INCREASED INTEREST FOR GEORGIAN GOVERNMENT REVERSING GEORGIAN GREEN BONDS PROPOSES DOMESTIC THE BRAIN DRAIN “AMAZON”
Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 62 APRIL-MAY 2018
Made in GEORGIA 68535,6()25,1'(3(1'(1&('$<2)*(25*,$ APRIL-MAY 2018 Investor.ge | 3 Investor.ge CONTENT 6 Investment News
10 The Best Minds in The Business: Famous Economists Weigh In On Georgia
12 Increased Interest for Georgian Green Bonds
14 Bringing the Talent Back
15 Reversing the Brain Drain: Experienced diaspora are returning to take jobs in Georgia’s financial 26 sector
18 Testing the Organic Standard: Turning Natural Georgian Products into Bona Fide Organic Goods
22 Georgian Tea Gets a Reboot from Local Entrepreneurs
24 Georgia Grapples with Quality over Quantity in Tourism
26 Buy Local: Georgian Companies Target the Domestic Market
30 Georgian Government Eyes E-Market, Proposes 31 Domestic “Amazon” 31 Cryptocurrencies, Blockchain Technology Continues to Excite Entrepreneurs in Georgia
34 Innovators and Disruptors: Ideas to Bring Change
35 A Leap of Faith: Creating Ivane Javakhishvili Tbilisi State University
38 A Wine For All Occasions: Pairing Georgian Wines with Seasonal Dishes
41 NEWS ...... 41
4 | Investor.ge APRIL-MAY 2018
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APRIL-MAYAPRIL-MAY 20201818 Investor.geInvestor.ge | 5 GEORGIA CAPITAL PLANS $500 MILLION IN INVESTMENTS INVESTMENT Georgia Capital of BGEO Group will invest $500 million “over the next few years” in the country, according to agenda.ge. Prime Minister Giorgi Kvirikashvili announced the deal, noting that $300 mil- NEWS lion of the promised investment has already been listed and traded on the Irish Stock Exchange as Eurobonds. INVESTOR.GE ³,WLVYHU\H[FLWLQJWKDWDQHZLQYHVWPHQWRIPLOOLRQZLOOÀRZLQWRWKH PROVIDES A FRXQWU\¶VVWUDWHJLFDOO\LPSRUWDQW¿HOGVVXFKDVWRXULVPHQHUJ\DQGUHDOHVWDWH,WLV BRIEF UPDATE ZHOFRPHGWKDWDQRQJRYHUQPHQWDOQRQ¿QDQFLDO*HRUJLDQFRPSDQ\KDVOLVWHG(XUR- bonds and attracted $300 million,” Kvirikashvili said on March 14 at a presentation ON INVESTMENTS of investment plans of Georgia Capital. AND CHANGES IN GOVERNMENT GEORGIAN INDUSTRIAL GROUP TO BUY KAZTRANSGAS TBILISI Georgian and Kazakh media have reported that Georgian Industrial Group plans POLICY THAT COULD to purchase KazTransGas Tbilisi for $40 million. Reports on the deal have been IMPACT THE BUSINESS FRQ¿UPHGE\*HRUJLDQ,QGXVWULDO*URXSDFFRUGLQJWR*HRUJLD¶V,QWHUSUHVVQHZV ENVIRONMENT. THE agency. INFORMATION IN THIS GEORGIA, SAUDI ARABIA SIGN DOUBLE TAXATION DEAL ISSUE WAS TAKEN Citizens from Georgia and Saudi Arabia are now protected by a new double FROM AGENDA.GE, taxation agreement, signed by two countries’ governments on 15 March, agenda. A GOVERNMENT- ge reported the same day. The agreement was signed during Georgian Finance Minister Mamuka Bakhtadze’s visit to Saudi Arabia. Georgia and Saudi Arabia are SUPPORTED WEBSITE, increasing economic cooperation by avoiding double taxation. AND OTHER Double taxation is the levying of tax by two or more jurisdictions on the same SOURCES. GHFODUHGLQFRPH LQFRPHWD[HV DVVHWV FDSLWDOWD[HV RU¿QDQFLDOWUDQVDFWLRQ VDOHV taxes). This double liability is often mitigated by tax treaties between countries, agenda.ge said. Currently, Georgia has double taxation treaties with over 50 countries, agenda.ge said. Recent agreements have been signed with Moldova, Liechtenstein, Kyrgyzstan, South Korea and Iceland.
UKRAINIAN AIRLINE YANAIR EXPANDS SERVICE BETWEEN BATUMI AND LVIV OVER 1 MILLION DOMESTIC TRAVELERS DOCUMENTED IN 4TH QUARTER 2017 Over a million Georgians over the age of 15 made trips within the country during WKHIRXUWKTXDUWHURIDJHQGDJHUHSRUWHGRQ0DUFKFLWLQJLQIRUPDWLRQ IURPWKHFRXQWU\¶VRI¿FLDOVWDWLVWLFVERG\ Georgians aged 31-50 travelled the most (331,000 people); in total, domestic trav- HOHUVVSHQW PLOOLRQODUL DERXWPLOOLRQ ZKLOHWUDYHOLQJZLWKLQWKHFRXQWU\ The capital of Tbilisi was the most visited destination. 6 | Investor.ge APRIL-MAY 2018 APRIL-MAY 2018 Investor.ge | 7 APRIL-MAY 2018 Investor.ge | 9 The Best Minds In The Business: Famous Economists Weigh In On Georgia INVESTOR.GE IS PILOTING A NEW COLUMN: QUESTIONS WITH INTERNATIONALLY RENOWNED ECONOMISTS. WE ARE REACHING OUT TO ECONOMISTS FROM ALL OVER THE WORLD WHO HAVE WRITTEN POPULAR AND WELL-REGARDED BOOKS ON THE ISSUES THAT ARE IMPORTANT TO THE GEORGIAN ECONOMY AND TO DEVELOPING ECONOMIES, AND TO ECONOMISTS WORKING AT THINK TANKS THAT ARE AT THE FOREFRONT OF DEVELOPMENT POLICY. WE POSE QUESTIONS ABOUT THE ISSUES THEY ARE WORKING ON THAT APPLY TO THE CHALLENGES GEORGIA IS FACING. IF YOU HAVE A QUESTION, OR A RECOMMENDATION ON WHO WE SHOULD TALK TO, PLEASE CONTACT US AT [email protected]. 5% of GDP each year that does not return because property rights are not safe in the or the second column in the series, for the country? country. Therefore, locals save their money we spoke with Swedish economist Aslund on lessons Georgia can learn abroad. When the locals dare not invest in FAnders Aslund, a resident senior fel- from its neighbors: Unfortunately, I do not the country, foreigners that can do so do low in the Eurasia Center at the Atlantic think there is much that Georgia can learn not invest. Therefore, countries such as Rus- Council. He is a well-known specialist on from the other post-Soviet countries (not in- sia and Ukraine have an investment ratio the economic policy of Russia, Ukraine cluding the Baltic states) because Georgia of 18 percent of GDP, when they should and Eastern Europe and has written exten- is so far ahead of them. The overall lesson, have 25-30 percent of GDP. Georgia looks sively on Georgia’s economic reforms. He EHVWH[HPSOLÀHGE\(VWRQLDDQG*HRUJLD much sounder in this regard. is the author of 14 books and teaches at is that it is vital not to reform but to fully Aslund on the best opportunities for the Georgetown University. rebuild law enforcement, prosecution, Georgian economy: Georgia is a natural We asked Aslund three questions: and the judicial system from the top down. hub in the region for commerce and what do you think Georgia can learn Aslund on challenges inherited by tourism. The Chinese One Belt One Road from other countries in the region; what Georgia’s Soviet heritage: The key prob- [Initiative] offers the country a great op- particular challenges does its post-Soviet lem for post-Soviet countries is to estab- portunity. It needs to guarantee the best heritage bring with it; and do you have lish property rights. A typical post-Soviet legal environment to attract business from any thoughts on the greatest opportunities FRXQWU\ KDV D FDSLWDO RXWÁRZ RI DERXW the region. ADVERTISEMENT 1010 | Investor.geInvestor.ge APRIL-MAYAPRIL-MAY 20201818 DAVID GELASHVILI DAVID KHRIKADZE #BDOknows Corporate law and M&A Financial, banking and investment law Real estate transactions and construction law Personal data protection and „ Ten years is a milestone. It is an occasion GDPR compliance to celebrate - an opportunity to proudly Employment law Regulatory compliance and look back and also chart the path forward ’’ licenses & permits Litigation, alternative dispute resolution Taxes Intellectual property Outsourced on-going legal advisory APRIL-MAY 2018 Investor.ge | 11 WWW.BDOLEGAL.GE SALLY WHITE by other institutions or countries,” it Increased added. $19 BILLION. hat is the estimated cost of A TRILLION DOLLAR BUSINESS Interest for meeting Georgia’s climate and Green bonds could be timely for T“green” growth goals, accord- Georgia, as they can allow enable new ing to the Organisation for Economic classes of investors, such as pension Georgian Co-operation and Development (OECD) funds and insurance companies, to invest LQLWVODWHVWSDSHURQ³0RELOLVLQJ¿QDQFH in climate projects. Green Bonds for climate action in Georgia.” Green bonds are a rapidly develop- Little of the funding is currently LQJQHZLQWHUQDWLRQDO¿QDQFLDOPDUNHW likely to come from international inves- which is forecast by some to grow from GEORGIA NEEDS tors, so it looks as though consumers last year’s $180 billion to $1 trillion in BILLIONS OF could ultimately bear the brunt of costs a couple of years, according to Reuters. DOLLARS TO MEET through higher costs, tariffs and taxes. “Although green bonds make up a ITS CLIMATE AND The OECD’s suggestion for Georgia small fraction of the overall $100 tril- to issue “green bonds” could offer some lion international bond market, they are “GREEN” GROWTH relief, however. attracting more attention because meet- GOALS. WHILE THERE “Finance for climate action in Geor- ing emissions-cut targets will require IS LITTLE CHANCE gia is already available but is unlikely to be Microfinance institutions, institutional OF INTERNATIONAL sufficient to achieve INVESTORS the country’s over- investors and non-financial sector FOOTING THE BILL, all climate goals. It corporations could play a greater role A NEW INVESTMENT is estimated that be- WZHHQDQG in financial flows to climate action, it PRODUCT – GREEN DERXW ELOOLRQZLOO says, noting that Crystal Microfinance BONDS – COULD be needed to achieve PROVIDE MUCH energy efficiency in has started a green program funded by industries, transport the Dutch Development Bank. NEEDED FUNDING. and buildings, non- energy related GHG emissions, activities related to land trillions of dollars of capital from public use, land-use change and forestry. The and private sectors worldwide,” Reuters cost estimates for other sectors are less reported. granular or more uncertain (e.g. for “non- Microfinance institutions, institu- hydro” renewable energy and adaptation WLRQDOLQYHVWRUVDQGQRQ¿QDQFLDOVHFWRU projects),” says the OECD. In all, the corporations could play a greater role in WRWDOFRXOGEHQHDUHUELOOLRQDWFXU- ¿QDQFLDOÀRZVWRFOLPDWHDFWLRQLWVD\V rent prices,” the OECD said in the paper. noting that Crystal Microfinance has “Some major challenges still exist, started a green program funded by the such as scalability of projects and Geor- Dutch Development Bank. gia’s nascent bond market. The govern- Among the Georgian banks, it cites ment of Georgia, in collaboration with ProCredit Bank as having made progress the National Bank of Georgia (NBG), in designing and providing loans to ener- should consider developing its green J\HI¿FLHQWDFWLYLWLHVDQGVPDOOHUVFDOH bond standard or adopt ones developed often decentralized, renewable energy 12 | Investor.ge APRIL-MAY 2018 IDFLOLWLHV7KHPDMRU¿QDQFLDOJURXSV opportunities, technology transfer and “green bond” definitions—as defined had “limited” themselves to investing job creation.” by the NBG—will make it easier for an mainly in mega projects for wind and The National Bank of Georgia has investor to assess the actual greenness hydro energy. recently joined the Sustainable Banking of the bond. “Limited availability of low-cost, Network (SBN), established by a World “These are all in the pipeline, and in long-term capital, especially from the Bank subsidiary, the International Fi- order to successfully implement all those private sector, in Georgia severely ham- nance Corporation (IFC), to gain experi- changes, while taking into account the pers investment in climate and experience of other countries, environmental-related proj- Green bonds could be timely for Georgia we are working in collaboration ects,” the OECD paper said. with IFC/SBN team,” says the Thus, acknowledging that as they can allow enable new classes NBG. There is no target time- currently “Georgia’s fiscal of investors, such as pension funds table for green bond issuance as space is limited,” it suggests yet. Potential foreign investors the government should also and insurance companies, to invest in are growing in number. Just consider setting up a “green climate projects. ODXQFKHGIRUH[DPSOHLVWKH bank” or a “green fund.” billion Amundi Planet Emerging The National Bank has Green One from the IFC and taken up the task of examining how to ence from its membership network. First Amundi, Europe’s largest asset manager, gradually integrate climate and environ- steps include raising local “awareness which is aimed at “climate-smart projects mental aspects into Georgia’s ongoing DERXWVXVWDLQDEOH¿QDQFH´DQGVWUHQJWK- in emerging markets.” capital market reform. ening environmental and social require- *UHHQERQGVFRXOGKDYHD³VLJQL¿- The OECD lists many reasons to do ments in the corporate governance code. cant impact” in energy-hungry Georgia, VR WKHQRQHQYLURQPHQWDOEHQH¿WVRI Other plans are the: IFC Regional Manager for the South “green bonds” include the opportunity to Introduction of green bond and green &DXFDVXV-DQYDQ%LOVHQVDLGFRQ¿- KHOSGHYHORS³DFRPSUHKHQVLYH¿QDQFLDO credit guidelines, which aims to increase dently at a press conference last year. sector” by enhancing the attraction and awareness and indicate the NBG’s sup- “According to estimates, Georgia could liquidity of the stock market and provi- SRUWWRZDUGVJUHHQ¿QDQFLQJ support about $1 billion in investments VLRQRI¿QDQFHZLOO³HQKDQFHEXVLQHVV Introducing “green credit” and LQSURMHFWV«WKURXJK´KHVDLG ! , 6, - " 0 %*. " &(. 1 " 2 #2&. - " " ! &. 5 (. " 4-" / - 0 $. *. 0 - 3 " # $ ### % ### & ### ' ### ( ### ) ### * ### + ### +. $'. APRIL-MAY 2018 Investor.ge | 13 the website. Bringing the Talent Back: Other countries, like Ireland, have been more proactive. How countries are getting skilled ConnectIreland targets “the estimated PLOOLRQ,ULVKQDWLRQDOVFDWWHUHGDURXQG workers to come home the globe as the ‘eyes and ears’ of Ire- land,” the BBC reported. THERE IS NOTHING NEW ABOUT SKILLED WORKERS SEEKING BETTER OPPORTUNITIES ABROAD. WHAT IS CHANGING, HOWEVER, IS HOW The program seeks to create jobs and TRADITIONAL ‘EXPORTER’ COUNTRIES VIEW THE SITUATION. boost economic recovery, according to the article. Even more than remittances, ike other post-Soviet countries, lands in search of a better life throughout compatriots can help their home coun- Georgia has experienced brain history. Today, however, governments, tries develop. LGUDLQRYHUWKHSDVW\HDUV including the Georgian government, are “By bringing back skills, culture and $VPDOOVWXG\RI*HRUJLDQV adopting strategies to either bring skilled new ideas acquired abroad, they can lead living in the Czech Republic found that compatriots back home or leverage their the way in modernization,” The Econo- RYHUSHUFHQWRIWKHTXHVWLRQHG knowledge and positions abroad. mist stated. had university degrees. The number of Efforts to improve migration man- “Unfortunately, expats are much respondents was too small to be applied agement may also help to alleviate cur- more likely to return to home countries in a wider context. But the report still rent concerns in the EU about Georgians that are rich and developed, meaning the serves as a valid illustration of a very abusing the liberalized visa regime. countries that need this assistance most real issue: educated Georgians working The Economist has defined three don’t get it—one study found that scien- abroad instead of at home. things that countries want from their WLVWVDUH¿YHWLPHVPRUHOLNHO\WRUHWXUQ People have been leaving their home- diaspora: soft power, investment/remit- to Taiwan than to China. The answer to tances and help developing. this may be further incentives, such as “Governments believe their citizens those already being rolled out—these living abroad can improve the country’s include visa support, voting rights and reputation, increasing tourism, consump- tax breaks,” it added. tion of exports and more,” The Econo- In an editorial published through mist noted. Project Syndicate, Dubai ruler Moham- The Georgian government has cre- med bin Rashid Al Maktoum noted that DWHGDSURJUDPWRHQJDJH³KLJKSUR¿OH´ skilled workers are six times more likely diaspora, according to the Ministry of to stay away than to return home. Foreign Affairs website. ³7DOHQWÀRZVQDWXUDOO\WRFRXQWULHV The ministry is running the program that create an environment for eco- in partnership with the International Cen- nomic growth; that make life easy for tre for Migration Policy Development enterprise; that attract and welcome (ICMPD) and the EU-funded project investment; and that nurture a culture of “Enhancing Georgia’s Migration Man- achievement. Skills are attracted to chal- agement (ENIGMMA).” lenge and possibility. Opportunity on this “The main aim of the program is scale is becoming a scarce commodity in WRHQJDJHKLJKSUR¿OHGLDVSRUDLQWKH many parts of the West. This is not the development processes of Georgia. The case in the developing world — at least target audience consists of Georgians among countries with the determination who have achieved professional success to deploy strong governance and to raise in destination countries and have sup- their competitiveness,” he wrote. London-based Georgian ported the popularization of Georgia’s “The basic ingredient,” he wrote, “is designer David Koma positive image abroad,” according to opportunity.” 14 | Investor.ge APRIL-MAY 2018 SALLY WHITE Reversing hile Georgia still lacks an of- ¿FLDOUHPLJUDWLRQSURJUDP Wlike those in place in the the Brain Baltics and some other Eastern European countries, studies show one part of the country’s diaspora wants to come home: Drain: KLJKVDODULHG¿QDQFLDOVSHFLDOLVWV The major Georgian banks need them, as they cannot carry out their Experienced international capital market operations, including funding, without highly expe- diaspora are rienced professionals conversant with returning to take the practices and regulations of these markets. Galt & Taggart Managing Director Another factor is that the sector’s Otari Sharikadze jobs in Georgia’s OHYHORISUR¿WDELOLW\FDQDFFRPPRGDWH in numerous transactions throughout remuneration packages competitive with Eastern and Western Europe. Sharikadze financial sector WKRVHLQ(XURSHDQDQG86¿QDQFLDOFHQ- also worked at HSBC in Paris. ters. It is hardly surprising then that the His professional education was WELL-EDUCATED two major Georgian commercial banks also in France and he holds a master’s MEMBERS OF have the most “returnees,” employing degree in Corporate Finance from Paris them right across their management. Graduate School of Management and GEORGIA’S a master’s degree in Economics from DIASPORA ARE FROM PARIS TO TBILISI Pantheon-Sorbonne University. LEAVING GOOD JOBS At Bank of Georgia’s investment What is he seeking to build at Galt & banking and investment subsidiary, Taggart? “The objective is to develop and AT MAJOR FINANCIAL Galt & Taggart, managing director Otari grow a team of professionals who will INSTITUTIONS Sharikadze lived and worked abroad for drive further business growth; to main- OVERSEAS FOR THE 14 years before returning. His reasons tain the leading position in Georgia and CHANCE TO MAKE for doing so are those frequently voiced in the Caucasus region and to strengthen by Georgians who have come back: “I further our brokerage capabilities sup- A DIFFERENCE IN always knew that one day I would come ported by our research team.” THE COUNTRY’S back. I wanted to take part in developing What does he feel he has accom- GROWING BANKING the country. I think that we are living in a SOLVKHGVRIDU")XO¿OOLQJKLVDPELWLRQ very exciting, but also challenging period to help create history, Galt & Taggart is SECTOR. for the country and I wanted to be part of not just a vital voice to the international this history,” he told Investor.ge. investment community in Georgia alone, Prior to joining Bank of Georgia Cor- but is acting as a hub for the region with SRUDWH$GYLVRU\LQ$XJXVW6KDUL- extensive research and conference calls. NDG]HVHUYHGDV&KLHI,QYHVWPHQW2I¿FHU “We are at the forefront of capital- at the Partnership Fund, the Georgian markets development in Georgia. We state-owned private equity fund. Previ- aim to leverage our superior knowledge ously, he worked as an Associate at Arjil and capital-markets capabilities in the – Altium Capital, a Paris-based invest- Georgian and neighboring markets in ment bank. While at Arjil, he participated terms of both reach and expertise that we APRIL-MAY 2018 Investor.ge | 15 Others on the Bank of Georgia team who have come back after working abroad include CEO Kaha Kiknavelidze, ZKRVH\HDUVRIH[SHULHQFHLQ¿QDQFLDO services include roles at Switzerland’s UBS and Russia’s Troika Dialog; he also founded Rioni Capital Partners LLP, a London-based investment management company. David Tsiklauri, CFO at the Bank, spent years at Deutsche Bank, working in Debt Capital Markets, Trea- sury, and other departments. Another is CFO at the new de-merged BGEO Group and at its investment business, Giorgi Alpaidze, who went to the U.S. and was for several years at EY’s practice in EHFRPLQJD86&HUWL¿HG3XEOLF Accountant. Irakli Elashvili, TBC Bank At TBC Bank, returnee professionals have accumulated over the past several return include family, a reason echoed by with international CVs include Giorgi years through our corporate advisory, other returnees—he is the proud father of Shagidze, Deputy CEO and Chief Fi- debt and equity capital market research a four-year-old daughter. He also lists “an QDQFLDO2I¿FHUZKRVHFDUHHULQFOXGHV and brokerage practices,” he said. attractive career challenge with a leading time at Barclays Bank in London as a “Our brokerage business serves ¿QDQFLDOLQVWLWXWLRQDQGDWHDP´ Global Operations Executive. Deputy regional and international markets, “Also, to give my daughter an op- CEO in Corporate Banking George including hard-to-reach frontier econo- portunity to spend her childhood in Tkhelidze went from Georgian insur- mies. Our macro and sectoral research Georgia,” he adds. ance group Aldagi to the London Busi- currently covers various sectors of the A graduate of the London Business ness School and then on to Barclays to Georgian economy and developments School, Elashvili has more than 15 years work in various departments, including taking place in regional economies.” of experience in management consulting, Debt Finance and Restructuring and on energy-sector and financial services. European M&A, debt and capital market BRINGING THE EXPERIENCE OF After several years at PA Consulting in transactions. Deputy CEO and Chief LONDON’S CITY Tbilisi, working in the top power and 5LVN2I¿FHU'DYLG&KNRQLDEULQJV His industry colleague at TBC Bank, privatization teams, he went to London. years of international banking and risk Irakli Elashvili, is a much more recent There he worked at Barclays Bank, Bar- management experience and was at returnee, having come back only in Sep- clays Capital and BNP Paribas, focusing investment groups BlackRock, PIMCO, WHPEHUWROHDG7%&&DSLWDO7KLV SULPDULO\RQVWUDWHJ\SURMHFW¿QDQFH European Resolution Capital, Goldman is the bank’s wholly owned investment treasury and investment banking (M&A). Sachs and the EBRD. Nikoloz Kurdiani, banking subsidiary whose main lines of Additionally, at Barclays he partici- Deputy CEO in SME & Micro Banking, business include debt and equity capital pated in a number of strategic initiatives has more than ten years of experience markets, research, brokerage, and corpo- in the renewables and clean energy in the banking industry which includes UDWH¿QDQFHDGYLVRU\,WLV,UDNOLPDNHV space, including working on a thought ¿YH\HDUVDW8QL&UHGLW*URXSLQ$XVWULD a point of stating, also a shareholder in leadership piece for the World Economic Turkey and Kazakhstan. Harvard gradu- the Georgian Stock Exchange and plays )RUXP±³&DUERQ&DSLWDO´7KHQLQ ate Ekaterine Egutia, General Counsel of an active role in the development of its he moved to become an independent TBC Bank, worked in the United Nations infrastructure. FRUSRUDWH¿QDQFHDGYLVRUDFWLQJIRUD Development Program and the European Reasons given by Elashvili for his OHDGLQJ¿QDQFLDOVHUYLFHVSOD\HULQ%DNX Union on a variety of projects. 16 | Investor.ge APRIL-MAY 2018 APRIL-MAY 2018 Investor.ge | 17 TATJANA MONTIK Japan,” Shatberashvili explained. f you ask experts like Elene Shat- She added that interest in getting berashvili, they would compare FHUWL¿HGLVJURZLQJ Ithe organic market in Georgia to a “We have now more information on newborn baby—the concept is growing, food safety; there are more consumer- but there are years of development ahead. protection groups that test products, 6KDWEHUDVKYLOLDQDGYRFDF\RI¿FHU for pesticides and other chemicals, for working with the local Association El- example. And new people with new kana, notes that “more and more people ideas keep entering the agricultural sec- know that if a product has been produced tor; there are even foreigners and people in Georgia, it does not automatically from the cities. They all have a different mean that it is ecological or organic.” view on how things should be done ... I really believe that in a few years we will “BIO” CERTIFIED have a completely different picture, but (ONDQDZDVHVWDEOLVKHGLQ LQ at present, there is a big opportunity in order to provide support to farmers the market,” Shatberashvili said. who were interested in organic farming. Elkana’s office in Tbilisi’s Saburtalo EXPORTS AND WINES district is attached to a rather remarkable Unfortunately, today “organic cer- shop, ʩʰʵʭʨʲʰ (“Bio Valley”), where WL¿FDWLRQLVPDLQO\GRQHIRUH[SRUWV certified organic and local Georgian 0RVWRIWKHFHUWL¿HGJURFHU\SURGXF- Jochen Jaeger, Jammy Greens products—including wine, honey, tea, ers in Georgia—they number around FKHHVHVSLFHVYLQHJDUMXLFHVÀRXUDQG 50—are wine producers. But there are Testing the dried fruits—are sold. also herbs, herbal teas, fruit, and forest Some of the inventory, like organic products, mainly for export. There are Organic Standard: U\HÀRXUZKHDWEUDQPLOOHWDQGFKLFN- VRPHDOWKRXJKYHU\IHZFHUWL¿HGHQWL- peas, is unusual for Tbilisi-based mar- ties which are oriented toward the local Turning Natural NHWV%XWQRWDOODUHFHUWL¿HGRUJDQLF market,” she added. according to the standard set by the The popularity of organic production Georgian Products JRYHUQPHQW¶VGHFUHHRQRUJDQLF seems to be highest among Georgian into Bona Fide farming. winemakers, although not all of them are The governmental decree, part of FHUWL¿HG1LFN*DUVHYDQLVKYLOLKDVYLQH- Organic Goods Georgia’s efforts to harmonize with yards close to Akhmeta in the Kakheti re- European legislation as part of the EU gion. He and his friend started their busi- THERE ARE A LOT OF PEOPLE IN Association Agreement, stipulates that QHVVLQ³RXWRISXUHHQWKXVLDVP´ GEORGIA WHO STILL BELIEVE anything marked organic must be certi- as Garsevanishvili remembers. In the THAT ALL LOCALLY GROWN ¿HGE\DQDXWKRUL]HGFHUWL¿FDWLRQERG\ beginning of their winemaking career, AGRICULTURAL PRODUCTS ARE &XUUHQWO\WKHRQO\ORFDOFHUWL¿FDWLRQ Garsevanishvili and his partner found it “NATURAL” AND “ORGANIC.” body that is legally authorized to provide YHU\GLI¿FXOWWR¿QGSURSHUDQGXSGDWHG GEORGIANS ARE PROUD OF RUJDQLFFHUWL¿FDWLRQVLQ*HRUJLDLV&DX- information about organic winemaking. THEIR FRUITS AND VEGETABLES, WHICH INDEED ARE AROMATIC, cascert Ltd., which also holds European “We found that a lot of old knowledge JUICY AND HAVE A MORE Union accreditation. was lost during the Soviet period, but INTENSE TASTE THAN THEIR ³7KLVFHUWL¿FDWLRQLVYDOLGLQERWKWKH new information was not really being WESTERN COUNTERPARTS. BUT European and the Georgian markets. And passed around. This is why we dream ARE THEY REALLY ORGANIC? because Caucascert has accreditation in of establishing an educational center for the EU, it has easier access to other cer- winemakers in order to provide to them WL¿FDWLRQVVXFKDVIRUWKH86$DQGIRU all this knowledge,” Garsevanishvili ex- 18 | Investor.ge APRIL-MAY 2018 plained. “First and foremost, we received would not need to prove anything to side. To me, working in an organic way help from the Bio Agro Company, which anyone anymore,” he added. is not only a philosophical issue, but it is provided us with profound advice and also a kind of a political statement. With expert consultation as well as with all RETURNING TO ITS ROOTS it, we would like to stress the necessity to substances we needed for organic wine There are some other organic pro- protect our environment. Unfortunately, growing.” ducers working on the local market as in Georgia not many people know how Today, Garsevanishvili’s company, FHUWL¿HGRUJDQLFIDUPHUV2QHRIWKHPLV to do it,” Jaeger said. “People are still not Akhmeta Wine House, is producing a former architect from Germany, Jochen aware of the amount of pesticides and around 3,000 bottles of traditional or- Jaeger. He is the owner of the organic other chemicals which are being used in ganic qvevri wine per vintage. Next year, agricultural enterprise Jammy Greens, their grocery products. This topic has not Garsevanishvili and his partner plan to and he runs his Tbilisi based organic yet been raised publicly, and people often EHFHUWL¿HGE\WKH&DXFDVFHUW³DVFRP- VKRS6XQÀRZHURQLQ=DQGXNHOL6WUHHW lack experience and know-how when petition on our wine market is increasing Having started his business eight years they work with their products. People daily, with more and more new producers ago, Jaeger now is a highly popular or- are not being informed, and many tend entering it, and our market situation is ganic-foods supplier for big international to think that a lot [of pesticides] helps a rather severe, if you take into account hotels in Georgia and famous Georgian lot, which is not true.” WKHLQVXI¿FLHQWQXPEHURISURIHVVLRQDOO\ and gourmet restaurants, as well as for ,PHW-DHJHULQKLV6XQÀRZHUVKRS working wine-shops.” private clients. near the Rustaveli metro station. In his “We hope that if we are allowed to “Our enterprise obtained an organic shop, some of the goods look very ap- put the organic label on our bottles, we FHUWL¿FDWLRQLQRUGHUWREHRQWKHVDIH pealing: honey, adjika, salt from Svaneti, ADVERTISEMENT OYO Cosmetics’ Tata Tomadze and Tina Tsiskarishvili cider vinegar and wine, as well as farm- example, lamb’s lettuce [also known as here, in its home country.” er’s eggs, cheese, fresh bread, and fresh ¿HOGVDODG@RU³)HOGVDODW´DVZHFDOOLWLQ Despite all these promising tenden- vegetables. However, his shop’s product Germany. This salad, from the valerian FLHVLWFDQVWLOOEHFKDOOHQJLQJWR¿QG assortment is even much wider. From his family, is very popular in my country, the organic products one needs, which is three-hectare farm, Jaeger tries to comply whereas in Georgia hardly anyone knows why the owner and chef of three famous with the demands of his sophisticated it. But its origin is the South Caucasus, Tbilisi gourmet restaurants, Tekuna customers, who ask for products that are Gachechiladze, is even thinking about QRWHDV\WR¿QGORFDOO\LQFOXGLQJGLIIHU- opening her own farm. ent kinds of cherry tomatoes, green basil t0RUHDQGPRUHSHRSOH “The more you expand in the res- leaves, thyme, arugula and other kinds of know that if a product has taurant business, the more you grow salad, Hokkaido pumpkins, artichokes unhappy about the suppliers’ products. and microgreens. been produced in Georgia, For me, a good restaurant starts not in Jaeger noted that interest in organic it does not automatically my kitchen, but in the ground. And then farming is growing among his local if you start from zero, you can really colleagues, and now he is working with mean that it is ecological get what you need. In my restaurant them to educate them and sell their prod- Kasheria, I already have this kind of ucts in his shop. RURUJDQLFu farm-to-table concept. There, everything Jaeger believes that organic agricul- is local,” she said. ture has huge potential in Georgia. “Here ZKHUHLWZDVJURZLQJ\HDUVDJR But she noted that the issues of purity in Georgia everything is growing very in the vineyards. Then it made its way and consistency linger. well! And this region, the South Cauca- via Mesopotamia and Egypt to Southern “If it is from the village, you don’t sus, is a genetic pool for many plants. Europe. And only in the last century, it know whether it is natural or not. It is Many kinds of plants that we know in came to Germany. I brought it back to not always the same. You have no idea Europe originate from here. Take, for Georgia, and I am proud to promote it what these people ... put into their land, 20 | Investor.ge APRIL-MAY 2018 what kind of chemicals they are putting FDOO\FHUWL¿HGSKDUPDFHXWLFDOSURGXFWV director. into their tomatoes. You cannot control it and cosmetics. “As our clients were so very happy now. You can have a perfect tomato, but A small, Tbilisi-based family enter- with our products, they kept asking for it still can be full of pesticides. When you prise, Sana Pharmaceutics, has devel- a cosmetic line based on Molisan. So we grow your own stuff, you can have a 100 oped a formula for antiseptic organic decided to invite a Russian specialist, percent guarantee,” Gachechiladze said. products based on ethereal oils that it has who helped us develop a new cosmetic Elkana’s advocacy officer Elene XVHGVLQFH line, OYO.” Shatberashvili is convinced that a break- Called Molisan, their products in- This is the first Georgian organic through in the Georgian organic market clude a skin lotion, an elixir for mucous cosmetic brand, and it includes an entire is only possible with well-thought invest- and to help overcome hangovers, and line of skin-care products: a cleaning gel, ment and hard work.“But the organic an elixir to treat wounds, tropic ulcers, a lotion, a tonic with gualuronic acid, and sector will not develop separately from psoriasis and bedsores, as well as an ¿YHVNLQFUHDPV the agricultural sector. And we still have intimate hygiene solution. While Tomadze said that both lines a lot of problems in this sector,” she said. “All our products have been ap- are successful, there is one general prob- proved in clinical tests in Georgia and lem with the organic market in Georgia. ORGANIC CREAMS AND WKH\DOVRKDYHD86'$RUJDQLFFHUWL¿- “The average income of the people THERAPEUTIC OILS cation as well as SDS passport (Safety is very low, so many people can only The demand for organic products Data Sheet). We sell them in Georgian afford to spend their money on food and is not limited to food and wine. For pharmacies as well as in Ukraine and on medicine, and not everyone thinks example, there are new trends for organi- Russia,” noted Tata Tomadze, the project about organic products.” ADVERTISEMENT APRIL-MAY 2018 Investor.ge | 21 Shota Bitadze sifting dried Kvanchkara grapes at his Tabidze St. shop RIMRLQWVDORQJWKHKLJKZD\LQ=HVWDIRQL Georgian Tea Gets a Reboot of all places. The same can be said about tea. There wasn’t a home without a box of Lipton; from Local Entrepreneurs and let’s face it, with three or four heap- GEORGIAN TEA WAS ONCE A MAJOR EXPORT, ing spoons of sugar and a slice of lemon, it’s not the tea you’re really tasting. Yet WITH LOCAL PLANTATIONS PRODUCING TEA FOR only several decades ago, Georgia was CONSUMERS AROUND THE SOVIET UNION AND one of the leading exporters of tea in the BEYOND. IN THE 1990S, LOCAL PRODUCTION world. And as Mother Nature takes over FALTERED AND EXPORTS DWINDLED. TODAY, western Georgia’s Soviet-era plantations, HOWEVER, GEORGIAN INVESTORS ARE SLOWLY most of us sit in our kitchens and steep RECLAIMING THE BRAND AND CULTIVATING A NEW, bags of black or green that come from NICHE MARKET FOR PREMIUM TEA. every other tea-producing country but ours. This trend, however, is changing. PAUL RIMPLE coffee, the truth is much of what was ,Q*XULHOL7HDD*HRUJLDQ served back then was little more than company, put its green tea on the shelves KHQZH¿UVWDUULYHGLQ*HRU- sweet mud. Yet we persevered with our of local markets and has become the JLDLQLWZDVQ¶WHDV\ coffee dust brewed in little electric plas- dominant name in domestically produced W¿QGLQJDJRRGFXSRIFRIIHH tic kettles while a growing coffee culture quality loose-leaf and bagged tea today. :KLOHWKHUHLVGH¿QLWHO\VRPHWKLQJWREH emerged throughout the country. Now, Meanwhile, individual enthusiasts are said about a good cup of Turkish-style you can grab an espresso at any number producing and packaging premium 22 | Investor.ge APRIL-MAY 2018 RUJDQLFWHDDQG¿QGLQJDQLFKHPDUNHW www.kona.bio and at Chaimania tea lolaki, which is part museum, part shop, much like Georgia’s natural winemakers shop in Badagi, at Gemorcheuli and and packed with the wholesome scent are doing. Cafe Leila. of dried tea. He exports to Ukraine and Natalia Partskhaladze got her inspira- Shota Bitadze has been involved with sells tea at the duty-free shop at the Shota tion to cultivate tea on a trip in the south WHDVLQFHDQGIRXQGHGWKH*HRUJLDQ Rustaveli Tbilisi International Airport RI)UDQFHZKHUHVKHVDZJRUJHRXV¿HOGV Organic Tea Producers Association in DQGRQOLQHDWKWWSV JHDOOEL] RIODYHQGHU,QVKHVWDUWHGJURZLQJ ZKLFKLVDJURXSRIIDPLOLHV Nana Kirmelashvili, an art director DURPDWLFKHUEVDQGÀRZHUVLQD by profession, took advantage modest garden at her family cot- Several decades ago, Georgia was one of of a National Bank of Redevel- tage in Lavriskhevi, located in opment (NBRD) grant three Shida Kartli. That is how Kona the leading exporters of tea in the world. \HDUVDJRWREX\KHFWDUHVRI Tea was born. It took two and land in Nagomari, a village in a half years of research, study and brand committed to the growing and produc- western Georgia’s Guria region, which at building for Kona to reach the market, WLRQRI¿UVWUDWHRUJDQLFWHD2QHRIWKHLU one time was all planted with tea. Today, Partskhaladze explains. main objectives is to rekindle domestic its plantations are all overgrown. Most ³7KH¿UVW\HDUZHVROGPRVWO\RQWKH tea production and to provide guidance locals actually travel to Turkey to pick local market. Now we sell to the Nether- to farmers to produce high-quality or- tea instead of exploiting the assets that lands and Latvia,” she adds. ganic tea. are literally growing under their feet. Yet Kona, which means “bouquet” in ,Q %LWDG]HEHJDQDIRXU\HDU DWDFRVWRIDSSUR[LPDWHO\ODULWR Georgian, presently offers twelve teas study process in China on all things tea rehabilitate each hectare of tea, it takes divided into four collections: Epicurean, with his son Giorgi, who helps run the a considerable amount of chutzpah to +HUEDO=HQ:HOOQHVVDQG*XULD*UDQG business. Their personal specialty is wild invest in domestic production that can’t Cru. The herbs for these come from the black tea, which is found among the jun- really compete with the volume of big Lavriskhevi garden and are collected gle-like overgrowth in old plantations. companies. Kirmelashvili sees a “grow- from different parts of the country. The This picked up awards at the prestigious ing respect” for tea and points to the gov- black, green and bilberry teas come 7HD0DVWHUV&XS,QWHUQDWLRQDOLQ ernment’s efforts to promote organic tea from organic growers in Guria. Other Seoul for best aroma, best taste, and best at various functions. “I think Georgian ingredients, like lemongrass and rooibos, aftertaste. tea will become famous,” she asserts. DUHLPSRUWHGIURPRUJDQLFDOO\FHUWL¿HG In addition to wild tea, the Bitadzes Nagomari packages four teas: Cau- growers. casian Blueberry, Green, “In- Kona’s motto is Pauca Sed tensive Black,” which she Bona—quality over quantity— .RQDsVPRWWRLV3DXFD6HG%RQDxTXDOLW\ compares to Earl Gray, and a and it is a motto the owners take RYHUTXDQWLW\xDQGLWLVDPRWWRWKH\WDNH Delicate Black, which she sug- seriously. The small company gests is good before bedtime differs from other Georgian tea seriously. and is suitable for children. It producers in that their ingredi- is indeed smooth and lightly ents are carefully sourced and selected also package black, green, white and wild smoky without a hint of bitterness. A from the entire country and packaged quince and blueberry leaves grown and member of the Georgian Organic Tea into a wide range of selections, like picked by association members. They Producers Association, Nagomari is not “Anana-Gunda - Goddess of Fertility.” have also been dabbling in the cultivation yet ready for export but can be found at Partskhaladze created this blend of rooi- of purple tea, a delicious new strain de- many of Tbilisi’s major hotels in addition bos, raspberry leaves, chamomile and YHORSHGLQ&KLQDLQ ZHOOVXLWHGWR to Goodwill, Georgita and Ekomonix anise for new mothers. Georgia’s northerly, sub-tropical climate. supermarkets, and also at the Georgian “Kona is a global brand with a local For fruit tea lovers, there is additionally Food and Cheese Houses. The gift shops WZLVW7KHWDVWHVDQGÀDYRUVFRPHIURP an exclusive Kvanchkara grape tea. Aristeus on Freedom Square and Kartuli everywhere,” she insists. %LWDG]HRSHUDWHVIURPDFR]\ WK Kalata on Kote Abkhazi Street also stock Kona Tea can be found online at century cellar on Tabidze Street in So- Nagomari teas. APRIL-MAY 2018 Investor.ge | 23 WRWKH*URVV'RPHVWLF3URGXFWE\ the growth in the number of Russian Georgia percent. visitors,” Galt & Taggart found. The strategy, which was developed in The Deputy Head of the Geor- DOVRWDUJHWVLQFUHDVLQJWKH\HDUO\ gian National Tourism Administration Grapples with number of tourists to 11 million. By all *17$ 7RUQLNH=LUDNLVKYLOLWROGInves- counts, Georgia is well on its way: the tor.ge that the government is targeting Quality over H[SHFWDWLRQIRULVPLOOLRQYLVLWRUV “diverse” groups to meet its goals for the tourism sector. TARGETING HIGH SPENDERS One focus is on European countries, Quantity in “The focus of Georgia’s tourism and the GNTA is working with TripAdvi- strategy moving forward should be on the sor and Expedia, as well as international Tourism quality and diversity of visitor arrivals, media outlets, to promote Georgia as a not the number, as Georgia’s Tourism travel destination. 6WUDWHJ\±ULJKWO\SRLQWVRXW´ “TripAdvisor has published many AS THE NUMBER OF QRWHG*DOW 7DJJDUW5HVHDUFKLQD DUWLFOHVDERXW*HRUJLDDQG¿OPVDERXW INTERNATIONAL TOURISTS report on the tourism sector. Georgia have been broadcast on CNN to TRAVELING TO GEORGIA “In order to attract more high-yield- popularize Georgia in other countries,” INCREASES EVERY YEAR, THE ing visitors, the industry needs to focus he said, adding that “Georgian has be- GOVERNMENT AND TOURISM- INDUSTRY SPECIALISTS ARE on several niche areas, in which Georgia come a very serious tourist destination ASKING HOW TO TURN THE has great potential – winter tourism, wine for European tourists. The next key av- COUNTRY INTO A PREMIUM tourism, medical and wellness tourism, enue for us is the markets of the Middle TOURISM DESTINATION. and gaming,” the report’s authors recom- East and Asian states characterized by a mended. high-income population.” Galt & Taggart noted that pre-visitor He noted that work is also underway LIKA JORJOLIANI spending in Georgia is lower than that to attract more tourists from countries in similar countries, in large part due to all over the world, including China and ach year, Georgia breaks new the high number of visitors who stay for Scandinavian countries. Some results records for its number of interna- MXVWRYHUKRXUVHLWKHULQWUDQVLWRURQ are already visible: there is an increased Etional visitors and tourists. While one-day trips, and spend considerably number of tourists from Germany and the the growth has brought new income to less than more traditional tourists. 8.DFFRUGLQJWR=LUDNLVKYLOL local communities, industry specialists The report noted, however, that the The GNTA is also working to in- and state agencies are looking for ways to number of the short-term visitors has crease business tourism to Georgia, he develop Georgia to maximize its earning GHFUHDVHGIURPSHUFHQWWR said, noting that GNTA completed a strat- potential as a premium destination—at- percent of all tourists. HJ\IRUEXVLQHVVWRXULVPIXQGHGE\*,= tractive for tourists who spend more than Another reason for the low level of DQGRWKHUGRQRUVLQ'HFHPEHU $500 per day during their trips. spending is the fact that the vast major- The head of “Go Tour,” Nino Tsiklau- The current average tourist expendi- ity of tourists to Georgia come from ri, agreed that more should be done to WXUHLVDURXQGSHUGD\ Armenia, Azerbaijan and Turkey, visitors attract business tourists to Georgia. *HRUJLD¶V7RXULVP6WUDWHJ\ ZKRVSHQG³VLJQL¿FDQWO\OHVVWKDQYLVL- But he warned that in order to attract calls for increasing the annual revenue tors from Russia and non-neighboring higher-spending tourists, tourist services from tourism to $5.5 billion dollars, a countries do,” according to the report. need to improve in the country, and the sharp increase from the current level of “This leaves substantial upside po- government needs to help control the ELOOLRQ tential if the country can manage to at- “chaotic” tourism market. The strategy also calls for increasing tract more high-yielding visitors. In that “The relevant level of services needs foreign direct investment in the tourism UHVSHFWWKHWUHQGLQLVSRVLWLYH²WKH to be available to attract tourists with industry to close to $1 billion per year, increase in the number of tourists has high and upper-average income to Geor- and increasing the sector’s contribution outpaced overall visitor growth, as has gia,” he said. 24 | Investor.ge APRIL-MAY 2018 Tsiklauri noted that his agency is country. Many tourists don’t want to “This is double the number offered also working to attract business tourists. visit our country due to the high prices. last year and demonstrates our interest in “But when we talk about organizing These segments of the market are not transporting passengers from the coun- FRQIHUHQFHVZLWKSDUWLFLSDQWV regulated and, in my opinion, we should tries of Persian Gulf and Middle East. we face serious challenges. While we cooperate with the government to work 0RUHRYHUWKHÀLJKWVZLOOEHSURYLGHG are able to organize large-scale confer- on this,” he said. LQOLQHZLWKWKHÀLJKWVIURP(PLUDWHV ences in Tbilisi, that is not possible in which provides a link to more remote the regions. In fact, we can organize an INCREASE FLIGHTS, INCREASE directions, such as Asian countries like event with just 80 participants because DEMAND India. We will provide opportunities for there is a lack of appropriate places to One area the government is working ÀLJKWVWR$XVWUDOLDDQG-DSDQYLD'XEDL´ hold conferences and exhibitions,” he on is increasing the number of direct he told Investor.ge. told Investor.ge. ÀLJKWVLQWR*HRUJLDZLWKVRPHQRWDEOH *17$¶V=LUDNLVKYLOLVDLGWKHJRYHUQ- An additional issue, he noted is that successes, such as FlyDubai. ment is trying to increase the number of the tourism market is “chaotic,” and Jeyhun Efendi, the First Vice-Pres- ÀLJKWVDQGWKHQXPEHURIDLUOLQHVÀ\LQJ more regulation is necessary in areas like ident of FlyDubai in the UAE, Middle into Georgia. quality of guides and taxi prices. East, CIS and Europe, said the airline “Flight connections have an impact “The tourist market is chaotic, con- SODQVRQRIIHULQJIRXUÀLJKWVHDFKGD\ on the rise of visitors in Georgia. Its sidering the services of guides, and taxi to Tbilisi, two each day to Kutaisi and expansion is a constant process. Our drivers. The increase in service prices one each day to Batumi for the summer position is to attract new air companies has not created a positive image for the season, starting in June. to the Georgian market,” he said. ADVERTISEMENT APRIL-MAY 2018 Investor.ge | 25 BUY LOCAL: GEORGIAN COMPANIES TARGET THE DOMESTIC MARKET GEORGIA’S TRADE BALANCE IS IMPORT-HEAVY, WITH CONSUMERS OFFERED A WIDE RANGE OF PRODUCTS FROM THE EXCLUSIVE TO THE MUNDANE. TODAY, THE GOVERNMENT IS PARTNERING WITH LOCAL ENTREPRENEURS TO MANUFACTURE AND PRODUCE GOODS FOR DOMESTIC CONSUMPTION. LIKA JORJOLIANI ¿QDQFLQJIURP±PLOOLRQODULLI million lari. More than 13,300 new jobs an entrepreneur is proposing to expand have been created across the economy, DVW\HDU*HRUJLDH[SRUWHG his or her production or to start produc- including in the manufacturing, agricul- billion lari worth of goods, a ing a new product,” Executive Director tural, hotel and real-estate sectors. Lfraction of the country’s imports, RI3URGXFHLQ*HRUJLD=YLDG.YOLYLG]H One such company is Georgian- ZKLFKZHUHZRUWK ELOOLRQODULDF- told Investor.ge. founded Sharavandi, a label and pack- FRUGLQJWRRI¿FLDOVWDWLVWLFV In addition to the loans, which come aging producer. With assistance from To bridge that gap, the government with a subsidized interest rate, the Produce in Georgia, Sharavandi has ex- is supporting businesses in a myriad of program also offers other services for panded its production line, is employing ways, with projects directed at helping entrepreneurs, including providing land more people and has started providing local entrepreneurs increase exports — at the nominal cost of one lari — based international-standard packaging and and substitute imports. on the volume of investment pledged by labels to Georgian companies, according The state-run Produce in Georgia an entrepreneur’s company. to the company’s commercial director, program is working to support Georgian Produce in Georgia also offers micro- Lado Chanturia. businesses and attract foreign companies grants of 5-15,000 lari, he said. )RXQGHGLQ WRGD\WKHFRP- to produce and manufacture goods in To date, Produce in Georgia has pro- SDQ\HPSOR\VSHRSOHDQGVXSSOLHV Georgia, as well. YLGHGIXQGLQJDQGRWKHUEHQH¿WVWR products to major Georgian brands like “We have a program that provides projects, with a total investment of 815 Ipkli (bread), Pharmadepo, Carrefour, 26 | Investor.ge APRIL-MAY 2018 APRIL-MAY 2018 Investor.ge | 27 Goodwill, PSP and Barambo (chocolate ³:HREWDLQHGDQ,62FHU- Batumi and Kutaisi,” he said, noting that and candy). WL¿FDWHRITXDOLW\IRURXUSURGXFWLRQ:H WKHFRPSDQ\KDVUHFHLYHG¿QDQFLQJIURP “With the support of the state pro- worked hard and provided training for WKH%DQNRI*HRUJLDDQGRWKHU¿QDQFLDO gram, we bought additional equipment our employees,” he said. institutions. and expanded our production. About Komakhidze noted that a combina- Khachaturov said the company is LVVROGRQWKHORFDOPDUNHW´KHWROG tion of low prices and quality has helped planning to open paper collection points Investor.ge. Mondo break into the local market and near Tbilisi metro stations to meet their “We proposed lower prices and make headways in export markets like production demands. higher quality to the companies, which Russia. There are also plans to export enabled us replace the importation of Georgian coffee to Azerbaijan and other GEORGIAN DESIGNS FOR LOCAL packaging materials for these local countries. MARKET products,” he said, noting that under the “We have already completed negotia- Kaba, a local shop specializing in Produce in Georgia program, Sharavandi tions for delivery to Turkey and are con- selling the works of Georgian designers, received 4 million lari in loans to pur- ducting negotiations for exporting of our as well as made-to-order pieces, opened a chase more equipment. product to Spain, Bulgaria and England. year ago, according to director Khatuna “We expanded our assortment and Its price is very attractive, and Georgia Jincharadze. added new products in the production. has low tax rates and cheaper production. She said that local demand for high- Today, we are focused on expanding the :HRIIHUNLQGVRIFRIIHHUHSUHVHQWLQJ quality clothing as well as the growing volume of our production and increasing all segments, and regularly introduce interest in Georgian designers, both at the export of our products to Armenia new innovations,” Komakhidze added. home and abroad, inspired her to open and Azerbaijan,” he added. The European Bank for Reconstruc- the shop. tion and Development helped bring a “Kaba is located on Pekin Avenue ITALIAN-QUALITY COFFEE, MADE Dutch coffee specialist to assist Mondo and at Tbilisi Mall. We produce women’s IN GEORGIA DVLWGHYHORSHGLWVÀDYRUVDQGSURGXFWV clothes under this brand, and aim to de- The Produce in Georgia program “Our technologist is developing the velop clothing manufacturing in Georgia. helped one importer expand to become blend in our own laboratory. We use Today, our company employs 40 work- a local producer as well. BB Company, different sorts of coffee from Brazil, ers, 11 tailors and two designers,” she IRXQGHGLQRULJLQDOO\IRFXVHGRQ Colombia, Kenya and Nicaragua,” Ko- said, adding that they also sell clothing importing Italian coffee and professional makhidze said. made by other Georgian designers. equipment for kitchens and bars. “Our company is small, but our With a two-year, 4.3 million-lari loan NEW LIFE FOR WASTE PAPER styles attract consumers. We have many from the state agency, BB Company Georgian Paper Production has been consumers from Russia and Azerbaijan, decided to use its knowledge about cof- manufacturing toilet paper and other and tourists buy our products as well,” fee to improve the local market as well. products from domestic waste paper she said. 7KH¿QDQFLQJKHOSHGLWWRRSHQ0RQGR VLQFH 7KHFRPSDQ\KDVDQRI¿FLDO “Georgian fashion is developing very a Tbilisi-based packaged-coffee produc- license from a Ukrainian paper manu- quickly … it makes a real difference tion company. facturer to produce under the Obukhov if the label reads ‘Made in Georgia.’ “First of all, I would like to state that brand. For many consumers, that the product we have 15 years of experience import- “We need 100-300 tons per month. is made in Georgia is a motivation to ing coffee produced by leading brands. Locally, toilet paper costs 50 tetri. We purchase it. The number of our consum- As a result of this, we decided to create VHOOIURPWRDPLOOLRQWRLOHWSD- ers is constantly increasing. Now, there our own enterprise. For the purpose of per rolls per month,” company manager is strong competition among Georgian creating new standards of coffee con- Giorgi Khachaturov told Investor.ge. companies, and many producers of high- VXPSWLRQLQ*HRUJLDLQWKHFRP- “The aim of our company is not to quality Georgian clothes on the market. It pany decided to open a coffee production use imported raw material. To that end, is becoming competitive, we are taking facility,” BB Company Executive Direc- we opened wastepaper receiving stations on a lot of foreign competitors,” Jincha- tor Nodari Komakhidze told Investor.ge. in three Georgian cities: Tbilisi, Gori, radze said. A GROWING MARKET notes that new competition in the market Georgian E-commerce platform Mymarket.ge, is good if it is healthy. “It would be bet- established by the company “My.ge” in ter if the government did not initiate the Government VWDUWHGVHOOLQJFRQVXPHUJRRGV creation of a new platform and, on the online two years ago. contrary, would [instead] help existing The company’s marketing manager, private companies to develop in this Eyes E-Market, Madona Kachkachishvili, told Investor. ¿HOG´KHVDLG ge that Georgia Post’s entry into the e- For example, he noted that even Proposes FRPPHUFH¿HOGFRXOGKXUWFRPSHWLWLRQ though they have more than 800 busi- “Our competitor will be a much nesses selling their wares, they cannot Domestic larger system ... Presumably, many small sell goods overseas due to prohibitive players will be completely excluded from shipping costs. the market or will be forced to join this “If a foreigner buys something from “Amazon” platform and pay the cost of the service, our website, it is very expensive for us THE GEORGIAN ECONOMY and that will be an additional expense for to deliver the product. MINISTRY HAS FLOATED THE IDEA them,” she noted Georgian Post charges a high price to OF BUILDING AN AMAZON- Nona Baindurashvili, Georgian ship goods on abroad, and there are no TYPE SERVICE BASED ON THE Post’s marketing manager, said the e- other options in the market,” Grdzelidze GEORGIAN POST. GEORGIAN commerce site is still under development, told Investor.ge. COMPANIES ARE BECOMING INCREASINGLY ACTIVE IN VRLWLVGLI¿FXOWWRSUHGLFWKRZLWFRXOG E-COMMERCE, BUT WORRY affect the local market. BETTER PROTECTION A GOVERNMENT-SUPPORTED She noted, however, that placing The Economy Ministry is also look- PLAYER COULD DISRUPT THE items for sale on the site will be free and ing at ways to improve how e-commerce FIELD. product delivery will be less expensive. is regulated by Georgian law. “The e-commerce site will promote With the assistance of USAID’s NINO BAKRADZE the development and expansion of Geor- “Governance for growth (G4G)” project, JLDQSURGXFWLRQVLJQL¿FDQWO\LQFUHDVH the ministry is working with a Euro- he Georgian Post is planning productive, fast and proper development pean expert to draft a law on “electronic to launch a new e-commerce of e-commerce in the country, and it commerce.” The aim of the draft law Tplatform in May, according to ZLOODOVRSRVLWLYHO\LQÀXHQFH*HRUJLDQ is to bring regulations up to European Economy Minister Dimitri Kumsishvili. regions to develop in a technological di- standards as much as possible and to Few details are available about the rection,” Baindurashvili told Investor.ge. protect the right of parties involved in new platform, but it underscores the gov- The company Soplidan.ge, which electronic trade. ernment’s priority to develop Georgia’s provides products from rural farms to Mymarket.ge’s Kachkachishvili e-market and bolster Georgian online city residents, believes the Georgian Post welcomes better regulations, noting sales domestically and abroad. initiative might help them export their that if the market is better regulated, it There are more than 300 sites in products and, if it looks promising, they will become more developed and more Georgia offering everything from equip- might cooperate with the government Georgians will use it. ment to cosmetics, from food to movie platform. Plus, she noted that if Georgian sites tickets, for purchase online. The website Gamoiwere.ge was meet EU standards, it might be easier for 7KH¿HOGKDVEHHQJURZLQJVWHDGLO\ ODXQFKHGLQ-DQXDU\DQGWRGD\ them to expand their services to include according to local businesses involved more than 800 businesses use it as a European businesses, goods and clients. in e-commerce. Some online companies platform to sell a wide variety of prod- The director of Soplidan.ge, Natia worry, however, that a large, govern- ucts. Any company or new business can Ninikelashvili, agrees that better laws ment-supported player like Georgian register on the site, open its own virtual could help promote online trade and, if 3RVWFRXOGPDNHLWPRUHGLI¿FXOWIRU shop and manage it. regulations match EU standards, people’s small businesses to survive. Lasha Grdzelidze, the site’s founder, faith in Georgian sites will increase. 30 | Investor.ge APRIL-MAY 2018 cryptocurrency, whereas the Bank of Cryptocurrencies, Blockchain Japan and the European Central Bank started to jointly research the possibility Technology Continues to Excite to utilize distributed ledgers for market infrastructure. Moreover, having devel- oped its own cryptocurrency for internal Entrepreneurs in Georgia use, the Dutch Central Bank is attempt- GEORGIA HAS BEEN ON THE FOREFRONT OF BLOCKCHAIN ing to follow suit, and Russia has been TECHNOLOGY AND CRYPTOCURRENCIES, STARTING IN ÀLUWLQJZLWK(WKHUHXP DQRWKHUW\SHRI 2014 WITH THE BITFURY INVESTMENT, AND CONTINUING cryptocurrency), including a pilot pro- TO THE GOVERNMENT’S PILOT PROJECT ON USING gram on blockchain by its central bank. BLOCKCHAIN TECHNOLOGY IN THE PUBLIC REGISTRY. The former Chairperson of the Federal Reserve argued that cryptocurrencies INGE SNIP tion is saved on the Bitcoin network,” he show a “long-term promise,” and is a explained. keynote speaker at an event of one of ast year, Georgia was one of the And Georgian entrepreneurs have not the largest alt-coins, Ripple, on banking. top three countries in the world wasted any time jumping into the crypto- The latest countries on the list are Lin cryptocurrency mining. currency world as well. Several private Venezuela and Turkey, with the former’s Bitcoin was regarded as a shady in- mining centers have popped up all over national cryptocurrency having been novation for criminals and off-the-grid Georgia, with —among others—BF recntly banned in the US. Georgia’s communities in much Group starting a mining breakaway Abkhazia is also considering of the world just a few Beka Vashakidze, center at the Tbilisi Free cryptocurrency as a funding mechanism years ago. But Georgia =RQHZKLFKLVFXUUHQWO\ through an Initial Coin Offering. was early to realize its CEO of BF Group offering 5 MW of hash- The Georgian National Bank, how- SRWHQWLDO E\LW tells Investor.ge ing power, the X4CORP ever, does not seem to be as eager to had already pioneered mining centre in the jump onto the cryptocurrency wagon. In mining with Bitcoin and that he expects the Kutaisi Free Industrial GEORGIA’S blockchain company =RQHKDVKLQJDW0: BitFury, which opened government to put and Golden Fleece token DIGITAL CURRENCY LANDSCAPE a mining center in Gori. certain regulations plans for a mining center More investment LQWKH3RWL)UHH=RQH MINING: in the technology fol- into play. Others offer cryptocur- BitFury lowed: $100 million by rency exchange, such 4XCORP BF Group BitFury to open a datacenter in Tbilisi as Spotcoin, or cloud mining, such as Crypto Invest Hub IRUPLQLQJDQGDSLORWSURMHFWLQ BitForx. recording land titles on Bitcoin’s block- HOSTING/CLOUD: chain—the technology used for crypto- INTERNATIONAL TREND Ambit Mining (ICO in April) BitForx currency transactions. The growing cryptocurrency world ³7KHEHQH¿WVRILPSOHPHQWLQJEORFN- has central banks worldwide worrying EXCHANGE/WALLET: chain in government registration and they may lose a battle if they do not Spotcoin (ICO in May) transactions are an increase of reliability join the cryptocurrency race as well. UniPay and security,” Papuna Ugrekhelidze, Ushba.io (ICO last Fall) :LWKPRUHWKDQPLOOLRQ%LWFRLQVLQ VISO (ICO started last fall) Chair of the National Registry, tells existence, amounting to a market capi- DigiWallet Investor.ge. talization of $148 billion, the question “Our citizens are more secure by indeed arises what the role of central OTHER CRYPTO/BLOCK CHAIN RELATED PROJECTS: sending exact information into the Bit- banks should play. In China, the People’s Aisi coin network, because the exact informa- Bank of China has prototyped their own APRIL-MAY 2018 Investor.ge | 31 'HFHPEHULWZDUQHG³FLWL]HQVWREH found,” a worried landlord tells Investor. Facebook and Google have banned ads cautious when dealing with cryptocur- ge, adding that fortunately the situation for ICOs, and Twitter is planning on one rencies” adding that “the anonymity of has been resolved. as well. cryptocurrencies attracts illegal entities Another major issue are Initial Coin and activities like money laundering.” Offerings (ICOs)—when a company SECURE AND TRANSPARENT Beka Vashakidze, CEO of BF Group offers a quantity of cryptocurrency to But while cryptocurrencies and ex- tells Investor.ge that he expects the gov- investors in the form of “tokens” in changes may be volatile, the underlying ernment to put certain regulations into exchange for other cryptocurrencies to blockchain technology is still the most play. “I think in the near future secure and transparent system they will consider it as normal But while cryptocurrencies and exchanges to exist to date. And the Geor- manufacturing, and they might may be volatile, the underlying blockchain gian government agrees. tax it.” Beqa Avaliani, senior proj- And a healthy worry is technology is still the most secure and ect manager at 4XCORP tells warranted. A landlord in Geor- Investor.ge that there are sev- gia, who wished to remain transparent system to exist to date. eral blockchain-based proj- anonymous, told Investor.ge ects under development at the that a mining data center on his land fundraise for new projects. ICOs have company. One of them seeks close coop- refused to pay a 30,000-lari electricity proven to be a risky endeavor: on more eration with the Georgian government. bill when it came in. “They all started than one occasion, companies offering “Although the technology is young and buying Lamborghinis and other fancy their tokens shut down immediately developing every day, it truly is the future cars, but the moment we told them to pay after raising funds, leaving the investors of the world we will see tomorrow,” he for electricity, they were nowhere to be empty-handed. It is no surprise that both says proudly. ADVERTISEMENT 32 | Investor.ge APRIL-MAY 2018 5"9-"8 13"$5*$& EŽĚŝĂ͕hƌƵŵĂƐŚǀŝůŝĂŶĚWĂƌƚŶĞƌƐŝƐĂŚŝŐŚůLJƌĞŐĂƌĚĞĚĨƵůůͲƐĞƌǀŝĐĞůĂǁĮƌŵďĂƐĞĚŝŶ'ĞŽƌŐŝĂ͘tŝƚŚŝŶŝƚƐƉƌĂĐƚŝĐĞ͕ŝƚŚĂƐĚĞǀĞůŽƉĞĚĂ ƐƉĞĐŝĂůŝƐĞĚƚĞĂŵĚĞĚŝĐĂƚĞĚĞdžĐůƵƐŝǀĞůLJƚŽƚĂdžůĂǁƉƌĂĐƚŝĐĞ͘dŚĞĮƌŵŝƐĂĐƚŝǀĞůLJŝŶǀŽůǀĞĚŝŶƚŚĞŵĂũŽƌƉƌŽũĞĐƚƐŽĨĚŝĨĨĞƌĞŶƚŝŶĚƵƐƚƌLJ ƐĞĐƚŽƌƐ͕ŝŶĐůƵĚŝŶŐŐƌŝĐƵůƚƵƌĞ͕ĂŶŬŝŶŐ͕/ŶƐƵƌĂŶĐĞ͕,ŽƐƉŝƚĂůŝƚLJ͕WŚĂƌŵĂĐĞƵƚŝĐĂůƐ͕hƚŝůŝƚŝĞƐĞƚĐ͕͘ĂŶĚ͕ĂƐĂƌĞƐƵůƚ͕ŚĂǀĞĐŽŶƐŽůŝĚĂƚĞĚŝƚƐ ƉŽƐŝƚŝŽŶĂƐĂůĞĂĚŝŶŐĮƌŵŝŶƚŚĞƚĂdžĮĞůĚ͘ ӑtĞŽīĞƌŽƵƌĐůŝĞŶƚƐƚŚĞďĞŶĞĮƚƐŽĨĂƚĂdžůĂǁĞdžƉĞƌƚŝƐĞƐƵƉƉŽƌƚĞĚďLJƚŚĞƌĞƐŽƵƌĐĞƐŽĨĂĨƵůůͲƐĞƌǀŝĐĞůĂǁĮƌŵ ӑtĞŚĂǀĞƐƉĞĐŝĂůŬŶŽǁůĞĚŐĞĨŽƌĐƌĞĂƚŝŶŐƐƚƌĂƚĞŐŝĞƐĂŶĚƚĞĐŚŶŝƋƵĞƐƚŽŽƉƚŝŵŝnjĞƚĂdžĞƐ ӑtĞĂƌĞĞdžƉĞƌŝĞŶĐĞĚǀŝƌƚƵĂůůLJŝŶĂůůĂƐƉĞĐƚƐŽĨƚĂdžƉƌĂĐƚŝĐĞ͕ƚŚĞĨŝƌŵĂĚǀŝƐĞƐŽŶĂǁŝĚĞƌĂŶŐĞŽĨĂƌĞĂƐ͕ŝŶĐůƵĚŝŶŐ͕ ďƵƚŶŽƚůŝŵŝƚĞĚƚŽďƵƐŝŶĞƐƐƚĂdžƐƚƌƵĐƚƵƌŝŶŐ͕ƚĂdžĚƵĞĚŝůŝŐĞŶĐĞ͕ĐƌŽƐƐͲďŽƌĚĞƌƚĂdž͕ƚĂdžĐŽŵƉůŝĂŶĐĞƉƌŽĐĞƐƐ͕ƉĞƌƐŽŶĂů ƚĂdžƉůĂŶŶŝŶŐĂŶĚŽƚŚĞƌ ӑtĞĂƐƐŝƐƚǁŝƚŚŽďƚĂŝŶŝŶŐƚĂdžƌĞƐŝĚĞŶĐLJ͕ĂĚǀĂŶĐĞƚĂdžƌƵůŝŶŐƐĂŶĚƉƌĞƉĂƌĂƚŝŽŶŽĨůĞŐĂůŽƉŝŶŝŽŶƐ ӑtĞĂƌĞĂĚǀŝƐŝŶŐŽŶƐĞƚƚůĞŵĞŶƚƐƚƌĂƚĞŐŝĞƐĂŶĚŶĞŐŽƚŝĂƚŝŽŶƐ ӑtĞĂƌĞǁĞůůͲŬŶŽǁŶĨŽƌŽƵƌƵŶŝƋƵĞĞdžƉĞƌƚŝƐĞŽŶƚĂdžĚŝƐƉƵƚĞƐ͕ǁĞƉƌŽǀŝĚĞĞĨĨĞĐƚŝǀĞƌĞƉƌĞƐĞŶƚĂƚŝŽŶďĞĨŽƌĞƐƚĂƚĞ ƚĂdžĂƵƚŚŽƌŝƚŝĞƐ͕ĂŶĚĂĚǀŽĐĂƚŝŶŐƚŚƌŽƵŐŚŽƵƚƚŚĞƚĂdžůŝƚŝŐĂƚŝŽŶƉƌŽĐĞƐƐ ӑtĞƉƌŽǀŝĚĞĂĚǀŝĐĞĂŶĚĂƐƐŝƐƚĂŶĐĞŝŶƐƚƌƵĐƚƵƌŝŶŐĂƚĂdžͲĞĨĨĞĐƚŝǀĞĂƉƉƌŽĂĐŚƚŽĚŽŵĞƐƚŝĐĂŶĚŝŶƚĞƌŶĂƚŝŽŶĂů ƚƌĂŶƐĂĐƚŝŽŶƐ ӑtĞƐĞƌǀĞĂƐƚƌƵƐƚĞĚƚĂdžĐŽƵŶƐĞůƚŽŵĂũŽƌĐŽƌƉŽƌĂƚĞĞŶƚŝƚŝĞƐ͕ĨƵŶĚƐ͕ďĂŶŬƐĂŶĚŽƚŚĞƌĨŝŶĂŶĐŝĂůŝŶƐƚŝƚƵƚŝŽŶƐĨŽƌ ŵĂŶLJLJĞĂƌƐ Contact us: ƉƌĞŵhƌƵŵĂƐŚǀŝůŝ, Partner ůĞdžĂŶĚĞƌ^ƵŬŚŝƐŚǀŝůŝ, Partner ĞƉƌĞŵΛŶƉůĂǁ͘ŐĞ ƐĂŶĚƌŽ͘ƐƵŬŚŝƐŚǀŝůŝΛŶƉůĂǁ͘ŐĞ KĸĐĞϮϴ͕&ůŽŽƌϰ͕ůŽĐŬϰ͕ KĸĐĞϮϴ͕&ůŽŽƌϰ͕ůŽĐŬϰ͕ ϳϭsĂnjŚĂͲWƐŚĂǀĞůĂǀĞ͘dďŝůŝƐŝ͕Ϭϭϴϲ͕'ĞŽƌŐŝĂ ϳϭsĂnjŚĂͲWƐŚĂǀĞůĂǀĞ͘dďŝůŝƐŝ͕Ϭϭϴϲ͕'ĞŽƌŐŝĂ WŚŽŶĞ͗нϵϵϱϯϮϮϮϬϳϰϬϳ WŚŽŶĞ͗нϵϵϱϯϮϮϮϬϳϰϬϳ :ĂďĂĂůĂŬŚĂƐŚǀŝůŝ,ƐƐŽĐŝĂƚĞ dĞŽŶĂ'ĂƉƌŝŶĚĂƐŚǀŝůŝ, ƐƐŽĐŝĂƚĞ ũĂďĂΛŶƉůĂǁ͘ŐĞ ƚ͘ŐĂƉƌŝŶĚĂƐŚǀŝůŝΛŶƉůĂǁ͘ŐĞ KĸĐĞϮϴ͕&ůŽŽƌϰ͕ůŽĐŬϰ͕ KĸĐĞϮϴ͕&ůŽŽƌϰ͕ůŽĐŬϰ͕ ϳϭsĂnjŚĂͲWƐŚĂǀĞůĂǀĞ͘dďŝůŝƐŝ͕Ϭϭϴϲ͕'ĞŽƌŐŝĂ ϳϭsĂnjŚĂͲWƐŚĂǀĞůĂǀĞ͘dďŝůŝƐŝ͕Ϭϭϴϲ͕'ĞŽƌŐŝĂ APRIL-MAY 2018 Investor.ge | 33 WŚŽŶĞ͗нϵϵϱϯϮϮϮϬϳϰϬϳ WŚŽŶĞ͗нϵϵϱϯϮϮϮϬϳϰϬϳ is willing to give a loan to someone for say 10 dollars. It is just not economically feasible for a bank to do that because it costs money for the bank to do the services that they currently provide,” he added. In the case of digital currencies DQG¿QDQFLDOVHUYLFHVRQEORFNFKDLQ however, there are a “number of things that are very valuable for those who are currently unbanked or without an ac- FRXQWLQD¿QDQFLDOLQVWLWXWLRQ´ potcoin is a Georgian player in the For starters, with blockchain it is pos- Innovators and international world of cryptocur- VLEOHWRGR¿QDQFLDOWUDQVDFWLRQVLQYHU\ Srency and blockchain, a technol- minute amounts, he said. “We are talking Disruptors: ogy that digitally records transactions on about fractions of a penny, fractions of a a distributed ledger. tetri and actually being able to transact at Ideas to Bring The company started with five employees in October Change DQGKDVQRZJURZQWR t%DVLFDOO\LWFKDQJHVWKHSOD\LQJ ,WLVSUHSDULQJIRU¿UVWRI- field, particularly for those who INVESTOR.GE IS STARTING fering in May and is already A NEW COLUMN ON operating: over the past year are on the lower end of the THE ENTREPRENEURS it provided over the counter HFRQRPLFVSHFWUXPu PUSHING GEORGIA’S trades— exchanges between cryptocurrencies and other DEVELOPMENT currencies—worth around $10 million that level without costing an enormous FORWARD. FOR THE Sean Mulcahey, Spotcoin’s Chief amount of money,” Mulcahey said. FIRST INTERVIEW, OUR 6WUDWHJ\2I¿FHULVSDVVLRQDWHDERXWXV- “Basically it changes the playing SPOKE WITH SEAN ing blockchain and digital currency to ¿HOGSDUWLFXODUO\IRUWKRVHZKRDUHRQ MULCAHEY ABOUT solve an old, persistent problem— bring- the lower end of the economic spectrum SPOTCOIN’S PLANS LQJ¿QDQFLDODQGEDQNLQJVHUYLFHVWR … maybe they could actually use a very TO USE BLOCKCHAIN those who need them the most, but can- small amount of money to improve TECHNOLOGY TO not afford or have easy access to them. their economic position, whether it is HELP VULNERABLE to purchase a piece of equipment or to TRANSPARENT AND AFFORDABLE purchase supplies to make something. GEORGIANS. Blockchain, which he explained as Whatever the case is, under the current a distributed digital ledger that records and previous system it is not even within transactions on multiple servers around the realm of possibility for them to really WKHZRUOGPDNHVWKHOD\HUVRI¿QDQFLDO HQJDJHLQWKH¿QDQFLDOV\VWHPVR,VHH services that have been created to ver- this as an extremely positive develop- ify transactions unnecessary. Trust and ment really for millions and millions of transparency are embedded in blockchain people,” he said. technology. This makes it “extremely ef- Spotcoin’s aim is to create solutions ¿FLHQW LWPDNHVLWDWUXVWHGZD\RIGRLQJ for the new smart economy that make it business, and therefore it makes it much simple, effective, and safe for people to more affordable,” he told Investor.ge. engage in economic activity by moving ³ 34 | Investor.ge APRIL-MAY 2018 A Leap of Faith: Creating Ivane Javakhishvili Tbilisi State University THERE WERE A LOT OF EMIL AVDALIANI shaped generations of great minds and REASONS NOT TO CREATE scholarship. TBILISI STATE UNIVERSITY hile the idea of creating a Of the university’s founders, all IN 1918, BUT A GROUP OF university had been widely but one were educated in Russia when GEORGIAN SCHOLARS Wdiscussed for several years, Georgia was part of the Russian Empire. OVERCAME COUNTLESS there were a myriad of arguments against One was born in Russia; three were the CHALLENGES TO ESTABLISH it, including the question of how to sons of nobility; one was a revolutionary THE FIRST UNIVERSITY IN THE ¿QDQFHLWDQGDQDJJLQJZRUU\WKDWWKH who went on to study at great universi- CAUCASUS. HERE IS A BRIEF Georgian language could not accommo- ties in Switzerland and Germany before date the terminology of science. LOOK AT THE MEN WHO returning home to educate the youth not But a group of eight Georgian schol- MADE IT POSSIBLE. far from his native village. One risked ars leveraged careers built abroad to his life to save Georgia’s treasures, and FUHDWHWKH¿UVWXQLYHUVLW\LQWKH&DXFDVXV yet another traveled to Egypt to study and launch a tradition of science that has medieval Georgian manuscripts. APRIL-MAY 2018 Investor.ge | 35 SHALVA NUTSUBIDZE Shalva Nutsubidze was born in 1888, in the small Georgian village of Partskhanakanebi (near Kutaisi). In KHJUDGXDWHGIURP6W3HWHUVEXUJ 8QLYHUVLW\DQGIURP WR KH studied as postgraduate student at the 8QLYHUVLW\RI/HLS]LJ)URP WR KHZDVDQ$VVRFLDWH3URIHVVRUDW 6W3HWHUVEXUJ8QLYHUVLW\,Q KH became one of the founders of Tbilisi State University (TSU) and worked there DVD3URIHVVRUIURP WR DQG IURP WR 1XWVXELG]HZDVDOVR one of the founders of the country’s sci- HQWL¿FVFKRROLQWKHKLVWRU\RI*HRUJLDQ philosophy and an academician of the Georgian Academy of Sciences. Ivane Javakhishvili AKAKI SHANIDZE IVANE JAVAKHISHVILI ceeded noted chemist Petre Melikishvili Akaki Shanidze was a linguist and 3HUKDSVWKHPRVWLPSRUWDQW¿JXUH as rector. philologist and one of the founders of behind the idea of creating a university Tbilisi State University. Shanidze gradu- was Ivane Javakhishvili. Born in Tbilisi KORNELI KEKELIDZE ated from St. Petersburg University in to the aristocratic family of Prince Al- Korneli Kekelidze studied at the +LVZRUNKDVVWURQJO\LQÀXHQFHG exander Javakhishvili, Ivane graduated Tbilisi Spiritual Seminary and subse- modern academic studies of Georgian from the Faculty of Oriental Studies quently at the Kiev Spiritual Academy. and related Kartvelian languages, both RI6W3HWHUVEXUJ8QLYHUVLW\LQ Kekelidze was a Georgian philologist, in Georgia and abroad. ,Q KHDFFRPSDQLHGKLVPHQWRU a scholar of Georgian literature and academic Nicholas Marr, to Mount Sinai one of the founding fathers of Tbilisi EKVTIME TAKAISHVILI where they studied medieval Georgian State University, where he chaired the Ekvtime Takaishvili was a Georgian PDQXVFULSWV$IWHUWKH¿UVWYROXPHVRI Department of the History of Ancient historian, archaeologist and philanthro- Javakhishvili’s monumental, but yet *HRUJLDQ/LWHUDWXUHIURP XQWLOKLV pist. Born in the village of Likhauri in the XQ¿QLVKHG.DUWYHOL(ULV,VWRULD $+LV- GHDWKLQ western Georgian province of Guria to a tory of the Georgian Nation) appeared local nobleman (Svimon Takaishvili), he EHWZHHQ DQG WKH\RXQJ PETRE MELIKISHVILI graduated from St. Petersburg University scholar quickly established himself as 3HWUH0HOLNLVKYLOL ± ZDV LQ$IWHUJUDGXDWLQJKHUHWXUQHGWR an authority on Georgian and Caucasian a chemist and a co-founder of Tbilisi *HRUJLDDQGXQWLO WDXJKW*HRUJLDQ history, Georgian law, paleography, State University. He also served as the history at various prestigious schools in diplomacy, music, drama and other XQLYHUVLW\¶V¿UVWUHFWRU Tbilisi, including the Tbilisi Gymnasium subjects, producing landmark studies in ,QKHJUDGXDWHGIURP1RYR- for Nobility. WKHVH¿HOGV rossiya University, traveling abroad the He went on to become one of the Javakhishvili became a Professor and following year to visit famous European founders and professors of TSU. He also the Head of the Department of Geor- ODERUDWRULHV,QKHVWDUWHGZRUNLQJ VHUYHGLQWKH¿UVW*HRUJLDQSDUOLDPHQW gian History when Tbilisi University in the chemical laboratory of Novoros- ,Q ZKHQ*HRUJLDIHOOWR%ROVKHYLN (now Ivane Javakhishvili Tbilisi State siya University, where he eventually Russia, Takaishvili followed the Geor- University) opened. A year later, he suc- became a professor. gian government to exile in France, tak- 36 | Investor.ge APRIL-MAY 2018 ing the country’s national treasury with him to save and preserve it. GRIGOL TSERETELI Grigol Tsereteli, the son of Prince )LOLPRQ7VHUHWHOLZDVERUQLQLQ6W Petersburg. He was a well-known lawyer and public benefactor. Tsereteli gradu- ated from the University of St. Petersburg LQ DQGVHUYHGDVOHFWXUHUDWWKH St. Petersburg Archaeological Institute IURP WR EHIRUHEHFRPLQJDQ associate professor at Berlin University, ZKHUHKHZRUNHGXQWLO ,Q KHUHFHLYHGKLV3K'LQFODV- sical philology, and worked as a profes- sor and the head of the Department of Ekvtime Takaishvili Classical Philology at the University of 7DUWXLQ(VWRQLDXQWLO traveled to Switzerland and then to Ger- gian Academy of Sciences, where he He moved back to the University of many, where he entered the philosophy served as the director of the Institute St. Petersburg the same year, and worked IDFXOW\RI/HLS]LJ8QLYHUVLW\,Q of Psychology, which is now called the as a professor and department head there he received a PhD at the University Uznadze Institute of Psychology. XQWLO +HZDVHOHFWHGWRWKH6W3H- of Wittenberg for his work “Vladimir WHUVEXUJ$FDGHP\RI6FLHQFHVLQ Solovev: His Epistemology and Meta- BENEFACTORS AND FINANCIERS )URP WR 7VHUHWHOLVHUYHG SK\VLFV ´+HUHWXUQHGWR*HRUJLD The founders were a small portion as Professor and Head of the Department LQ ZKHUHKHWDXJKWKLVWRU\DWWKH RIWKHSHRSOHZKRKHOSHGFUHDWHWKH¿UVW of Classical Philology at Tbilisi State .XWDLVL*HRUJLDQ*\PQDVLXPXQWLO university in the Caucasus. For example, University. Uznadze was also the headmaster of the Georgian businessmen were actively 6LQDWOHJLUOV¶VFKRROIURP WR involved in the funding the university. DIMITRI UZNADZE Uznadze took an active part in estab- 'DYLG6DUDMLVKYLOLWKH=XEDODVKYLOLIDP- 'LPLWUL8]QDG]HZDVERUQLQ lishing Tbilisi State University, where LO\DQGPDQ\RWKHUVFRQWULEXWHGVLJQL¿- to a peasant family in the small village he served as Professor and Head of the cant funds to the idea, underlining the of Sakara in the province of Kutaisi. He 'HSDUWPHQWRI3V\FKRORJ\IURP VLJQL¿FDQFHRIWKHSURMHFWQRWRQO\IRU was expelled from Kutaisi High School WR educational purposes, but also for Geor- RYHUKLVSDUWLQWKH 5HYROXWLRQ+H ,Q KHKHOSHGIRXQGWKH*HRU- gian national identity. ADVERTISEMENT 5HSURGXFWLRQVRI*HRUJLDQ3DLQWHUVE\&H]DQQH3ULQWLQJ+RXVH 7VHUHWHOL$YHQXH7ELOLVL 7HO ZZZVKRVKDQDJH Jarrett Ferrier for the DC-based Georgian restaurant Supra (facebook.com/SupraDCRestaurant) A Wine For All Occasions: Pairing Georgian Wines with Seasonal Dishes GEORGIAN WINE IS galashvili noted three main principles. are healthy and pleasant,” she said. GAINING POPULARITY WITH “Firstly, we need to observe the color “The rule for choosing wine is very CONNOISSEURS AND WINE of the wine because its tones should coin- simple: serve aromatic, thick and strong LOVERS AROUND THE WORLD. cide with the color of the food. Also, we wines with fatty and nutritious foods; BUT WHAT TO DO IF YOU DON’T KNOW A RKATSITELI FROM must determine the intensity of the aroma slightly lighter wines with slightly less A SAPERAVI? AND WHICH of wine, and it should not be exposed to fatty dishes; and light wines with light WINES GO BEST WITH WHICH H[FHVVLYHIRRGÀDYRU)LQDOO\WKHWDVWH dishes,” she added. DISHES? INVESTOR.GE ASKED of wine should outlast that of the food,” ,JRU%RULVNLQKDVZRUNHGLQ¿QHKR- FIVE EXPERTS TO RECOMMEND he told Investor.ge. tels and restaurants around the world. To- THREE SEASONAL SPRING DISHES, Chateau Mukhrani’s Elene Otarash- day he is the bar manager at La Boheme PAIRED WITH THE PERFECT GEORGIAN WINE. vili has been learning about wine for the restaurant in Tbilisi. He recommended past seven years. several great Georgian wines for tradi- “Pairing wine with food is a very im- tional seasonal spring Mediterranean and electing the right wine for any portant matter which people should pay Middle Eastern dishes, the restaurant’s dish boils down to a few basic more attention to—particularly in Geor- specialities. Boriskin encouraged diners Sideas, sommeliers and wine ex- gia, the country of wine. Ensuring that a to be adventurous, and try local wines perts told Investor.ge. ZLQHDQGDGLVKPDWFKKDVRWKHUEHQH¿WV even when eating food from other places. 9LQWDJHVVRPPHOLHU=D]D*UL- besides aesthetics: good combinations “ As with all food and wine pairing, 38 | Investor.ge APRIL-MAY 2018 there is no right or wrong match and with a fresh Mediterranean salad, or the ever he added. such a wide array of tastes and textures -popular earthy hummus,” he said. ³$ZLQHWREDODQFHWKHLQWHQVHÀD- in a Middle Eastern feast, discovering 1RWLQJWKDWLWLVFKDOOHQJLQJWR¿QG vours of the parsley and chick pea beans which wine works best for you is part of the right wine to match the array of in the falafel, or the mouth watering the fun. If you do get to taste food outside ÀDYRUVRIIHUHGKHVDLG*HRUJLDQZKLWHV creaminess and freshness of burrata salad its country of origin, it’s always worth are a good start. is a tall order,” Boriskin said. trying the local wine,” he said. ³2XU¿UVWFKRLFHZRXOGEHDOLJKW “Herbal notes of Kisi (blend of Kisi bodied, dry white with balanced acidity. and Mtsvane) from Danieli Winery GEORGIAN WINE ON A FOREIGN Nothing cleanses the palate and cuts might be the perfect foil. It is a blend PALATE through the heat quite like Tsinan- which makes very easy drinking. A ‘dry Boriskin recommended several Geor- dali from Maranuli. With deep tropical as a bone’ well-chilled Qvevri Tsarapi gian wines to pair with foreign seasonal aromas and notes of green apple and (KWF1) would be fantastic with the lamb spring dishes from the Mediterranean lemongrass, this wine blends Rkatsiteli, tagine and grilled octopus containing and the Middle East, including Lebanese .DNKXUL0WVYDQHYDULHWDOVÀDZOHVVO\´ candied red onions.” fried chicken marinaded in chili, garlic Boriskin said. He added that for “ the most adven- DQGOHPRQDQGWKHQÀDVKJULOOHG “The best choice to pair this blend turous palates, La Boheme recommends “The La Boheme experience offers with is dip sampler with choice of baba pairing the softest and tender sous vide EDODQFHGÀDYRXUVIURPWKURXJKRXWWKLV ganoush, orange mascarpone, artichoke beef cheek or beef short rib and pizza vast region. Typically you’ll be served a dip and classic hummus. Tsinandali goes with complex, earthy wines like the wide range of dips to start, from creamy, ZHOOZLWKURDVWHGFDXOLÀRZHUZLWKDQ- Saperavi from Maranuli.” smoky baba ganoush, soft and light clas- chovies and pork tenderloin with zaatar, “This wine gives an impressive fra- sic tzatziki with fresh herbs, a falafel with baked beets and apple and pear puree,” grance of plums, ripe cherries, and dark ADVERTISEMENT How We’re Different No hassle. No stress. See a doctor when and where you want, on your terms. Doctors you’ll recommend Treating you, differently International European and US physicians Home or Office Visits Direct billing to most insurance groups Preventative and Acute Care More quality time with your doctor Certified Visa centers All English-speaking staff 24/7 phone or email consults Modern and accessible clinics Kyiv: +38 (044) 490 76 00 Tbilisi: +99 (532) 250 00 20 / 11 D. Arakishvili Street, Vake Lviv: +38 (032) 253 70 00 Batumi: +99 (555) 548 41 46 / 114 Gorgiladze Street Odessa: +38 (048) 701 40 00 www.amcenters.com chocolate that harmonizes wonderfully with organic Saperavi,” she said. “The traditional Georgian dish chaka- ZLWKWKHGHQVHÀDYRUVLQPDQ\0HGLWHU- For dessert, Kunchulia recommends puli would be best with white wine. I ranean dishes,” he said. Chinuri, a soft Georgian wine, served would prefer it to be paired with Château with traditional sweet plavi, a traditional Mukhrani Rkatsiteli Superior,” she said. LOCAL FAVORITES Georgian dessert, made with clove, dried Otarashvili also suggested pairing Esma Kunchulia, the founder of oranges and tangerines, roasted Georgian fried young potatoes (served with dill and “First Culinary” and Tsodoreti Winery nuts and melted butter. Svanetian salt) with Château Mukhrani said Georgians are “in the process of 8000 Vintages’ Grigalashvili said the Saperavi. relearning” the 551 different varieties store’s mission is to “introduce the taste Finally, the “perfect Georgian ap- of wine that once existed in Georgia of Georgian wine to as many people as petizer”—salad with fresh seasonal and “remembering” what their ancestors possible. We started the journey of our tomatoes, cucumber, green onion and once drank. business from the urban part of the city. basil with walnut sauce dressing—should “In Georgia today, we are remember- We believe that local people are the best be served with Château Mukhrani Goruli ing different types of old wines gradually, connoisseurs of Georgian wine.” Mtsvane, she said. and in this process, many new tastes have As part of their effort to develop the Award-winning Vinotel has earned been born. I have read that Chinuri wine wine-drinking culture, 8000 Vintages has DUHSXWDWLRQIRULWV¿QHZLQHVHOHFWLRQ ZDVSRSXODUZLWKWKH WKFHQWXU\7ELOLVL created a tasting committee. The hotel’s founder, climber Benedikt elite. The traditional kvevri (qvevri) wine “People who understand wine are the Kashakashvili, recommended dishes ‘Rkatsiteli’ is recommended for meat motivation for wine-makers to produce a to match particularly fine Georgian dishes. Saperavi is also good with meat ¿QHZLQHDQGWRFRQWLQXHZRUNLQJRQLWV vintages. and several doctors have stated that it is quality. To represent all the best wines of For example, Kindzmarauli Winery’s PRUHWKDQDZLQH²LWFDQEHEHQH¿FLDO the country in our shop and bar we cre- $OH[DQGURXOL DGU\UHGZLQH LV Chinuri is soft, and my guests prefer it ated an independent tasting committee. “characterized by well-developed, ad- with dessert or during a cheese board We try about 100 new wines every month YDQFHGYDULHWLHVRIÀDYRUVZKHUHEODFN tasting,” she said. during the blind tasting and select only plum tones harmoniously merge with Kunchulia, a lingist by profession, WKH¿QHVWRQHV$OOZLQHVUHSUHVHQWHGDW pleasant oak tones,” he said, adding that started making wine several years ago 8000 vintages are Georgian,” he said. it is an excellent choice with any meat as a hobby. Today, she lives at her Grigalashvili selected several wines dish, as well as cheese. winery with her husband and daughter, to compliment traditional seasonal spring /DJYLQDUL¶V6DSHUDYL DQDWXUDO and runs a small hotel and experimental *HRUJLDQGLVKHVLQFOXGLQJD*RUXOL dry red wine) comes from the heart of restaurant. They specialize in organic Green White Classic European, served Georgia’s wine region, Kakheti, and is a qvevri (the traditional large clay vessels with red pkhali with walnuts and spices perfect match for beef tenderloin medal- Georgians use to make wine) wine. or grilled vegetables. lions as well as lamb or veal ribs served Kunchulia recommended wines for +HVHOHFWHG7VDUDSL¶V5NDWVLWHOL with caramelized onions. three seasonal Georgian dishes. White Classic European, served with 6DWVQDNKHOL¶V6DSHUDYL5HVHUYH She said that “king” of Georgian veal ribs with green adjika and mint was aged in oak barrels for three months spring dishes is chakapuli, made with sauce. and is a perfect choice with tender pork tarragon, tkemali and white wine. “This For dessert, Grigalashvili recom- entrecôte. amazing dish is very good with red dry PHQGHG7DYNYHUL¶V6DSHUDYL Baghdati Winery’s (a family winery) wine; as chakapuli is the traditional Eas- served with quince dessert with ice Tsitska (natural dry white wine) is a tradi- ter dish, I serve it with kvevri ‘Rkatsiteli’ cream, buckthorn sauce, and caramel- tional qvevri wine from western Georgia. wine and barrel ‘Tsinandali’ wine,” ized built by Ivane Mukhranbatoni, ³7KHZLQHLVZHOOVXLWHGZLWK¿VK Kunchulia said. who helped popularize Georgian wines GLVKHVVXFKDVVHDEDVV¿OOHWDQGEDPERR Chanakhi is a dish for the late spring, abroad. Château Mukhrani’s Otarashvili leaves or with white wine sauce, Geor- which is prepared with the new vegeta- selected three wines from the famous JLDQVDOPRQ¿OOHWRUWURXWVWXIIHGZLWKD bles, cilantro, different greens and beef. winery to pair with three seasonal spring mildly spicy berry sauce,” Kashakashvili “My special Chanakhi is always offered dishes. said. 40 | Investor.ge APRIL-MAY 2018 NEWS CONTENT 54 AmCham Social 42 AMCHAM MEMBERS LUNCH WITH 45 MEMBER FOCUS: MEDICAL SECTOR U.S. AMBASSADOR 46 NEW MEMBERS 43 AMCHAM HOSTS LEADER OF GEORGIAN ECONOMIC TEAM 48 MEMBER PROFILES VINOTEL, BUDGET GEORGIA 43 FINANCE MINISTER MAMUKA BAKHTADZE MEETS AMCHAM 50 MEMBER DIRECTORY MEMBERS 54 SOCIAL LUNCH 44 IN MEMORIAM: DR. H. KENNETH WALKER – A TBILISI AND EMORY 55 SOCIAL COCKTAIL UNIVERSITY LEGEND APRIL-MAY 2018 Investor.ge | 41 NEWS AMCHAM MEMBERS LUNCH WITH U.S. AMBASSADOR AMCHAM GEORGIA HOSTED A MEMBERS-ONLY LUNCHEON WITH U.S. AMBASSADOR IAN C. KELLY ON MARCH 1 AT TBILISI MARRIOTT HOTEL. AMBASSADOR KELLY ENGAGED WITH AMCHAM PRESIDENT MICHAEL COWGILL AND THE MEMBERSHIP IN A PUBLIC DISCUSSION ABOUT HIS EXPERIENCES DURING HIS TIME IN GEORGIA, WHAT HE WILL MOST REMEMBER AND WHAT HIS THOUGHTS ARE ABOUT GEORGIA’S FUTURE PATH. 42 | Investor.ge APRIL-MAY 2018 NEWS AMCHAM HOSTS LEADER OF GEORGIAN ECONOMIC TEAM AmCham hosted Dr. Ricardo Giucci, Team Leader of the German Economic Team (GET) Georgia; Dr. Alexander /HKPDQQ¿QDQFLDOVHFWRUH[SHUW DQG Mr. Otar Gorgodze, Head of Specialized Groups and Supervisory Policy Depart- ment at NBG, at a monthly roundtable meeting at the Radisson Blu Iveria Hotel on March 13. The guests presented the Banking Sector Monitor. The presenta- tion was followed by dynamic Q&A session between AmCham members and the guests. AMCHAM HOSTS FINANCE MINISTER MAMUKA BAKHTADZE AmCham Georgia hosted a members’ only luncheon with Georgian Minister of Finance Mamuka Bakhtadze on March DW%LOWPRUH+RWHO7ELOLVL7KHPLQLV- terspoke about ongoing projects, reforms and the current work of the ministry. The presentation was followed by a lively Q&A between the members and the min- ister. New members were introduced as &RUSRUDWH%0HPEHUV =DUDS[DQD//& and CMC LLC. ADVERTISEMENT AmCham Hosts www.ilf.com Business Ombudsman at Cocktail Reception 2Q0DUFKWK$P&KDP*HRUJLD hosted Business Ombudsman of Georgia Irakli Lekvinadze, who presented on the ZRUNRIWKH2PEXGVPDQ¶VRI¿FHDQGOHG a discussion on business environment in Georgia. The presentation at Rooms Ho- 50 years of experience and innovation in providing world-class tel Tbilisi was followed by a lively Q&A project management, engineering and consultancy services shaped between the members, Mr. Lekvinadze ILF Consulting Engineers into your trusted advisor worldwide. and his deputies, Levan Kalandadze and =XUDE']QHODVKYLOL7KHSUHVHQWDWLRQ 50 YEARS OF ENGINEERING EXCELLENCE was followed by a cocktail reception. ILF Consulting Engineers Georgia LLC ILF Consulting Engineers Austria GmbH 20, Ushangi Chkheidze Street Feldkreuzstraße 3 0102 Tbilisi, Georgia 6063 Rum, Austria Phone 1 +995 (59) 151 72 84 Tel. +43 (512) 24 12 - 0 Phone 2 +995 (59) 140 99 41 Fax +43 (512) 24 12 - 5900 E-Mail [email protected] E-Mail [email protected] NEWS Georgia,” Ken’s heart and soul were pure Kartveli. Beyond Emory and medicine, Georgia became his greatest passion. Thus began more than 25 years of Ken Walker’s “special relationship” with Sa- kartvelo. Like a few before him and many after, Ken could be found at Betsy’s Guest- house (now Hotel) where he became a lifelong regular during his lengthy stints working in and out of Georgia. Meeting up with Ken for a drink to talk politics, medi- cine, and the latest in Tbilisi gossip was a venerable tradition among his inner circle. But more than anything else, Ken will be remembered for his good works and unwavering commitment to helping provide better healthcare for Georgians. Through ongoing collaboration be- tween educational and health care institu- tions in Tbilisi and Atlanta, Ken was almost single-handedly responsible for hundreds of Georgian medical students coming to Emory and Georgia State University to study medicine, nursing, public health and business. At the same time, he was one of Georgia’s greatest promoters in the U.S., resulting in dozens of physicians, academ- IN MEMORIAM: DR. H. KENNETH WALKER – ics, students, and friends coming to visit and even work in Georgia. A TBILISI AND EMORY UNIVERSITY LEGEND With the support from the United States Agency for International Development Henry Kenneth (“Ken”) Walker, M.D., almost 50 classes of medical students, (USAID), Dr. Walker was able to under- of Atlanta, Georgia, passed away Friday, residents, and fellows. Dr. Walker was an take impactful programs to modernize February 23, 2018, after a sudden illness outstanding doctor who personally trained KRVSLWDOVVWDUWXSWKHÀHOGRIHPHUJHQF\ while departing from his beloved Tbilisi, more internal medicine residents than any PHGLFLQHDQGODXQFKWKHÀUVWWUXO\PRGHUQ Georgia. He was 81. other physician at Emory. emergency room in Tbilisi. In fact, Dr. Walk- Ken Walker’s acute intellect and He considered his life to have been er was recently a key player in establishing curiosity were combined with enduring determined by his early academic men- a new six-year medical school curriculum Southern charm, a joy for all things social, tors. In turn, Ken considered his calling to at Tbilisi State Medical University. and an overarching commitment to pro- be as a mentor to the young minds he For his exceptional international ser- viding opportunities for others. In a word, encountered in his teaching career and vice, Dr. Walker was awarded the USAID Ken was a genteel “force of nature”— eventually in his work in the Republic of Outstanding Achievement Citation for someone who is not easily forgotten and Georgia. Europe and Eurasia and was made an will always be remembered by those in Like many “old guard” expatriates, honorary citizen of the Republic of Geor- Tbilisi, Atlanta, and elsewhere who were Ken Walker ended up in Tbilisi on a whim gia in 2005. fortunate enough to have crossed his path in 1992. Through an exchange program Never one to rest on his laurels, Ken in the classroom, hospital or at a supra. sponsored by the U.S. Department of and his non-governmental organization, Ken was born on a small farm outside State, Ken reluctantly arrived in Georgia Partners for International Development Washington, Georgia. A skinny, naïve during the heady days of post-Soviet ZZZSÀGJH MXVW UHFHLYHG PLOOLRQ country boy who loved reading, he was optimism to explore how best to “reform” from USAID to establish physical therapy recruited to Emory in a new curriculum the Ministry of Health. Despite having no and rehabilitation medicine programs based on the Great Books of the Western electricity, hearing occasional bursts of in Tbilisi. World series. After receiving his B.S. at Em- JXQÀUH DQG ZKDW KH SHUFHLYHG ZDV D Dr. Walker was recently bestowed ory College he attended Emory Medical healthcare system and country in peril, Emory University’s highest honor, the Emory School. Except for a two-year stint in the Ken was captivated. Medal, posthumously at a ceremony in U.S. Air Force during the Vietnam War in The traditions, culture, and close social Atlanta. the Philippines, he never really left Emory. and family ties that make-up Georgian Friends in both Georgias will miss Ken Professor of Medicine, Neurology, and life resonated deeply within him. For Ken, dearly, but his legacy will carry on through Global Health, Dr. Walker was an Emory Georgia comprised many things but it was the institutions he helped build and the Medical School legend, whose profound ÀUVWDQGIRUHPRVWDERXWUHODWLRQVKLSVDQG students and professionals he inspired. knowledge of medicine, deep compas- the people. In many ways, despite having - Brian McCotter, Board Member, Part- sion, and erudition were imprinted on come of age a world apart in the “other ners for International Development (PfID) 44 | Investor.ge APRIL-MAY 2018 NEWS GEORGIA’S GROWING MEDICAL challenges remain with obtaining timely SECTOR and appropriate care, access and avail- MEET Solomon Ioramashvili, Chairman of ability of medications or vaccinations, Alliance for Progressive Healthcare (APH), and physician service education and told Investor.ge there were several reasons training, among a few. My sense is that for the growing interest in the sector. In Georgia’s greatest challenge continues AMCHAM SDUWLFXODUKHQRWHGÀYHIDFWRUV³WKHWUDQ- to be the delivery of high quality care in sition to the Universal Healthcare program DQ HIÀFLHQW SDWLHQWFHQWHUHG DQG FRVW LQ WKHJURZWKRIEXGJHWÀQDQFLQJ effective way.” of healthcare expenditures, which about MEMBERS one billion lari in the 2018 budget; gaps POTENTIAL OF MEDICAL TOURISM in legislation that encourage newcomers Sokol noted that interest in Georgia as INVESTOR.GE IS INTRODUCING in hospital sector vs traditional players; a medical tourism destination is growing. A NEW PLATFORM FOR weak control and administration of service “Georgia is gaining popularity as a MEMBERS TO LEARN MORE providers in past years; and the successful medical tourism destination; in fact we receive calls daily from clients seeking less ABOUT EACH OTHER. MEET story of Evex. R. Alex Sokol, President of American expensive specialty care and wishing to AMCHAM MEMBERS IS Medical Centers, told Investor.ge that combine their interest in visiting Georgia DEDICATED TO SHOWCASING liberal reforms have encouraged invest- with a medical procedure or stay. Indeed, OUR MEMBERS’ OPINIONS ment in the sector. there is tremendous potential for medical AND CONCERNS ABOUT THE “My sense is that liberalizing reforms tourism, specifically in elective narrow specialties such as infertility treatment, ISSUES THAT ARE IMPORTANT over the last 5-10 years have opened Georgian investment opportunities, re- surrogacy, dental, or aesthetic surgery,” FOR THEM. THE FIRST SECTOR sulting in better healthcare choices and he said. HIGHLIGHTED IS THE MEDICAL outcomes for Georgians. Investment in “The government’s full collaboration FIELD AND WE ASKED healthcare IT, service infrastructure (insur- with the private sector, combined with the AMCHAM COMPANIES ance models and payers), and providers rich natural beauty of this great country, INVOLVED IN THE FIELD ABOUT FOLQLFVDQGKRVSLWDOV ZRUNIRUWKHEHQHÀW its central geographic location, and a of the Georgian consumer; ultimately cre- current and historical spa and wellness GROWTH, CHALLENGES AND ating a truly competitive landscape and culture, make Georgia an ideal destina- PROSPECTS FOR THE SECTOR. providing accountability with affordable tion for medical tourism.” and accessible health choices,” he said. Ioramashvili also sees potential for the country as a medical tourism destination, POTENTIAL CHALLENGES but he noted that better assessment of the Ioramashvili listed several potential quality of healthcare services is necessary. challenges for the sector as it continues to One potential advantage, he said, is develop, including “the lack of an assess- that the medical sector is largely privately ment system for the quality of healthcare owned in Georgia. DQGWKHDEVHQFHRIDSSURSULDWHTXDOLÀFD- “The sector is almost entirely privatized, tion for the staff of healthcare authorities.” while in other countries in region that is not Sokol also noted education and train- the case (with the exception is Turkey, but ing as a potential challenge for the sector. it is currently facing some political chal- “Providing responsible healthcare to lenges), which gives Georgian an advan- all citizens should be an obtainable goal. tage to improve the quality of its medical I think Georgia has done a fantastic job services for foreign patients,” he said. over the last decade; and healthcare is “Currently, the development of ser- very different from what I remember 15-20 vices and recreation at spa resorts, which years ago,” he said. make use of Georgia’s natural resources “Certainly the health services envi- WKDWKDYHEHQHÀFLDODQGKHDOLQJSURSHU- URQPHQW KDV LPSURYHG VLJQLÀFDQWO\ %XW ties, might be more logical.” APRIL-MAY 2018 Investor.ge | 45 NEWS Anaklia Development Best Western Hotel Mastercard Renstor LLC Consortium Tbilisi Corp. A Corp. A Corp A A Mastercard Incorporated Renstor is a team of inter- The Anaklia Development Best Western International is an American multinational national experts with years Consortium (ADC) is develop- is the world’s largest hotel ÀQDQFLDOVHUYLFHVFRUSRUDWLRQ of experience in high tech ing the Anaklia Deep Sea Port chain with more than 4000+ headquartered in the Mas- projects on 4 continents. The and the Anaklia Free Industrial hotels in 100 + countries and terCard International Global company works with projects Zone in the Black Sea Region territories. It is a membership Headquarters in Purchase, to take wind, water, and solar, to breathe new life into the association of independently New York, United States. The convert to energy and store for ancient Asia-Europe trade owned and operated hotels Global Operations Headquar- anytime use. route. Both developments are that provide marketing, res- ters is located in O’Fallon, Mis- www.renstor.com granted through an invest- ervations and operational souri, United States, a suburb of ment agreement provided by support to its member hotels. St. Louis, Missouri. Throughout the Ministry of Economy and Being the member of the the world, its principal business Sustainable Development of Best Western Brand, Best West- is to process payments be- Georgia for the rights to devel- ern Tbilisi Hotel offers 48 spa- tween the banks of merchants RSÀQDQFHGHVLJQFRQVWUXFW cious and comfortable guest and the card issuing banks or operate, market, manage, rooms with all the facilities credit unions of the purchas- and grow the Anaklia region. and amenities you would like ers who use the “Mastercard” ADC embraces the Silk Road to enjoy while traveling. Cen- brand debit and credit cards vision to accelerate Georgia’s trally located in the busy part to make purchases. Master- GDP growth and create jobs of the city center, hotel is sur- card Worldwide has been for its people. The Anaklia Port URXQGHGE\RIÀFHVDGMDFHQW a publicly traded company will be a lasting economic to shopping street and main since 2006. Prior to its initial driver for Georgia, both as a attractions. public offering, MasterCard national asset representing In addition to spacious and Worldwide was a coopera- *HRUJLD·VKLVWRULFVLJQLÀFDQFH comfortable guest rooms Best tive owned by the more than and its vital role in the evolving Western Tbilisi offers on-site ÀQDQFLDOLQVWLWXWLRQVWKDW global economy. Restaurant and Bar, Spacious issue its branded cards. www.anakliadevelopment. Meeting facilities with state of www.mastercard.com com art technologies, 800 sq. meter YDVWÀWQHVVFHQWHUDQGYDULHW\ of treatment rooms. Guest can use the underground garage that is conveniently located on -2 level. Stay at Best West- ern Tbilisi while on business or leisure trip. www.bestwesterntbilisi.ge NEW MEMBERS 46 | Investor.ge APRIL-MAY 2018 NEWS NEW MEMBERS Citocorp Funds LLC CMC LLC Terma JSC Zarapxana LLC (La Boheme) Corp. B Corp .B Corp. B Corp. B La Boheme is an inviting Construction Manage- The company has been Zarapxana LLC is a jewelry neighborhood restaurant in ment & Consulting (CMC) importing and distributing company. The name Zarapxa- the heart of Tbilisi vibrant Vake is a Limited Liability Com- heating, ventilation, and air na exists since 2008, however district. Led by International pany founded in 2009. As the conditioning systems. Terma the company exists since 1939 team, La Boheme uses local company grew, it has been JSC quickly became the ex- and was known as “Jewelry and seasonal ingredients to engaged in the process of clusive local importer of well- Factory”. Company sells prod- create a unique twist on mod- constructing of the most mod- known international brands ucts in 5 stores across Georgia. ern Mediterranean cuisine and ern and quite complicated with a strong distribution net- In addition to this, the com- deliver outstanding service. projects from the architec- work. pany produces approximately In the warmer months, fresh tural and engineering point of terma.ge 300 different types of souvenirs herbs and vegetables from view. Since its inception, the and accepts individual orders. the sun-drenched backyard company has carefully built zarapxana.ge garden add an extra element its reputation as a proven and of flavor to the dishes and reliable regional solution for cocktails. The name, La Bo- construction management heme, represents a spirit of and consulting, known for its being, frivolous, nonchalant ability to deliver high qual- and pleasure way of life, liv- ity projects on time and on ing in the present and without budget. CMC covers a broad regrets. range of sectors, including civil www.laboheme.restaurant (governmental) projects, com- mercial, residential, industrial, retail, hospitality and mixed- use, including following servic- es: construction management; construction planning services; program and project man- agement; project risk man- agement; CPM Scheduling; cost estimating; value engi- neering; tendering; budgeting; design reviews; change order management etc. CMC has built international networks of service providers, vendors and distributors, so that the local projects can be completed to the highest standards on time. www.cmc.ge Giorgi Pertaia Individual APRIL-MAY 2018 Investor.ge | 47 NEWS dining areas, each featuring a unique style: the main hall, the winetasting chamber with its oval oak bar table, a traditional chamber in an arched brick wine cellar, a formal dining hall ZLWKD)UHQFKÀUHSODFHIRUEXVLQHVVGLQQHUVDQGDJUHHQWHUUDFH RYHUORRNHGE\DQDQFLHQWFKXUFKZKLFKLVDQRWKHUÀQHH[DPSOH of the hotel’s success at offering guests a link to Tbilisi’s ancient history while providing all modern comforts. “The Vinotel concept is exceptional and unique,” Nanuka Chanturia, Vinotel CEO, tells us. “It’s designed to represent the long, rich hospitality traditions of our country, and the history of winemaking, strengthened with the relevant expertise. As with the geographical location of Georgia, Vinotel also harmoniously combines European and Asian styles, which allows our guests to experience a real taste of the true Georgia. Vinotel leaves HYHU\RQHVDWLVÀHGIURPWRXULVWVWREXVLQHVVPHQDQGKLJKUDQNLQJ RIÀFLDOV9LQRWHOEHFDPHD7UDYHOHUV·&KRLFH$ZDUG:LQQHU by TripAdvisor, based on reviews and opinions from millions of travelers,” she says. As well as offering traditional Georgian cuisine to guests, Vi- notel gives them the chance to taste a selection of some of the ÀQHVW*HRUJLDQZLQHVIURPERWKVPDOO*HRUJLDQZLQHULHVDQGWKH well-known Georgian wine brands. As the Vinotel CEO notes, the unique concept and style of the hotel is based on its offering everything that is natural to visitors, from its wines, to its warm, “living” environment, built with all-natural construction materials, the hotel walls hand-painted and even handmade, memory foam mattresses in the rooms being handmade. “We’ve discovered that clients are very perceptive, and we’ve managed to make Vinotel comfortable for all our visitors,” Chanturia says. “We’ve made sure they’ll feel at home while enjoying healthy products and organic wine, accompanied by the sounds of Georgian folk music. Our prices are tailored to every segment and adjusted to any budget, and we take serious note of all feedback given by guests with the aim to constantly upgrade our services.” “I believe that in its unique concept and high-quality service, 9LQRWHOLVWKHÀUVWRILWVNLQGLQ*HRUJLDDQGLWZHOOGHVHUYHGWKH Best Luxury Small Hotel Award won in Switzerland in December. This VINOTEL WINS is not just Vinotel’s success: this is a success for our country, Geor- gia, which is taking huge strides toward developing its hospitality BEST LUXURY SMALL HOTEL industry. Of course, we at Vinotel are also a part of this sphere, DQGLW·VDJUHDWUHVSRQVLELOLW\IRUXV*HRUJLDKRVWHGPLOOLRQWRXU- LVWVLQDQGIRUDOOKRWHOVLWVHUYHVDVDPRWLYDWLRQWRLPSURYH IN EASTERN EUROPE AWARD services and establish new, better standards. In the long-term perspective, this will undoubtedly assist tourism development in Luxury boutique hotel Vinotel recently won the Best Luxury Georgia,” the Vinotel CEO concluded. Small Hotel in Eastern Europe Award at an annual award cer- emony held in St. Moritz, Switzerland. The event was the 11th such ceremony celebrating the hospitality sector, organized by the British “World Luxury Hotels Award Organization,” which brought together 2,000 nominees from around 80 countries worldwide. The award category was divided by country, regional and global level; Vinotel was the only one to receive an international, regional award from Georgia. It won Best Luxury Small Hotel Award as a regional winner from Eastern Europe, in “recognition of a sustained commitment to excellence in hoteliering and outstanding achievement in the international luxury hospitality industry,” the award reads. The hotel, which opened three years ago, is located in a his- toric building, a classic example of traditional Tbilisi architecture in the old part of the capital city on the left bank of the Mtkvari River at the gateway of the old Avlabari district. 9LQRWHOLVIUHTXHQWHGE\QXPHURXVKLJKSURÀOHJXHVWVDUWLVWV DQGLQWHUQDWLRQDOSROLWLFDODQGEXVLQHVVÀJXUHV 7KHUHDUHJXHVWURRPVDQGDUHVWDXUDQWZLWKÀYHVHSDUDWH 48 | Investor.ge APRIL-MAY 2018 NEWS APRIL-MAY 2018 Investor.ge | 49 AmCham Company Members as of April 2018 PATRON MEMBERS Betsy’s Hotel / Prosperos Books Dentons Georgia LLC GMT Group 32/34 Makashvili St. / 10 Melikishvili St. 4 Freedom Square 34 Rustaveli Ave. Tel: 2509300; Fax: 2509301 Tel: 2988988; Fax: 2988910 Tel: 2987624, Fax: 2923592 www.dentons.com www.gmt.ge BP Exploration Georgia www.betsyshotel.com 24, S. Tsintsadze St. Tel: 2593400 www.bpgeorgia.ge Diplomat Georgia Gosselin Mobility Georgia Best Western Hotel Tbilisi 65, Kakheti Highway 3 M/D, Didi Digomi 11 Apakidze St. Tel: 2984950 Tel: 2596601/02/03; Fax: 2596600 Tel: 2300777 www.diplomat.ge www.gosselinmobility.eu KPMG Georgia LLC www.bestwesterntbilisi.ge 3rd Floor, Besiki Business Center, 4 Besiki St., 0108 Tel: 2935713; Fax: 2982276 British American Tobacco EY Georgia Grant Thornton LLC www.kpmg.ge 71 Vazha Pshavela Ave. 44 Kote Abkhazi St. 61 D. Aghmashenebeli Ave. Tel: 2157500/01/02; Fax: 2157503 Tel: 2439375; Fax: 2439376 Tel: 2604406 www.bat.com www.ge.ey.com www.grantthornton.ge PwC Georgia 12 M. Aleksidze St., 0160 King David Business Center Budget Rent a Car - Otokoc F H Bertling Georgia Ltd. Greco Group Tel: 2508050; Fax: 2508060 Georgia LLC Room 3, 4th Floor, 1 Nutsubidze St. www.pwc.com 37 Rustaveli St. 154 Agmashenebeli Ave. Tel: 2393138; Fax: 2311107 Tel: 2234112 Tel: 2252287 www.greco.ge www.budget.com.ge www.bertling.com UGT D&KDYFKDYDG]H$YHWKÀRRU Tel: 2220211; Fax: 2220206 Caucasus University GT Group www.ugt.ge .RVWDYD6W%OGWKÀ FINCA Bank Georgia 48 B. Cholokashvili St. Tel: 2377777; Fax: 2313226 9D]KD3VKDYHOD$YHUGÀ Tel: 2740740 www.cu.edu.ge Tel: 2244949 www.gtgroup.ge ZZZ¿QFDJH CORPORATE A MEMBERS CleanTech Ltd. GULF Georgia 5 Avlip Zurabashvili St., 0144 Food TV Geo LLC by Sun Petrolium Georgia LLC Tel: 2922202 45b. M. Kostava St. Pixel Business Center, AECOM Georgia LLC www.cleantech.ge Tel: 2931570 34 Chavchavadze Ave. 34, Chavchavadze Ave. www.foodtvgeo.com Tel/Fax: 2496444 Tel: 555603200 www.gulf.ge www.aecom.com Colliers International Georgia LLC Frontera Resources Georgia 11th Floor, King David Business 12 Paliashvili St. Alliance LLC Center, 12 M. Aleksidze St. 0171 Hilton Batumi Tel: 2252412 135 King Parnavaz St., Batumi Tel: 2224477 13 Takaishvili St., Batumi www.fronteraresources.com Tel: 591555757 www.colliers.com Tel: 292092 www.alliancegroup.ge www.hilton.com Alliance Group Holding, JSC Conformity Assessment Gazelle Finance Georgia LLC International (CAI) LLC 2I¿FH1LNR1LNRODG]H6W 47/57 M. Kostava St., 0179 Iberia Refreshments, JSC 8 Politkovskaya St., 1086 Tel: 2904304 Tel: 2424181; Fax: 2998112 Tetri Khevi Hesi District, Orkhevi Tel: 595690008 ZZZJD]HOOH¿QDQFHFRP www.agh.ge Tel: 2241091; Fax: 2241090 www.ca.international www.pepsi.ge American Medical Centers, General Electric Georgia &XVKPDQ :DNH¿HOG*HRUJLD 5th Floor, Pixel Bulding, 11 D. Arakishvili St., Tbilisi WKÀRRU%ORFN 34 Chavchavadze Ave. IMSS Ltd. Tel: 2500020 71 Vaja-Pshavela Ave. Tel: 2259516 / 2259505 10a Bakhtrioni St. 114, Gorgiladze St., Batumi Tel: 2474849 www.ge.com Tel: 2920928 Tel: (+995 32) 250 00 77 ZZZFXVKPDQZDNH¿HOGJH www.imss.ge www.amcenters.com Dechert Georgia LLC Georgian American Alloys, Inc. Anaklia Development 200 S Biscayne Blvd Suite 5500, Kavkaz Cement JSC WKÀRRU3L[HOEXLOGLQJ Consortium 29 Andronikashvili St., 0189 34 Chavchavadze avenue Miami FL 33131 USA 6 Marjanishvili St. Tel: 2619090 Tel: 2334719 Tel: (1)3053757560 Tel: 2959910 www.gaalloys.com www.kavkazcement.ge www.anakliadevelopment.com www.dechert.com Avon Cosmetics Georgia LLC Deloitte Georgian American University Maersk Georgia LLC 117 Tsereteli Ave. 36a, L. Asatiani St., 0105 8 Aleksidze St. 6 Khetagurov St. Tel: 2226805; Fax: 2226806 Tel: 2244566; Fax: 2244569 Tel: 2206520; Fax: 2206519 Tel: 2200800; Fax: 2200815 www.avon.com www.deloitte.ge www.gau.ge www.maerskline.com 50 | Investor.ge APRIL-MAY 2018 Marriott Hotels, Resorts & Suites Renstor LLC Air Astana Airlines JSC %/&/DZ2I¿FH 13 Rustaveli Ave. Building I , Gamrekeli St. 5th Floor, Pixel Business Center, 129a D. Agmashenebeli Ave., 0102 Tel: 2779200; Fax: 2779210 Tel: 551122392 34 Chavchavadze Ave. Tel: 2922491; Fax: 2934526 www.marriott.com www.renstor.com Tel: 2514999 www.blc.ge www.airastana.com SEAF Management LLC BMC Gorgia Mastercard 7, Niko Nikoladze St. II Floor. 140 Tsereteli Ave. 2 Leonidze St. /1 G.Tabidze St., Tel: 2998115; Fax: 2923533 Aliance Georgia Ltd Tel: 2960960 Premises No.315, Floor 4 www.seaf.ge 33 Samurzakano St. www.gorgia.ge Tel: 2900815 Tel: 2243773 www.groupaliance.com www.mastercard.com Sheraton Metechi Palace Hotel 20 Telavi St. Tel: 2772020; Fax: 2772120 CaspiGroup Ltd. www.sheraton.com/tbilisi 29 Bochorma St. Meridian Express Aversi Pharma Tel: 2550818 15-17 Ketevan Tsamebuli Ave.0103 148/2 Aghmashenebeli Ave. www.caspigroup.com Tel: 2745188 SICPA Security Solutions Tel: 2987860 www.ups.com Georgia www.aversi.ge 79 Chargali St., 0178 Caucasus Online LLC Tel: 2434580 71 Vazha-Pshavela Ave. www.sicpa.com Baker Tilly Georgia Ltd. Tel: 2000022 Microsoft Georgia LLC www.co.ge 34 Chavchavadze Ave. Meidan Palace, 44 Kote Abkhazi St. Tel: 2970123 Spotcoin LLC Tel: 2505353; Fax: 2505353 www.microsoft.com 13 Shalva Radiani St., 0179 www.bakertillyinternational.com Tel: 599258539 Channel Energy (Poti) Limited www.spotcoin.net Georgia LLC, By Petrocas Energy Group Bank of Georgia 52, David Agmashenebeli St., Poti M & M - Militzer & Munch T&K Restaurants (McDonald’s 3 Pushkin St. Tel: (995493) 2-7-08-60 Georgien, FedEx GSP Georgia) 39 Ketevan Tsamebuli Ave. Tel: 2444134; Fax: 2983269 www.petrocasenergy.com 1 Dzmebi Kakabadze St. www.bog.com.ge Tel: 2748240, 2748941 Tel: 2921246; Fax: 2251422 www.fedex.com/ge www.mcdonalds.ge Château Mukhrani, J.S.C. Sangebro St. TBC Group Basel LLC 49 Krtsanisi St. Tel: 2201878; Fax: 2201878; 2I¿FH7HFKQRORJLHV6WHHOFDVH 7 Marjanishvili St. Tel: 2550110 www.mukhrani.com Dealership Tel: 2272727; Fax: 2228503 www.krtsanisi.com 4 Freedom Sq., 0105 www.tbc.com.ge Tel: 2999980, 2688229 ZZZRI¿FHWHFKQRORJLHVJH Citicorp Funds TMC Global Professional 32/34 I. Abashidze St. Services Basis Bank JSC Tel: 555446699 6001 Indian School Road NE, Suite 1 Ketevan Tsamebuli Ave. laboheme.restaurant 190, Albuquerque, NM 87110, USA Tel: 2922922; Fax: 2986548 Orient Logic Ltd. Tel: (1 505) 8723146 www.basisbank.ge 8 Beliashvili St. www.tmcservices.com Tel: 2541818 City & Co. www.orient-logic.ge 4 Besiki St. Visa International Service Batumi International Container Tel: 2920921 Association Terminal 900 Metro Center Boulevard, Foster 11, Baku Street, 6010, Batumi PepsiCo Wimm-Bill-Dann City, CA 94404, USA Tel: 422 276452 CMC LLC Village Ponichala, Tbilisi 0165 Tel: 599374877 www.bict.ge Tel: 2475290 www.visa.com 4 Besiki St. www.wbd.ru Tel: 2240717 www.cmc.ge West Invest Ltd. BDO LLC 13a Lortkipanidze St. 2 Tarkhnishvili Str. Tel: 2997275 Philip Morris Vere Business Centre, 0179 Crowne Plaza Borjomi www.west-invest.ge 1 Tabidze St. Tel: 2545845; Fax: 2399204 Baratashvili Str. 9, 1200 Borjomi Tel: 2439001; Fax: 2439005 www.bdo.ge Tel: 995 367 220260 www.philipmorrisinternational.com Willis Towers Watson Ltd. www.cpborjomi.com 17 M. Lebanidze St. Tel: 2905509 BGI Advisory Services Georgia www.willis.com Crystal, MFO JSC ProCredit Bank 5XVWDYHOL$YH,,ÀRRU 72 Tamar Mepe St. Kutaisi, 4600 154 Agmashenebeli Ave. Tel: 2997292; Fax: 2996615 Tel: 431253343 Tel: 2202222; Fax: 2202222-2226 www.bgi.ge www.procreditbank.ge www.crystal.ge CORPORATE B MEMBERS Biltmore Hotel Tbilisi Dio Ltd. Radisson BLU Iveria Hotel Adjara Group Hospitality 29 Rustaveli Ave. 12th Km David Agmashenebeli Alley 1 Rose Revolution Sq. 1, 26 May Sq., 0179 Tel: 2727272 N3, Parsadani St. Tel: 2402200; Fax: 2402201 Tel: 2300099 http://www.millenniumhotels.com/en/ Tel: 2361112 www.radissonblu.com www.adjaragroup.com tbilisi/the-biltmore-hotel-tbilisi/ www.dio.ge APRIL-MAY 2018 Investor.ge | 51 AmCham Company Members as of April 2018 NEWS Domson’s Engineering Georgian Beer Company Herbalife Nutrition Liberty Bank JSC 8a Sanapiro St. 3311 Saguramo, Mtskheta District Bld. 4a Tamarashvili St., 0116 74 Chavchavadze Ave. Tel: 2050303 Tel: 2437770 Tel: 2202929 Tel: 2555500; Fax: 2912269 www.domsons.com www.geobeer.ge www.herbalife.com www.libertybank.ge Hualing International Special Luca Polare Dorche Branch Prepabrik Iapi Ve Georgian Express Economic Zone 54 Oniashvili St. Inshaat Sanai Tijaret JSC 105, Tsereteli Avenue, 0119 25 Apt. 34/36 Kobuleti St. Tel: 2990399 026/13 Ilia Chavchavadze Ave. Tel: 2696060 Tel: 591005900 www.lucapolare.com Tel: 593472419 www.dhl.com www.dorce.com.tr www.hualing.cn Maqro Construction 22 Panjikidze St. Duty Free Georgia Georgian Hospitality Group Hydrolea LLC Tel: 2000909 UGÀRRU%HVLNL6W 22 Peritsvaleba St., 0103 11 A. Apakidze St. www.maqro.ge Besiki Business Center Tel: 2987789 Tel: 790420015 Tel: 2430150 www.ghg.ge www.hydrolea.com www.dfg.ge Maqro Food “Dinehall” 28 Rustaveli Ave. ICS Ltd. TNT Agent in Georgia Tel: 2001616 Georgian Industrial Group LLC 25 Agmashenebeli Ave. www.dinehall.ge Efes Brewery in Georgia - GIG Plaza, 14 Gazapkhuli St., 0177 Tel: 2910220 Lomisi JSC Tel: 2210187 www.tnt.ge Village Natakhtari, Mtskhta Region www.gig.ge Tel: 2357225 Mercure Tbilisi Old Town www.natakhtari.ge 9 Gorgasali St., Old Tbilisi, 0105 ILF Beratende Ingenieure ZT Tel: 2006060 Georgian Integrated Systems GmbH Branch in Georgia www.mercure.com (GiS) 15 Tamar Mepe Ave. Enviroserve Caucasus 2I¿FH$EDVKLG]H6W Tel: 2199453 [email protected] Tel: 2243724 www.ilf.com Mgaloblishvili Kipiani Dzidziguri www.enviroserve.ae www.gis.ge (MKD) 2I¿FH9D]KD3VKDYHOD$YH Tel: 2553880 International Black Sea www.mkd.ge ExpoGeorgia JSC University Geo Steel LLC 118 Tsereteli Ave., 0119 David Agmashenebeli Alley 13 km, 36 Davit Gareji St., Rustavi, 3700 Tel: 2341100 2, 0131 Tel: 2243794 www.expogeorgia.ge Tel: 2595005 Mina JSC www.geosteel.com.ge www.ibsu.edu.ge 4 Besiki St. Tel: 2449981/82/83; Fax: 2449980 www.mina.com.ge Gebrüder Weiss LLC Airport Adjacent Territory, Globalink Logistics LLC Isbank Georgia JSC Kakheti Hwy 60 Sh. Nutsubidze St., 0186 140/B Agmashenebeli Ave., 0102 Mira Hotels Ltd. Tel: 2710011 Tel: 2000238, 2208147 Tel: 2310515 Brose Street Turn,Old Tbilisi www.gw-world.com www.globalinkllc.com www.isbank.com Tel: 2242244/55/88 www.riverside.ge JTI Caucasus Geocell *ORULD//& 7LÀLV3DODFH VII Floor, Pixel Business Center, Murphy Bridge 3 Gotua St. 3 Gorgasali St., 0105 34 Chavchavadze Ave. 8th Floor, Building 6, Saakadze Sq, Tel: 2770100, ext. 7435; Tel: 2000245 Tel: 2604111 0160 Fax: 2770119 ZZZWLÀLVSDODFHJH www.geocell.ge www.jti.com Tel: 2007107 www.murphyshipping.com GM Capital LLC Kordzahia, Jgenti Law Firm GeoEngineering LLC 2 Tarkhnishvili St., 0179 10 Petriashvili St. MyGPS 15a Tamarashvili St. Tel: 2912626 Tel: 2921878 6 Bokhua St., 0159 Tel: 2311788; Fax: 2311787 www.gmcapital.ge www.kjlaw.ge Tel: 2180180 www.geoengineering.ge www.mygps.ge Leavingstone National Center for Dispute Geomill LLC Gvinadze & Partners LLC 12a Al. Kazbegi Ave. Resolution 4, Chirnakhuli St. 44 Kote Abkhazi St, 0105 Tel: 2105103 4/7 Rustaveli St., Rustavi Tel: 2400000 Tel: 2438970, Fax: 2438971 www.leavingstone.com Tel: 2193406 www.geomill.ge www.gvinadzeandpartners.ge www.ncdr.ge Legal Partners Associated LLC Georgian Airways HeidelbergCement Georgia 2I¿FH%HVLNL%XVLQHVV&HQWHU NCC Ltd. 12 Rustaveli Ave. 21 Al.Kazbegi Ave. 4 Besiki St. 0108 9, Erekle II turn Tel: 2999730; Fax: 2999660 Tel: 2474747 Tel: 2200203; Fax: 2250458 Tel: 2725088 www.georgian-airways.com www.heidelbergcement.ge www.lpa.ge www.ensisi.ge 52 | Investor.ge APRIL-MAY 2018 NEWS Nexia TA Rakeen Development LLC Terabank JSC CARE International in the 4th Floor, 19 David Gamrekeli St., Pixel Business Center, 3 Ketevan Tsamebuli Ave. Caucasus 0160 34 Chavchavadze Ave. Tel: 2507700 37 Tsagareli St., 0162 Tel: 2242559 Tel: 2933393; Fax: 2933993 www.terabank.ge Tel: 2291941 www.nexia.ge www.rakeen.ge www.care-caucasus.org.ge Terma JSC Floor 1, 10 Budapest St. Regus, Georgian Branch, Tbilisi Tel: 599554794 Noblet Media Business Centre www.terma.ge (CiDA) Civil Development 7, Khorava St. Level 4, 1 Tabidze St., 2 Leonidze Agency Tel:w 2396300 St.,0105 9/1 Pirosmani St., Rustavi, 3700 www.nobletmedia.com Tel: 2900039 Terrace Hotel & Restaurant Tel: 341258822 www.regus.com 7 Polikarpe Kakabadze St. www.cida.ge Tel: 2999001 www.theterracetbilisi.com Nodia, Urumashvili & Parnters Rentals LLC 2I¿FH,9%ORFN 46 Rustaveli Ave.; 36 Griboedov St. Theco Ltd. Europe Foundation 71 Vazha-Pshavela Ave. Tel: 2454567 / 2996412 16 Chikovani St. 3 Kavsadze St. Tel: 2207407 www.rentals.ge Tel: 592107515 www.nplaw.ge Tel: 2253942; Fax 2252763 (ext. 112) www.tbilisia.ru www.epfound.org Resolution Insurance Brokers, University of Georgia Georgia LLC Nutrimax Ltd. 77a Kostava St. 61, Gorgasali St. 68a Rustavi Highway, 0165 Tel: 2552222 Tel: 2936305 Free University of Tbilisi Tel: 2305335 www.ug.edu.ge www.rib.ge 140 David Agmashenebeli Alley www.nutrimax.ge Tel: 2200901 Veziri Ltd. www.freeuni.edu.ge 7 Luarsab Andronikashvili St., 0131 Rixos Hotel Borjomi Tel: 2251614 16 Meskheti St., Borjomi Overall Management Group www.veziri.net (OMG) Inc. Tel: 2292292 Georgia Red Cross Society 29 Marjanishvili St. http://borjomi.rixos.com 15 J. Kakhidze St. Tel: 2436052; Fax: 2436052 Vinotel (“Aigvinissakhli”) LLC 4 Elene Akhvlediani Ascent Tel: 2961092 www.redcross.ge Rooms Hotel Tel: 2555888 14 Merab Kostava St. www.vinotel.ge Paine Stevens LLC Tel: 2020099, 2730099 1 Ivane Javakhishvili Sqr. www.roomshotels.com Wings and Freeman Capital Tel: 2903211, Fax: 2903291 Green Building, 6, Marjanishvili St. Good Governance Initiative www.painestevens.com Tel: 2940051; Fax: 2940053 Pixel Center, 8th Floor, 34, Sakcable JSC www.wfcapital.ge Chavchavadze Ave. Suite 414, 19 Gamrekeli St. Tel: 2243111 www.ggi.ge Tel: 2221418 Wissol Georgia PASHA Bank Georgia JSC www.sakcable.ge 74b Chavchavadze Ave. 15, Shota Rustaveli Ave. Tel: 2915315; Fax: 2915615 Tel: 2265000 www.wissol.ge www.pashabank.ge Silknet Ltd. QSI International School of 95 Tsinamdzgvrishvili St. Georgia Zarapxana LLC Tel: 2910345; Village Zurgovani, Tbilisi 15 Lubliana St. www.silknet.com Tel: 2537670; Fax: 2322607 Policy and Management Tel: 2510001 www.qsi.org Consulting Group (PMCG) www.zarapxana.ge $JKPDVKHQHEHOL$YHWKÀRRU SRG Investments LLC Tel: 2921171 D&KDYFKDYDG]H$YHUGÀRRU www.pmcg.ge Tel: 2253581 NON-PROFIT ORGANIZATIONS San Diego State University - www.silkroad.ge Georgia 5 Kostava St. 0108 Tel: 2311611 Agricultural University of Primera Golf & Residence www.georgia.sdsu.edu 36, Khetagurovi St., 0102 T3Concept Ltd. Georgia Tel: 2200036 13 Radiani St., 0179 140 David Aghmashenebeli Alley Tel: 2434455 Tel: 2594901 www.turner.com, www.t3concept.ge www.agruni.edu.ge Transparency International Publicis Ltd. Georgia 17 V. Jorbenadze St. TBC Leasing JSC Alliance for Progressive 61 Agmashenebeli Ave. 0102 Tel: 2745672; Fax: 2745671 8 Bulachauri St., 0161 Healthcare Tel: 2932129 www.publicis.ge Tel: 2272727 27/29 Chavchavadze Ave., 0179 www.transparency.ge www.tbcleasing.ge Tel: 2242413 Qebuli Climate Tbilisi View American Friends of Georgia Union of Busines Ladies 101, Tsereteli Ave. 4a, Freedom Sq. 77 Nutsubidze St. 8 D. Gamrekeli St., 0194 Tel: 2356201 Tel: 2999980 Tel: 2397174; Fax: 2388495 Tel: 2308661 www.qebuli.ge www.tbilisiview.ge www.afgeorgia.org www.ubl.ge APRIL-MAY 2018 Investor.ge | 53 NEWS AMCHAM GEORGIA HOSTED A MEMBERS’ ONLY LUNCHEON WITH GEORGIAN MINISTER OF FINANCE MAMUKA BAKHTADZE ON MARCH 23 AT BILTMORE HOTEL TBILISI Giorgi Pertaia, Tarandeep Kapur , Esben Emborg Levan Bakhutashvili Michael Cowgill, George Ioseliani Michael Cowgill,Keti Gognadze, Nikoloz Nakopia Tamara Tkeshelashvili 54 | Investor.ge APRIL-MAY 2018 NEWS AMCHAM GEORGIA HOSTED BUSINESS OMBUDSMAN OF GEORGIA IRAKLI LEKVINADZE AT ROOMS HOTEL TBILISI FOR A PRESENTATION AND COCKTAIL RECEPTION ON MARCH 16. George Welton, Levan Vepkhvadze Mako Giorgadze Maka Burjanadze and Nino Menteshashvili Michael Cowgill, Irakli Baidashvili Nino Menteshashvili Vakhtang Tsabadze and Paata Shurghaia APRIL-MAY 2018 Investor.ge | 55 NEWS Board Of Directors 2018 R. MICHAEL COWGILL PRESIDENT SARAH WILLIAMSON IRAKLI BAIDASHVILI ANDREW COXSHALL FIRST VICE-PRESIDENT VICE-PRESIDENT & TREASURER DIRECTOR ESBEN EMBORG LASHA GOGIBERIDZE BADRI JAPARIDZE DIRECTOR DIRECTOR DIRECTOR AmCham Executive Director Writers George Welton Emil Avdaliani, Nino Bakradze, Lika Jorjoliani, Tatjana Montik, Paul Rimple, Inge Snip, Sally White Copy Editor Alexander Melin Photos Tatjana Montik, Paul Rimple, Artist Jarrett Ferrier (page 38) Marketing & Promotion Nini Kapanadze Promotional Design Levan Baratashvili Special thanks to all the contributors to the magazine, AmCham Georgia’s staff, and all our contributors, especially Supra restaurant in Washington, Magazine Design and Layout DC which allowed us to publish the photo on page 38 (facebook.com/ Giorgi Megrelishvili SupraDCRestaurant). This magazine would not be possible without your help. 56 | Investor.ge APRIL-MAY 2018 NEWS STEVE JOHNSON OTAR KIPSHIDZE KETTI KVARTSKHAVA DIRECTOR DIRECTOR DIRECTOR CHRIS SCHLUETER BETSY HASKELL, DIRECTOR FOUNDING ADVISOR GEORGE WELTON DWIGHT NYSTROM EXEC. DIRECTOR EX-OFFICIO MEMBER AmCham Georgia Patron Members: © The American Chamber of Commerce in Georgia, 2018 arising from the use of any product or service advertised within All rights reserved. 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The world’s largest global elite law firm.* dentons.com Otar Kipshidze, Managing Partner ([email protected]) Avto Svanidze, Partner ([email protected]) Dentons Georgia LLC, 10, Melikishvili Street, Tbilisi 0179, Georgia T + (995)32 2509 300 I F + (995)32 2509 301 © 2018 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Please see dentons.com for Legal Notices. *Acritas Global Elite Law Firm Brand Index 2013- 2017.