SAN DIEGO STATE THE BREATHTAKING CROWDFUNDING, UNIVERSITY OPENS IN BEAUTY OF GEORGIA’S GEORGIA’S NEWEST TBILISI MOUNTAINS ANGEL INVESTOR Investor.ge
A Magazine Of The American Chamber Of Commerce In Georgia ISSUE 47 OCT.-NOV. 2015
Fashion, Festivals and Forums: Georgia’s Convention Center
OCTOBER-NOVEMBER/2015 • Investor.ge | 3 Investor.ge CONTENT 6 Explainer: The National Bank of Georgia’s Financial Supervisory Council
8 A Foreign Education At Home: San Diego State University Opens its Doors for Business
12 Georgian Mountains: Breathtaking Beauty Attracts a Growing Number of Tourists
12 17 Svaneti Prepares for Over 4,000 Skiers at Tetnuldi Resort
18 Georgia’s Economy Running on MICE and FDI
20 KPMG: Chemical Industry Ripe for Investment
22 Chinese Investment in Georgia: The Start of a Beautiful Friendship?
24 Meet Crowdfunding, Georgia’s Newest Angel Investor
28 Tapping into the Business End of Tourism: Georgia plans for a Convention Bureau
34 Checking on the Road Map for Reform of 18 Georgia’s Money Markets 38 Rhea’s Squirrels: Breaking Bread and Breaking Stereotypes
41 Building an inclusive Georgia
17 NEWS ...... 42
4 | Investor.ge • OCTOBER-NOVEMBER/2015 OCTOBER-NOVEMBER/2015 • Investor.ge | 5 WHAT IS THE FINANCIAL made more accountable. EXPLAINER: SUPERVISORY COUNCIL, AND One of the authors of the initiative, WHY WAS IT INITIATED? MP Tamaz Mechiauri, said the new The National he Financial Supervisory Coun- Council will increase public “confi- cil is a council made up of seven dence” in the NBG. Speaking at Parlia- Tmembers that are in charge of ment debates before the bill was adopted, Bank of monitoring and providing oversight for Mechiauri said the new Council would the banking sector. The Council operates ensure that “fl uctuations in lari’s ex- Georgia’s under the National Bank of Georgia, but change rate will no longer depend on one has its own separate board. Prior to the man’s wishes,” Civil.ge website reported creation of the Financial Supervisory on July 17. Financial Council, the main Board of the National A range of other players in the Geor- Bank of Georgia (NBG) fulfi lled those gian political scene continue to disagree. Supervisory roles. President Giorgi Margvelashvili has The council was first initiated by repeatedly come out against the Council. the ruling coalition in Parliament as a He vetoed the law after it was initially Council way to bring transparency to the work passed in July. of the NGB and increase public trust in “As this wrong decision has already the NBG. been enacted, now the Georgian govern- ment, the Georgian National Bank, and ON SEPTEMBER 21, THE WHO IS CONCERNED ABOUT THE the newly created fi nancial supervisory PARLIAMENT APPOINTED COUNCIL AND WHY? agency should do joint coordinated work There had been widespread con- so that the public will avoid further THE HEAD OF THE NEW cern that the creation of the Council losses triggered by the exchange rate [of SUPERVISORY COUNCIL would have a nega- Georgian currency FOR THE NATIONAL BANK tive impact on the lari],” Margvelas- OF GEORGIA. THE NEW economy. A wide The Constitutional hvili’s advisor, COUNCIL, INITIATED BY range of organiza- Giorgi Abashish- THE PARLIAMENT EARLIER tions (including Court voted to vili, told Rustavi IN THE YEAR, HAS BEEN AmCham) have ar- 2 TV. WIDELY CRITICIZED gued that the NGB suspend the Financial Two opposition BY PRESIDENT GIORGI has, over the years, political parties, demonstrated its Supervisory Council the United National MARGVELASHVILI AND competence. It was on 12 October, Movement and the THE FREE DEMOCRATS therefore argued Free Democrats, OPPOSITION PARTY. that any change in pending the court’s have fi led a case in BUSINESS GROUPS its status would be the Constitutional AND INTERNATIONAL seen as an attack verdict. Court against the FINANCIAL INSTITUTIONS on the political in- law that created the HAVE ALSO EXPRESSED dependence of the Council, arguing CONCERNS ABOUT institution. that even though the Council is formally under the NGB, it is now practically THE COUNCIL’S The Georgian Dream coalition in Par- liament, as well as government offi cials, separate, and as a result, the NBG can POTENTIAL EFFECT have rejected these claims, arguing that no longer fulfi ll its constitutional duties. ON THE NATIONAL since the National Bank has become such Other groups, including some busi- BANK OF GEORGIA’S a hot political issue, it is important that ness associations and international fi - INDEPENDENCE. its supervision of the banking sector is nancial institutions, have also expressed
6 | Investor.ge • OCTOBER-NOVEMBER/2015 There had been widespread WHO MAKES UP THE COUNCIL TODAY? concern that the creation Four members of the seven-member council, plus its chairman, have already been appointed by Parliament. They are: of the Council would have Konstantine Sulamanidze, the former CEO of a negative impact on the Progress Bank, as the head of the Council.
economy. Irakli Kovzanadze, previously the CEO of the government-run Partnership Fund); some concern that the new, weaker NGB Ekaterine Galdava, previously employed at will create problems for the banking Ivanishvili’s Cartu Bank and, for two years, served as sector. “The government pins great hope Vice President of NGB; on the board [of the agency] that it will be able to stabilize the exchange rate. Sascha Ternes, previously the CEO of ProCredit On the other hand, some view points Bank Georgia and Deputy CEO of Bank of Georgia; have been expressed, questioning the EfremUrumashvili, a partner at Nodia, independence of the board, which could Urumashvili & Partners law fi rm. have a dramatic impact on the monetary and banking system in general,” Radio The current head of the NBG, Giorgi Kadagidze, and a member of the Liberty reported. NBG’s board will take two seats on the Council.
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OCTOBER-NOVEMBER/2015 • Investor.ge | 7 A FOREIGN EDUCATION AT HOME: San Diego State University Opens its Doors for Business Ken Walsh, the dean of San Diego State University-Georgia.
GEORGIA IS MAIA EDILASHVILI puter engineering, electrical engineering and chemistry/biochemistry. Three more PRIORITIZING SCIENCE uture Georgian scientists and specialties – computer science, civil AND ENGINEERING engineers are studying for an engineering and construction engineer- EDUCATION. TO FAmerican degree this fall, much ing – will be added next academic year. like bright and promising students have Upon graduation, the students will re- ATTRACT LOCAL done for years. But unlike generations ceive both Georgian and U.S. diplomas. TALENT, THE before them, they won’t have to travel SDSU-Georgia has accepted slightly GOVERNMENT HAS thousands of miles from home to achieve over 80 students: 25 percent for the TEAMED UP WITH A their dreams. chemistry program, 25 percent for This year, eligible student scan work electrical engineering, and remainder U.S.-GOVERNMENT- toward a U.S. degree in classes and for computer engineering. The list of FUNDED PROGRAM lectures held in Georgian universities students includes a handful of interna- AND SAN DIEGO thanks to a $140 million compact signed tional students, including those from between the U.S. Millennium Challenge Azerbaijan and Kazakhstan. STATE UNIVERSITY Corporation (MCC) and the Georgian “I liked that I would have a chance to TO TEMPT YOUNG government. study in my country, while my lecturers PEOPLE WITH Under the project, California’s San will be U.S. professors, and I will get a AN AMERICAN Diego State University (SDSU) is offer- double American-Georgian degree,” one ing bachelor degree programs in Georgia of SDSU’s new students, Nika Alavidze, EDUCATION AND A in science, technology, engineering told Investor.ge. CAREER IN SCIENCE. and mathematics (known as STEM) in partnership with three local public MISSION TO IMPROVE GEORGIA universities: Ivane Javakhishvili Tbilisi The program is one part of the Geor- State University, Ilia State University and gian government and MCC’s efforts Georgian Technical University. to counter the mismatch between the Three majors are available to aspiring modern labor market and Georgia’s pool students in the program this year: com- of graduates.
8 | Investor.ge • OCTOBER-NOVEMBER/2015 OCTOBER-NOVEMBER/2015 • Investor.ge | 9 The STEM Academy, organized by SDSU-Georgia for the freshmen class.
Before classes started on September very optimistic. He has been involved companies will be more interested to 28, SDSU Georgia organized two-week with this project from the beginning and come. And we will have an innovative intensive orientation meetings, called visited Georgia many times already. “We economy here in Georgia,” he told In- theSTEM Academy, to get to know the have been working on this for a long vestor.ge. students, explore their English and pre- time – 2-3 years now – and fi nally, I see One of the advantages for SDSU- pare them to work in a U.S. curricula. the students this time! They are very Georgia students will be an opportunity Ken Walsh, the dean of San Diego motivated; they ask good questions; they to receive hands-on experience at the State University-Georgia, said one thing are excited to be in this program, and we newlyinstalledcutting-edge laboratories was clear after the STEM Academy: are also very excited,” noted Tong, who at the three partner universities. incoming students are driven by entre- serves as the director and chair of the “All our students will be required to preneurship. Department of Chemistry and Biochem- do undergraduate research to have hands “They have a strong feeling – of a istry at SDSU. on experience with all the equipment and mission to help improve the economy For Tong, SDSU-Georgia’s mis- research topics,” Tong said. According to of Georgia,” Walsh told Investor.ge in sion is to produce a highly skilled and him, this will be possible in a number of an interview. “The goal for the whole highly educated workforce with the same different ways: one is to set up collabora- project was to develop a workforce that qualifi cations as they have in California, tion projects so that students can go to could transform the economy of Georgia. so that the graduates in Georgia can go labs here and carry out projects, while Now, after getting to know the students, to any biotech company or high-tech some can go to California and work on I am absolutely confi dent that these are company and start work right away. these projects there. the right people to do that.” “Hopefully, once Georgia has a qualifi ed “In San Diego, as soon as our stu- SDSU Professor William Tongis also workforce,U.S. or other international dents fi nish, they are ready to go to jobs
10 | Investor.ge • OCTOBER-NOVEMBER/2015 ADVERTISEMENT
immediately because we emphasize a lot on hands-on experi- ence. Our students in Georgia will have the opportunity to visit our campus or be interns at San Diego biotech companies and high-tech companies,” Tong explained. “We have to fi gure out travel grants and awards. It depends on how many students want to do that or how much money we will need. Some students may want to do it on their own, but some may need our help. Lots of our professors will be also coming here to teach.”
A “NEW TYPE” OF SCHOOL SDSU-Georgia does not have a stand-alone campus. One goal of the project is to help the local partner universities up- grade their laboratories, libraries and other facilities. For Vladimer Papava, Rector of Ivane Javakhishvili Tbilisi State University, SDSU-Georgia is “a new type of engineering school.” “In purely pragmatic terms, this cooperation gives us a cutting-edge technical base. Also, SDSU professors will be engaged in the academic process, and the best students will have a chance to continue studies in California,” he told Investor.ge. “The fact that students will get double degrees means that their career growth will not be limited to the Georgian job mar- ket alone. And above all, in order to push the Georgian economy forward, we need to develop a knowledge-based economy, an innovative economy, which requires a proper workforce.”
TUITION COSTS AT SDSU IN TBILISI
To study at SDSU Georgia, Georgian citizens have to pay a tuition fee of about $7,500, less than half of the cost they would pay in California. A large fraction of the accepted students at SDSU Georgia are supported with scholarships covering some part of the tuition cost. Those from socially vulnerable families received full fi nancing. “In the future, we anticipate that the funds available for scholarships will go down, at least from that source [funds left as part of the previous compact]. On the other hand, we are now talking to some private companies and individuals in Geor- gia who have expressed interest in funding some scholarships, which is a kind of new culture,” Walsh said.
OCTOBER-NOVEMBER/2015 • Investor.ge | 11 Georgian Mountains: Breathtaking Beauty Attracts a Growing Number of Tourists
12 | Investor.ge • OCTOBER-NOVEMBER/2015 TO TRULY EXPERIENCE GEORGIA, YOU HAVE TO SEE THE MOUNTAINS. TOUR OPERATORS AND THE GOVERNMENT ARE WORKING TO MAKE MOUNTAIN RESORTS ATTRACTIVE, ACCESSIBLE AND SAFE. PHOTO BY JOSEPH LARSEN
OCTOBER-NOVEMBER/2015 • Investor.ge | 13 JOSEPH LARSEN
eorgia’s charms are no longer a secret. More than fi ve million Gforeign tourists visited Georgia in 2014, and by the midpoint of 2015, year-on-year arrivals were up 3 percent. A large chunk of these tourists come for the mountainous regions of Svaneti, Kazbegi and Khevsureti, among others. Svaneti is the most wild of Georgia’s alpine regions. The “land of the Svans” is still largely isolated, even though infra- structure is much improved and visitors (fortunately) no longer run into maraud- ing bandits. Its best-kept-secret status helps keep its natural beauty pristine and its local culture distinct. “Getting off the beaten track is very rewarding,” said Tony Hanmer, a Canadian who owns and operates a guest house in Iskari. “Every village has its own churches, its own treasures, its own hiking trails.” The region’s most iconic attractions are the Svan Towers, stone structures built during the 9th through 12th centu- ries to defend the area against Byzantine and other invaders. Then there’s the view of nearby Shkara Peak, Svaneti’s most impressive natural attraction and Geor- gia’s highest mountain, at 5,193 meters above sea level. “Svaneti has the most dramatic scenery in Georgia,” said Rich- ard DeLong, an avid hiker who has lived in Georgia since 2011. The region is also
Kazbegi peppered with bucolic villages, the most famous being Ushguli. At roughly 2,200 meters, it is the highest permanently- Having Fun and Staying Safe in inhabited settlement in Europe. Georgia’s immutable beauty refuses Georgia’s Majestic Mountains to fade as you travel eastward toward Kazbegi, the country’s most popular ICONIC RUSSIAN POET ALEXANDER PUSHKIN ONCE CALLED GEORGIA mountain destination. This area is less “THE FABULOUS LAND.” IT’S DIFFICULT TO ARGUE WITH HIM. THE CAUCASUS rustic but more accessible than Svaneti. MOUNTAINS TRAVERSING GEORGIA’S NORTH ARE HIGHER THAN THE Located just a three-hour car ride from ALPS, AND THE VILLAGES DOTTING THEM FEEL UNTOUCHED BY TIME. THE MOUNTAINS’ CLOSE PROXIMITY TO BOTH TBILISI AND THE BLACK SEA MEAN Tbilisi, visitors can camp on the slopes, TOURISTS CAN HIKE, CLIMB AND SWIM ALL ON THE SAME DAY. rent a guesthouse (and gorge on khinkali)
14 | Investor.ge • OCTOBER-NOVEMBER/2015 in the town of Stepantsminda, or book Views of Mount Kazbegi and the gia as well as from Poland, Germany and an accommodation at the Rooms Hotel hilltop Gergeti Trinity Church are breath- Israel,” she commented. Kazbegi, one of Georgia’s most state-of- taking. The area is also tailor-made for Georgia’s mountains are the engine the-art hotels. climbers and hikers. Anano Arabuli is a that drives much of its burgeoning “Kazbegi is the number-one destina- tour guide at nearby Zeta Camp, which tourism industry. But visitors should tion,” saidRamaz Gokhel- remember that exuberance ashvili, a team leader in shouldn’t become irrational. the Tbilisi office of Ham- The best part? Georgia’s alpine Infrastructure, amenities and burg-based GFA Consult- law enforcement have im- ing Group. An authority on tourism industry still has proved immensely over the Georgia’s protected areas, past 15 years – “the bandit Gokhelashvili touts the ac- tremendous room for growth. days are over,” remarked cessibility of Kazbegi both Hanmer – but precautions in terms of infrastructure and should still be taken. the landscape itself. This has helped it hosts travelers and organizes tours from The fi rst rule to follow? Know where attract enterprising trekkers as well as Kazbegi to nearby Khevsureti. She says you are at all times. Georgia’s mountain those coming through travel agencies. the area has become popular for domestic trails aren’t always adequately marked, “Always, in such package trips, moun- and international trekkers. “This year and weather can be unpredictable at high tain tours are included,” he added. there have been more guests from Geor- altitudes. Earlier this year, two Austrian
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OCTOBER-NOVEMBER/2015 • Investor.ge | 15 Bakhmaro village tourists were found dead at 4,900 meters running dogs. “Always have a walking things to look out for are, in the words above sea level near Kazbegi. Local stick with you,” Hanmer advises. And of Hanmer, nothing more than “the usual authorities presumed that the two had while the vast majority of canine fellow precautions you want to take in a far-off strayed from the trail and gotten lost. travelers are harmless, some carry dis- mountain region.” The best part? Geor- Tragic incidents like this happen from eases. Tourists are advised to carry a fi rst gia’s alpine tourism industry still has time to time, but the silver lining is that aid kit at all times, and if rabies seems tremendous room for growth. they can be easily avoided. Only four percent of Geor- Hiring a local guide is prudent gia’s tourism arrivals during and surprisingly affordable (a More than five million foreign tourists the first half of 2015 came guide can often be hired for visited Georgia in 2014, and by the from the European Union. as little as 20 lari per day). Given the stellar reputation This is especially important midpoint of 2015, year-on-year arrivals this mountain republic is in Svaneti, where weather is were up 3 percent. building and the fast-growing capricious and roads still have numbers of arrivals from Po- a long ways to go toward meet- land and Germany, that num- ing international standards. At the very like a possibility, they should be prepared ber should rise steadily in the coming least, tourists should make their where- to head back to town for medical treat- years. According to DeLong, domestic abouts known. Sharing the day’s hiking ment. Georgian hospitality means drivers and international tourists have plenty to plans with your host before setting off can often be hailed free of charge. look forward to: “Each region of Georgia is a good idea. There’s a lot to like when traveling is good for different times of year and for Visitors should also beware of free- in Georgia’s mountainous areas. And the different things.”
16 | Investor.ge • OCTOBER-NOVEMBER/2015 LIKA JORJOLIANI Kiladze, the director of Tetnuldi Develop- Svaneti ment Company. he Georgian government, together French specialists are tackling major with assistance from France, is un- safety issues, particularly the issue of de- Prepares for Tveiling a new ski resort in Georgia’s signing the resort with suffi cient snowfall western Svaneti district. in mind, and preparing for avalanche Over 4,000 The resort, Tetnuldi, is a multi-phase hazards along the slopes. project; the fi rst stage is slated to open in There are also plans to help villages December. prepare for tourists by providing vouchers Skiers at for hotels and year-round activities like 4,500 HECTARES OF SKIING horseback riding, hiking and parachuting, Once completed, the new resort will Kiladze said. Tetnuldi Resort include the longest and largest vertical “In the winter period, tourism to Mestia drop ski run in the country (9.6 km and 1.7 is actually stopped, and the village of Mu- km respectfully) and fi ve ropeways – three lakhi lacks the necessary infrastructure to A TWO-YEAR of which are scheduled to open in the fi rst attract tourists,” he said, noting that work stage of the development. on guest houses is underway in both Mes- DEVELOPMENT PROJECT The total resort area is huge – 7,000 tia and Mulakhi now although it is unlikely IN GEORGIA’S WESTERN, hectares – with 4,500 hectares planned there will be “active development of a MOUNTAINOUS REGION for skiing. network of hotels” this year. OF SVANETI IS PAVING “By next year, a high rate of develop- FRENCH EXPERTISE ment is expected,” he said. THE WAY FOR THE The development, which is projected Kiladze added that last year, Mestia GOVERNMENT-BUILT to cost the Georgian government 40 alone added 200 rooms for guests. “A TETNULDI RESORT TO million lari ($16.7 million) and the French special commission has been created in government 18 million euros ($20.1 million), cooperation with the Ministry of Economy, RECEIVE THOUSANDS OF aims to create a mountain resort that will which is actively working on the next plan TOURISTS ALL YEAR ROUND. attract visitors all year round, noted Uka of development for the resort,” he said.
ADVERTISEMENT Prime Minister Irakli Gharibashvili speaking at the EBRD Annual Meeting and Business Forum 2015
18 | Investor.ge • OCTOBER-NOVEMBER/2015 Georgia’s Economy Running on MICE and FDI
AN ALPHABET SOUP OF INVESTMENT IS KEY TO A STRONG ECONOMY: BOTH THE GOVERNMENT AND THE PRIVATE SECTOR ARE WORKING HARD TO ATTRACT FOREIGN DIRECT INVESTMENT IN ALL SECTORS, INCLUDING HIGH- VALUE TOURISM LIKE MEETINGS, INCENTIVES, CONVENTIONS AND EXHIBITIONS (MICE).
OCTOBER-NOVEMBER/2015 • Investor.ge | 19 KPMG: Chemical Industry STRATEGIC ASSETS eorgia’s strategic location is an asset to any investor. As a Ripe for Investment Gbridge between Europe and Asia, Georgia offers direct access to European, Gulf Cooperation Council FOLLOWING THE SIGNING OF THE DEEP AND and CIS markets. Its three major oil and COMPREHENSIVE FREE TRADE AGREEMENT WITH THE gas pipelines, Black Sea ports, and well- EUROPEAN UNION, THE GEORGIAN GOVERNMENT developed railway systems, together IS LOOKING FOR OPPORTUNITIES TO DEVELOP with its airports, are playing an increas- THE COUNTRY’S EXPORT POTENTIAL, AS WELL AS ingly important role in linking the East CONSTANTLY AIMING AT BRINGING MORE FOREIGN and West. In addition, Georgia has low DIRECT INVESTMENT TO THE COUNTRY. tariffs and streamlined border-clearance THE GEORGIAN NATIONAL INVESTMENT AGENCY procedures. With a range of free trade agreements, Georgia has access to a 900 COMMISSIONED KPMG TO STUDY THE INVESTMENT million customer market that is not sub- POTENTIAL OF THE CHEMICALS SECTOR IN GEORGIA ject to customs tariffs, including Turkey, AND TO IDENTIFY THE MOST INVESTMENT-ATTRACTIVE the CIS and EU countries. SEGMENTS OF THE CHEMICAL INDUSTRY WHERE There are several business factors PRODUCTION AND EXPORT OF CHEMICALS TO that make Georgia an ideal location for NEIGHBORING COUNTRIES, THE CIS AND/OR EUROPE chemical factories, including low labor HAS A GOOD POTENTIAL. and electricity costs. The highest tariff
20 | Investor.ge • OCTOBER-NOVEMBER/2015 for industrial consumers for one KWh 6. Hair preparations to USD 140 million) meaning that there of energy in Georgia in 2014 was around 7. Beauty, make-up and skin care is room for both large-and small-scale USD 0.045, which is lower than in preparations, sunscreens, mani- investors to start production in Georgia. neighboring countries (35% lower than cure and pedicure With the exception of nitrogen fer- in Armenia, 52% lower than in Turkey 8. Nitrogen fertilizers tilizers, which are expected to require and 21% lower than in Azerbaijan). La- around three years for plant construction, bor costs in the manufacturing industry ROOM FOR LARGE AND SMALL the respective subsectors are expected to are also low, amounting to an average of INVESTORS take around a year to start production. USD 410 a month. Investment proposals were prepared Potential challenges for investors in for each of the identifi ed subsectors, in- chemical plants in Georgia include the A NEWAREA FOR INVESTMENT cluding identifi cation of optimal capacity lack of raw materials needed for produc- The four-month study, which looked of the relevant sector of productionin- tion in Georgia. They can, however, be at the Georgian market, as well as trends Georgia; required level of investment; imported from neighboring countries. in the wider regional market, identifi ed and a limited SWOT analysis and fi nan- Another challenge is the lack of a special- eight subsectors that match the invest- cial calculations. ized workforce, as there are few Geor- ment climate and business conditions These investment proposals are gians with experience in certain specifi c in Georgia: available on the website of the Georgian chemical sector, for example paints and 1. Paint and Varnish National Investment Agency. varnishes. 2. Glaziers’ putty, grafting putty, All fi nancial calculations showed a The main advantages for investors resin cements, painters’ fi llings positive net present value, an internal rate are persuasive, however: the relatively 3. Printing, writing or drawing of return in the range of 15-35% depend- stable macroeconomic environment, inks ing on the sector and a payback period of favorable taxation regime (including 4. Pigments, opacifi ers (to make 4-8 years. The fi nancial feasibility study free industrial zones in Poti and Kutaisi, material opaque), colors; enamels showed that there are new sectors for in- in which businesses are exempted from and glazes; engobes (slip coat- vestment in Georgia with good potential all taxation, except the personal income ing); liquid lustre and high feasibility. Moreover, the re- tax) and other government incentives, as 5. Washing and cleaning prepa- quired investment proved to be different well as easy access to the entire Caucasus rations per sector (ranging from USD 4 million market as well as the European market.
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22 | Investor.ge • OCTOBER-NOVEMBER/2015 ness to the 22 medium and large Chinese exports to China by 9% and China’s VISA WORRIES companies registered in Georgia, which by 1.7%. Potentially, the key Chinese Not all is going smoothly, though. do business along with scores of small investment lies on the Black Sea coast, Changes to the visa regime in Septem- family-run enterprises crowding the Lilo in Anaklia, where plans to build a large, ber 2014 made life more diffi cult for wholesale market on the outskirts of the deep-water harbor are underway. One of Chinese entrepreneurs. Jinlong Gao, a capital. the seven bidders, Power China, aims to 40-year-old from Guangdong province, Chinese investment looks set to invest up to $5 billion – a huge amount owns three stone quarries and employs grow further. In March, the two coun- given the size of Georgia’s economy. 50 people – 80% of whom are Georgians. tries signed a Memorandum of Un- Anaklia could help to diversify land “Visas are problematic. We routinely derstanding regarding cooperation in routes for Chinese goods to Europe, most had specialized engineers coming to train the framework of the $40 billion Silk of which currently run through Russia. our staff on how to use gravel-processing Road Economic Belt project that China In addition, Georgia is also among machinery; now it has become diffi cult,” initiated in 2013 and also agreed to start the founding members of the China-led adds Gao, whose wife and 3-year-old examining the feasibility of a bilateral Asian Infrastructure Investment Bank twins are now in China due to visa free-trade agreement. (AIIB), a newly established fi nancial problems. According to a study by Tbilisi-based institution with an initial authorized In September, the Chinese Ambas- Policy and Management Consulting capitalizationof $50 billion. In August, sador to Georgia, Yue Bin, said in an Group (PMCG) and China’s University Tbilisi hosted the fi rst high-profi le meet- interview with the daily Rezonansi that of International Business and Econom- ing of the AIIB that resulted in appoint- “China is ready for a visa-free travel ics, a FTA would boost Georgia’s annual ment of the AIIB’s fi rst president. regime with Georgia.”
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OCTOBER-NOVEMBER/2015 • Investor.ge | 23 Meet Crowdfunding, Georgia’s Newest Angel Investor
CROWDFUNDING IS JOSEPH LARSEN and simple immigration procedures get- ting a lot of credit. GAINING POPULARITY eorgia is well known for its The burgeoning country is more than IN GEORGIA, TAKING dynamic economy. This year, a hotbed for traditional business mod- THE PLACE OF AD GGeorgia ranked fi fteenth in the els, however. It has also hosted a large HOC CAMPAIGNS TO World Bank’s “Ease of Doing Business” number of crowdfunding campaigns. survey, receiving high marks for minimal Defi ned by scholars David M. Freedman RAISE EMERGENCY bureaucracy, business-friendly proce- and Matthew R. Nutting as “a method of ASSISTANCE. dures and easy access to credit. It has also collecting many small contributions by become a popular base for writers, artists, means of an online funding platform,” IT professionals and entrepreneurs, with crowdfunding has become a popular a friendly atmosphere, low living costs and relatively easy way to raise money
24 | Investor.ge • OCTOBER-NOVEMBER/2015 OCTOBER-NOVEMBER/2015 • Investor.ge | 25 Georgian charities like American Friends of Georgia have traditionally depended on galas and auctions to raise funds to help the vulnerable
for everything from medical procedures keep any amount raised. GoFundMe is raised roughly $6.1 billion. to magazine launches to disaster relief. known for donation-based crowdfund- A modest but growing chunk of that ing; contributors receive only the hap- money is being funneled into Georgia- $8.3 MILLION RAISED FOR FLOOD piness of knowing their money went for based initiatives. VICTIMS a worthy cause. A watershed moment in Georgia’s Popular platforms – websites which Research and advisory firm Mas- short crowdfunding history came after host the initiatives in exhange for a cut solution projects that the crowdfunding the June 13-14 fl ooding, which resulted of the proceeds, usually between 4 and industry will raise $34.4 billion world- in the deaths of 19 people and the de- 10 percent – include Kickstarter, Indi- wide in 2015. That would represent a struction of more than 105 homes. egogo and GoFundMe, among others. more than fi ve-fold increase from just Roughly $8.3 million in relief funding Each site has its own niche. Kickstarter two years ago, when when the industry was raised from private donors, and of is the biggest name but that, a signifi cant proportion hosts only all-or-nothing was raised by a single crowd- campaigns, meaning that funding campaign. the bank accounts of con- A watershed moment in Georgia’s short Tbilisi native Maka Mesh- tributors are not charged crowdfunding history came after the June veliani launched the “Help unless a predetermined Tbilisi Recover from Flood- funding target is reached. 13-14 flooding, which resulted in the ing Campaign” on June 15, Indiegogo also offers fl ex- deaths of 19 people and the destruction just a day after the fl ooding. ible -funding campaigns “I created it in half an hour,” that allow recipients to of more than 105 homes. she told Investor.ge. With-
26 | Investor.ge • OCTOBER-NOVEMBER/2015 in a month, the cam- crowdfunding iniatives is yet to be matched by large domestic The flood of foreign paign had raised nearly contributions, however. For example, of the $79,970 raised finance flowing into $79,970 from 802 in- by the “Help Tbilisi Recover from Flooding Campaign,” only dividual donors. Mesh- $5,587 came from within Georgia. And Stadler estimated that Georgia’s crowdfunding veliani was impressed only €30-40 of the more than €1,000 raised by Tbilisi In/Sights iniatives is yet to by the simplicity of came from domestic contributions. Part of this gap is a lack of launching the campaign awareness – and a lack of disposable income – on the part of be matched by large (she used Indiegogo’s many Georgians. “The concept of crowdfunding has not really domestic contributions, flex-funding option) found its place [in Georgia],” Stadler said. as well as its success. Krikorian, for one, sees potential in the domestic market. however. “I never thought we “Georgians are natural for crowdfunding,” he commented, would get to $10,000. I pointing to the fact that informal fundraising projects can be just wanted to create a platform for people to help the country.” seen all over Tbilisi. Given the dynamism of Georgia’s social The largest single donation came from the UK-based rock and business atmosphere, it’s not diffi cult to be optimistic about group Placebo, which contributed $39,974 (the band put up its crowdfunding initiatives in the country, both for campaigns entire honorarium for playing at July’s Tbilisi Open Air music with a local focus and those designed to attract international festival). The money raised by Meshveliani’s campaign will go donors. As Krikorian put it, “all it takes is an idea and the abil- toward psychiatric therapy for children affected by the fl ooding. ity to communicate.” Crowdfunding campaigns have also been successful in helping get non-profi t and artistic initiatives off the ground. ADVERTISEMENT This August, Kiwi Café – Tbilisi’s fi rst not-for-profi t vegan www.ilf.com restaurant – opened after raising $1,760 from a fl exible-funding campaign on Indiegogo. The project’s founders used crowd- funding to supplement income received from other sources, so that they were able to launch despite missing their target of $4,000. At the time of writing, archival project Tbilisi In/Sights was in the middle of a €1,900 all-or-nothing campaign via KissKissBankBank. Tbilisi In/Sights is an “informal archives” project – project leader Katharina Stadler told Investor.ge that it aims to “look at Tbilisi over the past 100 years through the ENGINEERING EXCELLENCE eyes of the people who live and work here” – and had attained more than half its target through a rewards-based campaign. Contributors will receive a gift from the organization in propor- Your Ultimate Partner in the field of tion to the sum contributed. Consulting and Engineering Engineering Design, Construction Management MORE POPULAR WITH DONORS ABROAD Georgia’s economic dynamics make it a logical destination and Site Supervision for international crowdfunding dollars. The low cost of labor Ŷ +\GURSRZHU'DPDQG5LYHU(QJLQHHULQJ and other production inputs mean a few thousand dollars or Ŷ 3RZHU7UDQVPLVVLRQDQG'LVWULEXWLRQ6\VWHPV euros can make a big difference. “One hundred pounds goes Ŷ 7UDQVSRUWDQG6WUXFWXUHV5RDGV5DLOZD\V8UEDQ7UDQVSRUW a lot further in Tbilisi than it would in Bristol,” says Tbilisi- 6\VWHPV Ŷ 7XQQHOVDQG&DYHUQV based journalist Onnik James Krikorian. What’s more, major Ŷ 3RUWVDQG+DUERU(QJLQHHULQJ crowdfunding platforms now disburse funds to Georgian banks, Ŷ :DWHU6XSSO\DQG:DVWHZDWHU7UHDWPHQW3ODQWV meaning that campaigners can receive funds faster and with Ŷ $OSLQH5HVRUWV less hassle than in the past. Ŷ (QHUJ\DQG&OLPDWH3URWHFWLRQ Ŷ 2LODQG*DV The flood of foreign finance flowing into Georgia’s ILF Consulting Engineers 7DPDU0HSH$YH 3KRQH 7ELOLVL )D[ *HRUJLD (PDLOLQIRWELOLVL#LOIFRP Tapping into the Business End of Tourism: Georgia plans for a Convention Bureau
GEORGIA, ESPECIALLY THE CAPITAL TBILISI, IS HOSTING AN INCREASING NUMBER OF INTERNATIONAL EVENTS, FROM THE ANNUAL PHOTO FESTIVALS AND FASHION SHOW TO THE EUROPEAN BANK OF DEVELOPMENT AND RECONSTRUCTION’S CONFERENCE. THE GEORGIAN NATIONAL TOURISM AGENCY (GNTA), WITH THE HELP OF AMCHAM, IS WORKING ON CREATING A CONVENTION BUREAU TO HELP MAXIMIZE ON GEORGIA’S GREAT POTENTIAL AS A MEETINGS, INCENTIVES, CONVENTIONS AND EXHIBITIONS (MICE) DESTINATION.
rom bankers to fashion mavens, Georgia is increasingly earning Fa reputation for a destination for international events. This month, Tbilisi is hosting, among other things, an international modern art festival, the annual Tbilisi Fashion Show, the Miss China Chinese Cosmos Pageant and a theater festival.
28 | Investor.ge • OCTOBER-NOVEMBER/2015 The semi-final of Miss Chinese Cosmos Pageant 2015 was held in Tbilisi
OCTOBER-NOVEMBER/2015 • Investor.ge | 29 The footage taken in Georgia will be shown to Chinese Phoenix TV’s 250 million-audience, according to Georgian media reports.
“COMING OF AGE” FOR communications, and technology. “Considering Georgia’s unique MEETINGS TOURISM Meetings bring education and profes- geographic location, rich culture and This type of tourism – known as sional development to the local com- traditions, delicious cuisine and modern meetings, incentives, conventions and munity, creating jobs and retaining work infrastructure, we strongly believe that exhibitions (MICE) – has “come of age,” forces. the country has tremendous potential for according to Taleb Rifai, the Secretary- It is a “clean” industry and promotes development of MICE tourism, and this General of the World Tourism Organiza- environmental quality. has become one of the major undertak- tion (UNWTO). Meetings promote and support other ings of the Georgian National Tourism Writing in the report for MICE tour- business sectors. Administration this year,” he said in an ism in 2014, Rifai noted that “the Meet- Meetings represent the “high end” of e-mail. ings Industry provides immense benefi ts visitor spending. “Business and professional travel- to the broader economy as it generates on Meetings attract global expertise. ers account for roughly 4 percent of average a higher spending level, reduces Meetings create and spread knowledge total arrivals to Georgia (according to seasonality, contributes to the regenera- worldwide. the latest survey to date); this includes tion of destinations, spreads knowledge Meetings build community profi le. individuals and group visitors (attending and enhances innovation and creativity.” Meetings promote global understand- forums, conferences and other events). The report notes several “positive” ing and cooperation. But what we have to take into account aspects of MICE tourism for local econo- The Georgian government is eager to is that business visitors are part of a mies, including: tap into that trend, TornikeZirakashvili, higher spending segment, and thus, their Meetings are big business in their own the Head of the International Relations average expenditure per visit is consider- right, and play an important role in sup- Department at the Georgian National ably more than that of other travelers,” porting other businesses. Tourism Agency (GNTA), told Inves- Zirakashvili added. Meetings promote investment, trade, tor.ge. Tbilisi alone has attracted major
30 | Investor.ge • OCTOBER-NOVEMBER/2015 OCTOBER-NOVEMBER/2015 • Investor.ge | 31 events over the past several months, including the annual EBRD Conference in May, the European Youth Olympics Festival, Miss China Chinese Cosmos Pageant, the South Caucasus Contem- porary Dance Festival, the annual Tbilisi Fashion Show, the annual Tbilisi Photo Festival, and many more. He said that, to promote MICE tour- ism to Georgia, the GNTA is planning to establish a convention bureau in Georgia, “which will promote the country’s MICE tourism potential throughout the world and attract major events to the country.”
6 PERCENT OF GDP One of the GNTA’s partners in the process is AmCham Georgia, in particu- lar the Chamber’s Tourism Committee. “AmCham has been a major support- er of the initiative and assisted the GNTA as a facilitator within various processes, especially in relations with their member organizations,” Zirakashvili said, noting that a “focal point” has been coopera- tion with the general managers of seven prominent hotels: Marriott, Sheraton, Radisson, Holiday Inn, Hilton, Rooms and Betsy’s. Andreas Heidingsfelder, the general manager at the Sheraton Metechi Palace Hotel in Tbilisi, said that establishing a Georgian Convention Bureau will have a “positive effect” on tourism numbers and the Georgian economy. “AmCham’s Tourism Committee is supporting the GNTA to accomplish the development of a Georgian Convention Bureau (GCB). The GCB will make sure that the country is fl agged on the worldwide MICE (Meeting, Incentives, Conferences, Events) map,” Heidings- felder said in an e-mail interview. “Tourism is actually contributing above 6 percent to the Georgian GDP and with the establishment of thethe GCB, it
The Tbilisi Fashion Show draws foreign and local designers to the capital twice a year can be increased even further.”
32 | Investor.ge • OCTOBER-NOVEMBER/2015 OCTOBER-NOVEMBER/2015 • Investor.ge | 33 CHECKING ON THE ROAD MAP FOR REFORM OF GEORGIA’S MONEY MARKETS
A 2015 STUDY HAS FOUND THE GEORGIAN ECONOMY COULD BENEFIT FROM DEVELOPING THE CORPORATE BONDS MARKET.
SALLY WHITE So far this year, the ADB has offered with other fi nancial players how such $150 million in loans, the most recent a a market, catering for a wide category orporate bonds could provide $75 million tranche to assist government of companies, funds, and domestic and the impetus for “substantial reforms aimed at “increasing savings international investors could be initiated. Cimprovements” to access to and domestic resources.” While it has Given microfi nance’s long reach into money in Georgia, providing alternative announced no moves yet, the government Georgia’s agriculture and SME sectors, fi nancing sources. This was a conclusion has to deliver on the study’s recommen- any material increase in the funds avail- of a critical major study- The Georgian dations by next summer. able to it could make a huge difference Capital Market: Diagnostic Study & to Georgia’s economy. Recommendations, initiated by one of EYEING THE BOND MARKET The ADB highlighted a requirement Georgia’s prime backers, the Asian De- Nor is it just the corporate heavies that there should be “strong focus on velopment Bank (ADB) and published that have their eye on a bond market for building viable content (issued securi- earlier this year. The corporate sector, funds. Georgia’s very dynamic micro- ties) for the system.” Markets need including microfinance, has already fi nance sector (MFI) – comprising 73 something to trade! Bonds have already begun to act on it. companies, with 352 branches and show- proven to be popular. Of course, the ADB The ADB made it a condition for ing 20% growth over the last six months stricture is that it is vital that all the right loans that the government act on it, too. – has, too. It has started to explore rules and regulations, conforming to
34 | Investor.ge • OCTOBER-NOVEMBER/2015 international standard, be put fi nancial instruments to Geor- in place to protect investors. Corporate bonds could provide the impetus gian investors, big and small,” Archil Bakuradze, a for “substantial improvements” to access Bakuradze said. member of the Board of An effi cient and well regu- Directors of Georgia Mi- to money in Georgia, providing alternative lated corporate bond market crofi nance Association and financing sources. (which, of course, will require Executive Chairman of JSC new rules and market proce- MFO Crystal, explained such the bond market as a strategic alternative dures) would have a big ripple a market’s attraction. “MFIs are well for refi nancing. The intent is, of course, effect on Georgia’s corporate life. He positioned to become attractive issuers to keep the relationship with microfi - added that, in his view: “This movement of bonds with a view to raise capital nance investment vehicles (MIVs) and will motivate companies to improve their later down the line. We have already commercial banks, but it is important to disclosure standards and become more syndicated interest from several industry diversify the funding sources. open enterprises. This market will offer players. For MFIs, the bond market can “Bonds will offer more access to to companies an alternative to quite rigid become an important refi nancing option GEL funding, which is critical for MFIs bank lending practices, which are over- in parallel with the current alternative, and their clients. Bond issuances will whelmingly based on real estate guar- i.e. microfi nance investment vehicles increase the awareness of MFI among antees. More Georgians will participate internationally and commercial banks at investors, including the general public. in economic life, investing their interest home. Another attraction is that it would At the moment, we are more interested with Georgian corporations, which will provide GEL fi nance, so critical for our in domestic investors, who would invest encourage savings and investments much borrowers.” The increased dollarization GEL, but in the future, foreign currency needed by customers and crucial for fuel- of Georgia’s fi nance has become a severe tranches can be structured to attract more ling Georgia’s economic growth.” problem for the country as the dollar has portfolio investment to the sector.” Usually bonds are less fl exible than strengthened.” ”A corporate bond market will offer loans, according to bankers, but as an He expanded on his views: “MFIs see a new type of funding to fi rms and new alternative source of funding, bonds
OCTOBER-NOVEMBER/2015 • Investor.ge | 35 may not require collateral and could be and Development (EBRD) and the World zations. It sees the insurance funds and slightly less expensive. Bank’s International Finance Corpora- pension funds as unlikely candidates – at Conditions are becoming more aus- tion (IFC), mostly in lari. These IFIs least at this stage. Others might disagree, picious for bonds. Pricing has become made their placings privately, but the and it will also depend on the size of ac- more competitive, and the ceptable issues. Anyway, as the leading rating agency, Fitch, study comments “Georgia does has already had a meeting “MFIs are well positioned to become not know – and under the cur- with some of the large com- attractive issuers of bonds with a view to rent system cannot know – the panies. It seems to have made fi nancial make-up of the JSC attractive offers on fees. In raise capital later down the line.” population.” the study, the companies The background is the were described as being struggling economy, as Geor- “enthusiastic about the idea of placing corporate bond sales, though in dollars, gia faces challenges that include falling local bonds.” were mostly public ones. fund infl ows. This is partially because A recommendation of the study is that remittances from Georgians abroad in SIX OFFERINGS IN 15 MONTHS the IFIs as well as major corporations Russia and Ukraine are down, but foreign As evidence of potential for a bond should use the market more. Also, it says, investment and export growth are also market, there were six successful of- issues should be in lari to help reduce the threatened by global uncertainty. The ferings of corporate securities between dollarization of the economy. government has not chosen to support January of last year and the end of March The study, which is more than a touch or develop the stock market (which now this year and they totalled around $50 bank-centric, sees quite a large candidate barely exists) as a source for funding and million. There has also been an increase community of major players for a corpo- monitoring of the economy. However, as in the fi nancing activity of the interna- rate bond market– fi rstly, it names the noted by the IMF, EBRD, World Bank tional fi nancial institutions (IFIs) – ADB, banks, then state-owned companies and and ADB, the international model is the European Bank for Reconstruction at least fi ve of the microfi nance organi- increasingly for developing countries
36 | Investor.ge • OCTOBER-NOVEMBER/2015 to do so. Any government role in the devel- opment of the market should be clearly Georgia’s Microfi nance Sector defi ned, as a means of warding off over – important enough to be a involvement. The structure of the Georgian stock potential key player in Georgian exchange has encouraged issuers in re- cent years to raise funds off-market and capital market reforms: also to do so abroad. In Q2 2015, 73 Micro Finance Institutions (MFS) were registered at There is a long way to go yet to get to the National Bank of Georgia. They employed total 4,729 members spread the end of the “road-map” set out in the through 352 branches. Member numbers rose by 15 percent and branch study. Laws and regulations protecting numbers by 20 percent in this period. investors, putting exchange trading on The gross loan portfolio was 1.1 bn GEL, which was 30 per cent higher an international basis (with information than at the end of 2014. During the same period, the loan loss reserve grew all in English), increasing transparency, by 94 per cent, which indicates deterioration of assets quality. According leveling the taxation playing fi eld, free- to the Microfi nance Association, however, Georgia has been affected much ing up the market and attracting more less by regional crisis in comparison to its neighbours. issuers as well as investors, and so on Around 51 per cent of the funding to MFIs comes from international – all and more are needed. The study microfi nance investors. Of the rest, 24 percent comes from Georgian com- found that Georgia “possesses all of the mercial banks, 21 percent through loans from individuals and 5 percent required ingredients to operate a healthy from legal entities. The attractiveness of micro-fi nance to SMEs is that, capital market. Bakuradze concludes according to Archil Bukaradze, a member of the Board of Directors of that the government’s socio-economic Georgia Microfi nance Association, many specialist MFIs do not demand development strategy 2020 “is all about personal guarantees for loans. They offer non-collateralized loans. Banks, inclusive economic growth.” At the mo- however, often do demand collateral. ment, non-banks represent only about 7 Before the government’s use of banks to disperse subsidies to agri- percent of the Georgian fi nancial market. culture, MFIs were the largest source of fi nancing for Georgian farmers. Perhaps not surprisingly as he is pointing While agro-fi nancing is still an important area, it is now only accounts out from his end of the capital markets, for around 25 percent of their loans. funding from a healthy bond market MFIs are not allowed to take deposits and cannot benefi t from Central would enable microfi nance to be a more Bank refi nancing instruments right now, Bakuradze points out. Thus MFIs powerful driver for small entrepreneurs’ are hoping that the Georgian bond market will help them diversify funding participation. sources and gain access to lari funds. The Working Group for the ADB When analysed in May this year, the return on microfi nance assets was study was chaired by the Vice Prime “a reasonable 4-6 percent on average and comparable to that of commer- Minister and Minister of Economy and cial banks,” he comments. The quality of microfi nance assets “has been Sustainable Development, the President consistently good (impaired assets are usually within 2 percent). These of the National Bank of Georgia, the are signs of a sound and competitive market with – by and large – well Minister of Finance, the Secretary of governed and responsible institutions.” His conclusion is that they should the Prime Minister’s Economic Council be welcome members of any bond market. and a former Chairman of the National Importantly, another reason for increasing the ability of microfi nance Securities Commission of Georgia. The groups to lend, he points out, is that “more than half a million Georgians study was published in May as a Dis- are regular users of a payday loans, which is completely beyond fi nancial cussion Draft after being commission regulation.” last September, and it was supported by USAID under its Governing for Growth in Georgia project.
OCTOBER-NOVEMBER/2015 • Investor.ge | 37 Rhea’s Squirrels facebook page Rhea’s Squirrels: Breaking Bread and Breaking Stereotypes
A SMALL CAFE NEAR THE TBILISI FUNICULAR AT THE FOOT OF MTATSMINDA MOUNTAIN IN TBILISI, RHEA’S SQUIRRELS, IS BREAKING NEW GROUND BY TACKLING STEREOTYPES AND HIRING EMPLOYEES WITH DISABILITIES.
38 | Investor.ge • OCTOBER-NOVEMBER/2015 “CREATING OPPORTUNITIES Lela began teaching there. OURSELVES” Eliso Rekhviashvili, an Arab lan- Four staff members working at guage specialist, is the founder of Rhea’s Squirrels are women with mental “Rhea.” Eliso prefers to act rather than disabilities. A charming middle-aged talk about her accomplishments. But the waitress named Khatuna invited us to impact of her pioneering work is clear. have a seat, and handed us a menu. She For six years she and her colleagues described the dishes of the day and rec- worked as volunteers to help children ommended cabbage salad and mushroom with mental disabilities integrate into soup. At fi rst sight, you wouldn’t know society. They have been supported since Khatuna is autistic—she is sociable and 2006 by the German organization Bread independent. She serves our food and for the World or “Brotfür die Welt,” by helps clean up, and works in the kitchen, the Austrian organization Diakonia and too. She and 20 other people with men- the Austrian Development Cooperation tal disabilities participate in the Rhea offi ce. Today “Rhea” runs four integra- Union’s Integration Center nearby, where tion centers in Georgia. young people with different disabilities “The Café Gallery Rhea’s Squir- gather fi ve days a week and take courses rels was the logical continuation of our to develop their skills. integration centers,” says Eliso. “We Some skills include crafts such as started helping our youth develop their pottery, painting and weaving. There are social skills; then, professional training also training courses on how to serve and was added later. We saw them making work in public businesses like Rhea’s progress, but given the situation on the Squirrels. job market, we did not want to wait for Lela Berikashvili is the mother of opportunities for our students to get an 22-year-old Giorgi who was diagnosed occupation somewhere in private busi- with cerebral palsy at age four. Lela ness; so we decided to create opportuni- tearfully remembers the depression ties for them ourselves.” she suffered when she had to leave her prestigious job in the government to SPECIAL PEOPLE take care of her son’s health around the “We have watched how our students clock. Her whole purpose of living was have opened up to the world and to life,” for her son to get well, and she took him explains Tamriko Kvachava, PR offi cer TATJANA MONTIK to many medical professionals and even at Rhea Union’s Integration Center. “In to resorts in Crimea. Still, her son could the beginning, many of our students— or years, adults and young people not use his arms and legs. He could only who could hardly communicate, even with social disabilities have faced communicate through his eyes. No one with their family members – developed Fstigma in Georgia. They, and their gave Lela any diagnosis, and they were their talents in painting and pottery, and families, suffer from a lack of access to unable to help her son. some make beautiful tapestries. We don’t facilities and opportunities for education “When Giorgi was 14 years old, my call them disabled. We prefer another and employment. fi nancial and moral resources came to term –‘people with special developmen- But today, organizations like Rhea an end, and I surrendered. I stayed at tal needs,’ or just ‘special people.’” Union’s Integration Center, as well as home with my depression, crying all One of the keys to helping people other non-government programs and day – until Eliso came to my house – and with disabilities is making sure their international donor projects, are work- we joined her integration project. Soon, voices are heard, noted Helena Sancho, ing to create an inclusive society for all this became our life!” Giorgi has become the First Secretary of Development Georgians. a student at the Integration Center, and Cooperation at the Swedish Embassy
OCTOBER-NOVEMBER/2015 • Investor.ge | 39 Khatuna and Lela Photo by Tatjana Montik
in Georiga. sites to legal assistance and employment. dishes, like Dirk van der Eede, who loves “A key problem is stigma and hiding. “We have noticed that when working sitting outside with his dog to work at his People with disabilities are often not with people with disabilities, you tend computer and have lunch. taken into consideration; they are often not just to improve their situation, but “I think this is the only place in treated as invisible. Persons with dis- actually to improve the situation of other Tbilisi that people with disabilities are abilities are therefore often very limited parts of society as well. Once we focus regularly serving and included in the in what they can do. They cannot move on a certain group, it helps to make the workforce of a public restaurant. When freely. And this leads to discrimination situation for the whole society better,” I came to Georgia one and a half years and to limitation in their possibilities in Sancho said. ago, I rarely saw people with disabilities exercising their basic human rights such Rhea Union’s Integration Center is in the streets, and asked my Georgian as access to education, the possibility to also committed to making sure its clients’ friends about it. They said that disabled vote in some instances, [and] access to voices are heard – and their talents are persons are often kept inside, within the general healthcare,” she said. appreciated – in the community. family, and that they don’t have a real Through its aid organization, SIDA, Several times a year, usually at social life outside. Then I discovered that the Swedish government is fi nancing a Christmas and Easter, Kvachava helps here, in this café, that isn’t true. It is great number of projects for Georgians with organize integration trade fairs, where that they have a role in the society, and I disabilities. In particular, SIDA has been beautiful products from the integration guess it is something which is exemplary working with the Eurasian Partnership centers can be bought. here in Tbilisi, as here I see them in daily Fund to help people with everything from Unsurprisingly, Rhea’s Squirrels has life, and they are all very nice,” van der access to public buildings and tourism many visitors who stop in for its unique Eede remarked.
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4040 | Investor.geInInveveststoror.g.ge • OCTOBER-NOVEMBER/2015OCTOOCCTCTOBEOBOBEBER-NRNRR--N-NOVEOVOVEVEMBEMBMBEBER/20//220201515 for tourist infrastructure in Telavi, Sigh- Building an naghi, and Kvareli municipalities,” he was quoted as saying in an EPF report about the project.
Inclusive Georgia “FULL-FLEDGED MEMBER OF SOCIETY” rom spice production to tour an online map that provides information The Social Enterprise Ertad, which agencies, Eurasia Partnership about wheel chair accessibility of various is supported by EPFwas launched in the FFoundation (EPF)and the Swed- public buildings (e.g. cafes, restaurants, beginning of 2013. It was able to receive ish government have supported a number government offi ces, etc.) to the PWDs concessional loan from TBC Bank as of initiatives to help people with dis- and their families, so as to improve their part of the initiative launched by EPF in abilities lead full and productive lives access to social, cultural or economic cooperation with Tbilisi City Hall. in Georgia. The following is a short activities.” The production line of the SE Ertad summary of just a few of the projects employs two wheel chaired workers to they have made possible over the past ACCESSIBLE TOURISM pack its main product, the Svanetian few years. For more information, please EPF supported Parsa, a non-govern- salt (salt mixed with Georgian spices), visit www.epfound.ge. ment organization (NGO) to assess the which is now soldat supermarket chains “Through Eurasia Partnership Foun- accessibility of tourism sites, hotels and in Tbilisi. Hera, another local NGO, dation we have supported social integra- cafes in Adjara and Samegrelo regions also worked with EPF to create a sound tion of mentally disabled people through of Georgia. The information was then recording studio that employs people civic monitoring and advocacy; contrib- entered into a database on the NGO’s with special needs. uting to development of national mental website, www.parsa.ge. Davit Kviriliani, who has worked at health policy in Georgia; providing ac- Levan Areshidze, an accessibility the studio, told EPF “being employed cessibility of tourism infrastructure…” auditor and a tour-agent of the tourism in a social enterprise creates opportuni- noted Helena Sancho, the First Secretary agency Parsa, was part of the project. “I ties for people with various disabilities, of Development Cooperation at the am a wheelchair user. After undergoing as they are given chance to show their Swedish Embassy in Georgia. special trainings, I started working in the intelligence, develop skills and simply “We also have supported a project organization as an expert. Together with become integrated in the society. For me that specifi cally works with empowering my colleague, who has hearing impair- personally, working in the social enter- people with disabilities in order to make ments, I conducted accessibility audits of prise – sound recording studio HERA, them active members of society, so that 39 public places in Adjara and Samegrelo provides opportunity to have close they and their families are better able to regions. After that, Georgian National contacts with people and be involved in advocate for their rights and needs. An- Tourism Administration contracted us, public relations. I feel that I am a full- other project has supported a creation of Parsa, to undertake accessibility audit fl edged member of the society.”
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OCTOBER-NOVEMBER/2015OOCOCTCCTTOBEOBOBEBER-R-NR-N-NOVEOOVVEVEMBEMMBBBEER/2//2020201515 • Investor.geInInvevessttoorr.g.ge | 4141 NEWS
CONTENT
AmCham Back to 50 Business Cocktails
43 AMCHAM MEMBERS MEET DEPUTY ECONOMY MINISTER, DISCUSS “PRODUCED IN GEORGIA”
44 AMCHAM TOURISM COMMITTEE, GNTA CREATING CONVENTION BUREAU
44 CSR COMMITTEE HOSTS CSRDG, WEHELP.GE
45 AMCHAM’S BACK TO BUSINESS COCKTAIL RECEPTION AT ROOMS HOTEL GARDEN
46 MEMBER PROFILE: CARE
48 MEMBERSHIP DIRECTORY
50 SOCIAL: AMCHAM’S BACK TO BUSINESS COCKTAIL RECEPTION
42 | Investor.ge • OCTOBER-NOVEMBER/2015 NEWS
AmCham Members Meet Deputy Economy Minister, Discuss “Produced in Georgia”
Nicholas Berliner, Deputy Chief of cerning U.S. foreign policy concerning take place on October 15th and 16th, as Mission from Embassy of the United Iran and Russia and recent political well as recent developments in the Geor- States in Georgia, opened the AmCham developments in Georgia and Ukraine. gian Government Project, ‘Produced in monthly Roundtable meeting on Sep- Mr. Berliner was followed by Keti Georgia.’ tember 9 at Marriott Tbilisi Hotel with Bochorishvili, Deputy Minister of Econ- The meeting was followed by an en- an engaging political and economic omy and Sustainable Development. Ms. gaging Q&A session. The following new environment review. Bochorishvili gave a presention about members were also recognized: Georgian He outlined important issues con- the Tbilisi Silk Road Forum, which will Logistic Group, Avis and Leavingstone.
OCTOBER-NOVEMBER/2015 • Investor.ge | 43 NEWS AMCHAM TOURISM COMMITTEE, GNTA CREATING CONVENTION BUREAU The Georgian National Tourism Agency (GNTA), with the help of AmCham, is working on creating a Convention Bureau to help maximize on Georgia’s great potential as a Meetings, Incentives, Conventions and Exhibi- tions (MICE) destination. On Monday, October 5, we hosted a Tourism Com- mittee meeting which was attended by the heads of international hotels in Georgia. In coordination with the com- mittee Chair Andreas Heidingsfelder we invited the representative of GNTA TornikeZirakishvili, who will be heading the Convention Bureau from January. Tornike recently visited Baku to consult with the head of Convention Bureau in Azerbaijan. He shared his vision and ac- tion plan to the committee members and received recommendations from the top players of the hospitality market. CSR COMMITTEE HOSTS CSRDG, WEHELP.GE On September 24 AmCham CSR Committee resumed its monthly meet- ings. The committee hosted represen- tatives of The Center for Strategic Research and Development of Georgia (CSRDG) and WeHelp.ge. Lela Kho- peria, Program Coordinator at CSRDG presented the new Pro Bono program, which aims to provide consulting to public benefit organizations for free. WeHelp.ge is the fund helping to connect benefi ciaries who have medical needs and people who want to offer fi nancial support. Each working group of CSR Committee: Platform, Tools and Moni- toring presented actions they have taken since summer and overviewed the future plan of development of CSR committee.
44 | Investor.ge • OCTOBER-NOVEMBER/2015 NEWS
AMCHAM’S BACK TO BUSINESS COCKTAIL RECEPTION AT ROOMS HOTEL GARDEN
On September 25th, AmCham Georgia hosted its annual Back to Business Cocktail Reception and networking event. AmCham also celebrated Investor.ge’s 15th Birthday and some of the people who have contributed to our business magazine’s success. The event was held at the Rooms Hotel Garden. Around 120 guests from member companies enjoyed cocktails and Georgian wine, along with a delicious buffet and opportunities to reconnect with friends, colleagues and fellow representatives of member companies.
OCTOBER-NOVEMBER/2015 • Investor.ge | 45 NEWS
play a pivotal role in European agriculture. Introduction of a revolving grant scheme; In most European countries, a large part of Focusing on farmers’ best business ideas; those engaged in primary production are Consolidation and institutional strength- small-scale farmers. The majority of them ening of the Georgian Farmers Association (and also of the big- and medium-scale (GFA). farmers, too) are members of coopera- tives. In total, there are 9 million agricul- THE REVOLVING FUND CARE for Cooperation tural cooperative members across the EU, An innovative fi nancing mechanism – Improving The which means than 2 out of every 3 farmers to ensure long-term sustainability and are member of at least one cooperative. abstinence from dependency-creating Economy through In Georgia, cooperatives have not giveaways is the revolving fund. This been operating due to a number of fac- mechanism aims to motivate and develop Cooperatives tors such as weak organization, a lack of capacity building for farmer groups in market linkages, insuffi cient resources and order to organize to increase effi ciency, lack of access to capital. In order to fi ll this and to create a sustainable mechanism void, Georgia needs to focus on the lack for scaling up and replication. Farmers of awareness of farmers of the benefi ts of will be expected to fully participate in all establishing strong cooperatives, increas- stages of exploration and analysis of mar- ing business and technical farming skills, ket opportunities, sources of technical and creating market linkages, and increasing material support, and negotiations with access to capital. investors. Start-up funds will be provided as interest free loans , with each group CARE’S STRATEGY committing to a repayment schedule. The objective of CARE ENPARD is to This mechanism allows the revolving fund ensure that business-oriented smallholder to reinvest in other cooperatives, and in farmer groups develop capacity and are doing so, it will eventually reach out to a empowered to cooperate and compete large group of benefi ciaries. well in markets. It directly addresses the CARE International in the Caucasus situation of Georgian agriculture by fram- IMPROVING VALUE CHAINS –THE is actively involved in implementation of ing a action that will establish and enable KEY TO SUCCESS the European Neighborhood Programme farmer groups to take advantage of busi- Based on the CARE International in for Agriculture and Rural Development ness opportunities. This action is to be rep- the Caucasus business model to stimu- Program (ENPARD). ENPARD is a fi ve-year licated on a larger scale and will validate late economic growth and create social program (2013-2018) to reinvigorate the methods to build capacity in smallholder impact, the CARE project builds on a agriculture sector in Georgia with the farmer groups to create and manage rural comprehensive approach for developing thorough cooperation of farmers, markets, businesses. In order to achieve tangible agriculture in Georgia. government and civil society. results, CARE’s work with its cooperatives This entails identifying the most prom- The unique and holistic approach of touches on a range of aspects crucial for ising businesses and ideas, providing the program aims to tap into the full po- creating long-term, sustainable impacts. business training to a large group of co- tential of the agriculture sector, enabling Innovative aspects of the project include operatives and providing specifi c business farmers to penetrate local, regional and the establishment of a revolving fund for training to a select group of cooperatives, international markets. Key is the develop- cooperatives and the use of CARE’s busi- providing technical training, and encour- ment of cooperatives and successful com- ness model for selecting the cooperatives aging capacity building for farmers and mercialization of agriculture, which will with the highest potential and providing connecting them to the value chains they signifi cantly boost the country’s economy them training and support in a widerange operate in. The link with larger companies and the living conditions of farmers and of necessary areas. In order to do this, and investors has proven to be crucial for their respective communities. CARE provides technical assistance for the profi tability and therefore economic Cooperation on all levels is crucial to farming and greenhouses, but also on the sustainability of the companies. achieve tangible results. Through enhanc- business side of the cooperatives, which is Within the project, CARE international ing the work of cooperatives within the equally important.These include the: will support 60 cooperatives. Georgian co- sector, creating market linkages, as well Development and implementation of in- operatives can play a key role in shaping as stimulating cooperation with the gov- novative and fi nancially sustainable mod- and improving Georgia’s rural economy ernment to create progress, the project els, so that farmers are better able to reap and can offer interesting opportunities for will eventually improve productivity and profi ts from their agricultural activities and companies and investors. livelihoods of the farmers’ families and enjoy long-term economic sustainability; It is worth emphasizing that CARE communities. Strengthening the soft capacities and ENPARD is currently seeking to advocate Cooperatives are the link between skills of farmers; providing basic support and fundraise to support vetted business small- and medium-sized farmers and for business planning and technical ideas of well-trained cooperatives that markets. Business-oriented cooperatives know-how; are ready to enter the market economy.
46 | Investor.ge • OCTOBER-NOVEMBER/2015
AmCham Company Members as of October 2015
PATRON MEMBERS Cushman & Wakefi eld - GULF Georgia TBC Group Veritas Brown by Sun Petrolium Georgia LLC 7 Marjanishvili St. BP Exploration Georgia 6th fl oor, Block 10, 71 Vaja-Pshavela Ave. Pixel Business Center, Tel: 2272727; Fax: 2228503 24, S. Tsintsadze St. Tel: 2474849 34 Chavchavadze Ave. www.tbc.com.ge Tel: 2593400 www.veritasbrown.com Tel/Fax: 2496444 www.bpgeorgia.ge www.gulf.ge TMC Global Professional Services 6001 Indian School Road NE, Suite 190, Dechert Georgia LLC Albuquerque, NM 87110, USA Exxon Azerbaijan Ltd 7th fl oor, Pixel building, Hilton Batumi Tel: (1 505) 8723146 Landmark Suite 300, 95 Nizami St., Baku, 34 Chavchavadze avenue 13 Takaishvili St., Batumi www.tmcservices.com AZ1010 Azerbaijan Tel: 2334719 Tel: 292092 www.hilton.com Tel: (994-12) 4982460; Fax: (994-12) www.dechert.com USA2Georgia 4982472 27 Kavtaradze St. www.exxonmobil.com Iberia Refreshments, JSC Deloitte Tetri Khevi Hesi District, Orkhevi Tel: 2421818 36a, L. Asatiani St., 0105 www.usa2georgia.com PricewaterhouseCoopers Tel: 2241091; Fax: 2241090 Tel: 2244566; Fax: 2244569 7 Bambis Rigi St., 0105 www.pepsi.ge www.deloitte.ge Tel: 2508050; Fax: 2508060 CORPORATE B MEMBERS IMSS Ltd. www.pwc.com Diplomat Georgia 31 Makashvili St. Agro Trading Georgia Ltd. 65, Kakheti Highway Tel: 2938911 TBSC Consulting 68a Rustavi Highway, 0165 Tel: 2984950 www.imss.ge 3, Rapiel Eristavi Street, IV Floor Tel: 2305335 www.diplomat.ge Tel: 2959019; Fax: 2420215 Kavkaz Cement JSC www.agrotrading.ge www.tbsc.ge 29 Andronikashvili St., 0189 DLA Piper Georgia LP Adjara Group Hospitality Tel: 2619090 1, 26 May Sq., 0179 UGT 10 Melikishvili St. www.kavkazcement.ge 17a Chavchavadze Ave., 7th fl oor Tel: 2509300; Fax: 2509301 Tel: 2300099 www.adjaragroup.com Tel: 2220211; Fax: 2220206 www.dlapiper.com KPMG Georgia LLC www.ugt.ge 3rd Floor, Besiki Business Center, Air Astana Airlines JSC EY Georgia 4 Besiki St., 0108 5th Floor, Pixel Business Center, CORPORATE A MEMBERS 44 Kote Abkhazi St. Tel: 2935713; Fax: 2982276 34 Chavchavadze Ave. Tel: 2439375; Fax: 2439376 www.kpmg.ge Tel: 2514999 Alliance Group Holding, JSC www.ge.ey.com www.airastana.com 47/57 M. Kostava St., 0179 Maersk Georgia LLC Tel: 2424181; Fax: 2998112 Aliance Georgia Ltd F H Bertling Georgia Ltd. 6 Khetagurov St. www.agh.ge 33 Samurzakano St. 10 Shevchenko St. Tel: 2200800; Fax: 2200815 Tel: 2243773 Tel: 2252287 www.maerskline.com Auto Service Caucasus www.groupaliance.com www.bertling.com 5 Shalikashvili St. Marriott Hotels, Resorts & Suites AMK Law Tel: 2208080 13 Rustaveli Ave. 1 Iv. Javakhishvili Sq., 0102 www.precisiontune.com FINCA Bank Georgia Tel: 2779200; Fax: 2779210 71 Vazha-Pshavela Ave. 3rd fl . Tel: 2054628 Avis Georgia Aisi www.marriott.com Tel: 2244949 www.amklex.com 4 Freedom Sq. 0105 www.fi nca.ge Microsoft Georgia LLC Tel: 2923594 Asseco Georgia 34 Chavchavadze Ave. www.avis.ge 24 Mosashvili St. Frontera Resources Georgia Tel: 2970123 Tel: 2720901 Avon Cosmetics Georgia LLC 12 Paliashvili St. www.microsoft.com www.asseco.ge 117 Tsereteli Ave. Tel: 2252412 Tel: 2226805; Fax: 2226806 www.fronteraresources.com Oracle Aversi Pharma www.avon.com Ayazağa Mevkii Meydan Sok. 148/2 Aghmashenebeli Ave. Spring Giz Plaza Kat:11 Tel: 2987860 Best Western Hotel Tbilisi Georgian American Alloys, Inc. Maslak, Istsnbul, Turkey www.aversi.ge 11 Apakidze St. 200 S Biscayne Blvd Suite 5500, Miami FL Tel: 577500151 Baker Tilly Georgia Ltd. Tel: 2300777 33131 USA www.oracle.com www.bestwesterntbilisi.ge Tel: (1)3053757560 Meidan Palace, 44 Kote Abkhazi St. www.gaalloys.com PepsiCo Wimm-Bill-Dann Tel: 2505353; Fax: 2505353 Betsy’s Hotel / Prosperos Books Village Ponichala, Tbilisi 0165 www.bakertillyinternational.com 32/34 Makashvili St. / 34 Rustaveli Ave. Georgian American University Tel: 2475290 Bank of Georgia Tel: 2987624, Fax: 2923592 8 Aleksidze St. www.wbd.ru www.betsyshotel.com 3 Pushkin St. Tel: 2206520; Fax: 2206519 Tel: 2444134; Fax: 2983269 Pfi zer Luxembourg SARL Booz Allen Hamilton, Inc. www.gau.ge www.bog.com.ge Representation Offi ce in Georgia 4 Freedom Sq. 58 I. Abashidze St. Bank Republic Tel: 2481348; Fax: 2481349 Georgian Audit & Consulting Tel: 2252986 2 Gr. Abashidze St. www.boozallen.com Company www.pfi zer.com Tel: 2925555; Fax: 2925544 Axis Business Pl, 2 Gamrekeli St. www.republic.ge British American Tobacco Tel: 2904522; Fax: 2904523 71 Vazha Pshavela Ave. Philip Morris www.gacc.com.ge Basel LLC Tel: 2157500/01/02; Fax: 2157503 1 Tabidze St. 49 Krtsanisi St. www.bat.com Tel: 2439001; Fax: 2439005 Georgian Logistic Group Ltd. www.philipmorrisinternational.com Tel: 2550110 Catoni & Co. Georgia 12 G. Kuchishvili St., 0179 www.krtsanisi.com Tel: 2422424 7 Dzmebi Zubalashvilebi St. Apt.22/23 ProCredit Bank Basis Bank JSC www.glg.ge Tel: 2989230; Fax: 2922264 154 Agmashenebeli Ave. 1 Ketevan Tsamebuli Ave. www.hapag-lloyd.com Tel: 2202222; Fax: 2202222-2226 Tel: 2922922; Fax: 2986548 GMT Group www.procreditbank.ge Caucasia Trading www.basisbank.ge 4 Freedom Square Apt 11, Bld 7, 16 Krtsanisi St. Tel: 2988988; Fax: 2988910 Radisson BLU Iveria Hotel Batumi International Container Tel: 14433050083; Fax: 14433788388 www.gmt.ge 1 Rose Revolution Sq. Terminal www.caucasiatrading.com Tel: 2402200; Fax: 2402201 11, Baku Street, 6010, Batumi www.radissonblu.com Tel: 422 276452 Caucasus University Gosselin Moving Georgia www.bict.ge 77 Kostava St., Bld.6, 4th fl . 3 M/D, Didi Digomi Savaneti 99 Ltd. Tel: 2377777; Fax: 2313226 Tel: 2596601/02/03; Fax: 2596600 Vilage Savaneti, Bolnisi Region BDO LLC www.cu.edu.ge www.moving.gosselingroup.eu Tel: 2605599 Pixel Center 8th fl oor CH2M Hill Tel: 2545845; Fax: 2399204 5th Floor, GMT Plaza, Freedom Square Grant Thornton LLC SEAF Management LLC www.bdo.ge 7, Niko Nikoladze St. II Floor. Tel: 2474040; Fax: 2470210 61 D. Aghmashenebeli Ave. BGI Advisory Services Georgia Tel: 2998115; Fax: 2923533 www.ch2m.com Tel: 2604406 18 Rustaveli Ave., II fl oor www.seaf.ge www.grantthornton.ge Tel: 2997292; Fax: 2996615 Chemonics International Sheraton Metechi Palace Hotel www.bgi.ge 6a N. Ramishvili St., 0179 Greco Group Tel: 2234311; Fax: 2234309 20 Telavi St. BLB (Business Legal Bureau) 1 Nutsubidze St. Tel: 2772020; Fax: 2772120 www.chemonics.com Tel: 2393138; Fax: 2311107 1 Shevchenko St, Apt.1 www.sheraton.com/tbilisi Tel: 2995797 Colliers International www.greco.ge www.blb.ge Georgia LLC T&K Restaurants (McDonald’s 37/39 Kostava St., GT Group Georgia) BLC Law Offi ce Grato Business Center 7th Floor 48 B. Cholokashvili St. 1 Dzmebi Kakabadze St. 4 Gudiashvili Sq. Tel: 2224477 Tel: 2740740 Tel: 2921246; Fax: 2251422 Tel: 2922491; Fax: 2934526 www.colliers.com www.gtgroup.ge www.mcdonalds.ge www.blc.ge
48 | Investor.ge • OCTOBER-NOVEMBER/2015 Canargo Georgia Georgian Resources Company Luca Polare Tbilisi View 67 Aghmashenebeli Ave. 3-5 Kazbegi St. 54 Oniashvili St. 4a, Freedom Sq. Tel: 2332527 Tel: 2936676 Tel: 2990399 Tel: 2999980 www.georgianresources.com www.lucapolare.com www.tbilisiview.ge Capital Bank 1 Vertskhli St. Geo Steel LLC Mina JSC Teliani Valley JSC Tel: 2428888 36 Davit Gareji St., Rustavi, 3700 4 Besiki St. 2 Marshal Gelovani Ave. www.capitalbank.ge Tel: 2243794 Tel: 2449981/82/83; Fax: 2449980 Tel: 2313245; Fax: 2313249 Casino Adjara www.geosteel.com.ge www.mina.com.ge www.telianivalley.com 1, 26 May Sq. Globalink Logistics Group Mira-Group Ltd. Tel: 2335519; Fax: 2334520 Theco Ltd. 14-A Shartava St, 2nd fl , Suite 7 Brose Street Turn,Old Tbilisi www.casinoadjara.com 16 Chikovani St. Tel: 2253262; Fax: 2439002 Tel: 2242244/55/88 Tel: 592107515 CaspiGroup Ltd. www.globalinkllc.com www.riverside.ge 29 Bochorma St. www.tbilisia.ru Tel: 2550818 Gvinadze & Partners LLC National Center for Dispute Resolution www.caspigroup.com 44 Kote Abkhazi St, 0105 4/7 Rustaveli St., Rustavi VD Capital Tel: 2438970, Fax: 2438971 Tel: 2193406 77 Kostava St., 0175 Caucasus Online LLC www.gvinadzeandpartners.ge www.ncdr.ge Tel: 2363672; Fax: 2364302 71 Vazha-Pshavela Ave. Tel: 2480048; Fax: 2480048 HeidelbergCement Georgia Noblet Media Wings and Freeman Capital www.caucasus.net 18 Lermontov St. Ap. 25, 34-36 Kobuleti St. Green Building, 6, Marjanishvili St. Tel: 2474747 Channel Energy (Poti) Limited Georgia Tel: 2396300 Tel: 2940051; Fax: 2940053 www.heidelbergcement.ge LLC, By Petrocas Energy Group www.nobletmedia.com www.wfcapital.ge 52, David Agmashenebeli St., Poti Herbalife Nodia, Urumashvili & Parnters Tel: (995493) 2-7-08-60 Bld. 4a Tamarashvili St., 0162 Wissol Georgia Offi ce #28, IV Block, www.petrocasenergy.com Tel: 2202929 74b Chavchavadze Ave. 71 Vazha-Pshavela Ave. www.herbalife.com Tel: 2915315; Fax: 2915615 Château Mukhrani, J.S.C. Tel: 2207407 www.wissol.ge III fl oor, Didube Plaza, Hotels And Preference Hualing Tbilisi www.nplaw.ge 116 Tsereteli Ave. Hualing Tbilisi Sea New City, 0152 Tel: 2201878; Fax: 2201878; Tel: 2505025 Overall Management Group (OMG) Inc. www.mukhrani.com www.hotelspreference.ge 29 Marjanishvili St. Tel: 2436052; Fax: 2436052 Citi & Co. Hualing International Special 4 Besiki St. NON-PROFIT ORGANIZATIONS Economic Zone Paine Stevens LLC Tel: 2920921 25 Apt. 34/36 Kobuleti St. 1 Ivane Javakhishvili Sqr. Tel: 2903211, Fax: 2903291 Crowne Plaza Borjomi Tel: 591005900 Agricultural University of Georgia www.painestevens.com Baratashvili Str. 9, 1200 Borjomi www.hualing.cn 140 David Aghmashenebeli Alley Tel: 995 367 220260 Tel: 2594901 IGroup Policy and Management Consulting www.cpborjomi.com www.agruni.edu.ge 197/24g Kazbegi Ave. Group (PMCG) Crystal, MFO JSC Tel: 2308483 61 Aghmashenebeli Ave, 4th fl oor 72 Tamar Mepe St. Kutaisi, 4600 www.igroupgeorgia.com Tel: 2921171 American Friends of Georgia Tel: 431253343 www..pmcg.ge 77 Nutsubidze St. www.crystal.ge ILF Beratende Ingenieure ZT GmbH Tel: 2397174; Fax: 2388495 Branch in Georgia Publicis Hepta David Tvildiani Medical Univesity www.afgeorgia.org 15 Tamar Mepe Ave. 17 V. Jorbenadze St. 2/6 Ljubljana St. Tel: 2199453 Tel: 2745672; Fax: 2745671 Tel: 2516898, Fax: 2527196 www.ilf.com www.publicishepta.com www.aieti.edu.ge CARE International in the Caucasus 37 Tsagareli St., 0162 Imedi TV Qebuli Climate Duty Free Georgia Tel: 2291941 51 Ljubljana St. 101, Tsereteli Ave. 3rd fl oor, 4 Besiki St., Besiki Business www.care-caucasus.org.ge Center Tel: 2464646 Tel: 2356201 Tel: 2430150 www.imedi.ge www.qebuli.ge www.dfg.ge Center for Social Sciences Imperial Tobacco International Limited Rakeen Development LLC 33 Paliashvili St. Efes Brewery in Georgia - Representative Offi ce in Georgia Pixel Business Center, Tel: 2290095 Lomisi JSC 12 Dariali Turn, 0162 34 Chavchavadze Ave. www.css.ge Village Natakhtari, Mtskhta Region Tel: 2232438 Tel: 2933393; Fax: 2933993 Tel: 2357225 www.imperial-tobacco.com www.rakeen.ge www.natakhtari.ge Eurasia Partnership Foundation Interco Travel Holding Resolution Insurance Brokers, Gebrüder Weiss LLC 3 Kavsadze Str. 36 Al. Kazbegi St. Georgia LLC Airport Adjacent Territory, Tel: 2253942; Fax 2252763 (ext. 112) Tel: 2294343 61, Gorgasali St. Kakheti Hwy www.epfound.org www.intercontinental.ge Tel: 2936305 Tel: 2710011 www.rib.ge www.gw-world.com International Black Sea University Free University of Tbilisi David Agmashenebeli Alley 13 km, 2, 0131 GeoCapital Microfi nance Organization Rixos Hotel Borjomi 140 David Agmashenebeli Alley Tel: 2595005 Ltd. 16 Meskheti St., Borjomi Tel: 2200901 www.ibsu.edu.ge 5 Tsereteli St, Kutaisi Tel: 2292292 www.freeuni.edu.ge Tel: 431 267070 JTI Caucasus http://borjomi.rixos.com www.geocapital.ge VII Floor, Pixel Business Center, Rooms Hotel Georgian Wine Association Geocell 34 Chavchavadze Ave. 14 Merab Kostava St. Tel: 2604111 12 Mtatsminda St. 3 Gotua St. Tel: 2020099, 2730099 Tel: 2505456 Tel: 2770100, ext. 7435; www.jti.com www.roomshotels.com Fax: 2770119 Kordzahia, Jgenti Law Firm Rustavi Azot Ltd. www.geocell.ge 10 Petriashvili St. Good Governance Initiative 2 Mshvidoba St. Rustavi-3702 Pixel Center, 8th Floor, 34, Chavchavadze GeoEngineering LLC Tel: 2921878 Tel: 995341270900 Ave. 15a Tamarashvili St. www.kjlaw.ge www.azot.ge Tel: 2243111 Tel: 2311788; Fax: 2311787 KSB Bank www.ggi.ge www.geoengineering.ge 3 Ketevan Tsamebuli Ave. Rustavi Steel LLC Geomill LLC Tel: 2550000, Fax: 2507707 12 Y. Gagarin St., 3700 Rustavi 4, Chirnakhuli St. www.ksb.ge Tel/Fax: 260 66 99 QSI International School of Georgia Tel: 2400000 www.rmp.ge Village Zurgovani, Tbilisi www.geomill.ge Leavingstone Tel: 2537670; Fax: 2322607 12a Al. Kazbegi Ave. Sayali Ltd. www.qsi.org Georgian Airways Tel: 2105103 6 Ushangi Chkheidze St. 12 Rustaveli Ave. www.leavingstone.com Tel: 2951212; Tel: 2999730; Fax: 2999660 www.sayali.ge Salvation Army www.georgian-airways.com Legal Partners Associated LLC 16 Ikalto St. Offi ce #203, Besiki Business Center, 4 Silknet Ltd. Tel: 2333786; Fax: 2330227 Georgian Beer Company Besiki St. 0108 95 Tsinamdzgvrishvili St. www.salvationarmy.org 3311 Saguramo, Mtskheta District Tel: 2200203; Fax: 2250458 Tel: 2910345; Tel: 2437770 www.lpa.ge www.silknet.com www.geobeer.ge San Diego State University - Georgia Georgian Hospitality Group Lemondo LLC SRG Investments LLC 3 Chavchavadze Ave. 23 Peritsvaleba St., 0103 13 Dzotsenidze St. 49a Chavchavadze Ave, 3rd fl oor Tel: 2290820 Tel: 2987789 Tel: 2193377 Tel: 2253581 www.sdsu.edu www.ghg.ge www.lemondo.com www.silkroad.ge Georgian Integrated Systems (GiS) Liberty Bank JSC Statoil Transparency International Georgia Offi ce 1, 85 Abashidze St., 0163 74 Chavchavadze Ave. GMT Plaza, 4 Freedom Sq. 26 Rustaveli Ave. 0108 Tel: 2243724 Tel: 2555500; Fax: 2912269 Tel: 2471002 Tel: 2932129 www.gis.ge www.libertybank.ge www.statoil.com www.transparency.ge
OCTOBER-NOVEMBER/2015 • Investor.ge | 49 NEWS
AMCHAM’S BACK TO BUSINESS COCKTAIL RECEPTION AT ROOMS HOTEL GARDEN Amcham Georgia treated its members at Rooms Hotel Garden with a cocktail reception on September 25. The party included a special tribute to Investor. ge magazine, which celebrated its anniversary. Current and former editors, including the magazine’s founder Amy Denman, Allison Dvaladze, and Suzanne Channon, were present to celebrate the big event. Investor.ge thanks everyone who has supported it over the years!
50 | Investor.ge • OCTOBER-NOVEMBER/2015 NEWS
OCTOBER-NOVEMBER/2015 • Investor.ge | 51 NEWS
Board Of Directors 2015
SARAH WILLIAMSON PRESIDENT
R. MICHAEL COWGILL IRAKLI BAIDASHVILI ESBEN EMBORG FIRST VICE-PRESIDENT VICE-PRESIDENT & TREASURER DIRECTOR
LASHA GOGIBERIDZE BADRI JAPARIDZE STEVE JOHNSON DIRECTOR DIRECTOR DIRECTOR
AmCham Executive Director Writers George Welton Maia Edilashvili, Monica Ellena, Lika JorJoliani, Joseph Larsen,Tatjana Montik, Sally White Copy Editor Alexander Melin Photographs Joseph Larsen, Tatjana Montik, Eurasian Partnership Foundation, Georgian Marketing & Promotion Events, Davit Khizanishvili Saba Gvetadze and Salome Tkeshelashvili Special thanks to the AmCham staff, the editorial board, and all of our Promotional Design contributors - especially Eurasian Partnership Foundation, Georgian Events and Levan Baratashvili KPMG for their submissions. This magazine would not be possible without all of you. Magazine Design and Layout Giorgi Megrelishvili 52 | Investor.ge • OCTOBER-NOVEMBER/2015 NEWS
TED JONAS KETTI KVARTSKHAVA ROBIN MCCONE DIRECTOR DIRECTOR DIRECTOR
CHRIS SCHLUETER BETSY HASKELL, K.G. MOORE DIRECTOR FOUNDING ADVISOR EX-OFFICIO MEMBER
GEORGE WELTON EXEC. DIRECTOR
AmCham Georgia Patron Members:
© The American Chamber of Commerce in Georgia, 2015 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. 36a Lado Asatiani Street, 3 fl oor. Tel: 2 22-69-07 The opinions expressed in this magazine do not refl ect the opinion [email protected] of the American Chamber of Commerce in Georgia nor its Board [email protected] │ www.amcham.ge Members or staff, unless otherwise stated. AmCham Georgia neither endorses, nor can be held liable for any eventuality www.investor.ge OCTOBER-NOVEMBER/2015 • Investor.ge | 53
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