWFKLQJWRRUJDQLF tries such as France, Italy, Spain, Australia Considering these facts, the circum- farming are currently prohibitively high. and Chile in terms of volume and industri- stances of the makeup of the Georgian Other issues have also stalled growth alized wine production. Georgia should wine market are ripe for a pivot in direc- of the organic wine market, ranging from instead focus on producing organic, WLRQ *HRVWDW GDWD IURP VKRZ WKDW the expenses needed to prepare orchards natural and ‘qvevri’ wines, which can about 57% of all Georgian wine exports IRUFHUWLÀFDWLRQWKHSULFHRIFHUWLÀFDWLRQ IHWFKDSULFHWKUHHWRÀYHWLPHVKLJKHURQ DPRXQWLQJ WR PLOOLRQ 86' ZHQW WR LWVHOIZKLFKPXVWEHUHQHZHG\HDUO\DQG the market,” Bitarishvili told Investor.ge. the Russian market, where the average WKH IDFW WKDW WKH GLIÀFXOW\ DQG H[SHQVH Quality over quantity is the way to H[SRUWSULFHRIDERWWOHLVDERXW in establishing new market connections go, he says, and Georgia’s abundance “[Unlike in Russia], in Western Europe, in Europe, in addition to other attractive of authentic local grape varieties means Georgian wines can fetch as much as 8 markets, make the already tried-and- it can provide unique products, further USD and above on average. These statis- tested path of exporting wine to Russia increasing sales revenue. tics clearly indicate what Georgian wine- that much more appealing.

APRIL-MAY 2021 Investor.ge | 9 Transatlantic leadership: US Ambassador Kelly Degnan and AmCham President Sarah Williamson talk Georgia-US relations and the changing role of women

INTERVIEW WITH AMCHAM EXECUTIVE DIRECTOR GEORGE WELTON

George: Ambassador, Sarah, what do you think are US Ambassador Kelly C. Degnan the strongest characteristics Georgia and the US have in common? Ambassador Degnan: ,QWKH\HDUWKDW,¶YHEHHQKHUHZKDW strikes me the most between the two countries is a drive to constantly be improving – that energy, openness to engage with QHZWUHQGVWRWU\QHZWKLQJV7KDWLVQ¶WWKHFDVHHYHU\ZKHUH WKDW,¶YHVHUYHG$QGDJDLQ,¶YHRQO\EHHQKHUHD\HDUEXWLW¶V that energy and enthusiasm for change that makes Georgia such a good partner for the United States. Sarah: Georgians have always been sort of rebellious, LQGXVWULRXVHYHQHQWUHSUHQHXULDOLQWKHLURZQZD\,WKLQN \RXVHHVLPLODUFKDUDFWHULVWLFVLQPDQ\$PHULFDQV,WKLQNWKH best entrepreneurs have a revolutionary mindset in many ways. Also, while we can agree that our past makes us who we are, ,OLNHWREHOLHYHWKDW*HRUJLDDQGWKH86DOVRVKDUHERWKDQ expectation of moving forward, and an ingrained belief in a IUHHPDUNHWHFRQRP\ George: Turning that around – are there are any characteristics you would like to see each country learn from each other? Ambassador Degnan: Both countries are very polarized at

AmCham President Sarah Williamson WKHPRPHQWEXW,VWLOOWKLQNWKDWWKHUHLVPRUHRIDQXQGHUVWDQG

10 | Investor.ge APRIL-MAY 2021 ing at this point in America’s democracy WKDW,DUULYHGLQWKHPLGGOHRIDSROLWLFDO WKH\¶YHDOOEHHQIDVFLQDWLQJ\HDUV,Q WKDWGHPRFUDF\UHTXLUHVFRPSURPLVH FULVLV,WVHHPVOLNHDUHDOO\LPSRUWDQW P\WLPHKHUH,IHHOOLNH,¶YHJRWWHQWR :KHUHDV,IHHODWWKLVSRLQWLQ*HRUJLD¶V transition time for a country that is very witness not only the Rose Revolution, democratic development there’s still not much in the earliest stages of building DQGWKH¿UVWSHDFHIXOWUDQVIHURISRZHU a full embrace of the fact that politics is its democracy. So it’s really a fascinat but also something like the country’s the art of compromise. Compromise is ing time to be in Georgia, and to be the economic and industrial revolution, not a sign of weakness. United States Ambassador, when we are its sexual revolution and the women’s Sarah:,DJUHHWKDWSRODUL]DWLRQLVD trying across the board in so many ways HPSRZHUPHQWPRYHPHQW7KLQJVWKDW, ELJSUREOHPIRUERWKEXWZKDW,KDYH to be a good partner to this country. might be lucky to see one of, in a whole come to really appreciate about the US George: Sarah, how do you see lifetime, in the US. RYHUWKHSDVW\HDUVLVWKDWRXULQVWLWX Georgia and the challenges it faces ,DSSUHFLDWHWKLVTXHVWLRQIRUPDNLQJ tions have held. Both sides are constantly now compared to the challenges that it me go back and appreciate all the good crying foul, but with a few bumps along IDFHGZKHQ\RX¿UVWFDPHKHUH" that has happened. Sometimes it’s too WKHZD\RXULQVWLWXWLRQVKDYHVWRRG¿UP Sarah: Frankly, there was often just easy to get bogged down in what hasn’t and held up against attempts by one side a few hours per day of basic needs like happened yet. or another to abuse or dismantle our de HOHFWULFLW\DQGUXQQLQJZDWHUZKHQ,¿UVW George: Looking at the relation- mocracy. Georgia needs to have strong FDPHKHUH7KDWZDVLQWKHPLGGOHRIWKH ship between Georgia and the US, institutions that insure the same. VXPPHUMXVWLPDJLQHWKHZLQWHUV,FDPH what is the most important component George: Ambassador, you’ve been at the end of it, but Georgians had been of that relationship? And what is your here a year. How is your experience JRLQJWKURXJKLWIRU\HDUV7RVHHDFRXQ role in developing that relationship? so far in Georgia compared to other try transforming, and to be involved in Ambassador Degnan:7KHSHRSOH postings? that change, over just 20 years from that WRSHRSOHH[FKDQJHVRYHUWKH\HDUV, Ambassador Degnan:,WKDVEHHQ ¿UVWVWDWHRIFROODSVHWRLWVFXUUHQWOHYHO think, are the most valuable connection YHU\PXFKGRPLQDWHGE\&29,'7KLVLV of development has been phenomenal. that we’ve got. Obviously, just the expe DXQLTXHSULVPWKURXJKZKLFKWRVHHDQ\ 7KH$PEDVVDGRUVDLGWKDWLWKDV rience of Americans coming to Georgia FXOWXUH7KHRWKHUVLGHRILWRIFRXUVHLV EHHQDIDVFLQDWLQJ\HDUDQG,DJUHH%XW and Georgians going to America, you

APRIL-MAY 2021 Investor.ge | 11 almost see the ideas light up, you see the FRQQHFWLRQV7KH8QLWHG6WDWHV(PEDVV\ has had wonderful exchange programs over the years – whether from the FLEX program for high school students, the Fulbrighters, the Humphreys, the Rums IHOGIHOORZV±WKHUH¶VFORVHWR alumni that we’re still in touch with. $QG,WKLQNWKHVDPHLVWUXHIRUWKH Peace Corps volunteers who come here. 7KH\KDYHWKHRSSRUWXQLW\WRFRQWULEXWH to English language training or skills building. But the gift that the Georgians give those Peace Corps volunteers to take back to America is just invaluable. And so we’ve already got this rich stew that produces good ideas in busi ness, good ideas in academics, in re search cooperation, in agricultural co RSHUDWLRQ7KLVWRPHLVZKHUHLWVWDUWV Sarah: When we built our company, we took practices from our experiences WKH)RUHLJQ6HUYLFH$QGEHIRUH,ZDV also admit that there’s more work to be in America, and we want to call them LQWKH)RUHLJQ6HUYLFH,SUDFWLFHGODZ done in terms of truly integrating minori ‘American’ but they are also just good which in those years was also very male ties and underrepresented groups here. practices…and we were able to prove dominated. Having role models is so important that if you really do stick to a straight With careers in the United States, to showing men and women that gender forward business plan, it can work here. perhaps in other countries as well, it’s is irrelevant to doing the job. Because ,¶PVWLOOSURXGRIWKDW,WKLQNP\UROH often the government that leads the way it’s important to encourage women, but over many years, has been about helping and opens doors for minorities, or for it’s even more important, in my view, to WRXQGHUVWDQGHDFKRWKHU,¶PQRWDGLSOR underrepresented groups like women. help men understand that this is a plus mat, it’s not my job to work out foreign ,WKLQNWKDWKDVYHU\PXFKEHHQWKH and neither threatening or inappropriate. SROLF\IRUHLWKHUFRXQWU\,MXVWORYHERWK case in the United States government. ,WKLQN*HRUJHZKHQ\RXDVNHG countries with all my heart and want the ,¶PYHU\SURXGRIWKHVXSSRUWWKDWWKH about what’s changed during my career, best for both of them, for my children’s United States government has given to RQHRIWKHPRVWLPSRUWDQWWKLQJVWKDW, two homelands, and so it’s important to RSHQDOORIRXUH\HVWRRXURZQXQFRQ think has changed is that it has become me to see Georgia stay on the right track. scious biases. easier for men and women to have a George: One of the reasons we’re ,DOVRUHDOO\DSSUHFLDWHZKDW3UHVL IDPLO\LQWKLVOLIHVW\OHRIPRYLQJDOOWKH having this interview is because dent Biden has done, very deliberately, WLPH:KHQ,¿UVWFDPHLQLWZDVPXFK ZHKDYHMXVW¿QLVKHG,QWHUQDWLRQDO WREXLOGDFDELQHWWKDWUHÀHFWV$PHULFDQ more often that women would have to Women’s Month. Ambassador, you’ve society. leave their career in order to have their been in the US Foreign Service for But it’s not enough just to bring in families and raise their children. Now, quite a long time now. You must have WKHQXPEHUV,W¶VDOVRDERXWPDNLQJXQ in part because of technology, it is easier seen some incredible changes over the derrepresented groups feel accepted and IRUXVWRKDYHWZRIRUHLJQVHUYLFHRI¿FHUV years. Tell us a bit about that. integrated and comfortable working in UDLVLQJWKHLUFKLOGUHQ7KLVKDVDOORZHG Ambassador Degnan:7KHUHKDYH the Foreign Service or in the private sec men to also have the experience of being EHHQYHU\VLJQL¿FDQWLPSURYHPHQWVLQ tor, wherever it is. We’re still working on more involved in raising their families, WKHDOPRVW\HDUVWKDW,¶YHEHHQLQ WKDW%XW,WKLQNPRVW*HRUJLDQVZRXOG DQG,WKLQNWKDW¶VVRLPSRUWDQW

12 | Investor.ge APRIL-MAY 2021 George: Sarah, how do you think One of our hosts from the US Cham best thing we could do is put a female you’ve seen the role of women change EHUWKHUHLQ'&WKRXJKW,ZDV([HFXWLYH Ambassador here, in that case! Since during your time here? What has the 'LUHFWRU«DQGZKHQWKH\UHDOL]HGWKDW, WKHQWKH8.7XUNH\*HUPDQ\QRZWKH impact of that been on the country? was the President, they acted impressed USA, and so on – they’ve all had excel Sarah: US government organizations and pointed out that all the other presi lent Ambassadors many of whom happen have done a lot of work on this issue, GHQWVLQWKHURRPZHUHPHQ,IRXQGWKDW WREHZRPHQ,WGRHVZRUN and others, too. We still need to get more strange, but it didn’t really register to me George: Ambassador, you trained women in Parliament, civil society and at that moment. Later they came and told in journalism and law; what does the senior private sector positions, but we’ve me that they had done some checking training in journalism and the jour- also come a long way. We need to encour DQGZHUHQRZSUHWW\FHUWDLQWKDW,ZDV nalism experience bring you in terms DJHJLUOVLQWKLQJVOLNH67(0¿HOGVDQG actually the only female president of an of your engagement with the media RWKHUVEXW,¶PJODGWKDWLW¶VQRORQJHUD AmCham outside of the US at that time. here and what do you think about the standout thing when a woman holds a 7KH\DOOWKRXJKWLWZDVJUHDWDQGWKDW, Georgian media circuit? KLJKUDQNLQJSRVLWLRQ PXVWEHVRSURXG$FWXDOO\,ZDVPRUWL Ambassador Degnan:,¶PUHDOO\ 7REHIDLU,QHYHUIHOWGLVFULPLQDWHG ¿HG,WZDVVKRFNLQJ7KLVZDV,W glad to have that background because it DJDLQVWLQ*HRUJLDEXW,FDPHWRUHDOL]H shouldn’t have even been noteworthy gives me an appreciation for how hard WKDW,ZDVEHLQJWUHDWHGGLIIHUHQWO\EH DQG\HWRXWRIWKH$P&KDPVWKH\ their job is but also how high the stan FDXVH,ZDV$PHULFDQ*HRUJLDQZRPHQ ORRNHGWKURXJK,ZDVWKHRQO\ZRPDQ" dards need to be in order for media to are some of the most talented, intelligent ,QVDQH7KDQNIXOO\WKDW¶VMXVWVRQRWWKH play the role it needs to play in a democ DQGKDUGZRUNLQJWKDW,KDYHHYHUPHW FDVHDQ\PRUH7KHUHDUHORWVRIZRPHQ racy. And then there’s the level of politi 7KH\DUHGRLQJDQLQVSLULQJMRERISURY presidents and being one gender or the cization here; the level of polarization in ing themselves at every level. One day, other is not noteworthy. a market this small is to me a disservice they won’t have to do so any more than ,FDQWKLQNRIDQRWKHUH[DPSOH, to the citizens of Georgia, because there their male counterparts do. remember in the early 2000s there were are very few places that Georgians can 7KRXJKLW¶VQRWMXVW*HRUJLDE\ rumors that there was going to be a fe go for impartial information. DQ\PHDQV,QRU,ZHQWWR PDOH86$PEDVVDGRUWR*HRUJLD,ZDV As people are driven to social media Washington D.C. for a meeting at the shocked at the response. People were to get their information that’s an even 86&KDPEHU,WZDVIRU3UHVLGHQWVDQG saying, ‘it won’t work to have a female greater danger in many ways…the silo Executive Directors, from AmChams US Ambassador here, Georgia is a macho ing of information, the reinforcing of throughout Europe. VRFLHW\¶$QG,MXVWWKRXJKWRKJRGWKH stereotypes, the loss of that marketplace of ideas and exchange of views – it’s so damaging. 7KH¿UVWWKLQJ,GLGZKHQ,JRWKHUH ZDV,ZDQWHGWRXQGHUVWDQGWKHFKDO lenges that the journalists and editors IDFHKHUH,W¶VDWRXJKWRXJKPDUNHW everywhere in the world because it’s FKDQJLQJDQGWKH¿QDQFLQJRILWEHFRPHV VRGLI¿FXOW,IHHOOLNHWKDWLVDFKDOOHQJH KHUHLQSDUWLFXODU,WPDNHVLWGLI¿FXOWIRU outlets to be impartial when their funding is not impartial. %XW,DOVRKDYHDGHHSUHVSHFWIRU VHOIUHJXODWHGSURIHVVLRQVOLNHWKHPH dia, like law, where it is incumbent on the professionals to maintain those high standards of ethics and that commitment

APRIL-MAY 2021 Investor.ge | 13 We are also well placed to push for bilateral agreements like a US free trade agreement, supporting discussions around the GSP program and how to use these treaties to push for positive change. For example, the US has a bilateral investment treaty with Georgia that is useful in helping us hold Georgia to a higher standard in some ways. 7KHSULYDWHVHFWRUFDQEHVXFKD JUHDWZD\RIFRQQHFWLQJSHRSOH7KRVH in Georgia and those in the United States, the Americans that come here to work, to doing their job ethically. the government needs to hear from the own companies, run companies, end up George: Sarah, as the owner of a business community, not just in an ad hoc going back to the United States as sort of technology company, how do you see ZD\EXWLQLQDUHDOO\XQL¿HGZD\ZKHQ ambassadors for Georgia because pretty technology kind of working its way the business community, through groups PXFKHYHU\ERG\WKDWOLYHVKHUHORYHVLW into Georgia’s development? like AmCham, speak with one voice to E\WKHWLPHWKH\OHDYH7KHVDPHLVWUXH Sarah::KHQZHVWDUWHG8*7LQ express what Georgia needs to do to of the Georgians that come back from the WKHUHZDVKDUGO\DODQGOLQHQHW make the environment more investor States, have loved their time there, and work in this country. Everything was on friendly, the government listens. are transformed by it. paper, and so corruption was easy to get 7KRVHFKDQQHOVQHHGWREHVKDUSHQHG George: What are you most look- DZD\ZLWK,WZDVXQEHOLHYDEOH1RFRP WKH\QHHGWREHDPSOL¿HGVRWKDWWKH LQJIRUZDUGWRSRVW&29,'" munication between anything, as you business community can have a greater Ambassador Degnan:,ZRXOGVD\ NQRZ7KHZD\WKH\KDYHEHHQDEOHWR LQÀXHQFHRQWKHNLQGRIOHJLVODWLRQWKDW that the opportunity to be in groups jump ahead, in a relatively short amount goes through, the kind of environment DJDLQ,W¶VZRQGHUIXOWRKDYHWKHVPDOO of time, into a much better situation is of WKDWLVFUHDWHG7KDWLVDKXJHWRROLQ group exchanges where you can really EHQH¿WWRHYHU\VLQJOHFRUQHURIVRFLHW\, terms of attracting foreign investment, JHWLQWRGLIIHUHQWLVVXHVGHHSO\%XW, mean, my online banking works better in whether from the United States or from ¿QGHYHU\WLPH,¶PLQDVOLJKWO\ODUJHU Georgia than it does in America and my other kinds of investors that Georgia JURXSDQGDJDLQZH¶UHVWLOOTXLWHVPDOO cell phone data and network capabilities ZDQWVDQGQHHGV,UHDOO\FDQ¶WHPSKDVL]H here because of the precautions, it just are much better! Georgia has been able enough the value of what groups like warms my heart to see people again, to learn from other countries’ mishaps, the American Chamber of Commerce and to connect with them, and to start without having to go through the expense FRQWULEXWH$QG,MXVWUHDOO\FRPPHQG exchanging ideas again, and get all of of making them. your membership for being so actively WKRVHÀDVKHVJRLQJRIJRRGLGHDV$QG George: What role does business involved. then, of course, to be able to do that in play in building US-Georgia relations? Sarah: From an AmCham perspec EHDXWLIXOSODFHVOLNH6YDQHWLRU.DNKHWL Are there any particular instances of tive, with our solid American and Geor or out on the Black Sea coast – all the this that you’ve seen that you found gian roots, we are in a great place to EHDXWLIXOSODFHVWKDW,VWLOOKDYH\HWWRVHH can be particularly compelling so far? demand the changes that need to happen, KHUH,GRKRSHWREHDEOHWRGRWKDWVRRQ Ambassador Degnan:,ZRXOGKHVL like judicial reform, demanding open Sarah:,QRWKHUWLPHVZH¶GEHKDY tate only because it’s been such a strange PDUNHWVWUDQVSDUHQF\DQGVRRQ,QWKRVH ing this conversation on a terrace in the year that we didn’t have the kind of en things, no one could play a bigger role FLW\,KDYHWDNHQIRUJUDQWHGWKHDELOLW\ gagement that we normally would have. than the business community and we are to just be out and enjoy the heartbeat of We shouldn’t underestimate the in FHQWUDOWRWKDW$QG,WKLQN$P&KDPKRQ WKLVSODFH,PLVVSHRSOHDQGWKHYLEUDQF\ ÀXHQFHRIJURXSVOLNHWKHWKH$PHULFDQ ors its responsibility to lead by example RIOLIH,DPUHDOO\ORRNLQJIRUZDUGWR &KDPEHURI&RPPHUFHEHFDXVH,WKLQN in abiding by those things, ourselves. that again.

14 | Investor.ge APRIL-MAY 2021 SRUDWH,QYHVWPHQW%DQNLQJDQG:HDOWK 0DQDJHPHQW*HRUJH7NKHOLG]HEH New routes open up lieves that once more potential investee FRPSDQLHVEHFRPHDYDLODEOH²WKH,),V stress that chosen candidates will need for Georgian SMEs as to have strong cash flows and earn ings—international funds will be drawn in. Domestically, new funds should join IFIs move to diversify WKHPDVOHJLVODWLRQIRUSULYDWHHTXLW\DQG venture capital funds is on the NBG’s action list, and company pension funds could follow. financing options 7KHVFRSHRI*HRUJLD¶VGRPHVWLF markets is currently too small to attract IFIS IN GEORGIA ARE DFFHVVWRORQJWHUPLQWHUQDWLRQDOPRQH\ international institutional funds, but it MOVING TO ATTRACT and domestic funds. Vital is that this will could be boosted by activity from the ENTREPRENEURIAL attract investors who can take greater country’s recently established state FINANCE FOR SMES, ULVNVWKDQEDQNV7KHSODQV,),VKRSH 3HQVLRQ)XQGEHOLHYHERWK7%&%DQN ZLOOVSHHGXSWKHGHYHORSPHQWRI*HRU DQGLQYHVWPHQWEDQNHUV*DOW 7DJJDUW PASSING ON ALONG THE gia’s capital markets, which has been a 7KHUHVKRXOGDOVREHYHU\XVHIXOH[SDQ WAY A MUCH NEEDED slow process for several years now. sions in size and activity on the entry BOOST TO GEORGIAN Over the coming months, Georgian of promised privatisation via the stock CAPITAL MARKETS 60(VDUHJRLQJWR¿QGWKHPVHOYHVRQ PDUNHWRIVWDWHRZQHGHQWHUSULVHVZKLFK the receiving end of instruction on how could help the whole market. SALLY WHITE to appeal to foreign frontier funds, how ³7KH*RYHUQPHQWKDVUHFHQWO\DQ to present their financial profiles to nounced intentions to privatize a number WLVDOOKDQGVRQGHFNIRU*HRUJLDQ investors; they will learn about EU re RI*HRUJLDQFRUSRUDWHV,W¶VFUXFLDOO\ FDSLWDOPDUNHWVDV,QWHUQDWLRQDO TXLUHPHQWVRQJRYHUQDQFHDQG¿QDQFLDO important for the development of capital ,)LQDQFLDO,QVWLWXWLRQV ,),V KDYH transparency and how to set up private markets that these privatizations be car been rallying to the call to diversify the pensions schemes to incentivize key ried out through local capital markets (a PRQH\RQRIIHUWRVPDOODQGPHGLXP VWDII7KH\ZLOOEHLQYLWHGWRFRQVLGHU path of development taken by a number sized enterprises (SMEs)—the key to QRQEDQN¿QDQFLQJLQWKHIRUPRIERQGV RI(DVWHUQ(XURSHDQSHHUV ´VDLG2WDUL Georgia’s economic growth—over the or shares. Starting with a select few, they Sharikadze, Managing Director at Galt past several months. could be helped with mentoring and 7DJJDUW ,QYROYHGDUHWKH(XURSHDQ%DQN maybe also funding to cover the issu Currently, he says, the pace of de for Reconstruction & Development ance costs to raise money directly from velopment of Georgia’s capital markets (%5' 86$,'WKH$VLDQ'HYHORS international and domestic investors of LV³VLJQL¿FDQWO\ORZHUFRPSDUHGWRRXU PHQW%DQN $'% (XURSHDQ,QYHVWPHQW all sorts. (DVWHUQ(XURSHDQSHHUV´7KHUHKDVEHHQ %DQN (,% WKH:RUOG%DQNDVZHOODV ,QWKHYLHZRILQYHVWPHQWEDQNHUV a little recent activity at the smaller end the Georgian Ministry of the Economy *DOW 7DJJDUWDQG7%&%DQNERWKRI RIWKHPDUNHWLQWKDW*DOW 7DJJDUWOLVWHG and Sustainable Development (MoE) whom have international investor clients, two companies on the Georgian Stock and National Bank of Georgia (NBG), foreign investors should be attracted to Exchange in 2020—Metro Euphoria to name a few. WKH*HRUJLDQFRPSDQLHVLQWKH,),V¶OLQH DQG*UHHQ,QVXUDQFH7KHVHZHUHUDUH 7KHLUDLPLVWRZLGHQWKHUDQJHRI of sight because of the relatively high events, because of the lack of trading sources of corporate funding beyond just level of Georgia yields in the current DQGKHQFHOLTXLGLW\DWWKHH[FKDQJH%XW bank borrowing, increasing Georgian JOREDOXOWUDORZ\LHOGHQYLURQPHQW ZLWKSURVSHFWVRILQFUHDVLQJ,),VXSSRUW companies’, and particularly SMEs’, 7KH7%&%DQNGHSXW\&(2RI&RU LQWKHEDFNJURXQG*DOWDQG7DJJDUWLV

APRIL-MAY 2021 Investor.ge | 15 “looking for interesting companies to be implementation of support mecha to be provided are “support to improve listed that could trigger investors coming nisms facilitating access to capital mar WKHFDSDFLW\RI60(VWRDFFHVV¿WIRU WRWKHPDUNHW´ NHWV²ERWKGHEWDQGHTXLW\²IRUORFDO SXUSRVH¿QDQFLQJDQGLQFRUSRUDWLRQRI 7KHPXFKQHHGHGFDWDO\VWRIPRUH FRUSRUDWHVLQFOXGLQJ60(V7DUJHWHG DSSURSULDWH¿QDQFLDOWHFKQRORJ\LQWRWKH intermediaries (brokers and investment support will enhance Georgian compa ORFDOFDSLWDOPDUNHWHFRV\VWHP´7KLVLV banks) and traders to pull in clients, nies’ preparedness for capital markets, all part of its drive to “build a modern groom prospective issuers, and create broaden their funding sources and help FDSLWDOPDUNHW´VRWKDW*HRUJLDQFRP a more dynamic capital market is still attract financing from domestic and SDQLHVFDQ³DFFHVVGLYHUVL¿HGVRXUFHV DZRUNLQSURJUHVV86$,'DQGRWKHU international investors. Companies can RIFDSLWDO´ international agencies are hoping to help UHFHLYHWDLORUPDGHDGYLVRU\VHUYLFHV 7KHSDFHRIHIIRUWWRDXJPHQWWKHVXS with this. Without them, although regula and technical support to improve their ply of funds from banks is being driven tions are going into place, the situation is corporate governance, transparency and at a faster rate. Work on Georgia’s capital GHVFULEHGE\6DQGUR%LELODVKYLOLDW%*, credit rating to source investments across markets has been protracted over many Legal as “having building structures but FDSLWDOPDUNHWV´ years. While the Caucasian Exchange QRRFFXSDQWV´ 7KHSURJUDPZLOORIIHUWKLV³FDSDFLW\ ZDVFUHDWHGDQGWUDGHGLQFRPSDQLHV Active international trading to cre EXLOGLQJ´WR³REMHFWLYHO\VHOHFWHGFRP EDFNLQLWVXSGDWHGUHLQFDUQDWLRQ DWHDG\QDPLFVWRFNPDUNHWLQ7ELOLVL SDQLHV´DQG³WDUJHWHGVXSSRUWWRSUHSDUH HVWDEOLVKHGZLWKWKHDLGRI86$,'WKH in local bonds and shares is not some IRUWKHLVVXDQFHSURFHVV´0RUHGHWDLOV Georgian Stock Exchange, has listed WKLQJFXUUHQWO\RQWKH,),¶VVKRUWWHUP will be published when the program is FRPSDQLHVDQGKDVEHHQDFWLYHIURP agenda. First, they want to prepare the RI¿FLDOO\ODXQFKHGDQGPDUNHWH[SHF 2000. However, local markets have been companies. So for now, any SME bond WDWLRQVDUHWKDWLWZLOOEHDQPRQWK pushed aside for SME funding in recent RUHTXLW\LVVXDQFHVEURNHUVEHOLHYHDUH programme. \HDUV%DQNVDQGPLFUR¿QDQFHJURXSV likely to be placed directly with small Catarina Björling Hansen, EBRD have largely taken over the role as suppli groups of investors. Regional Director for the Caucasus, HUVRI¿QDQFHGRPLQDWHGE\WKH%DQNRI 2IWFRQVXOWHGE\,),VLV*HRUJH/R VD\Vµ¶7KHSDQGHPLFDQGLWVHFRQRPLF *HRUJLDDQG7%&%DQNERWKOLPLWHGRQ ladze, who now runs broker Caucasus impact have created a new reality for ULVNWDNLQJE\/RQGRQ6WRFN([FKDQJH Capital. Loladze was the founding chair the private sector and now is the time to OLVWLQJV7KHVHEDQNVDOVRRZQWKHPDMRU man of the Georgian Stock Exchange UHWKLQNUHHGXFDWHUHVNLOODQGUHVWDUW brokers. DQGDFWLYHLQLWVSUHGHFHV We are delighted to be joining forces 1RQEDQNILQDQFHLQ*HRUJLDKDV sor, the Caucasian Exchange. Advising with the European Union again to sup come mainly through large denomina on the basis of one of the longest market port businesses, jointly fostering digital WLRQERQGVLVVXHGE\WKH,),VDQGPDMRU experiences in the country, he says that, transformation, driving green growth corporates, although the latter have often ³7RJHWDORQJWHUPVXVWDLQDEOHRXWFRPH DQGDVVLVWLQJFRPSDQLHVWRDFFHVVPXFK preferred overseas rather than domestic if they really want to develop a local needed funding from diverse sources.’’ VWRFNPDUNHWV7KHSRVLWLRQIRUVPDOOHU capital market, the donors should con 86$,'KDVVWDWHGWKDW³DIXQFWLRQ companies has attracted concerned com centrate their efforts on capacity building LQJGLYHUVH¿QDQFLDOPDUNHWLVDFUXFLDO PHQWIURPWKH,),V$VWKH(,%KDVFRP of the key entities of any stock market, XQGHUSLQQLQJIRUHFRQRPLFJURZWK´ PHQWHG³%DQNVGRPLQDWHWKH¿QDQFLDO ORFDO QRQEDQNVXEVLGLDU\ LQYHVWPHQW DQGLVSURYLGLQJ WRWKHWXQHRIPLO system in Georgia. Banking sector assets EDQNVEURNHUDJHFRPSDQLHV´ OLRQ௅PLOOLRQ WKHPRQH\WR³HV WR*'3UHDFKHGDQDOOWLPHKLJKRI ³7KLVFRXOGWDNHD\HDUDQGDKDOI WDEOLVKDGGLWLRQDOIXQGLQJVRXUFHV´DQG LQ-DQXDU\´ or so, then they would, in turn facilitate ¿QDQFLDOLQQRYDWLRQIRU60(V3RWHQWLDO ,QLWVORRNDW60(HQWHUSULVHSROLF\ the process, educate potential issuers and DUHDVIRUWKH86$,'SODQGRLQFOXGH in Georgia last year, the OECD states investors on a (permanent) sustainable enabling the intermediaries essential that “Georgian banks have lent larger basis—the business model followed in for markets. Others are development of amounts to smaller numbers of corporate GHYHORSHGPDUNHWV´ GLYHUVL¿HG¿QDQFLDOSURGXFWVDQGVHU FOLHQWV HJORDQVRI86'PLOOLRQ For its part, the EBRD says it will vices tailored for SMEs and stimulating UDWKHUWKDQIRFXVLQJRQVPDOOHUVFDOH “assist the NBG with the design and SULYDWHHTXLW\WRLQYHVWLQWKHP$OVR 60(VLQWKH*HRUJLDQFRQWH[W´

16 | Investor.ge APRIL-MAY 2021 ,WDGGHGWKDWDWWKDWWLPHWKRXJKFRQ a range of instruments. Some provide this will help them present better to GLWLRQVZHUHLPSURYLQJLQODWH³LQ grants, while others subsidise the interest investors general, lenders regard the SME sector UDWHIRU60(EHQH¿FLDULHV´ 7KH1%*LVQRZH[SDQGLQJWKHUDQJH DVEHLQJUHODWLYHO\KLJKULVN´7KXV³>E@ For several years now, the NBG has of investment instruments, including XUGHQVRPHFROODWHUDOUHTXLUHPHQWVDUHD been building a regulatory framework plans for covered bonds (where investors VLJQL¿FDQWEDUULHU,QWHUPVRIFROODWHUDO to attract international investors and are protected by collateralizing a bond banks may sometimes demand more than ZLGHQWKHUDQJHRIDYDLODEOH¿QDQFLDO DJDLQVWDSRRORIDVVHWV 7KHVHFDQEH RIWKHWRWDOORDQYDOXH XVXDOO\ instruments, though much that has been used by domestic credit institutions and in the form of real estate or land). For passed by the legislators has targeted the a draft law could be launched this year. many SMEs, this is challenging as their WRSHQGRIWKH¿QDQFLDOVHFWRU 7KH0R(KDVMRLQHGLQZLWK1%*WR ¿[HGDVVHWEDVHPD\EHUHODWLYHO\VPDOO ,QGLFDWLRQVEURNHUVEHOLHYHDUHWKDW KHOSGLYHUVLI\*HRUJLD¶V¿QDQFLDORIIHU or their value proposition based around future bonds of SMEs could be in smaller ings. Giorgi Gurgenidze, a lawyer who is LQWDQJLEOHDVVHWV´ XQLWV²HTXLYDOHQWV²WKDQWKH leading the Ministry’s team of Georgian “High interest rates, especially in daunting size of those currently being commercial corporate lawyers working ORFDOFXUUHQF\DOVRFUHDWHVLJQL¿FDQW LVVXHGLQWHQVRUKXQGUHGVRIWKRXVDQG on capital markets, says they are looking barriers for many SMEs in Georgia to ac dollar units by major groups, perhaps, at, among other reforms, laws to allow FHVV¿QDQFH>@UHÀHFWLQJWKHUHODWLYHO\ even enabling access by local retail PRUHDVVHWEDFNHGVHFXULWLHVDVZHOODV high levels of perceived risk. Rates are investors. Bonds are still by far the at securitization and private pensions. VLJQL¿FDQWO\KLJKHUIRUERUURZHUVXVLQJ SUHIHUUHGPHDQVRI¿QDQFLQJ$V6DQ +RZHYHUDV7%&¶V*HRUJH7NKH PLFUR¿QDQFHVWUXFWXUHV2IWHQPDWXULWLHV dro Bibilashvili says, while he sees no lidze notes on the EBRD plan to bring DUHUHODWLYHO\VKRUW7KH\PD\QRWUHÀHFW reason why current legislation could not more companies to investment markets, the potential payback periods needed for DOVRVXSSRUWWKHLVVXDQFHRIHTXLWLHVE\ the banks are anxious to stay in touch SUR¿WDEOHFDSLWDOLQYHVWPHQW HJUHQHZ SMEs, their founders may not want to ZLWKWKHLUPHGLXPVL]HFRUSRUDWHFOLHQWV DEOHHQHUJ\RUHQHUJ\HI¿FLHQF\ ´$VD dilute ownership or like the increased ZKRDUHHOLJLEOHIRUWKH,),¶VIXQGLQJ result, the OECD states, “SMEs face a UHSRUWLQJDQGJRYHUQDQFHUHTXLUHPHQWV program, and to help. VLJQL¿FDQW¿QDQFLQJJDS´/LNHZLVHWKH 7KH1%*KDVEHHQYHU\DFWLYHLQ “Bond issuance preparation includes (,%QRWHVWKDW³DQRWLFHDEOHOHYHORIORDQ building the framework for capital setting up an advanced corporate gover UHMHFWLRQVDQGFUHGLWFRQVWUDLQHG¿UPV PDUNHWV,WKDVEHHQFUHDWLQJDWWUDFWLYH nance system and choosing a sustainable FKDUDFWHUL]HWKH*HRUJLDQPDUNHW´ tax regimes for investment funds, in structure for a board of directors. Our Yet, the OECD pointed out, this seg OLQHZLWK(8SUDFWLFH,WVHHVDFFHVVWR H[SHULHQFHDOORZVXVWRJXLGHPLG PHQWRIWKHHFRQRP\SURYLGHG³RI investment in SMEs for venture capi FRUSRUDWHVLQWKHTXDOL¿FDWLRQSURFHVVIRU WRWDOSURGXFWLRQYDOXHRIWXUQRYHU WDODQGSULYDWHHTXLW\IXQGVDVYLWDOWR LQWHUQDWLRQDOUDWLQJFRPSDQLHVDVZHOO,Q RIYDOXHDGGHG DQGRI “improving funding conditions/growth DGGLWLRQ7%&KHOSVPLGVL]HFRPSDQLHV the total number of employees in the RSSRUWXQLWLHVIRUGRPHVWLFFRPSDQLHV´ VWUXFWXUHWKHLU¿QDQFHVDQGGHEWHTXLW\ EXVLQHVVVHFWRUDQGRIWKHFRXQWU\¶V ,WEHOLHYHVWKHHQWUDQFHRIWKHVWDWH ratio in a way that makes companies H[SRUWVLQ>@´+HQFHPRYHVE\ Pension Fund and then these funds will more attractive for investors and addi WKH(%5'86$,'$'%DQGRWKHUVWR speed up capital market development as WLRQDOIXQGLQJVRXUFHV´7NKHOLG]HVD\V bring in more funds to help growth. ³>«@XVXDOO\LQYHVWPHQWIXQGVDFWDV *DLQVIURPWKH,),¶VSURJUDPKH ,WLVQRWDVWKH2(&'FRPPHQWVWKDW intermediary entities, and also trigger VD\VJREH\RQG60(¿QDQFLQJ Georgian conditions for SMEs are any future capital market transactions by “Developed local capital markets will worse than in most developing countries. H[LWVIURPWKHIXQGV´ IXUWKHUEHQH¿WWKHFRXQWU\E\LPSURYLQJ 3OXVWKH,),VDQGJRYHUQPHQWKDYHEHHQ $XGLWLQJUHTXLUHPHQWVKDYHEHHQ access to local currency and reducing trying, as it says, “to address barriers to introduced by legislation, which has );>IRUHLJQH[FKDQJH@GHSHQGHQFH access finance; targeted programmes been helping companies improve their Furthermore, companies can have ac aim to provide access to credit under the ¿QDQFLDOVWDWHPHQWVDQGWKHLUDFFRXQWLQJ FHVVWRDGLYHUVL¿HGLQYHVWRUEDVHWKXV SME support programmes previously VWDQGDUGVWKH1%*VD\V0HGLXPVL]HG decreasing the concentration risks, which LGHQWL¿HG7KHVHSURJUDPPHVSURYLGH companies are already complying, and LVEHQH¿FLDOIRUWKHRYHUDOOHFRQRP\´

APRIL-MAY 2021 Investor.ge | 17 about Georgia and Georgian literature,” How Georgian literature has Jobava says. But the situation began to improve made its way into 35 languages VWDUWLQJLQZKHQWKH*HRUJLDQ%RRN and Literature Program was launched with the funding of the Ministry of Culture 817,/7+(0,'6*(25*,$1/,7(5$785(:$6 and Monument Protection of Georgia, ALMOST ENTIRELY UNKNOWN ABROAD, BUT STATE- aimed at promoting the translation and FUNDED TRANSLATION PROGRAMS AND EFFORTS TO publication of Georgian literature in foreign languages. REACH READERS THROUGH BOOK FAIRS HAVE HELPED This process was facilitated by an HUNDREDS OF BOOKS FIND FOREIGN AUDIENCES. annual forum-dialogue for foreign and Georgian publishers, supporting Georgia’s ANA MEZVRISHVILI It was only in the lead-up to the participation in international book fairs, Frankfurt Book Fair several years back and the participation of Georgian authors oreign bookworms living in Georgia that Georgian literary works began to in literary festivals and symposia. are often dismayed by the fact that EH QRWLFHG LQ WKH :HVW EHWZHHQ Translation of Georgian literature FGeorgian is a notoriously difficult DQGWKHUHZDVOLWWOHVXSSRUWIRUWKH SLFNHGXSVLJQLÀFDQWO\VWDUWLQJLQ ODQJXDJHWROHDUQUHDGLQJWKHFRXQWU\·V translation and publication of Georgian- According to Maiko Danelia, Deputy great works of literature in the original is a language works. In addition, until fairly Director and Head of International and pleasure few, even dedicated language recently, there was little to no awareness Translation Department of the Writers’ nerds can afford. Fortunately Georgian of Georgian literature (or, for that matter, House, after the outset of the Georgian literature is easily available in translation. the country in general, which has only %RRNDQG/LWHUDWXUH3URJUDPLQRQO\ At least in German. recently stopped having to refer to itself two applications from foreign publishers 0RUH WKDQ ZRUNV RI *HRUJLDQ DV¶WKHRWKHU*HRUJLD· were received. This trend continued on for OLWHUDWXUHZULWWHQE\VRPHDXWKRUVDUH Until recently, foreign publishers have a few years—only three Georgian books DYDLODEOHLQODQJXDJHVFRQVLGHUDEOH been disinterested in investing in Geor- were published in foreign languages in progress for a body of work that in the gian literature, says Gvantsa Jobava, the ZLWKWKHQXPEHUJURZLQJWRÀYHLQ VKDGOLWWOHWRQRWUDQVODWLRQVDYDLODEOH deputy chairwoman of the Georgian Pub- DQGIRXUWHHQLQ in foreign languages other than Russian. lishers and Booksellers Association, which The dynamics slightly improved in $SSUR[LPDWHO\ *HRUJLDQODQ- ZDVIRXQGHGLQ ZKHQ DERXW ERRNV ZHUH WUDQV- JXDJHERRNVLQFOXGLQJERWKÀFWLRQDQG “We faced problems connected to lated. That year, the establishment of the QRQÀFWLRQKDYHEHHQWUDQVODWHGLQWR*HU- low awareness about the country when Georgian National Book Center helped man, with French and English the runners- we would go to international book fairs LQFUHDVH WKH QXPEHU RI WUDQVODWLRQV WKH up in terms of the quantity of translations and have meetings with our colleagues. main purpose of the Center was to carry from Georgian. They did not know we had our own lan- RXWSUHSDUDWRU\ZRUNIRUWKH)UDQNIXUW Much of the growth in the number of guage. They thought we wrote in Russian. Book Fair. translations of Georgian works has come It was challenging to explain to them why The following year, 47 works of Geor- as a result of the guest of honor opportu- a certain author is worth translating, how gian literature were translated and pub- nity Georgia enjoyed at the Frankfurt Book important the text is, or what value this lished in foreign languages, which was )DLU LQ DQG E\ 7ELOLVL EHLQJ QDPHG text would have for a foreign-language- WKH KLJKHVW ÀJXUH LQ ,Q 81(6&2·V:RUOG%RRN&DSLWDOIRU speaking audience who knew nothing *HRUJLDQ OLWHUDWXUH ZDV LQFOXGHG LQ IRUHLJQWUDQVODWLRQVDQGLQDWRWDORI Number of Georgian-language books translated into foreign languages per year ERRNVZHUHWUDQVODWHG :LWKWKHÀQDQFLDOVXSSRUWRIWKH*HRU- gian National Book Center, foreign pub- OLVKHUVWUDQVODWHGDWRWDORIPRUHWKDQ Georgian-language works into both Euro- SHDQDQG$VLDQODQJXDJHVLQ including Georgian hagiographic texts, Georgian literature of the Middle Ages, DXWKRUV RI WKH WK DQG WK FHQWXULHV and contemporary Georgian authors of WKHVWFHQWXU\ZRUNLQJLQYDULRXVJHQUHV ,Q WKH QXPEHU RI WUDQVODWLRQV UHDFKHGZLWKWKHPDMRULW\EHLQJWUDQV- lated into German. Both the state’s active LQYROYHPHQWLQFRÀQDQFLQJSURJUDPVDQG the increase in the budget of the Georgian

18 | Investor.ge APRIL-MAY 2021 many languages.” and, asaresult,Georgianliteraturehasbeentranslatedinto tions hashelpedusalot.Interestinourliteratureincreased involvement ofthestateandincreasefundingfortransla- ter ofthewholeworld,”Jobavacomments,addingthat“the appearing ontheGermanmarketbutalsobeingatepicen- interest initsliterature.Ourpresenceatthefairmeantnotonly Georgian literatureinforeignlanguages. Georgian publishersdidnotputmuchworkinattemptingtosell literature onthemarket.Infact,beforeFrankfurtBookFair, of honor,didmuchtoaltertheperceptionGeorgiaandits SINCE THEFRANKFURTBOOKFAIR projects. WKLVQXPEHU,QQHDUO\PLOOLRQ*(/ZDVDOORFDWHGWRVX National BookCenterhelpedtheGeorgianliteraryworldreach Dolenjashvili told FRQQHFWLRQZKHQWKHUHLVFRÀQDQFLQJ7KLVLVWKHULJKWDSSURDF unknown writerfroman country.Itiseasiertobuilda VWDWHEHFDXVHDIRUHLJQSXEOLVKHUFDQQRWULVNLWVÀQDQFHVIRU and thisshouldbesupported by theMinistryofCultureand to maintaintheinterestofpublishers fromdifferentcountries, gian authors,wearestillfacingbigchallenges.Itisveryimportant the roleofstateisespeciallyimportantatsuchtimes. contemporary foreignwriters,Dolenjashvilinotes.Shesaysthat translate andpublishbooksbyunknownauthorsorless-popular )UDQNIXUW%RRN)DLUIRUHLJQSXEOLVKHUV larity ofthecountryandGeorgianauthorshasincreasedsince the thors stillfacesomeissuesregardingtranslations.Whilethepopu- only literature,butalsothecountryandtourism,”saidDolenjashvili. than Georgianreaders.Throughoutthisprocess,wepromote not a verywarmreception.Theyaregenuinelyinterested,evenmore outside thecountry.Iwouldliketonotethatforeignreadersgiveus readers aspossible,andespeciallyfortheirvoicetobeheard Georgian authorswillremainlockedwithinthelanguagebarrier. universal languageandnotedthatiftranslationsarenotdone, She spoketo thors whosebooksareoftentranslatedintodifferentlanguages. Translation DepartmentoftheWriters’House. Danelia, DeputyDirectorandHeadoftheInternational Grigol RobakidzeandDavitKldiashviliareunderway,”saidMaiko literature hasbeentranslated.TheworksofMikheilJavakhishvili, have alreadystartedworkingonFrenchtranslations.Children’s Although wearestillwaitingforthesigningofanagreement, nation. Thistime,GeorgiaisgettingreadyfortheParisBookFair. into French. :ULWHUV·+RXVHZLOOIXQGSURMHFWVRIZKLFKVL[ZLOOEHWUDQ 7UDQVODWLRQVSURJUDPUXQE\WKH0LQLVWU\RI&XOWXUH$VIRU DERXWERRNVZHUHIXQGHGXQGHUWKH*HRUJLDQ/LWHUDWXUHLQ \HDU ODVW JUHDWO\ ÀHOG WKLV DIIHFWHG KDV SDQGHPLF WKH WKRXJK ,QWHUHVWLQ*HRUJLDQOLWHUDWXUHGLGQ·WSHWHURXWDIWHU(Y “This fairarousedinterestinthecountry,whichlaterledtoan 7KH)UDQNIXUW%RRN)DLULQDWZKLFK*HRUJLDZDVDJXHVW “Despite thefactthatGermanyhasopeneditsdoortoGeor- Despite thepositivedynamics,Georgianpublishersandau- “Of course,itisveryimportantforawritertohaveasmany Writer TeonaDolenjashviliisoneofthemodernGeorgianau- ´,Q*HRUJLDZLOOEHDJXHVWFRXQWU\DWWKH3DULV%RRN)DL The increaseinFrenchtranslationsalsohasalogicalexpla- Investor.ge Investor.ge abouttheimportanceofliteratureasa . RIWHQÀQGLWXQSURÀWDEO VODWHG WKH HWR Kµ DQ FK HQ U

ADVERTISEMENT Coupled with subsidies from the How the Enguri HPP shutdown Georgian government to pay the electric expenses of households that consumed played out for Georgia and its electricity within certain bounds due to WKH &RYLG SDQGHPLF WKH FORVXUH RI WKH+33GLGQRWVLJQLÀFDQWO\DIIHFWSULFHV breakaway Abkhazia region Though Georgia has steadily moved away from its reliance on the HPP located GELA MAMULASHVILI %XWVWDUWLQJDURXQGWKHSLFWXUH on the administrative boundary line and began to change as direct energy imports energy shortfalls have been readily made ou might not have noticed because from neighbors into Georgia began to up for by imports, Enguri remains of critical the lights stayed on, but Georgia’s LQFUHDVH,QWKHHQHUJ\GHÀFLWZDV importance, and the repairs being carried Ylargest single source of electric- 7:KRURIWKH7:KWKHFRXQ- out on the HPP promise to extend its lifes- ity, the Enguri hydroelectric power plant WU\FRQVXPHGWKDW\HDU%\VWXGLHV SDQDQGLQFUHDVHHIÀFLHQF\E\DVPXFK +33 ZDVVKXWGRZQIRUUHSDLUVIRUWKUHH SUHGLFWWKHHQHUJ\GHÀFLWZLOOKDYHULVHQ DV SUHYHQWLQJ ZDWHU OHDNDJH LQ PRQWKVRQ-DQXDU\ WR7:K the dam’s diversion tunnel may mean as 7KHSODQWVXSSOLHVQHDUO\RI*HRU- Despite much talk of the country’s PXFK DV DQ DGGLWLRQDO PLOOLRQ N:K gia’s annual electricity consumption, and under-utilized hydro energy resources, of electricity generation per year start- nearly all that of the country’s breakaway, the internal generation picture hasn’t ing in May, once the HPP is scheduled to Russian-occupied region of Abkhazia. In- changed that much, with thermal and UHVXPHRSHUDWLRQV0RUHWKDQPLOOLRQ vestor.ge looked into how the shutdown hydropower plants retaining a very rough GEL has been invested in the project, and of the Enguri HPP has played out both for VKDUHUHVSHFWLYHO\WKURXJKRXWWKH SURMHFWHG SURÀWV RYHU WKH QH[W \HDUV Tbilisi and breakaway Sokhumi. years, while imports have risen gradually thanks to the repairs are in the range of VLQFHZLWKWKHH[FHSWLRQRIGXH PLOOLRQ*(/DQGXS GEORGIA: INCREASING to decreased energy consumption in the DEPENDENCE ON NEIGHBORS ÀUVW\HDURIWKH&RYLGSDQGHPLF RUSSIAN-OCCUPIED ABKHAZIA Fortunately, the shutdown of the Enguri One positive takeaway is that Georgia IN THE DARK HPP passed without much of a hitch on has been able to diversify its energy im- Breakaway Sokuhmi has had a rough- Tbilisi-controlled territory, as “in [the winter ports away from heavy reliance on Russia er go of the shutdown, which has revealed period] nearly the entirety of the volume in the past several years, adding Turkish gaping holes in its energy system, and generated by the Enguri HPP would still and Azerbaijani power imports to make raised fears that this could cast the region have been consumed by Abkhazia,” en- Russian energy of secondary or even ter- further into Russia’s orbit and control. ergy expert Murman Margvelashvili told tiary importance when it comes to imports. Abkhazia has always been nearly Investor.ge. While energy prices did go up during entirely dependent on the Enguri HPP. An Had the shutdown taken place at the Enguri shutdown, this was a scheduled agreement between Tbilisi and Sokhumi any other time, it may have been more tariff increase established by the Georgian stipulates that the energy produced by the problematic, as Georgia has become National Energy and Water Supply Regula- (QJXUL+33LVWREHVKDUHGZLWK increasingly more reliant on energy imports tory Commission, which fell short of the re- the larger share going to Tbilisi-controlled LQUHFHQW\HDUV%HWZHHQDQG quest for large price hikes made by trans- territory. However in recent years Abkha- *HRUJLDZDVODUJHO\VHOIVXIÀFLHQWZKHQLW mission companies seeking higher fees to zia’s share has steadily increased, and in came to power, importing little electricity offset their surging expenses caused by the certain periods of the year, such as the from its neighbours. depreciation of the Georgian lari. winter, the region consumes nearly all of the plant’s energy, while it has been tap- SLQJWKH(QJXUL+33IRUDVPXFKDVRI its total generation during other seasons. This is in large due to the recent pro- liferation in cryptocurrency mining in the region in the past two years, and which by some estimates accounts for nearly one- third of the region’s energy consumption. The culprit: ultra-low electricity tariffs. A recent ISET-PI study reads: “The increase in electricity consumption in Abkhazia in recent years is mainly due to the fact that electricity bills are much lower than in the UHVWRI*HRUJLD7KH7HODVLWDULIIIRUN:KRI HOHFWULFLW\UDQJHVEHWZHHQ86' while the population of Abkhazia pays PXFKOHVV 86' 7KLVFLUFXPVWDQFH

20 | Investor.ge APRIL-MAY 2021 OHDGVWRLQHIÀFLHQWFRQVXPSWLRQRIHOHF- and Vardnili II HPPs as well. boom. Others point out that the only other tricity and increased demand (households Director of the Enguri HPP Levan Me- option is to let Abkhazia turn to Russian DQGFRPSDQLHVFU\SWRFXUUHQF\PLQLQJ µ bonia points out what many feared in the assistance, which rarely comes without a $'HFHPEHUEDQRQFU\SWRFXU- run-up to the shutdown: “During this time, catch. In this particular case there have rency mining and the import of mining Abkhazia has had no alternative but to been multiple such strings. The one par- machines into Abkhazia will remain in purchase energy from Russia, however ticularly relevant for our purposes: Russian SODFH XQWLO -XQH DQG KXQGUHGV I cannot say whether they are paying a companies have long eyed Abkhazia’s of cryptocurrency “farms” have been monetary price or in some other way.” energy system, whose struggling electric- GLVFRQQHFWHGDQGFRQÀVFDWHGVLQFH%XW In the past, Georgia has bought ity operator has public debt estimated many illegal farms remain connected. A electricity from Russia to make up for the DWDURXQGPLOOLRQDQGZKLFKZRXOG number of the disconnections come from UHJLRQ·VGHÀFLWDQGVXSSOLHGLWWR$ENKD- VWUXJJOHWREHFRPHSURÀWDEOHHYHQZLWK blatant daylight robberies, when entire zia, but this time, Economy Minister Natia improved collection measures. farms are uprooted and replanted else- Turnava announced shortly before the In the recently published program of where, as owners have no recourse to the shutdown, this would not take place. “harmonization of the legislation of Abkha- police. It is speculated that the attempt To manage, unrecognized Sokhumi zia and the Russian Federation,” which has to eradicate mining has been stymied by took out a nearly $8 million loan from Rus- riled the Abkhaz public itself, one of the ERWKGHIDFWR$ENKD]RIÀFLDOV·DQG5XV- VLDWRSXUFKDVHPLOOLRQN:+KRXUV points suggests “the denationalization of sian business interests. from Inter RAO (the Russian operator of the Abkhaz energy sector,” which includes As a result, power outages and unus- HOHFWULFLW\LPSRUWVH[SRUWV transmission networks and the admission of ably low current are now the norm in the There have been heated arguments Russian businesses to the market. region. about the advisability of Georgia’s deci- Moscow has persistently asked Abkha- The timing of the Enguri shutdown did sion not to fund the winter in Abkhazia. zia to allow Russian companies into the not make things easier: the occupied re- On one hand, there is an argument to sector, but the de-facto Abkhaz authorities gion’s energy consumption in the January- suggest that the Georgian government’s have declined. Now, many are wonder- April period traditionally exceeds the total effective electricity subsidy has been fun- ing whether there will be any choice in output of the Enguri HPP and the Vardnili I neled into the region’s cryptocurrency the matter.

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+995 (32) 250 00 20 [email protected] 11 Dimitri Arakishvili Street APRIL-MAY 2021 Investor.ge | 21 SOMEWHAT DELAYED, BUT STILL RESTART RATHER THAN RECOVERY TBC Capital’s macro insights

www.tbccapital.ge

TBC Capital’s macro insights report from Tourism inflows' projections mid-March points to a slow reassembly of the (% change, relative to 2019) pieces in 2021, but retains optimism for 2022 and beyond. A delayed start to mass vaccination in 40 Historical Ba seline Georgia and slow tourism inflows are likely to 20 ªÃØãªØÉòØùÕØÉÜÜŶóª¼Üã¼¼Üç¤ğÃã - øãØÃ¼ğÃÃÃ¥ÃãªD'ƠÜçãÉçÜÜãÃ Strong recovery amid close to, or even above, tolerance level infla- despite the (20) Herd ﬂight ban, with Low base Russian immunity tion will provide some stability on the exchange EU 43% growth effect ﬂight ban YoY reached rate front. (40)

VACCINATION (60) While the EU, US, Israel and Turkey head for achieving herd (80) immunity in 2021, Georgia may be looking at reaching that Low base effect threshold only in Q2 2022, TBC Capital’s new macro insights (100) report from mid-March notes. Jul-22 Jul-21 Jul-20 Jul-19 Jan-22 Jan-21 Jan-20 - Jan-19 Sep-22 Sep-21 Sep-20 ÕÃÃ¥ÉÃãª¤ğùÉ¤ãªòÃçÜÃãªó Sep-19 Nov-22 Nov-21 Nov-20 Nov-19 Mar-22 Mar-21 Mar-20 Mar-19 May-22 May-21 May-20 May-19 spread immunization program, and considering the number ]ÉçØŵD'ŶcÕã¼ÜãÂãÜ of people who have already recovered from the virus, Geor- gia will need around 45%-63% vaccine coverage to reach ,ÉóòØãªØØØÜÉÃÜãÉÉÃğÃã¼ù¼ÉÉº¤ÉØóØãÉãª this threshold. revival of the tourism industry, the TBC Capital report points out: the strong 20% pre-pandemic growth of inflows in 2019 Timeline of reaching potential herd-immunity despite the Russian flight ban; the low share of long-dis- in selected entities tance and business trips in Georgia’s tourism structure; the high share of repeat visits; the relatively young age of visitors

100% and an abundance of open-air tourism destinations are all factors which will reliably prop up the tourism sector. 90% Herd-immunity threshold range Israel EU USA UK

80% Pent-up demand will also likely play a role in getting tourism back on its feet. This was visible in other countries last 70% summer – once they reopened, albeit temporarily, the 60% tourism industry recovered fast. 50% However, due to the delay in the vaccination campaign, a 40% gradual reopening is favorable as the risks of a resurgence of

... of population vaccinated 30% the virus and strict lockdowns remain high, TBC Capital

20% writes.

10% GROWTH OF INFLOWS, STRENGTHENED TRADE 0% BALANCE Dec.20 Feb.21 Apr.21 Jun.21 Aug.21 Oct.21 Dec.21 Not all inflows have come to a screeching halt, the TBC ]ÉçØÜŵØ¼ùÜŶØğÃãùŶYçãØÜŶ'Â¼ùDãÉÃ¼YÜØªÃãØŶ 'ÉØ¥Ã'ÉòØÃÂÃãŶcÕã¼ÜãÂãÜ Capital report notes. Some have even displayed resilience: namely, in 2020, total exports decreased by 12.0% in USD Unfortunately, Georgia is looking at an uphill battle, as the terms while actually increasing by 3.5% if re-exports are public’s take on vaccination remains negative. excluded. The main reason behind this is the fact that Georgia produc- TOURISM es very few, if any, capital goods – demand for which has Despite the delayed inoculation program, tourism levels in been subdued during the pandemic. Instead, Georgian Georgia in 2021 are set to recover by 25% compared to 2019, exports have higher domestic value added in the production followed by a 90% recovery in 2022, if regular flights are to of essential goods, which have been more resilient during resume. the crisis. GEL EXCHANGE RATE Growth of inflows and imports during 2020 (YoY, %) As for the GEL, the real effective exchange rate has weakened substantially and remains well below both its 3,5 long-term trend and medium-term average. 8,8 -12,0 -15,9 However, an important question is whether the dynamics of -30,5 bilateral exchange rates should also be taken into account. In other words, trade partners’ currencies can have a detrimental impact on competitiveness, due to the higher -84,0 -52.9 elasticity of trade to the exchange rate compared to other partners’ currencies. Thus, looking at the overall real effective exchange rate may be misleading.

'=ãç¼ÃğããØYY Remittance Exports Exports Tourism FDI* Imports inflows excl. reexports inflows Ɗãç¼YYÜÉ¤ÕØƔĨħƋ ű DÉãŵ /Ã XĪ ĨĦĨĦŶ ãª ÂÃ ØÜÉÃ ¤ÉØ ãª ¼Ã É¤ &/ óÜ ãØÃÜ¤ØØÃ¥ É¤ 130 ÉóÃØÜªÕ¤ØÉÂÃÉÃƔØÜÃããÉãªØÜÃãÉÂÕÃÜŶóãªÉçãÜªÉçã¤¼ÉóŶçã Üã¼¼ØçÃ¥&/ùØÉçÃĨįīÂg]Ż·çÜãÃ¥¤ÉØãªÜÉÂÕÉÃÃãŶ&/¤¼¼ù 125 ĩĦŻīǀŶóª¼óãªÉçã·çÜãÂÃããªù¤¼¼ùīĨŻįǀyÉy 120 ]ÉçØŵ'ÉÜããŶD' 115 110 Remittance inflows also increased by 8.8% in 2020, includ- 105 100 ing a strong, 15.7% year-on-year growth in the fourth quarter. 95 Some of this increase was due to reduced cash inflows and 90 increased digital transfers as a result of the closed borders. 85 However, even after adjustment for this component, per 80 TBC Capital estimates, remittance inflows increased by Jul.18 Jul.07 Oct.15 Oct.04 Apr.21 Jan.13 Jan.02 Apr.10 Jun.19 Jun.08 Feb.12 Dec.13 Sep.16 Dec.02 Sep.05 Nov.14 Nov.03 Aug.17 Aug.06 Mar.11 May.20 5.0% in 2020, which is explained by strong household May.09 disposable income dynamics in most remitting countries on REER REER - fitted with productivity and GDP per capita differential ãªºÉ¤çÃÕØÃãğÜ¼ØÜÕÉÃÜÜãÉãªÕÃÂŻ adjusted for the share of non-tradable sector Alongside lower total inflows, re-exports and oil prices, ]ÉçØŵD'ŶsÉØ¼ÃºŶcÕã¼ÜãÂãÜ coupled with a weaker GEL and diminished domestic RER indices of GEL demand, imports of goods dropped by 15.9% in 2020, Ɗ9ÃƔħĪƴħĦĦŶÜÉ¤īƔÕØƔĨĦĨħƋ leading to around a $1 billion improvement in the trade in goods balance. 180

GROWTH 160 GEL/UAH Although January 2021 GDP growth came in at -11.5%, this 140 GEL/AZN decline was in line with expectations. As the low base effect GEL/TRY comes into play and the non-tourism sector continues to 120 GEL/RUB GEL/AMD perform relatively better, for the full year of 2021 TBC Capital 100 GEL REER expects around 4% growth. 80 GEL/EUR GEL/CNY 60 GEL/USD Real GDP growth projection (YoY, %) Jul-16 Feb-21 Oc t-17 Jan-19 Apr-20 Jan-14 Apr-15 Jun-19 Jun-14 Dec -1 6 Sep-20 Sep-15 Feb-16 Aug-18 Nov-19 Nov-14 Ma r-1 8 Ma y-1 7 15 ]ÉçØŵD'ŶÉØØÜÕÉÃÃ¥ÜããÜã¼É¤ğÜŶcÕã¼ÜãÂãÜ

10 When looking at bilateral exchange rates, the GEL has 5 depreciated against almost all economic partner currencies, with the Turkish lira having strong recent depreciation and a 0 substantial share in Georgia’s external trade.

-5 At the same time, the TBC Capital report does not foresee competitiveness pressures arising from Turkey to be strong -1 0 ¤ÉØãª¤É¼¼ÉóÃ¥ØÜÉÃÜŵğØÜãŶãª¼ØªÜ¼ØùÕÕØã- ed back due to high inflation in Turkey and partially nominal -1 5 appreciation. In fact, the GEL has an appreciation trend I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV against the lira due to stronger GDP per capita and, conse- 2017 2018 2019 2020 2021 2022 quently, productivity growth, and the lari/lira exchange rate may even be seen somewhat below its trend. This holds ]ÉçØŵ'ÉÜããŶcÕã¼ÜãÂãÜ even after the end of March depreciation of Turkish lira.

This will be followed by around a 7.5% rebound in 2022, the Second, while there is some evidence of the lari/lira real main driver of which will be the almost-full recovery of the exchange rate impacting Georgia’s trade balance with tourism sector. Turkey, this relationship has likely weakened recently. More importantly, in such episodes where a weaker lira was As in 2020, household consumption supported by remit- çÜÃ¥ 'ÉØ¥ƠÜ ª¥ªØ ãØ ğã óãª cçØºùŶ ãª tances, public current spending and grace periods on credit, overall trade balance appeared not to have been impacted, is going to be strong and will lead growth in 2021 before net meaning cheaper imports from Turkey were mainly compet- exports turn positive and investments also recover substan- ing with other imports, rather than with domestic producers. tially (the latter increasing only marginally in 2021 due to still-sizable government capital spending coupled with the See more at www.tbccapital.ge and subscribe to our news- low base effect). letter for more information: https://tbccapital.ge/?subscribe Why Tbilisi’s last Soviet-era ropeway can’t get off the ground again

VERONIKA MALINBOYM sky line in several locations, and several SHRSOHDVRSSRVHGWRWKHROGFDELQV new ones are planned for the coming ZKLFKFRXOGRQO\FDUU\LQRQHJR QHRI7ELOLVL¶VPRVWXQLTXH years, most visibly the ropeway that will 7KHDFFLGHQWRQ-XQHVDZ H\HFDWFKLQJ VWUXFWXUHV LV connect Paragraph Hotel on Freedom the hauling rope break—that day, the Othe old ropeway base station 6TXDUHZLWK&RQYHQWLRQ&HQWHU±7ELOLVL two cabins were carrying more people tucked away in the courtyard of the into the hills of Mtatsminda. WKDQWKH\ZHUHVXSSRVHGWRDQG Georgian National Academy of Sciences But the Mtatsminda cable car on SDVVHQJHUVUHVSHFWLYHO\7KHFDELQHQ off Rustaveli Avenue. Rustaveli Avenue continues to sit dor route to Rustaveli Avenue slammed into $FXULRVLW\WKDWHPRWHVWKHGLI¿FXO PDQW7DONVDERXWUHVWRULQJWKHURSHZD\ the lower station, killing and injuring ties faced by the country since indepen EHJDQLQZKHQWKHSURSRVDOZDVWR VHYHUDOSHRSOH7KHVHFRQGFDELQZKLFK dence, the building houses the last of move the station from Rustaveli Avenue had been approaching the Mtatsminda 7ELOLVL¶V6RYLHWHUDVN\ZD\VWKDWKDYH WR)LUVW5HSXEOLF6TXDUH IRUPHUO\5RVH station, raced down the line at high speed. yet to be put back into motion. 5HYROXWLRQ6TXDUH EXWQRWKLQJGRLQJ Near one of the towers, the cabin hit the And a dark tragedy surrounding the \HDUVRQDQGUHVWRUDWLRQZRUNVKDYH broken hauling rope and the tower and URSHZD\LVRQO\SDUWO\WREODPH7KH yet to even begin. was torn in two. Half of the cabin con URSHZD\ZDV¿UVWRSHQHGLQDQG Several failed tenders and even suits tinued rolling down the mountain before XQGHUZHQWUHQRYDWLRQVLQMXVWWKUHH DJDLQVW7ELOLVL&LW\+DOOKDYHKLQGHUHG KLWWLQJDVL[VWRU\UHVLGHQWLDOEXLOGLQJEH years before a tragic accident took place the process. ORZ7KRVHLQWKHRWKHUKDOIRIWKHFDELQ RQ-XQHUHVXOWLQJLQGHDWKV fell a chilling 20 meters onto rooftops of DQGPRUHWKDQSHRSOHEHLQJLQMXUHG THE 1990 TRAGEDY the buildings and the ground. 0RVWRIWKHYLFWLPVZHUHFKLOGUHQ7KH 1HDUO\\HDUVDIWHULWZDVLQVWDOOHG SHRSOHGLHGDWWKHVFHQHDQGIRXU cable car was closed following the ac WKHURSHZD\ZDVUHQRYDWHGLQ ODWHUSDVVHGDZD\LQKRVSLWDORWKHUV cident. 7KHWRZHUVVXSSRUWLQJWKHFDEOHVZHUH UHFHLYHGVHYHUHLQMXULHV7KHFLUFXP But since then, a concerted effort to reduced from three to two, and, in order stances surrounding the catastrophe only get the city’s cableways up and running WRDYRLGODUJHTXHXHVODUJHUFDELQV threw salt on the wound: most of the pas have seen a number of trams adorning the were introduced that could carry up to sengers were children on a sightseeing

24 | Investor.ge APRIL-MAY 2021 WRXUIURPDQ$NKDOWVLNKHUHJLRQVFKRRO by families living in the vicinity of the 7KH¿UVWWHQGHUZDVDQQRXQFHGLQ YLVLWLQJ7ELOLVLWRFHOHEUDWH&KLOGUHQ¶V Rustaveli Avenue station who refused 1RYHPEHUE\7ELOLVL7UDQVSRUW Day. to relocate. Company Ltd, a municipal company that Several parts of the tram system 3HUWKHWHUPVRIWKHDJUHHPHQW RSHUDWHVSXEOLFWUDQVSRUWDWLRQLQ7ELOLVL were dismantled immediately after the EHWZHHQWKH7ELOLVL&LW\+DOODQG0WDWV but the tender proved unsuccessful, accident, and the remaining bits were minda Park, the cable car system was to thus, a second tender was announced in recycled in the early 2000s; the towers KDYHEHHQFRPSOHWHGE\ December 2020. and both stations remain intact. 0WDWVPLQGD3DUNSDLG'RSSHOPD\U Per the tender terms, a company After the accident, an investigation million EUR, and the latter manufactured undertaking the project would have to found that specialists had failed to install the missing parts for reconstruction of the demolish the remaining residential build an emergency brake system for the new DHULDOWUDPZD\EDFNLQ'XHWRWKH ings near the Rustaveli station, renovate cabins, which may have prevented the necessary preparatory works not being WKHWZRVWDWLRQVDQGLQVWDOO¿YHWRZ fatalities. FRPSOHWHGLQ7ELOLVLWRWKLVGD\WKHSDUWV ers necessary for the cable car system, are stored in the company’s European among other construction obligations. PLANS FOR RENEWAL OF THE warehouses. 7KHWHQGHUZDVRSHQEHWZHHQ-DQXDU\ ROPEWAY 0WDWVPLQGD3DUNHYHQ¿OHGOLWLJDWLRQ DQG-DQXDU\7KHWLPHIUDPHIRU 7KHJULVO\KLVWRU\VXUURXQGLQJWKH DJDLQVW7ELOLVL&LW\+DOOWRUHFRXSWKH WKHSURMHFWZDVVHWDWPRQWKV ropeway is only half the story as to why money it paid for the new construction. $FRQWHQGHUFRPSDQ\ZDVGLVTXDOL WKLVEHDXWLIXOPRQXPHQWWR7ELOLVLDUFKL However, the agreement that was reached ¿HGE\WKHFRPPLVVLRQIRUDµODFNRI tecture continues to sit neglected. between the Park and City Hall in 2020 UHOHYDQWH[SHULHQFH¶7KHUHIRUHWKH 7KH¿UVWFRQWUDFWIRUWKHUHQHZDORI states that the construction should be tender for the construction works failed WKHDHULDOWUDPZDVVLJQHGLQ7KH completed within the next 2 years, and, for a second time as well. lower station was supposed to be built as a result of the new agreement, the ,Q)HEUXDU\DWKLUGWHQGHUZDV RQ)LUVW5HSXEOLF6TXDUHKRZHYHULQ lawsuit was withdrawn from the courts. announced. Companies have been able to LWZDVGHFLGHGWKHVWDWLRQZRXOG DSSO\EHWZHHQ0DUFKDQG0DUFK remain in its original home, the building THE FUTURE OF THE ROPEWAY DQGWKHWLPHIUDPHIRUFRQVWUXFWLRQ of the Georgian National Academy of “We’ve already prepared a project has been extended and now amounts to 6FLHQFHV7KH$XVWULDQ6ZLVVFRPSDQ\ and are planning to announce a tender DSSUR[LPDWHO\PRQWKV Doppelmayr/Garaventa Group agreed to to select the construction company that However, at the time of writing, manufacture the necessary parts for the ZLOOXQGHUWDNHLW7KHSURMHFWZLOOWDNH no tender winner has been announced. ropeway system as well as assist in the between a year and a half to two years After years of failed attempts to restore process of installing them. WR¿QLVK´VDLG0D\RU.DODG]HEDFNLQ the ropeway, it is still unknown when 'HVSLWH¿QDOO\UHDFKLQJDQDJUHH September 2020. By then, an agreement 7ELOLVLUHVLGHQWVDQGYLVLWRUVZLOOORRNDW ment on the location of the station, reno with the residents near the Rustaveli the mysterious building tucked away be YDWLRQZRUNVZHUHQRWODXQFKHG7ELOLVL Avenue station had been reached and the hind one of the city’s main arteries with &LW\+DOODQG0D\RU.DNKD.DODG]H demolition of the residential buildings anything more than a sense of perplexity himself said that the delay was caused began shortly after. and curiosity.

APRIL-MAY 2021 Investor.ge | 25 Georgian drone startup looks to spread its wings come spring

26 | Investor.ge APRIL-MAY 2021 Irakli Shengelia, Raven founder

eorgia’s lone drone startup Ra ODQGWKHRUHWLFDOO\DQ\ZKHUHZLWKDÀDW overuse of certain products, and saves ven began its ascent to the skies VWDEOHVXUIDFHDUHPXFKPRUHÀH[LEOHLQ time and resources. Cameras used in the GDIWHUIRXQGHU,UDNOL6KHQJHOLD their application than traditional aircraft, SURFHVVFDQLGHQWLI\HYHQDVLQJOHSHVW´ set off down a black diamond ski slope and they can perform maneuvers not pos Shengelia notes. at the country’s most popular ski destina VLEOHZLWKDFRQYHQWLRQDOSODQH´ 0XOWLVSHFWUDOLPDJLQJ,UDNOLVD\V tion of Gudauri, with families huddled But the days of personal transport ³DUHOLNH05,VIRUSODQWV´WKH\RIIHUWKH below in anticipation of whether he’d eat vehicles dotting the skies are still a de promise of being able to identify plants ice or glide off the ground with the help FDGHRUWZRDZD\7KHUHDUHQXPHURXV lacking nutrients, plants under attack RIDSDLURILQÀDWDEOHZLQJV WHFKQRORJLHVWREHPDVWHUHGDHUR¿HOGV from pests, and other stresses. 7KUHH\HDUVODWHUDQGVRDULQJ5DYHQ WREHEXLOWDQGÀ\]RQHVWREHFDUYHG 7KHFRQFHSWZRXOGEHZHOFRPH is looking not just to entertain crowds in out above buzzing, already congested in Georgia, which has recently been Georgia’s ski resorts craving a dose of metropolises. struggling with agricultural pests in the schadenfreude, but to revolutionize the ³,QWKHPHDQWLPH´6KHQJHOLDVD\V country’s western regions, but ultimately GURQHLQGXVWU\ZKLFK'URQH,QGXVWU\ “there are other horizons to be explored Raven has its eyes on the global market. ,QVLJKWVSUHGLFWVZLOOUHDFKDELOOLRQ WRKHOSXVJHWWKHUH´ “Georgia is a good market for a PDUNHWYDOXHE\)XUWKHUGRZQWKH Raven has turned its energies to ag startup like ours; hazelnuts, vineyards line, Morgan Stanley predicts a drone ULFXOWXUHZKLFKVWDQGVWREHQH¿WJUHDWO\ DQGKLJKYDOXHFURSVLQJHQHUDOZRXOG PDUNHWZLWKDSRVVLEOHYDOXHRI from the introduction of drones. be in need of such an innovation. We WULOOLRQE\ ³,¶PYHU\PXFKDIDQRIVPDUWDJUL are hoping to already begin operations 7KHLQGXVWU\LVVWLOOÀXWWHULQJWU\ culture and organic farming. Drones with with our drones later this spring, offer ing to decide what makes and models maneuvering capabilities/autonomy such ing crop multispectral analysis, spray will get the job done. Shengelia and his as ours and that can deliver high payloads ZRUNVDQGIHUWLOL]HUDSSOLFDWLRQ7KLV WHDPKDYHVHWWOHGRQDYHUWLFDOWDNHRII of agrochemicals and fertilizers will have ZLOOJHQHUDWHRXU¿UVWUHYHQXHVWUHDP DQGODQGLQJ 972/LQLQGXVWU\VSHDN PXFKWRRIIHU7KH\FDQDOVRFDUU\RXW and extend our runway. Of course, we approach, which they believe has the OLYHVWRFNDQG¿HOGPRQLWRULQJDQGDUH will be seeking seed investment to be potential to radically alter both public used in large scale reforestation missions DEOHWRIRUPDJRRGZRUOGFODVVWHDPIRU and private transportation. to tackle climate change, oversee irriga fast and aggressive scaling. We already ³972/KDVQXPHURXVLPSOLFDWLRQV tion processes and help farmers analyze have some momentum and interest from for transport, consumption, urban design WKHLU¿HOGVDQG¿QGDUHDVLQQHHGRILQ various parties that are interested in both and ecology: aircraft that can take off and WHUYHQWLRQ7KLVKHOSVIDUPHUVDYRLGWKH DJULFXOWXUDODQGSHUVRQDOÀ\LQJGHYLFHV

APRIL-MAY 2021 Investor.ge | 27 We also hope that as soon as we mature Shengelia notes. NHHSLQJGURQHWUDI¿FRXWRIODUJHVZDWKV for seed investment, we will be able to Before the technology matures, per of cityscape. JHWDPDWFKLQJ*(/JUDQWIURP sonal drone travel is more likely to start And owls have a piece of good news *,7$DVKDYHGRQHRWKHUSURPLVLQJ with suburban transit, he says, where for the sensitive ear. “Some very prom VWDUWXSVLQ*HRUJLD´6KHQJHOLDVD\V safe airways and relatively more open ising research and prototypes in modern As for personal flying devices, space will be much more forgiving in propeller designs mimic the snowy owl’s Shengelia’s dreams have not been put case of mistakes and unexpected aircraft ZLQJVWUXFWXUHIRUVLOHQWÀLJKW7KHVDPH RIILQGH¿QLWHO\ EHKDYLRU-XVWOLNHWUDGLWLRQDO¿[HGZLQJ concept is utilized to kill the sound of ³0XFKRILWFRPHVGRZQWRVDIHÀLJKW aircraft, safe landings are provided for by spinning propellers that produce around KRXUV7KLVLVRQHRIWKHPRWLYDWLRQVLQ ¿HOGVQRWXUEDQHQYLURQPHQWV5DYHQ RIDYHKLFOH¶VQRLVHVRPHWKLQJWKH our decision to begin with agriculture; its creator says, will most likely enter industry is very much dedicated to and you need to demonstrate that your ap the market as an adventure/recreational ZKLFKSURPLVHVVLJQL¿FDQWO\ORZHUQRLVH paratus can safely be operated for thou personal aerial vehicle and later aim to OHYHOV´6KHQJHOLDDGGV VDQGVRIKRXUVRQHQG7KDW¶VZK\ZH¶YH become a shared transport means just like At any rate, we have several years SXWRXUEHWRQDJULFXOWXUHZKLFKUHTXLUHV electric scooters. before we have to start worrying about SUHFLVLRQDQGORQJKRXUVLQWKH¿HOG´ Only following a gradual introduc these issues. But when the time does :KHQSHUVRQDOÀ\LQJGHYLFHVGRDS tion would drones begin to penetrate come about, if you’re in Georgia, keep pear, there will be no need to fear clogged cities, Shengelia says, which would \RXUH\HWRWKHVN\²RQHRIWKH¿UVWÀ\ skies and the constant whir of drones, evolve to incorporate municipal airways, ers you’ll see might just be a Raven . . .

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28 | Investor.ge APRIL-MAY 2021 BC Bank has long made a point of focus on women in tech to provide them making people, both customers and with opportunities to grow and develop Temployees, the focal point of its busi- professionally. The platform serves to intro- ness strategy. duce successful female tech professionals, “This approach is not just an empty have them share their experiences and toast, as the Georgian expression would stories about their accomplishments and have it,” TBC’s Director of Human Capital FKRLFHV5LJKWQRZDERXWRIHQUROOHHV Gvantsa Murghvliani tells Investor.ge: in our academy are women—a number ´:H·YHHPSOR\HHVDQGDVDOHDG- we are very proud of. ing employer across the region, ensuring The inclusion of tech specialists on the that our employees are properly taken team has changed TBC as a whole, not just care of and that they have the ability to particular departments. Tech is a bit of an TBC Bank’s grow and further themselves is of critical industry apart, because specialists have importance for us.” expectations that rather differ from what Investor.ge: In what ways has TBC \RXPLJKWÀQGLQDWUDGLWLRQDOFRUSRUDWH strategy to sought to foster employee talents and setting—openness, outlets for creativity, ambitions? freedom of personal expression—and TBC Bank pays close attention to em- changes meeting these expectations be a leading ployee aspirations. We’re a large corpora- KDYH ÁRZHG DFURVV WKH HQWLUH RUJDQL]D- tion, but our employees can start small and tion. When designing our new offices employer, tech grow into senior positions. I’m an example several years back, we acknowledged RIWKLV,VWDUWHGKHUHLQDQGZRUNHG the need for open spaces where teams a junior position at a branch. Mine is just can sit together—not just each individual forerunner in one story. The environment here is one by themselves in a cubicle. We needed that wants to help people grow, reach spaces where our staff can relax and be their maximum potential. The stronger the creative. the region team, the stronger the organization. 2XUQHZOD\RXWVUHÁHFWWKDWZHVWULYH What stands out is our corporate to be an organization where people are culture. Our employees interact on a GHÀQHGQRWE\WKHLUWLWOHEXWE\ZKDWWKH\ KRUL]RQWDO SOD\LQJ ÀHOG (PSOR\HHV FDOO bring to the table and their impact. XSSHUOHYHOVWDIIE\WKHLUÀUVWQDPHVDQG 7KLVIUHHGRPLVUHÁHFWHGLQWKHFRP- everyone is free to voice their opinion. SDQ\ RIÀFHV· OLEHUDO GUHVV FRGH DQG LQ We have our own internal school branches where female employees can where staff can widen their horizons and paint their nails (something unheard of choose from a variety of topics that inter- VHYHUDO\HDUVEDFN DQGZKHUHPDOHHP- est them: banking, IT, management—the SOR\HHVFDQZHDUQHDWEHDUGV WU\ÀQGLQJ opportunities are there. And for free, at DPLOOHQQLDOZLWKRXWRQH WKDW:HYLHZLWDVDUHVSRQVLELOLW\ Investor.ge: What about Covid-19? If the demand for career growth is there, How has the pandemic tested the bank’s TBC Bank meets and supports it. dedication to its employees during the Investor.ge: TBC has made a number crisis? of forays into tech with additions such as :KHQWKHSDQGHPLFKLWRQHRIWKHÀUVW Vendoo and Space Bank. How has be- big announcements we made was that TBC Bank Head of Human Capital Gvantsa Murghvliani coming a technology-driven company nobody would lose their jobs, and that we affected employee policy? would do our best not to lower salaries. INVESTOR.GE SPOKE WITH Programmers and IT specialists are in We ended up being able to go beyond TBC BANK’S DIRECTOR OF short supply and large demand. We’ve our promise—nobody lost a single lari. We responded to this predicament by seek- were able to do this by cutting manage- HUMAN CAPITAL GVANTSA ing to develop talent and capacity both ment bonuses. We supported our staff MURGHVLIANI ABOUT HOW inside and outside the bank as well. by providing transportation when it was FOSTERING EMPLOYEE We’ve decided to stimulate the growth limited and by providing free PCR testing GROWTH AND THE BANK’S of the programming industry by creating for our employees. Working from home has COMMITMENT TO BEING A a separate, outward-facing school—our worked for us, and we’ll allow our staff to IT academy, which has already had more continue doing so half-time even after the FORERUNNER IN TECH HAVE WKDQ JUDGXDWHV RI ZKRP KDYH pandemic. Ultimately, the crisis showed GONE HAND IN HAND. begun working for TBC. all businesses where their strengths and We’ve especially sought to encour- weaknesses fall. But one thing we realized age women. This year, the IT Academy is just how ready we are at TBC Bank is to is starting a new program with a special stand by our employees.

APRIL-MAY 2021 Investor.ge | 29 toying with the idea of bringing more How public-private sector technology into our work, and creating market information systems. The GFA, knowing that we were partnerships have transformed ZLOOLQJWRÀQDQFHDSSVDQGHOHFWURQLF platforms, came and pitched the idea of creating an agricultural pro- development in Georgia duce matchmaking platform. :HÀQDQFHGWKHSURMHFWDQGWR- IN THE INTERVIEW BELOW, gether with the GFA, we produced Agronavti—a match-making ap- INVESTOR.GE plication for farmers selling certain SAT DOWN WITH kinds of produce to Adjara Group as a guaranteed buyer. KATY TCHUMBURIDZE, Starting from just five types of CHIEF OF PARTY OF products available on Agronavti, THE USAID ZRDA WKHUHDUHQRZPRUHWKDQDYDLO- able, and farmers have made more ACTIVITY IN GEORGIA WKDQ PLOOLRQ 86' WKDQNV WR WKH PROGRAM, TO DISCUSS Agronavti application, which allows them to understand what produce HOW PUBLIC-PRIVATE is in demand, in what quantities, and SECTOR PARTNERSHIPS the range of prices they can expect HAVE ALTERED THE for their goods. So what this partnership did was DEVELOPMENT match up the needs of a hospitality LANDSCAPE IN business, a local NGO and a donor Chief of Party for USAID Zrda Activity in organization, us. On our side, we GEORGIA. Georgia Katy Tchumburidze liked the project because it ticked a number of boxes—promoting growth in the regions, it brought new technology to farmers and introduced them to the one-window principle. Now, Agronavti has gone public and has expanded beyond the Adjara Group, with other restaurants and hospitality businesses signing up as well. Zrda was conceived largely as a stronger partner and offer unique What other projects have come platform for donor-government part- opportunities to donor organizations out of Zrda’s public-private sector nerships. When did Zrda start partner- such as our own. partnership model? ing with the private sector, and what 2XU ÀUVW VXFK SDUWQHUVKLS FDPH The next project we took on in- was the impetus? about through a match prompted volved some of our target regions of When USAID’s Zrda Activity in by the Georgian Farmers’ Associa- Samtskhe-Javakheti, Shida Kartli and Georgia was conceived and began tion—one of the four organizations Kvemo Kartli. BP, which has been in RSHUDWLRQVLQLWGLGEHJLQODUJHO\ implemented by Chemonics Inter- WKHFRXQWU\IRUPRUHWKDQ\HDUV as a series of strong partnerships with national, which is also the USAID also works in these regions. We looked government agencies that were contractor for Zrda. at a map and saw that our work and eager to get on board with devel- At the time, the Georgian Farm- PDQGDWHRYHUODSSHGLQYLOODJHV opment projects. And those worked ers’ Association was working with the BP has a number of grant and great. Not only did we accomplish Adjara Group, one of the country’s training programs to help locals that much, but we brought capacity largest hospitality holdings, to help live around this pipeline. At the time, building and project models to doz- them source fresh produce for their we had a small SME assistance pro- ens of government agencies and many hospitality venues. However, gram starting. So we went to them structures.What we suspected at the the scale of their operations was not and proposed uniting our resources, time, but didn’t quite know for sure, enough to meet the needs of the which would be far more effective was whether we could engage the group, which was still sourcing nearly than us working in two separate direc- private sector as well, and whether RILWVSURGXFHIURPDEURDG tions. That project worked out great, it could prove to be an equally if not At Zrda, we had already been and after discussions, USAID and BP

30 | Investor.ge APRIL-MAY 2021 may expand partnership and coop- is how we can widen the range of the generally equal? What has been the eration in the future. kind of activity we engage in with the criteria for Zrda to choose a partner Working with multinationals is one help of our private sector partners. in the private sector? thing—working with local companies For example, with BP, we had a *HQHUDOO\RXUÀQDQFLQJDQGZKDW has been a different experience, community development program has been brought to the table by our and we’re proud to have been able which had two components: one partners has been more or less equal, to share our experience in project was a business assistance and support but it really depends on the project. management with a number of larger program and the other was an eco- As for what kind of project we choose companies and organizations here. nomic infrastructure support program. to get involved in, we have a very The Partnership Fund, a joint stock For Zrda, teaming with BP was a great clear mandate—we only work along company, is a great example of this. solution due to the fact that we do the ABL and in ethnic minority com- Its StartUp Georgia program munities. buys equity in local startups, Zrda will be ending and exits after two years af- The USAID-funded Zrda Activity in Georgia come December 2021. ter providing mentorship and What will be some of the guidance. is a five-year program designed to promote main takeaways from its We offered to match their inclusive and sustainable economic growth in experience? buy-ins for companies on the We are hopeful there will administrative borderline ter- target regions by improving micro-, small-, be a Zrda follow-up project ritories that meet our criteria. in the near future. But if not, To date, we have helped get and medium- sized enterprise (MSME) growth; then we have set a great ÀYHVWDUWXSVRIIWKHLUIHHWLQ- increase productivity of rural households; model of how to experi- cluding a kombucha factory ment, to network and to dis- in the village of Karapila, right facilitate market linkages between producers and cover other opportunities. I RQWKH$%/ZLWK7VNKLQYDOL\RX buyers; and promote local economic development hope that after us, whether can see Russian troops sta- or not there will be a Zrda WLRQHG MXVW PHWHUV DZD\ by establishing and strengthening networks. Zrda follow-up initiative, there from there. We’ve also helped targets communities in proximity to administrative will be many more projects finance a fertilizer produc- that will practice this type WLRQIDFLOLW\³RQHRIWKHÀUVWLQ boundary lines and communities with ethnic of partnership, because Georgia. Charcoal produc- minority popula tions. The Zrda Activity works in we’ve seen how effective tion, a dairy facility and a these results can be. used motor oil-recycling fac- 81 communities within five regions of Georgia USAID has appreciated WRU\ DQRWKHUÀUVW KDYHDOVR the private-public partner- received assistance from us to create at least 2,400 jobs, increase sales ship model we’ve intro- via this partnership. for at least 860 MSMEs, boost incomes of duced and has always This partnership with the encouraged increased pri- Partnership Fund allowed us 13,200 households, and generate measurable vate sector engagement to reach larger businesses improvements in community resilience. . And though it’s sad for and create employment op- the activity to be ending, portunities for people in these it worked on such a large areas near the conflict zones. The not have a mandate to do construc- VFDOHWKDWZHDUHFRQÀGHQWWKDWWKH EXVLQHVVHVKDYHEHQHÀWHGIURPODUJHU tion work. We cannot actually build methodology will be used by other ÀQDQFLDOUHVRXUFHVDGGHGFDSDFLW\ infrastructure, such as roads, bridges, donor organizations and work with building offerings and oversight. For irrigation channels. But we were able the private sector will continue. Had us, by partnering with the Partner- to fund the designs and studies for VRPHRQHWROGPHÀYHRUVHYHQ\HDUV ship Fund, we lower our risks because roads, and BP was able to build them ago that this would be the direction StartUp Georgia is in charge of the through local partner organizations. that development was heading in vetting process, which eases our As for the larger community infra- Georgia, I would have been very administrative load and allows us to structure projects, Zrda supported surprised. I wouldn’t have believed it. spend our energies more effectively. the preparation of such project plans, Why not? What’s changed? What are some of the other ad- donated them to local municipalities, Private sector organizations have vantages of public-private sector that later are funded by the Municipal grown and matured. Another fact is partnerships? 'HYHORSPHQW)XQG 0') RUFHQWUDO that just a few years ago, we didn’t In addition to combining funds for budget. Such partnerships allow us to KDYHDVPDQ\ELJÀUPVDVZHGRQRZ projects and doing away with ad- effectively connect with other players Active cooperation from other donor ditional project planning and imple- who can widen our reach and range organizations has demonstrated to mentation costs, one of the largest of activity. the private sector what is possible, EHQHÀWVZH·YHVHHQIURPWKLVPRGHO ,VÀQDQFLQJLQWKHVHSDUWQHUVKLSV and they’re open to it.

APRIL-MAY 2021 Investor.ge | 31 Agricultural startup Kalo disseminating know-how through tech

HANS GUTBROD zations. Kalo’s support is bundled in with than with any recognition tool . &UHGR·VÀQDQFLDOVHUYLFHVWRLQFUHDVHWKH After initially being founded by a group y most credible estimates, there SURGXFWLYLW\ RI &UHGR·V FOLHQWV ,Q of Georgian and foreign entrepreneurs, DUHPRUHWKDQIDUPVDFURVV RI&UHGR·VFOLHQWVZHUHDFWLYH Kalo recently appointed a new CEO. BGeorgia, and the overwhelming main agriculture, highlighting how relevant Levan Iosebashvili knows the challenges jority are very small. Reaching these farm- good agricultural practice is to the bank’s that smallholder farmers can face: before ers to increase their productivity is hard. loan portfolio. VWDUWLQJ DW .DOR LQ HDUO\ KH ZDV D Many live in elongated streetside villages, Next to this basic package, Kalo is branch manager at Credo. Next to an some of them are in cold mountain areas, also offering more advanced products, MBA from the Free University, he brings a others in the subtropical climate along the including Agro Mrcheveli (Georgian for degree from the Agricultural University, the Black Sea coast. Diversity can be strength, ¶DGYLVRU· DSUHPLXPVHUYLFHWKDWLQFOXGHV premier institution of higher education for but it can also make it much harder to DFFHVVWRDFDOOFHQWHUDQG9HW$GYL- agriculture in Georgia. Iosebashvili over- provide tailored service and information. sor, a similar service for veterinary services. sees a team of ten colleagues, currently Kalo, a recent agricultural startup, is )RUWKHVHVHUYLFHVDW*(/D\HDU.DOR DOOZRUNLQJIURP.DOR·V7ELOLVLRIÀFH working to change this, with systematic KDVDWWUDFWHGQHDUO\VXEVFULEHUVDQG The collaboration with Credo gave digital outreach to farmers. An ambitious it hopes to grow its numbers as Georgia’s Kalo a viable business model. With this LGHDZKHQIRXQGHGLQWKHSODWIRUP farmers get into the habit of using their collaboration, it has a base of paying now has come a long way, and helps phones and laptops for agricultural pur- customers, and does not need to rely on WR LOOXVWUDWH KRZ LQIRUPDWLRQ ÁRZ LQ WKH poses. Kalo’s most popular services at this advertising, which in Georgia is unlikely to agricultural sector is beginning to change. point are its online videos and tutorials, a sustain a website with quality content, nor %\WKHHQGRI.DORKDGPDQDJHG retail shop and a call center, where farm- is it reliant on its retail offerings. Farmers, in WRUHFUXLWSD\LQJRQOLQHVXEVFULEHUV ers can receive immediate advice on the turn, have the advantage that the advice for its basic package, with access to all most pressing issues. Moreover, Kalo has offered by Kalo is not primarily driven with online resources. In other words, nearly started working on high-tech offerings, sales in mind. RIWKHHQWLUHSRSXODWLRQRI*HRUJLDLV such as digital farm management tools. Digital literacy does remain a chal- signed up for this basic service, which costs Attempts to develop image-based pest lenge. The Kalo team believes that many *(/ D \HDU .DOR KDV DFKLHYHG WKHVH and disease recognition so far have sug- of their users could probably gain more ÀJXUHVE\FROODERUDWLQJZLWK&UHGRRQH gested that this is still best done by sharing from the service than they currently do. of Georgia’s largest microcredit organi- the images with agricultural experts, rather The team is exploring what distinguishes

32 | Investor.ge APRIL-MAY 2021 their super-users from those that are less customers often received their products operate a greenhouse with mostly local active, and whether lessons can be drawn with a delay. Such delays can be costly, materials and tools, as well as the pruning on how to activate the subscribers for as farmers need to deal with challenges of different crops. maximum impact. One advantage in this such as pests before they become over- Next to the user numbers, Iosebashvili context is that with tens of thousands of whelming. Some of these delays still remain also highlights individual success stories. subscribers, Kalo can draw on a large user an issue, one year in. (On a positive note: In one instance, Kalo’s advice helped the base and on good data about some of in other times, countrywide delivery seems producers of strawberries to adapt their the users. The experience does underline, WREHZRUNLQJHYHQLQWRUHPRWHDUHDV PHWKRGVDIWHUWKH\KDGLQYHVWHG though, that improving digital literacy in Also, the company felt some of the supply GEL into greenhouses and initially had Georgia is a broader issue, as a March chain disruption. struggled with switching from their previ- UHSRUW IRU WKH (XURSHDQ 8QLRQ DOVR Given Georgia’s small size, and the RXVRSHQÀHOGSURGXFWLRQ7KLVVWRU\PD\ found. long haul required to build such a platform underline the extra value for Credo’s loan The Kalo team reports that much of the and gain followers, the Kalo team needed portfolio: a little backup for their clients uptake still runs through their call center, to mobilize external support to get the can reduce the likelihood of big losses, DQG WKDW ÀHOG YLVLWV UHPDLQ HVVHQWLDO WR venture off the ground. In the beginning, it and in the best cases can help them thrive. build a connection with their clients. In this focused on attracting funding from various The team sees a particular opportunity way, the company grew from originally development donors, including the Swiss for Kalo in organic agriculture in which just having a digital footprint to a more Development Corporation, various Euro- timely application of less potent input is blended model, at least for now. The team pean Union support programs, the Dutch critical, and is scoping opportunities for believes that it needs to put a positive user Embassy and the Startup Matching Grant connecting Georgian producers with H[SHULHQFHÀUVWDQGWKHQÀJXUHRXWKRZWR of the Georgian Innovation and Technol- importers in the EU. One of the main chal- further increase revenue. As these things RJ\$JHQF\ *,7$ lenges remains that European purchasers go for companies in the digital space, The rationale for this was that Kalo, also often want sizable quantities for their some of it can be a marathon: a mobile in its earlier iterations, documented good markets, whereas Georgia at this point still DSSÀUVWGHYHORSHGLQQHHGVUHJXODU farming practices and made them widely only has a limited supply. Logistics across updates to align with the expansion of the available on Facebook and YouTube, of- the distance add an additional challenge. website and with the various updates of ten attracting near-viral reach, with tens of More mid-sized producers would help the the operating system. For the program- thousands of views, in the space of a few entire sector along. ming work, Kalo relies on a strong IT lead weeks. The videos featured local farmers, As Kalo is earning its keep, and can that has been with the company from the as credible representatives of what some deliver extra programming with and for beginning. farmers already do well, in short, acces- donors whenever activities line up, it Iosebashvili says that in spite of the sible and upbeat clips. Altogether, Kalo doesn’t have the limited runway that cash- VROLG JURZWK LQ WKH FRPSDQ\ DOVR KDVKDGFORVHWRPLOOLRQYLGHRYLHZV burning startups otherwise often face. It is faced its challenges due the pandemic. on YouTube, and more than 4 million views working on expanding the breadth and )LHOG YLVLWV EHFDPH PXFK PRUH GLIÀFXOW on Facebook, and thus has enjoyed very the depth of what it can offer. though they remain an important part of wide reach. The most watched videos give The initial founders, Jonne Catshoek building a closer relationship with bigger a clue to what currently is of particular and Mark van Embden, remain involved in customers. The overload of postal and interest to many farmers throughout Geor- a supervisory capacity. Their involvement delivery services was another problem, as gia: Chandler walnuts, how to set up and in other digital ventures has taken them back to The Hague in the Netherlands, but with a viable model, they are now exploring options to transfer Kalo’s model to other countries. For Georgia, one of the broader lessons may be that next to the in-person extension service (agricultural advisors working for the Ministry of Agricul- WXUH GLJLWDOWRROVPD\EHDJRRGFKDQQHO to reach tens of thousands of farmers at low cost. Kalo illustrates that this approach – especially when blended with a call- center – is becoming a viable model.

Hans Gutbrod teaches at Ilia State University and is also active in agriculture. He originally worked with the Kalo team to launch online videos, to make good agricultural practices widely available in Georgia, and is also active in other agriculture ventures. Kalo expert Archil Kapanadze explains the root structure of a cherry plum (tkhemali) seedling to a client, during planting in Kakheti APRIL-MAY 2021 Investor.ge | 33 ([FHOOHQFH,1:+$7:('2

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36 | Investor.ge APRIL-MAY 2021 Bizon is a marketplace for the sale and rental of construction and agricultural equipment. Given many companies and farms need equipment they don’t have capital to purchase themselves, Bizon unlocks the opportunity to get important work done via rental without undue capital cost.

Shenia co-founders Marika Tsulukidze and Marika Loria Bioms Nano Fertilizers is a startup taking the research Valley with Startup Grind as partner. says Colin Donohue, Director of Startup Startup Grind director Gio Tukhashvili Grind Tbilisi, “They have worked with lit- from a female researcher invited Eugene Fooksman, an early core erally thousands of startups in dozens of and putting it onto the team member at Whatsapp, to attend the countries around the world. Having them event and he and Phubber connected, re- basing a team here is an amazing signal market with advanced VXOWLQJLQDÀUVWFKHFNWR3KXEEHU validating Georgia’s startup efforts. Many organic fertilizers which DQGPRQWKVODWHUDQRWKHUIRUDW places can have startup organizations don’t just fertilize but also double the valuation. come in on a ‘pay to play’ basis but they This US acceleration program Phubber OHDYHZKHQWKHSURMHFWIXQGLQJÀQLVKHV build soil and enhance took part in was also funded by the USAID USMAC making a commitment to Georgia disease resistance. Economic Security Program and imple- independent of any big contract or fund- mented by the US Market Access Center. ing is an exciting signal. GWIT is a great The Georgian Women in Tech program step in sharing their experience and we LVDÀUVWVWHSIRU860DUNHW$FFHVV&HQWHU look forward to exploring how we can Shenia makes customized doing ‘on the ground’ programs in Geor- collaborate to build a strong startup eco- children’s books using the JLD*:,7GLUHFWRU.DWH%XQLQDDQGWKH86 system here overall”. child’s name and teaching MAC co-founder Chris Burry have recently moved to Georgia. The next Georgian Women in Tech co- socially-beneficial values. “I’m very excited that Georgia has KRUWZLOOEHJLQ-XO\0RUHLQIRUPDWLRQ captured the interest of such a strong about the program can be found here: institution as US Market Access Center”, https://www.georgianwomenintech.com Pulsar AI is developing ‘conversational AI’ for auto dealerships, allowing car buyers with questions about car’s features to be served by a bot which learns from big data and can relevantly answer questions. Pulsar operates in the US market and just secured their 50th auto dealership as a customer.

Chief Operating Officer at Pulsar AI Project manager at bioms Nano Fertilizers Sopo Chkoidze Laboratory Maka Tsertsvadze APRIL-MAY 2021 Investor.ge | 37 7KH81(3UHSRUWPHQWLRQHGDERYH ZULWHVWKDWPLOOLRQWRQQHVRIIRRG ZDVWHZDVJHQHUDWHGLQRI which came from households, 26% IURPIRRGVHUYLFHDQGIURPWKH retail sector. 7KHUHDVRQVEHKLQGIRRGZDVWHFDQ range from anything from products being too close to the expiration date, to incor rect labeling, (even slightly) damaged SDFNDJLQJGHWHULRUDWLRQRIWKHTXDOLW\RI IUHVKSURGXFWVRYHUVXSSO\ODUJHSRUWLRQ sizes, or poor phytochemical and storage practices.

FOOD WASTE IN GEORGIA Although there is no data available What Georgia stands to gain to measure food waste levels in Georgia, we know from waste composition reports SURGXFHGE\&(11WKDWRYHURIWKH from ending food waste ZDVWHLQWKHFRXQWU\¶VODQG¿OOVLVRUJDQLF 7+(&$8&$686(19,5210(17$/1*21(7:25. &(11 waste, large portions of which consist of SHOWS HOW ENDING FOOD WASTE IN GEORGIA CAN ALSO food products. END HUNGER, LESSEN ENVIRONMENTAL POLLUTION AND LIFT Food waste has a substantial impact BURDENS ON BOTH THE BUDGET AND THE ECONOMY on the economy and accounts for a huge loss of revenues for all actors in the food NANA TAKVARELIA, CENN HGLEOHIRRGHQGVXSLQODQG¿OOVZKHQLW supply chain, including the government could be used to feed those who need it and the consumer. third of the food produced the most. Unlike many other countries, Georgia across the world never reaches 7KLVKDVEHFRPHSDUWLFXODUO\DS does not have food banks, nor does it A the consumer and goes to waste. parent in Georgia during the pandemic, have a legal framework to incentivize And even when it does make the perilous when many have lost their jobs, are going food donations for recovery and redis journey to our kitchen, a large portion of hungry or cannot afford a healthy diet. tribution of food to vulnerable groups. it still ends up in the bin. Another reason to be raising the 7KLVLVPRVWHYLGHQWLQWKHFDVHRI 7KHPRVWFRPSUHKHQVLYHDVVHVVPHQW DODUPIRRGZDVWHFDXVHVDERXWRI business taxes: businesses still have to of food waste to date, the UNEP Food the greenhouse gas (GHG) emissions SD\SUR¿WWD[ DQG9$7 RQ :DVWH,QGH[VKRZVWKDWZRUOGZLGH that are driving the climate change GRQDWHGSURGXFWV7KHUHLVDQH[HPS people waste almost a billion tonnes of emergency. Food waste that decomposes WLRQRIFRUSRUDWHSUR¿WWD[LIGRQDWLQJWR IRRGD\HDUDQGRIIRRGZDVWHLV LQODQG¿OOVUHOHDVHVFDUERQGLR[LGHDQG charitable organizations, which is valid produced at the household level. methane. Methane is a GHG that is at only if the total deductible amount does Wasting food has enormous conse OHDVWWLPHVPRUHSRWHQWWKDQFDUERQ QRWH[FHHGRIWKHQHWSUR¿WPDGH TXHQFHVVRFLDOO\HQYLURQPHQWDOO\DQG dioxide, accounting for more greenhouse by the organization during the preceding economically. gas emissions globally than all of the calendar year. 7KHELJJHVWLVVXHWKDWKDVH[SRVHG FRPPHUFLDOÀLJKWVZHWDNHHDFK\HDU )RUWKLVUHDVRQTXLWHDKLJKDPRXQW cracks in the way our food systems are When food is lost or wasted, so are the of food waste is being generated, par GHVLJQHGLVWKDWLW¶VQRWRQO\WKHOHIWRYHU vast amounts of resources that have gone ticularly at the retail level, instead of it VFUDSVWKDWHQGXSLQODQG¿OOVSHUIHFWO\ into producing it. being redistributed to those who need it

38 | Investor.ge APRIL-MAY 2021 the most. Many supermarkets in Georgia CENN has put together a Food Waste resources. tend to remove products from shelves Working Group composed of key actors Lack of planning and overbuying is one to two weeks prior to the expiry date in the food industry affected by this issue leading households to throw away food, to avoid potential problems of liability and will be advocating policy changes. which is money wasted. But what is also RUDFFXVDWLRQVRISRRUTXDOLW\6RPH causing high amounts of food waste in supermarket chains in Georgia throw CONSUMER AWARENESS households is the lack of knowledge, RXWEHWZHHQDQGNJRISURGXFWV A lot can be said about consumer whether it’s knowing how to use left every few days per branch. habits and awareness as consumer behav overs from the table to come up with 7KLVOHYHORILQHI¿FLHQF\LQRXUIRRG ior is one of the biggest drivers of food new meals, using scraps for composting, V\VWHPVSXWVDVLJQL¿FDQWVWUDLQRQWKH waste. Consumers are less likely to buy or more importantly, reading food labels country’s economy. and consume fruits and vegetables due correctly. Last month, the Caucasus Environ to their aesthetic or physical irregulari mental NGO Network (CENN), with the ties. As such, one third of the fruits and FOOD LABELING support of the British Embassy, kicked vegetables globally do not make it to 3URGXFWVFRQVLGHUHG³KLJKULVN´VXFK off a new project called “Sustainable our grocery store shelves because they as meat, usually include Use By dates )RRG6\VWHPVIRU&OLPDWH5HVLOLHQFH´ are rejected to avoid complaints of bad on their packaging, which means the 7KHSURMHFWDLPVWRFRQWULEXWHWRD TXDOLW\E\FRQVXPHUV product should be consumed by that date. reduction of the country’s GHG emis 0RUHWKDQPLOOLRQSHRSOHJR /RZULVNSURGXFWVVXFKDVJUDLQVDUH sions by initiating a dialogue between hungry every day, and climate change is usually labeled with a Best Before date, the private and public sectors and increasingly harming agriculture. Sav which means that the product can still be advocating relevant policy changes at ing ugly fruit and vegetables isn’t just consumed after the indicated date. Food the governmental level. For this reason, DTXHVWLRQRIHWKLFVLWLVDTXHVWLRQRI past its Best Before date may lose some TXDOLWLHVVXFKDVDVWURQJDURPDEXWLW is still usually perfectly edible. Reducing food waste will have economic, social and environmental EHQH¿WV,WZRXOGFXWJUHHQKRXVHJDV emissions, slow the destruction of nature through land conversion and pollution, enhance the availability of food and thus reduce hunger, and save money at a time of global recession. CENN, with the support of the Brit LVK(PEDVV\LVUXQQLQJDQDZDUHQHVV raising campaign on food waste with the DLPWRLQÀXHQFHFRQVXPHUVWRDEDQGRQ their wasteful habits. As part of the cam SDLJQYDULRXVLQÀXHQWLDOUHVWDXUDQWVDQG chefs are stepping forward to provide tips and advice on how people can reduce their food waste in their restaurants and households. ,WLVFOHDUWKDWZHQHHGWRUHFRQQHFW to our food and to remember its value and resources that go into its production and understand how we, as individuals, contribute to the problem of food waste.

APRIL-MAY 2021 Investor.ge | 39 commercial purchasers. One of the fruits of this partnership LV$JURQDYWLDPRELOHPDWFKPDNLQJ platform that allows local farmers to sell their products to hotels and restaurants DI¿OLDWHGZLWKWKH$GMDUD*URXSRQH RI*HRUJLD¶VOHDGLQJKRVSLWDOLW\¿UPV 'HYHORSHGE\WKH*)$ZLWK86$,' ¿QDQFLQJDQGLQSDUWQHUVKLSZLWKWKH Adjara Group, the app is being taken up by a growing number of both farmers and ¿UPVLQWKHKRVSLWDOLW\LQGXVWU\ $QGLW¶VZRUNLQJVLQFHSDU ticipating farmers have used the app to PDNHPLOOLRQLQVDOHV$JURQDYWLKDV been so successful, in fact, that in 2020 the GFA spun it off into a private entity, $JURQDYWL/7'ZKLFKLVFDSDEOHRIGULY Agronavti: USAID-funded mobile ing further development and expanding to new regions and value chains. application brings innovation, %\FKDUJLQJDIHHRQDOOSURGXFWV distributed through the app, Agronavti is efficiency to Georgian agriculture setting itself up to become a commercial ly sustainable business in its own right. griculture remains the largest roduced fruit, vegetables, dairy and meat source of employment in Geor products. WORKING WITH THE PRIVATE Agia, accounting for roughly 7KHFKDOOHQJHPDQ\RIWKHVH¿UPV SECTOR TO SOLVE A PROBLEM RIWKHFRXQWU\¶VZRUNIRUFH+RZ ¿QGLVLQVRXUFLQJKLJKTXDOLW\SURGXFH 7KHVWRU\RI$JURQDYWLEHJDQLQ ever, agriculture’s relative contribution LQVWDEOHDQGVXI¿FLHQWYROXPHVIRUFRP ZKHQWKH*)$HQWHUHGLQWRD to gross domestic product is shrinking, mercial consumption. Most individual FRQWUDFWIDUPLQJDJUHHPHQWZLWKWKH IDOOLQJIURPLQWRRQO\ farmers are eager to reach larger markets Adjara Group, a hospitality holding LQ EXWODFNWKHDELOLW\WRSURYLGHVXI¿FLHQW company with a chain of hotels and Gaps in skills and market information YROXPHVRIKLJKTXDOLW\SURGXFWVWRPHHW restaurants in several Georgian cities, currently hamper the sector’s ability to growing consumer demand. which was searching for a way to source generate revenue and exports, and have 7KH8QLWHG6WDWHV$JHQF\IRU,QWHU KLJKTXDOLW\IRRGSURGXFHGLQ*HRUJLD resulted in surprisingly high food imports QDWLRQDO'HYHORSPHQW 86$,' LVSDUW 7KHFRQWUDFWSURYLGHGWKHRSSRUWX IRUDFRXQWU\ZLWKVLJQL¿FDQWDJUDULDQ nering with the Georgian Farmers’ As nity for GFA member farmers to sell their resources. sociation (GFA) to help bridge this gap, products directly to Adjara Group hotels However, the development of mobile and thus drive job creation and income and restaurants, providing a lucrative and technologies, combined with increasing JURZWKDFURVV*HRUJLD7KURXJKWKHLU VWDEOHPDUNHW7KLVZDVDZLQZLQZLWK consumer preferences for ‘eating local,’ FROODERUDWLRQ86$,'WKHOHDGLQJGH the Adjara Group gaining the ability to means the agricultural economy has tre velopment arm of the U.S. government, SURYLGHLWVFXVWRPHUVZLWKKLJKTXDOLW\ mendous room for growth. Encouraged DQGWKH*)$DQRQSUR¿WRUJDQL]DWLRQ ORFDOO\SURGXFHGIRRGDQGWKH*)$HV by global trends, a growing number of that increases the productivity of farmers, tablishing a large and stable market for *HRUJLDQ¿UPV²LQFOXGLQJVXSHUPDU are helping food producers improve the its member farmers. kets, hotels, and restaurants—are looking TXDOLW\DQGTXDQWLW\RIWKHLUSURGXFWLRQ ³>7KH$GMDUD*URXS@ZDQWHGWRVXS to replace imports with domestically p DQGEXLOGFRQQHFWLRQVZLWKODUJHVFDOH ply its restaurants with more local food

40 | Investor.ge APRIL-MAY 2021 DQGOHVVLPSRUWHGIRRG´VDLG7DPDU EHLQJXQLTXHLQLWVPDWFKPDNLQJRIIHU TXDOLW\WKDWLWUHSUHVHQWVDVDQLPSRUWDQW 7RULD([HFXWLYH'LUHFWRURIWKH*)$ FRXOGDOVRVHUYHDVDRQHVWRSVKRSIRULWV GHYHORSPHQWIRU*HRUJLDQIDUPHUV,WLVD ³7KH\WULHGWRGRWKLVRQWKHLURZQEXW users. So we added other functionality of stepping stone to more lucrative markets, LWZDVYHU\GLI¿FXOW7KH\DVNHGIRURXU fering more information, such as weekly both in Georgia and abroad. We hope to help in connecting them with farmers SULFHVIRUDJURSURGXFWV´VDLG7RULD use it as a model for greater agricultural SURGXFLQJKLJKTXDOLW\SURGXFH´ Agronavti was expanded to provide YDOXHLQ*HRUJLDDQGDFURVVWKHUHJLRQ´ For the GFA, a partnership with the IDUPHUVZLWKUHDOWLPHLQIRUPDWLRQDERXW said Olson. 86$,'=UGD$FWLYLW\LQ*HRUJLDSUR prices and weather forecasts, as well as gram, which was then providing grants access to research and training materials. SUPPORTING FARMERS THROUGH to develop mobile tools for farmers, was :KHQ$JURQDYWL¿UVWODXQFKHGRQO\ A COMMERCIALLY SUSTAINABLE DQDWXUDOPDWFK:LWK86$,'IXQGLQJ a handful of farmers could meet Adjara BUSINESS MODEL the GFA was able to contract a local tech *URXS¶VTXDOLW\DQGTXDQWLW\VWDQGDUGV Agronavti was developed and pro ¿UPWRGHVLJQWKH$JURQDYWLDSS 7KH*)$ZLWK86$,'DVVLVWDQFH PRWHGZLWK86$,'DVVLVWDQFHEXWERWK ³86$,'LVDOZD\VORRNLQJIRUZD\V continued to help farmers improve their WKH*)$DQG86$,'VDZWKHSRWHQWLDOIRU WRSURPRWHLQQRYDWLRQDQGSULYDWHVHFWRU SURGXFWV¶TXDOLW\WKURXJKWHFKQLFDODV LWWREHFRPH¿QDQFLDOO\VHOIVXVWDLQLQJ led solutions that can support economic sistance and the promotion of GeoGAP, 7RULDDQGKHUFROOHDJXHVZRUNHGZLWK growth and generate higher incomes and a local certification scheme that is a WKH86$,'=UGD$FWLYLW\LQ*HRUJLD KLJKYDOXHHPSOR\PHQW´VDLG0DULND GRPHVWLFPDUNHURITXDOLW\IRUORFDO program to develop a business model 2OVRQ2I¿FH'LUHFWRURI86$,'*HRU farmers. that could sustain itself without donor JLD¶V(FRQRPLF*URZWK2I¿FH 7KHLQYHVWPHQWVPDGHLQLPSURYHG ¿QDQFLQJ³:HUHDOL]HGLWZDVFUXFLDOWKDW 7KHDSS¶VILUVWYHUVLRQZDVIDLUO\ TXDOLW\DQGFHUWL¿FDWLRQKDYHDOORZHG the application be effectively monetized straightforward. “We wanted to simplify PRUHIDUPHUVWREHQH¿WIURP$JURQDYWL LQRUGHUWRJHQHUDWHVXI¿FLHQWUHYHQXHV the matchmaking process and include 7KHUHDUHQRZPRUHWKDQSURGXFWV to cover its own costs and potentially more farmers into the existing scheme available through the application, with SURYLGHSUR¿WVWR*)$DVRZQHURIWKH that we had been operating in partnership more farmers adding their products every DSSOLFDWLRQ´VDLG7RULD ZLWKWKH$GMDUD*URXS´DGGHG7RULD GD\$QGZLWKWKHPLOOLRQLQVDOHV ,Q$JURQDYWL/7'ZDVERUQ However, they soon realized that they DFKLHYHGVLQFHIDUPHUVKDYHEHHQ and the new company made an instant could offer more than a matchmaking able to hire more workers and reinvest VSODVKZLQQLQJD*(/JUDQW app, and even provide farmers with a PRUHRIWKHLUSUR¿WVLQWRLQQRYDWLRQVWR IURP*HRUJLD¶V,QQRYDWLRQDQG7HFKQRO PDUNHWLQIRUPDWLRQV\VWHP 0,6 WKDW LPSURYHWKHTXDOLW\HI¿FLHQF\DQGVFDOH RJ\$JHQF\ *,7$ WRLQWHJUDWHDUWL¿FLDO would not only create market linkages, of production. LQWHOOLJHQFH $, LQWRWKHDSSOLFDWLRQ$, EXWKHOSIDUPHUVLPSURYHWKHTXDOLW\DQG GeoGAP is key to the continued suc will allow the app to provide farmers HI¿FLHQF\RIWKHLUSURGXFWLRQ cess of Agronavti, but it has implications with recommendations based on soil “During the app development pro beyond the app. “We see the GeoGAP analyses, weather forecasts, and best cess, we realized that the GFA’s model, FHUWL¿FDWLRQV\VWHPDQGWKHLPSURYHG practices in agribusiness management. 7KLVZLOOEXLOGWKHFDSDFLW\RIORFDOIDUP ers, helping them provide more produce WRSDUWLFLSDWLQJUHVWDXUDQWVDQGKRWHOV,W will also funnel more revenue back into $JURQDYWL/7'KHOSLQJLWWRJURZDQG EHQH¿WPRUHEXVLQHVVHV 7ROHDUQPRUHDERXW86$,' Georgia programs and partnership RSSRUWXQLWLHVYLVLW86$,'JRY*HRU- JLDRUFRQWDFW%HYHUO\+RRYHU86$,' Georgia’s private sector engagement coordinator, at [email protected].

APRIL-MAY 2021 Investor.ge | 41 NEWS

CONTENT

Meeting with International Financial Institutions in 44 Georgia

43. CENN PRESENTS NEW SUSTAINABLE 45. TOURISM COMMITTEES REVIEW FOOD FOR CLIMATE RESILIENCE OUTLOOK FOR TOURISM SECTOR IN PROJECT TO AMCHAM MEMBERS GEORGIA

44. AMCHAM MEETS WITH GEORGIAN 46. AMCHAM EXECUTIVE DIRECTOR AMBASSADOR TO US DAVID GEORGE WELTON PRESENTS EBRD BAKRADZE RESEARCH ON CHALLENGES IN GEORGIA-EU TRADE

42 | Investor.ge APRIL-MAY 2021 NEWS CONSTRUCTION AND REAL ESTATE COMMITTEE MEETING

AmCham hosted a virtual Construction and Real Estate Committee Meeting on February 4 with invited speaker and President of the Georgian National Association RI5HDO(VWDWH0DULDP'HPXULDZKREULHÁ\SUHVHQWHGDERXWWKHDVVRFLDWLRQDQG shared her insights into the sector. Members updated each other on current challenges encountered in the industry. ENVIRONMENTAL BUSINESSES COMMITTEE MEETING

$P&KDPKRVWHGDYLUWXDOPHHWLQJRIWKH(QYLURQPHQWDO&RPPLWWHHRQ)HEUXDU\ with invited guest Nana Takvarelia from CENN who presented on their new project Sustainable Food Systems for Climate Resilience, which aims to reduce food waste in the country by facilitating a dialogue between the private, civil, and government sectors and raising awareness.

APRIL-MAY 2021 Investor.ge | 43 NEWS

AMCHAM MEETING WITH AMBASSADOR OF GEORGIA TO THE US DAVID BAKRADZE, DEPUTY CHIEF OF MISSION GIORGI TSIKOLIA

AmCham Georgia spoke with Ambassador of Georgia to the United States David Bakradze and Deputy Chief of Mission Giorgi Tsikolia and the General Consul in 6DQ)UDQFLVFR/HYDQ%HULG]HRQ)HEUXDU\7KH\JDYHWKHLUWDNHRQFXUUHQW86 politics, the prospects for US-Georgia relations and planned activities to promote Georgia commercially in the US. The meeting involved a lively Q+A. MEETING WITH INTERNATIONAL FINANCIAL INSTITUTIONS IN GEORGIA

2Q )HEUXDU\ $P&KDP *HRUJLD KRVWHG D =RRP PHHWLQJ ZLWK ,QWHUQDWLRQDO Financial Institutions in Georgia represented by Catarina Bjorlin-Hansen, EBRD Regional Director for the Caucasus, Maciej Czura, European Investment Bank Head of Regional Representation for the South Caucasus, Sebastian Molinueus, World Bank Regional Director for the South Caucasus and Shane Rosenthal, Asian Development Bank Country Director for Georgia.

44 | Investor.ge APRIL-MAY 2021 NEWS

TOURISM COMMITTEE MEETING WITH INVITED GUESTS

AmCham Georgia organized a virtual meeting of the Tourism Committee with LQYLWHGJXHVWV0U%RULYRM %RULN 9RNULQHNDQG0V7HNOD,DVKDJDVKYLOLIURP&XVKPDQ :DNHÀHOG RQ )HEUXDU\ ZKR JDYH D SUHVHQWDWLRQ RQ WKH ´2XWORRN RI WKH Hospitality Market”, which was followed by a Q&A session. HOSPITALITY DATA COMPANY STR PRESENTS ON RECENT TRENDS IN SECTOR

AmCham Georgia organized a virtual meeting of the Tourism Committee with KRVSLWDOLW\GDWDFRPSDQ\675RQ0DUFKZLWKLQYLWHGJXHVWV0V6RSKLH+DQORQ the Senior Business Development Manager and Mr. Jakub Klimczak, Regional 0DQDJHURI&HQWUDO(XURSH7KHVSHDNHUVSUHVHQWHGRQWKHLPSDFWRI&RYLG and shared their views on future. The presentation was followed by a Q&A. Members also had an opportunity to share updates about the current challenges of the sector.

APRIL-MAY 2021 Investor.ge | 45 NEWS

AMCHAM EXECUTIVE DIRECTOR GEORGE WELTON PRESENTS RESEARCH FOR EBRD ON CHALLENGES IN GEORGIA-EU TRADE

AmCham Georgia hosted a virtual meeting with AmCham Executive Director George :HOWRQ RQ 0DUFK RQ KLV UHVHDUFK RQ FKDOOHQJHV LQ *HRUJLD(8 WUDGH ZKLFK KH conducted for EBRD. The presentation was followed by a lively Q+A. CLT COMMITTEE AGRIBUSINESS COMMITTEE MEETING MEETING

$P&KDP·V &/7 &RPPLWWHH PHW RQ AmCham hosted a virtual Agribusiness March. The Committee discussed ongo- &RPPLWWHH RQ 0DUFK WR GLVFXVV WKH ing current legal issues and AmCham’s current situation in the sector. In particular involvement. In particular the Committee the Committee discussed: agricultural discussed tax issues, new provisions as to land investment plan procedure, an VAT taxation, labour code amendments update on Brown Marmorated stinkbug and their practical implementation and %06% SDURVDQD DQG RYHUYLHZ RQ draft regulation on foreign ownership of the new Georgian Nursery Association agricultural land via investment plan route. *(266$

46 | Investor.ge APRIL-MAY 2021 NEWS NEW MEMBERS

American Hospital Tbilisi Enka Renewables LLC PH International (Project Corp A Corp B Harmony Inc.) $PHULFDQ +RVSLWDO 7ELOLVL $+7 LV LQ- Enka Renewables LLC is developing Non-Profit tended to operate in accordance with 1DPDNKYDQL+\GURSRZHU&DVFDGH +33 PH International (formerly known as international standards, reflecting Best project in Georgia, in particular in Tsageri 3URMHFW+DUPRQ\,QF LVDQLQWHUQDWLRQDO Practices in the provision of a leading- and Tskaltubo municipalities on Rioni river non-profit organization working with edge standard of clinical and customer withing the scope of Build Own and Oper- people, communities, governments, aca- care. This implies that AHT will initially meet DWH$JUHHPHQW %22 VLJQHGRQ$SULO demia, and corporations to build strong and constantly maintain the accredita- ZLWKWKH*RYHUQPHQWRI*HRUJLD global communities by fostering civic tion requirements of the Joint Commission enka.com engagement, cross-cultural learning, and ,QWHUQDWLRQDO -&, $+7 ZLOO EH WKH IXOO\ increased opportunities in the digital age. accreditable hospital in Georgia. 3+,QWHUQDWLRQDOEHJDQLWVÀUVWHGXFDWLRQDO ahtbilisi.com cultural, and public diplomacy programs LQ*HRUJLDLQDQGKDVKDGDSHUPD- QHQWEUDQFKRIÀFHLQ7ELOLVLVLQFH:LWK support from various U.S. Department of State bureaus, the U.S. Embassy in Tbilisi, USAID, and private sector partners, PH Zinc Network LLC International Georgia implements diverse Corp B and complex multimillion dollar in-country, The Georgian Information Integrity regional, and international programs. With Program is a USAID funded project imple- its cross-cultural team, in-country regional mented by Zinc Network. The company NGO partner network, and partnerships aims to combat disinformation in Georgia. with government, private sector, and zincnetwork.com academia, PH Georgia is known for its grassroots programing approaches that promote local ownership, citizen em- powerment, and sustainability. Some of 3+ *HRUJLD·V ÁDJVKLS LQLWLDWLYHV LQFOXGH professional, cultural, and educational exchange programs to the U.S. for Georgian DGXOWV DQG \RXWK WKH OHJDO VRFLDOL]DWLRQ initiative which focuses on juvenile crime prevention with an emphasis on support- LQJFRPPXQLW\SROLFLQJDSSURDFKHVFLYLF education programming, improving the quality of school-based civic education DQG LWV SUDFWLFDO DSSOLFDWLRQV LQ RI Georgian schools while also promoting in- IRUPHGDQGUHVSRQVLEOHFLWL]HQVKLSFRXQ- tering violent extremism through online DQGRIÁLQHFDPSDLJQVFDSDFLW\EXLOGLQJ DQGWUDLQLQJDQG(QJOLVKODQJXDJHSUR- grams providing specialized training to teachers and youth and improved English teaching and learning throughout Geor- gia by working in formal and non-formal educational settings across the country. ph-int.org

APRIL-MAY 2021 Investor.ge | 47 AmCham Company Members as of April 2021

PATRON MEMBERS Budget Rent a Car - Otokoc Dressler Consulting GULF Georgia Georgia LLC 35 Besarion Jgenti St. by Sun Petrolium Georgia LLC 37 Rustaveli St. Tel: +1-5169081444 Pixel Business Center, Tel: 2234112 www.dresslerconsulting.com 34 Chavchavadze Ave. BP Exploration Georgia www.budget.com.ge Tel/Fax: 2496444 24, S. Tsintsadze St. www.gulf.ge Tel: 2593400 EY LLC www.bpgeorgia.ge Caucasus University 44 Kote Abkhazi St. .RVWDYD6W%OGWKÀ Tel: 2439375; Fax: 2439376 Hilton Batumi Tel: 2377777; Fax: 2313226 www.ge.ey.com 13 Takaishvili St., Batumi KPMG Georgia LLC www.cu.edu.ge Tel: 292092 5th Floor, GMT Plaza, www.hilton.com 4 Freedom Sq., 0105 Tel: 2935713; Fax: 2982276 Chemonics International F H Bertling Georgia Ltd. www.kpmg.ge Room 3, 4th Floor, 9 N.Ramishvili St, 1st Dead End,0179 Iberia Refreshments, JSC 154 Agmashenebeli Ave. Tel: 2227495 Tetri Khevi Hesi District, Orkhevi Tel: 2252287 www.chemonics.com Tel: 2241091; Fax: 2241090 PwC Georgia www.bertling.com www.pepsi.ge 12 M. Aleksidze St., 0160 King David Business Center Coca-Cola Company Tel: 2508050; Fax: 2508060 114 Tsereteli Ave. www.pwc.com FINCA Bank Georgia ICE Ltd. Tel: 2941699, 2942609 9D]KD3VKDYHOD$YHUGÀ Chavchavadze Ave. #33b www.coca-cola.com Tel: 2244949 Tel: 2990172 TBC Group ZZZ¿QFDJH www.ice.com.ge 7 Marjanishvili St. Colliers International Tel: 2272727; Fax: 2228503 Georgia LLC www.www.tbcbank.ge Gazelle Finance Georgia LLC IT Consulting Georgia LLC 37/39 Kostava St.,Grato Business Tatishvili st. 3/5 (Melikishvili Ave. Irakli Abashidze 36-34, Terminal Center 7th Floor Gate 13 Tel: 2224477 $ZRUG%XVLQHVV&HQWHUWKÀRRU UGT Tel: 2904304 Tel: 599231313 www.colliers.com D&KDYFKDYDG]H$YHWKÀRRU ZZZJD]HOOH¿QDQFHFRP www.spotcoin.net Tel: 2220211; Fax: 2220206 www.ugt.ge Conformity Assessment Kavkaz Cement JSC International (CAI) LLC General Electric 29 Andronikashvili St., 0189 11 Giorgi Saakadze Descent 5th Floor, Pixel Bulding, Tel: 2619090 Tel: 595690008 34 Chavchavadze Ave. CORPORATE A MEMBERS www.kavkazcement.ge www.ca.international Tel: 2259516 / 2259505 www.ge.com Adjara Group Hospitality KFC / Iberia Food Company 1, 26 May Sq., 0179 &XVKPDQ :DNH¿HOG*HRUJLD 29 Chavchavadze Ave. Tel: 2300099 4th Floor, 34 l. Chavchavadze Ave. Geomedica Ltd. Tel: 577043769 www.adjaragroup.com 0179 12 First Lane, N.Bokhua St, 0131 www.facebook.com/KFCGeo Tel: 2474849 Tel: 2520035 ZZZFXVKPDQZDNH¿HOGJH www.geomedica.ge Alliance LLC 135 King Parnavaz St., Batumi Le Meridien Batumi Tel: 591555757 DAI Global (Implementer of the Intersection of Ninoshvili/Zghenti www.alliancegroup.ge Georgian American University USAID Economic Security) Streets, Batumi 8 Aleksidze St. 7th Floor, 29 l. Chavchavadze Ave. Tel: 422 299090 Tel: 2206520; Fax: 2206519 Alta LLC Tel: 577465059 www.lemeridien.com www.gau.edu.ge Beliashvili st. 104, 0159 www.dai.com Tel: 2510111 www.alta.ge M² Development LLC Dasta Records Management GMT Group 15 Al. Kazbegi Ave., 0160 American Hospital 15 Grigol Lortkipanidze St. 4 Freedom Square Tel: 2444111 17 Ushangi Ckheidze St., 0102 Tel: 2900112 Tel: 2988988; Fax: 2988910 www.m2.ge Tel: 551851101 www.drm.ge www.gmt.ge www.ahtbilisi.com Maersk Georgia LLC Deloitte 12 Aleksidze St., King David Anaklia Development Grant Thornton LLC King David Business Center 54 Ketevan Tsamebuli Ave. %XVLQHVV&HQWUHÀ Consortium Tel: 248 66 70 6 Marjanishvili St. WKÀRRU0HUDE$OHNVLG]H6W Tel: 2604406 Tel: 2244566; Fax: 2244569 https://www.maersk.com/local- Tel: 2959910 www.grantthornton.ge www.deloitte.ge information/georgia www.anakliadevelopment.com

Avon Cosmetics Georgia LLC Dentons Georgia LLC Greco Group Marriott Hotels, Resorts & Suites 37/39 Kostava Street, Grato Business 10 Melikishvili St. 1 Nutsubidze St. 13 Rustaveli Ave. Center 7th Floor Tel: 2509300; Fax: 2509301 Tel: 2393138; Fax: 2311107 Tel: 2779200; Fax: 2779210 Tel: 2203175 www.dentons.com www.greco.ge www.marriott.com www.avon.com

BAT/ T&R Distribution Diplomat Georgia GT Group Mars Georgia LLC 2 Chirnakhuliani St., Samgori district 10 Chantladze Turn, Orkhevi 48 B. Cholokashvili St. 71 V. Pshavela Ave; “BCV”, 0186 Tel: 2157500/01/02; Fax: 2157503 Tel: 2919293 Tel: 2740740 Tel: 2207507 www.bat.com www.diplomat.ge www.gtgroup.ge www.mars.com

48 | Investor.ge APRIL-MAY 2021 Mastercard Radisson BLU Iveria Hotel CORPORATE B MEMBERS BGI Legal Gate 08, Floor 5, 37M Ilia 1 Rose Revolution Sq. 5XVWDYHOL$YH,,ÀRRU Chavchavadze, Axis Towers, 0179 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 Tel: 2300099 www.ae-solar.com Biltmore Hotel Tbilisi Meridian Express RE/MAX Capital 29 Rustaveli Ave. 15-17 Ketevan Tsamebuli Ave.0103 43 Irakli Abashidze St. Tel: 2727272 Tel: 2745199 Tel: 2222424 http://www.millenniumhotels.com/en/ www.ups.com www.remax-georgia.ge tbilisi/the-biltmore-hotel-tbilisi/ Akustiko 93 Shalva Nutsubidze st. Microsoft Georgia LLC Tel: 568299559 Axis Towers, 37M Ilia Chavchavadze Sheraton Grand Tbilisi Metechi www.akustiko.ge BLB Law Firm Business Legal $YHWKÀRRU7HUPLQDO Palace Hotel Bureau Tel: 2970123 20 Telavi St. 8]QDG]HVW,,ÀRRU www.microsoft.com Tel: 2772020; Fax: 2772120 Tel: 2995797 www.sheraton.com/tbilisi APM Terminals Poti www.blb.ge 52 Aghmashenebeli St., Poti

0RQGHOƝ]*HRUJLD//& Tel: 0493 277777 4th Floor, BC “Avenue”, 29 www.apmterminals.com Chavchavadze Ave., 0179 %/&/DZ2I¿FH Tel: 2200180 SICPA Security Solutions 129a D. Agmashenebeli Ave., 0102 www.mdlz.com Georgia Tel: 2922491; Fax: 2934526 6 Akaki Bakradze St. www.blc.ge Tel: 2434580 Aptos www.sicpa.com 2I¿FH7HFKQRORJLHV6WHHOFDVH 20/4 Orbeliani St. Dealership Tel: 2 2920371 4 Freedom Sq., 0105 www.aptos.ge Caucasus Online LLC Tel: 2999980, 2688229 160 Tsinamdzghvrishvili St. ZZZRI¿FHWHFKQRORJLHVJH Simetria LLC Tel: 2480000 70b, Vazha-Pshavela Ave. www.co.ge Tel: 2420692 Aversi Pharma www.simetria.ge Optimal Digital 148/2 Aghmashenebeli Ave. 35 Razmadze St. Tel: 2987860 Channel Energy (Poti) Limited Tel: 595001889 www.aversi.ge Georgia LLC, By Petrocas Energy www.optimal.digital Group Strada Motors/Jeep-Chrysler 52, David Agmashenebeli St., Poti 191 Ak. Beliashvili St. 7HO Oracle Nederland B.V. Tel: 23073007 Baker Tilly Georgia Ltd. www.petrocasenergy.com 5HSUHVHQWDWLYHRI¿FH www.strada.ge Meidan Palace, 44 Kote Abkhazi St. Kievskoe Shosse, 22nd km, bld Tel: 2505353; Fax: 2505353 6/1,10881, Moscow, Russia www.bakertillyinternational.com Tel: +74956411400 Château Mukhrani, J.S.C. www.oracle.com T&K Restaurants (McDonald’s 6 Samgebro St. Georgia) Tel: 2201878; Fax: 2201878; 1 Dzmebi Kakabadze St. www.mukhrani.com Orient Logic Ltd. Tel: 2921246; Fax: 2251422 Bank of Georgia 18 Bochorma St. www.mcdonalds.ge 29a Iuri Gagarin St. Tel: 2541818 Tel: 2444282 www.orient-logic.ge www.bog.com.ge CMC LLC 33 I. Chavchavadze Ave. Tel: 2240717 TMC Global Professional Pace International LLC www.cmc.ge Services Abuladze st. First Lane 8, 0162 )UHHGRP6TUGÀRRU6XLWH Basis Bank JSC Tel: 2914701 Tel: 599379783 1 Ketevan Tsamebuli Ave. www.pace.ge www.tmcservices.com Tel: 2922922; Fax: 2986548 Crosscountry Georgia www.basisbank.ge Floor 4, Entrance 1, 29 Chavchavadze Ave. PepsiCo Wimm-Bill-Dann Tel: 790420015 Village Ponichala, Tbilisi 0165 www.cross-cap.com Tel: 2475290 Batumi International Container www.wbd.ru USAID Economic Governance Program Terminal 5, Levan Mikeladze St., 0162 11, Baku Street, 6010, Batumi Crowne Plaza Borjomi Tel: 599585122 Tel: 422 276452 Philip Morris Georgia www.bict.ge 37 Rustaveli Ave. Saarbrucken Square, 0102 Tel: 995 367 220260 Tel: 2439003 www.cpborjomi.com www.pmi.com Visa International Service Association BDO LLC ProCredit Bank 900 Metro Center Boulevard, Foster 2 Tarkhnishvili Str. Crystal, MFO JSC 154 Agmashenebeli Ave. City, CA 94404, USA Vere Business Centre, 0179 Expo Georgia, Tsereteli Ave. Tel: 2202222; Fax: 2202222-2226 Tel: 599374877 Tel: 2545845; Fax: 2399204 Tel: 431253343 www.procreditbank.ge www.visa.com www.bdo.ge www.crystal.ge

APRIL-MAY 2021 Investor.ge | 49 AmCham Company Members as of April 2021

Dio Ltd. Georgian Airways GMC Motors Legal Partners Associated LLC 12th Km David Agmashenebeli Alley 12 Rustaveli Ave. 12km, Kakheti Highway, 0109 2I¿FH%HVLNL%XVLQHVV&HQWHU N3, Parsadani St. Tel: 2999730; Fax: 2999660 Tel: 2921319 4 Besiki St. 0108 Tel: 2361112 www.georgian-airways.com www.eg.ge Tel: 2200203; Fax: 2250458 www.dio.ge www.lpa.ge

HeidelbergCement Georgia Georgian Beer Company 21 Al.Kazbegi Ave. Liberty Bank JSC Domsons’ Engineering & 3311 Saguramo, Mtskheta District Tel: 2474747 74 Chavchavadze Ave. Construction Tel: 2437770 www.heidelbergcement.ge Tel: 2555500; Fax: 2912269 23 Polikarpe Kakabadze St. www.geobeer.ge www.libertybank.ge Tel: 2050303 www.domsons.com Herbalife Nutrition Bld. 4a Tamarashvili St., 0116 Lisi Development Georgian Hospitality Group Tel: 2202929 2 Tiripebi St. 0159 Duty Free Georgia 22 Peritsvaleba St., 0103 www.herbalife.com Tel: 2002727 UGÀRRU%HVLNL6W Tel: 2987789 www.lisi.ge Besiki Business Center www.ghg.ge Tel: 2430150 Hyundai Glovis www.dfg.ge 37/39 Kostava St. Luca Polare Tel: 2233625 54 Oniashvili St. Georgian Industrial Group LLC www.glovis.ge Tel: 2990399 GIG Plaza, 14 Gazapkhuli St., 0177 www.lucapolare.com Efes Brewery in Georgia - Tel: 2210187 Lomisi JSC www.gig.ge Village Natakhtari, Mtskhta Region Imperial Tobacco Production Tel: 2357225 Ukraine M & M - Militzer & Munch www.natakhtari.ge 35 Akademika Zabolotnoho St. Kyiv Georgia Georgian Integrated Systems 39 Ketevan Tsamebuli Ave. (GiS) Tel: 2748240, 2748941 http://ge.mumnet.com 2I¿FH$EDVKLG]H6W Insta Element Construction Ltd. Tel: 2243724 8, Zakariadze St., 0177 13 S.Mgaloblishvili St. www.gis.ge Tel: 2202020 Tel: 2374737 www.insta.ge Maqro Construction www.ec.ge 22 Panjikidze St. Tel: 2000909 www.maqro.ge Geo Steel LLC International Black Sea 36 Davit Gareji St., Rustavi, 3700 Enka Renewable University Tel: 2243794 Apartment 74, Floor 4, Block 4, 3 David Agmashenebeli Alley 13 km, www.geosteel.com.ge Arakishvili St. 2, 0131 Mercure Tbilisi Old Town www.enka.com Tel: 2595005 9 Gorgasali St., Old Tbilisi, 0105 www.ibsu.edu.ge Tel: 2006060 www.mercure.com GeoWel Research 36a L. Asatiani St. ExpoGeorgia JSC ,úEDQN*HRUJLD-6& Tel: 2226792 118 Tsereteli Ave., 0119 140/B Agmashenebeli Ave., 0102 0*/DZ2I¿FH//& www.geowel.org Tel: 2341100 Tel: 2310515 WKÀRRU3L[HOEXLOGLQJ www.expogeorgia.ge www.isbank.ge 60 Chavchavadze Ave. Tel: 2206633 www.mglaw.ge Gergili JTI Caucasus Foresight Investment Group Apt. 13, Block 3, Building 7, Vaja- VII Floor, Pixel Business Center, 2I¿FH%HVLNL6W Pshavela Ave. 34 Chavchavadze Ave. MKD Law Tel: 595 559966 Tel: 2323145 Tel: 2604111 36, K. Khetagurovi St. 0102 www.gergili.ge www.jti.com Tel: 2553880 www.mkdlaw.ge Gebrüder Weiss LLC Airport Adjacent Territory, Globalink Logistics LLC KK & Partners Kakheti Hwy 60 Sh. Nutsubidze St., 0186 2I¿FH1LQR5DPLVKYLOL6W Moped Depot Tel: 2710011 Tel: 2000238, 2208147 Tel: 2432227 139 Nutsubidze St. www.gw-world.com www.globalinkllc.com www.kkpartners.ge Tel: 595 211111 www.mopeddepot.ge

GeoEngineering LLC .RUG]DG]H/DZ2I¿FH 44 Petre Kavtaradze St., Block A, Mosmieri LLC 15a Tamarashvili St. GlovoApp Georgia Floor 1 4 Besiki st. Fl.4, Room 404 Tel: 2311788; Fax: 2311787 5 Mikheil Asatiani St., Floor 6 Tel: 2380322 Tel: 2970420 www.geoengineering.ge www.glovo.ge ZZZNRUG]DG]HODZRI¿FHJH www.mosmieri.ge

Geomill LLC GM Capital LLC Kordzahia, Jgenti Law Firm Murphy Kazbegi 4, Chirnakhuli St. 2 Tarkhnishvili St., 0179 10 Petriashvili St. 2I¿FH0DUL%URVH6W Tel: 2400000 Tel: 2912626 Tel: 2921878 Tel: 2007107 www.geomill.ge www.gmcapital.ge www.kjlaw.ge www.murphyshipping.com

50 | Investor.ge APRIL-MAY 2021 MyGPS Rooms Hotels University of Georgia Eastern European Centre for 6 Bokhua St., 0159 14 Merab Kostava St. 77a Kostava St. Multiparty Democracy (EECMD) Tel: 2180180 Tel: 2020099, 2730099 Tel: 2552222 7 Luarsab Sharashidze St. www.mygps.ge www.roomshotels.com www.ug.edu.ge Tel: 2915650 www.eecmd.org

NCC Ltd. VBAT Law Firm RSM Georgia LLC 9, Erekle II turn 2I¿FH*1LVKQLDQLG]H6W Europe Foundation 85 Paliashvili St., 0162 Tel: 2725088 Tel: 2305777 3 Kavsadze St. Tel: 2558899 www.ensisi.ge www.vbat.ge 7HO)D[ H[W www.rsm.ge www.epfound.ge

Vinotel (“Aigvinissakhli”) LLC Nexia TA 4 Elene Akhvlediani Ascent Georgia Red Cross Society Merab Aleksidze str. 12, King David SavvY Tel: 2555888 55 Egnate Ninoshvili St. Business Center 1st Pavilion, Expo Georgia,118 www.vinotel.ge Tel: 2961092 Tel: 2242559 Tsereteli Ave., www.redcross.ge www.nexia.ge Tel: 2421342; www.savvy.ge Wings and Freeman Capital Green Building, 6, Marjanishvili St. Georgian Waste Managment Nodia, Urumashvili & Parnters Tel: 2940051; Fax: 2940053 Association 2I¿FH,9%ORFN SEA www.wfcapital.ge 36 Mnatobi St. 71 Vazha-Pshavela Ave. 44 Kote Apkhazi St. Tel: 599 224070 Tel: 2207407 Email: [email protected] www.facebook.com/wmageorgia www.nplaw.ge Wissol Georgia 74b Chavchavadze Ave. Tel: 2915315; Fax: 2915615 Good Governance Initiative Nutrimax Ltd. Silknet Ltd. www.wissol.ge Pixel Center, 8th Floor, 34, 67b Ghoghoberidze St., Zemo 95 Tsinamdzgvrishvili St. Chavchavadze Ave. Ponichala Tel: 2910345; Tel: 2243111 Tel: 2471242 www.silknet.com Zarapxana LLC www.ggi.ge www.nutrimax.ge 15 Lubliana St. Tel: 2510001 www.zarapxana.ge MAC Georgia SRG Investments LLC 3 Lado Kavsadze St, 2nd Floor PASHA Bank Georgia JSC D&KDYFKDYDG]H$YHUGÀRRU 2 Leonidze St. / 1 G.Tabidze St. Tel: 2197378 Tel: 2253581 Zinc Network LLC www.macgeorgia.org Tel: 2265000 www.silkroad.ge 4 Tamar Chovelidze St. www.pashabank.ge Tel: 555 424 090 www.zincnetwork.com PH International Suknidze & Partners LLC 17D Chavchavadze Ave., 1st Floor, PMO Business Consulting Apartment # 1 16 Raphiel Eristavi St., 2 Floor 30 Khvichia St. / 24 University St. www.suknidzeandpartners.com Tel: 2990049; 2233338; Tel: 2377307 www.ph-int.org www.pmo-bc.com NON-PROFIT ORGANIZATIONS

QSI International School of Policy and Management T3Concept Ltd. American Councils for Georgia Consulting Group (PMCG) 13 Radiani St., 0179 International Education - Georgia Village Zurgovani, Tbilisi $JKPDVKHQHEHOL$YHWKÀRRU Tel: 2434455 Chavchavadze Ave. Lane I, Building Tel: 2537670; Fax: 2322607 Tel: 2921171 www.turner.com, www.t3concept.ge 6, Entrance II, Floor II (Formerly www.qsi.org www.pmcg.ge D&KDYFKDYDG]H$YH Tel: 2594901 www.americancouncils.org Research Triangle Institute Prime Concrete TBC Leasing JSC Branch in Georgia 76b Ilia Chavchavadze Ave. 6 Saakadze Lower Hill, Unit 12 222 Apt. 11 Vazha-Pshavela Ave. American Friends of Georgia Tel: 2272727 Tel.: 577991197 Tel: 2224870 77 Nutsubidze St. www.tbcleasing.ge www.rti.org www.primeconcrete.ge Tel: 2397174; Fax: 2388495 www.afgeorgia.org San Diego State University - Qebuli Climate Tbilisi View CENN Georgia 40 Beliashvili St. Amagleba III Dead-end #3 27 Betlemi St., 0105 5 Kostava St. 0108 Tel: 2473112 Tel: 2999980 Tel: 2751903 Tel: 2311611 www.qebuli.ge www.tbilisiview.ge www.cenn.org www.georgia.sdsu.edu

(CiDA) Civil Development Rentals LLC Transparency International Terabank JSC Agency 46 Rustaveli Ave.; 36 Griboedov St. Georgia 3 Ketevan Tsamebuli Ave. ,$EDVKLG]H7HUPLQDO2I¿FH Tel: 2454567 / 2996412 61 Agmashenebeli Ave. 0102 Tel: 2507700 Tel: 341258822 www.rentals.ge Tel: 2932129 www.terabank.ge www.cida.ge www.transparency.ge

Resolution Insurance Brokers, Georgia LLC Transporter LLC CNFA Union of Busines Ladies 28 A. Griboedov St., 0108 113b Beliashvili st. 47 Kostava St., 0179 8 D. Gamrekeli St., 0194 Tel: 599906374 Tel: 2147171 Tel: 2980722 Tel: 2308661 www.rib.ge http://www.transporter.com.ge www.cnfa.org www.ubl.ge

APRIL-MAY 2021 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, Hans Gutbrod, Ana Mezvrishvili, Gela Mamulashvili, Zura Khachapuridze Copy Editor Alexander Melin Special thanks to all the contributors to the magazine, especially our member Marketing & Promotion companies for their contributions, AmCham Georgia staff and all our Nini Kapanadze contributors. Promotional Design This magazine would not be possible without your help. Levan Baratashvili Magazine Design and Layout Giorgi Megrelishvili

60 | Investor.ge • june-july 2021 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$PHULFDQ&KDPEHURI&RPPHUFHLQ*HRUJLD arising from the use of any product or service advertised within All rights reserved. No part of this magazine may be re-printed, or the pages of this issue. reproduced or utilized in any form or by electronic, mechanical Investor.ge is printed by CEZANNE or other means now known or hereafter invented, including AmCham Georgia: photocopying and recording, or in any information storage or rd retrieval system without permission. D/DGR$VDWLDQL6WUHHW ÁRRU7HO 7KHRSLQLRQVH[SUHVVHGLQWKLVPDJD]LQHGRQRWUHÁHFWWKHRSLQLRQ [email protected] of the American Chamber of Commerce in Georgia nor its Board HGLWRU#DPFKDPJHɕZZZDPFKDPJH Members or staff, unless otherwise stated. AmCham Georgia neither endorses, nor can be held liable for any eventuality www.investor.ge APRIL-MAY 2021 Investor.ge | 53

Challenging the status quo in Pharmaceuticals.

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

Otar Kipshidze Georgia Managing Partner [email protected]

Avto Svanidze Partner [email protected]

Dentons Georgia 8a Melikishvili street, Tbilisi 0179, Georgia T: +995 32 2509300 F: +995 32 2509301

dentons.com

*Acritas Global Elite Law Firm Brand Index 2013-2020.