Georgia Pushes for FTA with US

NEW RULES, SAFER TAXISNEW DEAL STRENGTHENS BOND GEORGIA DRAFTS MARKET “EUROPEAN” CUSTOMS CODE

Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 65 OCT.-NOV. 2018

OCTOBER-NOVEMBER 2018 Investor.ge | 3 Investor.ge CONTENT 6 Investment News Investor.ge provides a brief update on investments and changes in government policy that could impact the business environment.

8 Innovators and Disruptors: Ideas to Bring Change

10 Georgian PM Pushes for Closer Trade and Security Relations with US

12 PM Lobbies for Free Trade Deal with United 10 States

13 The Benefits of Free Trade with the Georgian Republic

15 Georgia Weighs Legal Cannabis Production for Export

18 Tbilisi Bets on New Rules for Safer Taxis

20 New Digital Bank Expands Georgian Banking’s 14 Reach

23 New Deal to Strengthen Georgia’s Financial Markets

26 Georgia Drafts “European” Customs Code

30 Untapped Potential for Made in Georgia Apparel

18 32 IMF Upbeat on Georgian Economy

33 The Best Minds in the Business: Famous Economists Weigh in on Georgia

34 Georgia’s Tourism Boom: In Numbers

39 NEWS ...... 39

4 | Investor.ge OCTOBER-NOVEMBER 2018

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OCTOBER-NOVEMBEROCTOBER-NOVEMBER 20182018 Investor.geInvestor.ge | 5 IMF PRAISES GEORGIAN several areas, including real estate (13.8 INVESTMENT ECONOMY percent growth); social and personal Managing Director of the Interna- VHUYLFHV SHUFHQWJURZWK ¿QDQFLDO tional Monetary Fund Christine Lagarde intermediation (22 percent growth); and NEWS said the Georgian economy is showing manufacturing (8.5 percent growth). “strong signs of recovery.” She made the statement following her NUMBER OF AIRPORT meeting with Georgian Prime Minister PASSENGERS UP 25 PERCENT INVESTOR.GE Mamuka Bakhtadze in Washington, D.C. Georgian airports served 25 percent on September 21. PRUHSDVVHQJHUVLQWKH¿UVWHLJKWPRQWKV PROVIDES A “Prime Minister Bakhtadze and I dis- of 2018 than during the same period last BRIEF UPDATE cussed the good progress under Georgia’s year, according to the United Airports of ON INVESTMENTS economic reform program supported by Georgia. In total, the country’s airports AND CHANGES the IMF’s $285 million Extended Fund served 3,375,959 passengers during Facility. We also discussed the impor- WKH¿UVWHLJKWPRQWKVRIWKLV\HDU7KH IN GOVERNMENT tance of advancing Georgia’s ambitious biggest airport is Tbilisi International POLICY THAT reform agenda to support investment, Airport, which had a 12 percent increase COULD IMPACT education, and competitiveness, with the in August compared to the same period ultimate goal of achieving sustainable last year (461,051 passengers). Passenger THE BUSINESS DQGLQFOXVLYHJURZWKZKLFKZLOOEHQH¿W WUDI¿FLVDOVRXSDW.XWDLVL,QWHUQDWLRQDO ENVIRONMENT. all Georgians,” Lagarde said, adding that Airport, increasing 44 percent compared THE INFORMATION she has reiterated the IMF’s commitment to August of last year. to support Georgia and its people. IN THIS ISSUE WAS GOVERNMENT DRAFTS NEW TAKEN FROM GEORGIAN PM RAISES FREE CUSTOMS CODE AGENDA.GE, A TRADE DEAL WITH POMPEO The government has presented a GOVERNMENT- Georigan Prime Minister Mamuka new customs code that brings Georgian Bakhtadze met U.S. Secretary of State legislation closer to European standards. SUPPORTED Mike Pompeo at the U.S. Department of “The new customs code will become WEBSITE, AND State in Washington D.C. on September an important stimulus for attracting OTHER SOURCES. 20. Praising Pompeo as a “faithful friend European investments and will support of Georgia,” Bakhtadze told journalists the integration process of Georgian busi- DIWHUWKHPHHWLQJWKDWWKHWZRRI¿FLDOV nesses on the European market,” Prime discussed the possibility of a free trade Minister Mamuka Bakhtadze said. Once agreement between Georgia and the U.S. the new code is implemented, Georgia “We are supported by our U.S. al- ZLOOEHWKH³¿UVWFRXQWU\LQWKHUHJLRQ lies in this very important endeavor,” with both European customs infrastruc- Bakhtadze told journalists. ture and legislation, which will contribute to the development of international GEORGIAN GDP UP 5.5 PERCENT trade,” the Prime Minister added. IN Q2 The real growth rate of Georgia’s JAPAN TO FINANCE 14 KM OF GDP was 5.5 percent in the second EAST-WEST HIGHWAY quarter of 2018, compared to last year, Georgia and Japan have signed an DFFRUGLQJWR*HRVWDWWKHRI¿FLDOVWDWLV- agreement worth $343 million to build the tics body of Georgia. In Q2 of 2018, esti- 14 km stretch of the East-West Highway mated real GDP growth was registered in that stretches from Shorapani to Argveti.

6 | Investor.ge OCTOBER-NOVEMBER 2018 Japanese technology will be used during lent €30 million to TBC Bank as part projected that the Georgian economy to the second phase of the project, agenda. RILWVHIIRUWVWRLQFUHDVH¿QDQFLQJIRU grow 5.5 percent this year and 4.8 percent ge reported. The project is planned to be small and medium businesses, agenda. next year. ¿QDOL]HGLQWKH¿UVWTXDUWHURI ge reported on September 28. The Asian Development Bank has Since 2011, TBC Bank has on-lent recently raised Georgia’s 2018 growth GEORGIA’S TOP BANKER €85 million to small and medium busi- forecast to 4.9 percent, up from its earlier RECOGNIZED nesses via the European Investment Bank estimate of 4.5 percent, the report said. 1DWLRQDO%DQNRI*HRUJLD+HDG.RED program. Gvenetadze has been named one of the The funds will be provided within the GEORGIA PLANS GRAPE SEED top central bankers of 2018 by Global European Union’s EU4Business initia- OIL, FLOUR EXPORTS )LQDQFHPDJD]LQH7KLVLVWKH¿UVWWLPH tive, designed to support SMEs in the six Georgia is in negotiations to export the head of the National Bank of Georgia Eastern Partnership countries - Armenia, RLODQGÀRXUPDGHIURPJUDSHVHHGV has been included in the list, agenda.ge Azerbaijan, Belarus, Georgia, Moldova agenda.ge reported on September 24, reported. Global Finance has published and Ukraine, the report said. citing information provided by the its annual Central Banker Report Cards Georgian Ministry of Environmental since 1994 and grades central bank direc- GEORGIAN BUDGET PREDICTS 4.5 Protection and Agriculture. tors in 85 countries. PERCENT GROWTH A new grape seed processing plant The Georgian government has pre- RSHQHGLQ*HRUJLD¶V.DNKHWLUHJLRQRQ EUROPEAN INVESTMENT BANK dicted that the economy will grow 4.5 September 24. LENDS MILLIONS FOR SME percent in 2019, according to the draft 7KHSODQWZDV¿QDQFHGE\8NUDLQLDQ DEVELOPMENT budget, agenda.ge reported on October 1. EcoGeorgian Group, which invested one The European Investment Bank has The International Monetary Fund has million lari in the project.

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OCTOBER-NOVEMBER 2018 Investor.ge | 7 Innovators and Disruptors: Ideas to Bring Change

GEORGIAN ENTREPRENEURS buy computers and pay for regular inter- ,QRUGHUWRÀQGIDPLOLHVWRKHOSRUJD- ARE PUSHING THE COUNTRY’S net access for families in need. nizers at Charte.ge gather information DEVELOPMENT FORWARD. The project began in 2017 and has about children in need from schools. Their THIS COLUMN IS ABOUT HOW already connected 166 families to the names are added to the website, and GEORGIA’S BEST AND BRIGHTEST internet. then donors can select a montly rate to ARE CHALLENGING THE LIMITS OF Mari Gelashvili, Charte.ge project pay toward funding an intertnet connec- TECHNOLOGY AND THE MARKET TO coordinator, told Investor.ge that the WLRQIRUDVSHFLÀFFKLOG*HODVKYLOLVD\VWKDW CREATE THE BUSINESSES THAT WILL idea to create Charte.ge came when project is popular among donors: there are CHANGE OUR LIVES TODAY AND staff members at Educare Georgia were currently about 300 donors, both individu- SHAPE OUR FUTURE. IN THIS ISSUE, translating different online courses from als and companies, who want to invest in INVESTOR.GE’S NINO BAKRADZE English to Georgian. education. SPOKE WITH CHARTE.GE’S MARI As they worked on the translations, While the government has promised GELASHVILI ABOUT A STARTUP THAT they realized that people might not have to make the internet accessible for every HOPES TO MAKE THE INTERNET access to the products that they were Georgian citizen, Charte.ge is determined ACCESSIBLE FOR EVERY GEORGIAN creating. So they decided to make the to work independently with private and FAMILY. internet more accessible for poor families. company sponsors. Gelashvili says that Charte.ge’s initial Gelashvili added that Charte.ge culti- priority was to fund internet connections vates a personal relationship with donors, NINO BAKRADZE for internally displaced children living in and works hard to update them on how and near Gori. Now Charte.ge plans to their support is helping children. ishiko, 16, wants to be connected expand to help families in Guria, a poor “A couple of weeks ago I was with a WRWKHZLGHUZRUOG6SHFLÀFDOO\ region in western Georgia. family that includes a 16-year-old boy. Mhe wants access to the internet Eventually, Charte.ge hopes to sup- He never had a computer or access to at school in order to study better. port all Georgian families who do not the internet. He even did not believe that The people at Charte.ge hope they have access to the internet and to online someone could give it to him. He was have a way to grant his wish. educational programs. Gelashvili notes nervous and happy at the same time, but Charte.ge, a start-up project within the program does not end with access could not express his emotions completely. Educare Georgia, is a platform for people to the internet: Charte.ge provides a We, who have access to the internet and to donate funds to purchase internet ac- package of online lessons, digital books computers, and they are part of our lives, cess for poor families. and online courses to children. “We give think it is normal way to live. We do not Currently about 78,000 children live in WKHPDFKDQFHWROHDUQQHZWKLQJVÀQG realize how big a gift and happiness it if for poverty in Georgia and do not have ac- their own way and become innovators in people who live in poverty—and there are cess to the internet. By making monthly WKH ÀHOG HDFK OLNHV WKH PRVWµ *HODVKYLOL lots of them here. So we need to do more donations, anyone can help Charte.ge told Investor.ge. DQGKHOSWKHPµ*HODVKYLOLVDLG

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10 | Investor.ge OCTOBER-NOVEMBER 2018 Closer Relations with US

OCTOBER-NOVEMBER 2018 Investor.ge | 11 PM Lobbies for Free Trade Deal with United States

GEORGIA HOPES TO FURTHER STRENGTHEN ITS STRONG US BOND WITH FREE TRADE AGREEMENT

eorgian Prime Minister Mamu- the pressing challenges faced by Georgia locked countries [. . .] We would like to ka Bakhtadze made a case for and originating from the occupation of see more American companies doing Gcloser security and economic our land by the Russian Federation. We business in Georgia.” relations with the United States during talked about the key directions with all At a meeting with U.S. business lead- his trip to Washington, D.C. in Sep- our resources and political will to deepen ers, Bakhtadze provided an overview of tember. our relations further [to the level of] our Georgia’s reforms and its efforts to attract Bakhtadze noted Georgia has been cooperation in the areas of security and investment. “punching above its weight” in several economics. “Georgia leads among other countries areas, including military cooperation We are very keen to conclude a Free in terms of doing business and our wish with the U.S. in Afghanistan and Iraq. Trade Agreement (FTA) with the U.S.A. is to see more U.S. corporate investments The Prime Minister held high-level and have support of our friends in this in the country,” he said. meetings with White House officials very important endeavor. and prominent media outlets in the U.S., We also spoke about various aspects NATO MEMBERSHIP including with U.S. Secretary of State of the political situation in our region Bakhtadze also spoke about Geor- Mike Pompeo, U.S. National Security and role that might be played by Geor- gia’s goal to join the NATO military Advisor John Bolton, and several U.S. gia in regional politics,” Bakhtadze told alliance. Senators: Lindsey Graham, Roger Wick- journalists. “Membership in NATO is our main er, Bob Corker and Robert Menendez. Bakhtadze repeated Georgia’s inter- priority. We are actually continually est in a free trade agreement during a punching above our weight. Although CALL FOR FREE TRADE sit-down interview with Fox News. our budget is not large, we are spending AGREEMENT “We pushed to another level our more than two percent of our GDP on Following his meeting with Pompeo, FRRSHUDWLRQLQWKH¿HOGRIVHFXULW\DQG our military. Bakhtadze underscored Russian occupa- military cooperation, and we have also Our soldiers, shoulder to shoulder tion of Georgian territory and the U.S.- very good economic cooperation. And >ZLWK86VROGLHUV@DUH¿JKWLQJDJDLQVW Georgia cooperation in “key directions.” we do believe that a free trade agreement terrorism in Afghanistan and Iraq,” he “We touched upon all the topics of can be a very good step forward,” he said. said in his interview with Fox News, our bilateral relations. We spoke about “Georgia is a gateway for eight land- adding “We are very serious about it.”

12 | Investor.ge OCTOBER-NOVEMBER 2018 ADVERTISEMENT

The Benefits of Free Trade with the Georgian Republic

THIS EDITORIAL BY MAMUKA TSERETELI HAS BEEN REPRINTED FROM THE WASHINGTON TIMES, WWW.WASHINGTONTIMES.COM.

MAMUKA TSERETELI

hen Prime Minster Mamuka Bakhtadze visits Washington in mid-September he should be greeted Was the essential partner in the Caucasus region that Georgia has proven itself to be. Since leaving the orbit of the Soviet Union in 1991 the Georgian Republic has been ruled by several different political parties, yet has been steadfast in choosing an open economy based on transparency and rule of law and resisting reintegra- tion with its giant neighbor. This openness to trade, knowledge, technological know-how and management skills has helped Georgia advance its national interest. But it is an act of bravery for such a tiny country facing constant threat from Russian occupational troops. We in the United States must do all we can to advance Georgia’s economic development and its clear and demonstrated SUHIHUHQFHWREHDIXOOÀHGJHGWUDGLQJSDUWQHUZLWKWKH:HVW The United States, more than any other country in the world, has tangible incentives to work closely with Georgia. For over two decades Georgia and the United States have been consistently reliable strategic partners that have contributed mightily to each other’s national security. Georgia’s military has participated in every military campaign of the United States since 2003, and this small nation with population of only 3.7 million became one of the largest contributors of troops to FRDOLWLRQIRUFHV¿UVWLQ,UDTDQGWKHQLQ$IJKDQLVWDQ In fact, by 2008 Georgia was the second largest contributor of troops to coalition forces in Iraq, after United States, and today Georgia is a largest non-NATO contributor of forces in Afghanistan. This commitment is all the more remarkable since the country has 20 percent of its territory occupied by Russia.

OCTOBER-NOVEMBER 2018 Investor.ge | 13 Being a large recipient of the U.S. Russia. The interests of global powers particular emphasis on low rates of tax, assistance, Georgia reciprocates not in Georgia is mostly determined by its regulation, crime, and corruption. only by contributing military forces to location and available infrastructure, Given this stable environment, the international security operations, but also which ensures access to the “heartland country enjoys strong support from by fostering great business opportunities of Eurasia” and to the hydrocarbon re- LQWHUQDWLRQDO¿QDQFLDOLQVWLWXWLRQVDQG for American companies. Georgia itself sources of the Caspian basin. from investment promotion agencies, provides excellent opportunities for U.S. The United States should prioritize such as the U.S. government’s Overseas enterprises in the areas of infrastructure keeping Georgia on its current course. Private Investment Corporation. Last, but development, transportation, telecom- Georgia’s commitment to economic not least, entering or expanding business munications, hospitality, food and bever- openness democratizes the country’s key activities in Georgia offers American DJHLQGXVWU\DQG¿QDQFH assets, transit and transportation infra- companies the potential to reach an Georgia has free trade agreements VWUXFWXUHWRWKHEHQH¿WRIDOO*HRUJLDQV exponentially larger regional market, with the EU, Turkey, CIS countries, and This, in turn, has created a paradigm of thanks to Georgia’s free trade agreements China, which create exceptional op- orderly, transparent, commitment to the with Turkey, CIS countries, the EU, portunities for U.S. companies involved rule of law in doing business that the and China. It is in the shared U.S. and in Georgia to have tariff-free access to United States encourages globally. *HRUJLDQLQWHUHVWWRVLJQL¿FDQWO\ERRVW markets of more than two billion people. Like its international security com- bilateral trade between the United States The United States must do all it can mitments, Georgia has demonstrated its and Georgia by adopting a Free Trade to encourage expanded economic ties progress in building welcoming, stable Agreement. If awarding consistently with Georgia to exploit these and other and transparent economic environment. loyal allies is truly the priority, Georgia HFRQRPLFDQG¿QDQFLDORSSRUWXQLWLHV It is a good place to do business, and a presents an excellent opportunity for the but also for important geo-political rea- beachhead in that regard, in a turbulent, administration to demonstrate it, and I sons. The alternative course for Georgia unstable region. hope it will be on the table when Prime would be to reintegrate into the backward Georgia has a successful track record Minster Bakhtadze visits the White governance, obsolete technological and in completing international infrastructure House. management environment of the Russian projects, including energy pipelines and Mamuka Tsereteli is president, Amer- orbit. Georgia lives, as they say, in a very oil terminals. Georgia has attained high ica-Georgia Business Council, a senior interesting neighbourhood of great inter- rankings in all positive international research fellow for the Central-Asia Cau- est to many of the United States’ most indicators, including Index of Economic casus Institute at AFPC, and a member challenging adversaries — China, Iran, Freedom of the Heritage Foundation and of the part-time faculty at Johns Hopkins and of course, its immediate neighbour, Doing Business of the World Bank, with SAIS and American University.

14 | Investor.ge OCTOBER-NOVEMBER 2018 licensing process for cannabis cultivation Georgia Weighs Legal in Georgia and which would have strictly prohibited its sale in the country, was part of a larger draft law on regulating marijuana use in the country. Cannabis Production “After the Constitutional Court’s decision on marijuana consumption, a new legal reality emerged—marijuana for Export use in private spaces is no longer a crime THE GEORGIAN GOVERNMENT HAS PLEDGED TO HOLD or even an administrative offense. Im- PUBLIC DISCUSSIONS ON A DRAFT LAW THAT WOULD LEGALIZE mediately after the publication of this CANNABIS PRODUCTION FOR EXPORT. WHILE THERE IS STRONG court decision, I instructed the Interior OPPOSITION TO THE PROPOSAL IN SOME QUARTERS, THE Ministry to prepare a relevant bill strictly RULING GEORGIAN DREAM PARTY BELIEVES IMPLEMENTING and clearly banning marijuana consump- FORWARD-THINKING LEGISLATION TODAY WILL HELP DEAL tion in public places,” he noted. WITH THE DRUG ADDICTION PROBLEM IN THE COUNTRY AND Bakhtadze underscored that selling STRENGTHEN THE ECONOMY. marijuana is still a felony in the country. “We need to be sure that not even one he Georgian government has the Georgian Orthodox Church and gram of this stuff is illegally sold, and prepared a draft law on the cul- other groups in society, the proposal has that it does not create health problems Ttivation of cannabis for export, been temporarily shelved pending public for our population and citizens,” he said. VSHFL¿FDOO\IRUWKHSURGXFWLRQRISKDU- discussions. Interior Minister Giorgi Gakharia maceuticals and cosmetics. said the Ministry’s recommendations The initiative was one part of a LICENSED CULTIVATION include an age limit on marijuana con- legislative package aimed at updating Prime Minister Mamuka Bakhtadze sumption and other regulations. He noted the country’s drug laws following the announced the government’s plans dur- that if the sector is well regulated, allow- Constitutional Court decision decrimi- LQJKLVUHJXODUSUHVVEULH¿QJRQ6HS- ing cannabis-based medical products nalizing marijuana consumption. tember 12. does not “create additional risks.” But following a large protest from The proposal, which foresees a strict PREVENTION AND THE ECONOMY Deputy Parliament Speaker Tamar Chugoshvili told Investor.ge that the parliament has been researching international best practices on drug policies for the past two years. Their work has included intensive study of several models, from Dutch practices to the approaches in Spain and Portugal. The current draft was a product of the parliament’s research and a response to the Constitutional Court rulings against the strict prison time envisioned under Georgia’s existing legislation. Prior to the Constitutional Court’s decisions, Georgia had some of the strictest anti-drug laws in the region. Today, however, the mood of the Court is to roll

OCTOBER-NOVEMBER 2018 Investor.ge | 15 back those restrictions, Chugoshvili said. give marijuana to 12-year-olds and this tion for lawmakers considering legal- She noted that the strict prison sen- kind of thing—you cannot drive while izing cannabis consumption: a study tences for drug use did not solve the >EHLQJXQGHUWKHLQÀXHQFH@7KHVHNLQGV in Colorado found the legal marijuana country’s drug problem. of things need to be regulated as soon as market created 18,000 jobs and gener- “This very repressive criminal policy possible,” she said. ated $2.4 billion over a two-year period. did not really work for Georgia because The government’s draft law package The Georgian government’s draft it did not really reduce the damage; it did involves two separate parts: regulation of plan is much more conservative and not really reduce the number of people marijuana use and a legal framework for only foresees the legalization of cannabis who suffer from this problem,” she said. licensing cannabis cultivation for export. cultivation for export products; the sale “So, we were looking into the expe- “I do not know how this process will of marijuana in the country would be riences of different countries. We were continue in the future, but if Georgia illegal, Chugoshvili said. looking from that perspective, from decides to proceed with this draft, to “According to this draft, any dealing the human rights perspective—what proceed with this law for cultivation with the selling of drugs including mari- countries did to overcome the problem; for pharmaceutical purposes, Georgia juana, cannabis, inside the country, is a and many countries actually overcame has the capacity to control the licens- criminal offense [. . .] The cultivation for this problem not by repressive criminal ing process and control the cultivation the pharmaceutical purposes is allowed, policies but by a rather different ap- and production in a way that it does not and there is a very detailed regulation for proach: providing healthcare programs, increase the number of people who are licensing. If it happens, it should happen preventive programs, social rehabilita- using marijuana,” she said. under very strict oversight by the state tion programs,” Chugoshvili said, noting Chugoshvili said that, following because, as I said, any selling of cannabis that the most successful programs were pushback from society, the part dealing inside the country is considered to be a also the most expensive: the individual, with the licensing of cannabis cultiva- criminal offense,” she said. case-by-case approach combined with tion will be shelved for now, however, The current version of the draft envi- strong prevention programs in schools pending discussions and wider public sions six different types of licenses and and universities. information campaigns. an independent agency under the execu- “Everyone agrees that the state needs There is no scheduled date for the tive branch of the country, which would to have a more caring policy and that this cannabis cultivation portion of the law control the licensing process. will require a lot of investment and a lot to be discussed in parliament. The licenses, Chugoshvili said, of money,” she said. would be for the cultivation of cannabis But today, following the latest court INTERNATIONAL TREND for the production of oil used for phar- decision, “we are left in a situation where Georgia’s draft law follows a grow- maceutical purposes. “We did some re- quite a lot of cannabis can be possessed, ing international trend to legalize can- search of course, we did a lot of research and it can be freely consumed, and nabis cultivation and sales. actually, and there are very developed our feelings are that this is the worst Twelve countries in the world have countries that have similar regulations, condition that the country can have,” legalized marijuana use for medical including Canada, the United States, Chugoshvili said. purposes; two countries—Uruguay and Germany, Austria, Israel, and the Neth- “This is why we are rushing with a Canada—plus several U.S. states—have erlands. There is a big list of countries decision, because this part needs to be legalized it for recreational purposes. that do this and the draft was basically regulated somehow: you cannot really Economics plays a part in the equa- following their example,” she said.

16 | Investor.ge OCTOBER-NOVEMBER 2018 OCTOBER-NOVEMBER 2018 Investor.ge | 17 lari, although drivers of hybrid vehicles receive a 50 percent discount and those Tbilisi Bets on with electric vehicles receive the permit free of charge. Starting October 1, taxi drivers must display permits visibly on their vehicles, New Rules for use a yellow “taxi” light, and maintain a clean vehicle. Taxi drivers will face a 200-lari ¿QHIRUGULYLQJZLWKRXWDSHUPLWDQG Safer Taxis DODUL¿QHIRUIDLOLQJWRIROORZWKH new rules.

IMPORTANT STEP *HOD.YDVKLODYD)RXQGHURIWKH NGO “Partnership for Road Safety,” told Investor.ge that regulations should make the taxi market work more effectively. “Every highly developed city regu- lates the taxi market in some way. Pas- senger safety should be protected and service should be good. The main thing is that City Hall should concentrate more on the drivers’ professionalism and passenger safety. If we want to develop the tourism industry, we need a good taxi VHUYLFH¿UVW´.YDVKLODYDVDLG The strictest regulations will start next year, in October, City Hall’s Mum- ladze said. “First we need to identify how many SEVERAL CHANGES ARE UNDERWAY taxi drivers we have in Tbilisi. In a year, we will have new regulations, such as TO REGULATE THE TAXI MARKET AND restrictions on right-hand drive vehicles PROVIDE BETTER SAFETY GUARANTEES FOR as well as for cars with two doors. Taxi PASSENGERS. FDUVWKDWDUHSDUWRIDÀHHWVKRXOGEH standardized, meaning the same color and taximeter,” he said. NINO BAKRADZE are intended to regulate the taxi market Mumladze hopes that emissions and provide better safety standards for checks, which will begin in January bilisi City Hall has introduced passengers, Mamuka Mumladze, Head 2019, will help ensure unsafe vehicles several new rules and regu- of the Municipal Transport Department are not on the streets. Tlations for the city’s myriad at Tbilisi City Hall, told Investor.ge. 7ELOLVL0D\RU.DNKD.DODG]HKDV taxicabs. This year, taxi drivers are obligated also announced that as of October 2019, The rules are being introduced in to register and receive a permit from all taxi cars will have to be white. stages over the next year. The changes Tbilisi City Hall. The permit costs 100 Beso Papiashvili, head of Taxify’s Georgian office, notes that the new

18 | Investor.ge OCTOBER-NOVEMBER 2018 regulations will be slightly different for the city’s streets. passing similar rules—some taxi drivers ride-sharing companies. He also noted that the city is betting worry about the impact of the changes on “Drivers who cooperate with us on better public transport to decrease the their livelihoods. should have permits just as a regular need for taxi services. .KYLFKD0FKHGOLG]HDSHQVLRQHU taxi driver does. But companies like us, “We plan to replace all old buses with works as a taxi driver to supplement his which provide ride-sharing services, are new ones and to decrease the intervals monthly income. not obliged to have uniformly colored between arriving metro trains by the end But now he is not sure how he will be cars or have some identifying sign on of 2019,” Mumladze said. able to continue working after the new the vehicles,” he said. $FFRUGLQJWRRI¿FDOLQIRUPDWLRQWKH restrictions on right-hand steering-wheel monies received from permit issuances vehicles go into force next year. MORE REGULATIONS, HIGHER are to be spent for public transport im- “If I sell this car, the money will not COSTS? provement. be enough to buy the same type of car Papiashvili added that the company The number of registered taxi drivers with a left-hand steering wheel. I will not agrees with the aim of the regulations: was not available at the time of publica- be able to afford buying a new car and getting unsafe vehicles off the road. tion. my pension is not enough to live on it. He noted, however, that if there are I do not know what to do in the future,” fewer taxis operating, the cost of a taxi DRIVERS’ CONCERNS he told Investor.ge. ride could increase. While some other cities are watching “Regulating the market is neces- Mumladze argued that the market Tbilisi’s taxi regulation reforms to see sary, but living standards have to be should regulate the price for taxis, as what reforms they should implement— higher when you make such decisions,” well as the number of taxis operating on the city of Rustavi is already interested in Mchedlidze noted.

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c)]-3/W*HA3/f f ]TW'a/=7fa/G]/f ")6>6T6f/HP37'f LW\RI/RQGRQ¿QDQFLDODQDO\VWV ing a collaboration route to furthering New Digital are speculating the develop- innovation for Space’s marketing and Cments mark the start of a new customer services. Bank Expands ¿QWHFKUHJLRQDOEDQNLQJKXE Saying “goodbye” to banks as we know them and embracing the move to SPACE BANKING digital services has been a key part of Georgian This speculation was fanned by re- TBC’s strategy for some years now. In marks from TBC Group CEO Vakhtang August, TBC told investors that in Q2 Banking’s Butskhrikidze, who spoke with analysts 2018 only 9.9 percent of transactions about the H1 report. were conducted in its branches, while the Reach “To build upon our leading position remaining 90.1 percent were done digi- in the Georgian market, the successful tally—on ATMs, mobile phones, online TBC BANK DETAILED ITS implementation of our digital strategy or at pay terminals. While the numbers FAST-GROWING CLOUD- and the very promising results of our for branch transactions have risen only BASED NEOBANK AND A newly launched fully digital bank, Space, slightly over the last two years, digital NEW PARTNERSHIP WITH we will also consider entering other transactions have more than doubled. markets to further increase our banking ,QDQRWKHUPRYHIRU¿QWHFKEDQN- AZERBAIJAN’S NIKOIL operations beyond Georgia,” he said, ing, last year, using Facebook messen- BANK IN ITS H1 REPORT adding, “We want to build our strategy JHU7%&ODXQFKHGWKH¿UVW*HRUJLDQ TO LONDON-BASED outside Georgia with Space, mainly in speaking chatbot, Ti-Bot, which allows FINANCIAL ANALYSTS. mobile banking, via remote channels and customers to receive various informa- dealers’ franchises.” tion about banking products as well as At the end of August, Space had conduct simple banking transactions. around 65,000 registered customers and Ti-Bot also seems to have been very well around 160,000 downloads. However, received by customers and has become TBC says that “for now it is available a very popular communication channel, only for Georgian residents.” receiving 10.4 million messages since Structured as an autonomous busi- launch. ness, Space provides customers with Investors like this digital approach, a full range of retail banking services, too. It does not seem to be making TBC’s including loans, saving products and a banking activities riskier—Anthony Da credit card powered by Visa. The busi- Cost at London brokers Peel Hunt points ness was developed from concept to out that its credit quality is improving. launch in just eight months and on a budget of just over a million lari. EXPANSION IN AZERBAIJAN To avoid the hazard of soaring bills In July, TBC signed a conditional, that has toppled a number of challenger non-binding strategic partnership agree- neobanks in other countries, Lasha Gur- ment with Nikoil Bank to further develop genidze, who heads the Space project TBC’s business in Azerbaijan. The deal team, has kept very tight control on lays the groundwork for a future merger operational costs. between its 10-year-old Azerbaijan sub- The project’s team numbers only 20 VLGLDU\7%&.UHGLWZLWK1LNRLO%DQN members. As Space is cloud-based, there Nikoil Bank is a privately-owned com- are no branches or other physical spaces, mercial bank offering corporate and retail its presence being just on mobile phones. services across Azerbaijan and had assets Gurgenidze told a press conference that of GEL 591 million at end 2017. TBC Space will also keep costs down by tak- .UHGLWLVPXFKVPDOOHUZLWKHQGRI

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([FHOOHQFHLQ :+$7:('2 assets of GEL 39 million. 6SDFHEDQNRI¿FLDOVVDLGGXULQJ7%&¶V $3.5 million – $4 million, which is the Building the relationship with Nikoil +¿JXUHVFRQIHUHQFHFDOO amount of equity we have in our Azeri Bank is still a work in progress, with the So, this looks to be a very cost-and- subsidiary.” Stacked up against that, “the deal going through due process, accord- risk-lite deal, in the initial stage at least. target capital that Nikoil Bank could have ing to the H1 report. TBC will at the closing of the deal could own up to 10 percent of the be about $50 million.” merged entity but has a three- At the end of August, Space had around TBC can see the oppor- year call option to acquire ad- 65,000 registered customers and around tunity that comes with the ditional shares (subject to the much more developed banking relevant authorities’ approval) 160,000 downloads. products that it has in Georgia to reach a 50 percent-plus-one compared to those on offer interest. However, TBC will start quickly As TBC CFO Giorgi Shagidze told ana- in Azerbaijan. “We have seen that as on contributing to the development and lysts listening in on the bank’s 2018 H1 TBC Bank we can penetrate further execution of the merged entity’s strat- ¿JXUHVFRQIHUHQFHFDOO³RXUSRWHQWLDOLQ- in the Azerbaijani market,“ Vakhtang egy, including with innovations such as vestment in Azerbaijan could be around Butskhrikidze explained.

22 | Investor.ge OCTOBER-NOVEMBER 2018 SALLY WHITE milestone. Clearstream Banking is a New Deal to subsidiary of Deutsche Börse Group, but eorgia has taken an important with operations internationally and links step in the opening up of its to markets worldwide. This milestone Strengthen Gfinancial markets to foreign follows the admittance to Clearstream investors by signing a new deal to handle systems two years ago of Georgian gov- corporate bond transactions. The move ernment bonds and was made possible Georgia’s sounds boringly technical, but it is a by Clearstream’s indirect link with the vital one to give foreign bond investors Bank of Georgia as a sub-custodian and FRQ¿GHQFHWKDWDOO*HRUJLDQDVVHWDG- cash correspondent. Describing its role, Financial ministration will be up to international Clearstream states, “When assets are standards. Without that assurance, major traded, both parties must be sure they Market international funds won’t invest. will receive their part of the transaction. Hopes are now raised of a “consider- Given the complexity, speed and quan- DEOH´LQFUHDVHLQIRUHLJQPRQH\ÀRZV tity of assets involved, a fast, secure and trusted third-party is absolutely essential SIX LARGE GEORGIAN COMPANIES to Georgia’s capital market, according HAVE SIGNED A DEAL WITH to leading players. The admittance of for settling transactions.” CLEARSTEAM BANKING TO HANDLE corporate bonds issued by six major Clearstream ensures that cash and CORPORATE BOND TRANSACTIONS. securities are promptly and effectively BROKERS SAY THE DEAL IS A Georgian companies to the settlement, MILESTONE FOR GEORGIA’S custody, and asset services carried out delivered between trading parties. It also FINANCIAL MARKET. by Clearstream Banking is an new manages, safekeeps and administers the

Assigned to/from Georgia and wondering if you have any personal income or other tax liabilities in your host/home country? The EY Georgia Global Immigration and Expatriate Tax Services team will <]l]jeaf]qgmjlYphgkalagf^jgel`]dg[YdYf\afl]jfYlagfYdlYpdYoklYf\hgaflk3]fljq']pallYpZja]Õf_k 9\nak]gfl`]lYpaehda[Ylagfkj]dYl]\lgqgmjljYfk^]jlg'^jge?]gj_aY 9kkakloal`lYpj]_akljYlagfaf?]gj_aY =fkmj]^mddlYp[gehdaYf[]Yf\Ykkakloal`hj]hYjYlagfg^l`]YffmYdlYpj]lmjf 9kkakloal`gZlYafaf_f][]kkYjq\g[me]flk^jgel`]klYl]lYpYml`gjala]k ]&_&YlYp[d]YjYf[][]jlaÕ[Yl] on the taxes paid in Georgia to avoid double taxation, wherever applicable) Hjgna\]j]_mdYjmh\Yl]kgflYpdYo[`Yf_]kl`YleYqY^^][lqgmjafl]jfYlagfYdegZadalqhjg_jYe 9kkakloal`gZlYafaf_l`]j]imaj]\lqh]g^nakY 9kkakloal`gZlYafaf_']pl]f\af_ogjcj]ka\]f[]h]jealk^gjqgmYf\qgmj^Yeadqe]eZ]jk3

We also assist companies in developing international assignment tax policies that align closely with the gj_YfarYlagfÌkZmkaf]kkY[lanala]k$Yj][gkl%]^^][lan]Yf\`]dhlgeala_Yl]lYpjakck&

Contact us: LafYCY[`Yc`a\r] Ketevan Otarashvili LYpDYoHjY[la[] H]ghd]9\nakgjqK]jna[]k L]d2#11- +*!*)-00)) ]pl&*))*! L]d2#11- +*!*)-00)) ]pl&*),/! LafY&CY[`Yc`a\r]8_]&]q&[ge C]l]nYf&GlYjYk`nada8_]&]q&[ge see the actual effect of this change, but in the long run there’s no doubt that it will improve the market, its size and liquid- ity,” Sharikadze added. 3DUHVLVKYLOLLVHTXDOO\FRQ¿GHQWWKDW the impact on the corporate bond market will be considerable because it will create the right conditions for a wider range of investors. “Non-resident investors traditionally have been investing in Geor- gian government bonds denominated in GEL, partly because these bonds were Clearstream-able. Now, with this Clear- stream news, we all hope that they’ll start securities that it holds on behalf of its VLJQL¿FDQWVWHSWRZDUGVGHYHORSLQJWKH investing in GEL-denominated corporate customers. Over 300,000 domestic and local capital market.” “Many interna- bonds as well. In our opinion, they could internationally traded bonds, equities and tional institutions, including funds and potentially make up to 30 percent of this investment funds are currently deposited other investment vehicles, are limited, or market over time,” Paresishvili said. with Clearstream, and it has 2,500 cus- often not allowed, to have local custodi- “If you look at how these corporate tomers in 57 countries. The Georgian DQV:KHQ*HRUJLDQWUHDVXULHVZHUH¿UVW bonds trade on the Georgian Stock Ex- companies whose bonds qualify are M2 admitted to the Clearstream system, we change (GSE), you’ll see that they are not Real Estate, Georgian Leasing, Nikora, saw a dramatic increase in interest from very liquid because of a scarcity issue— 6LONQHW*HRUJLDQ/HDVLQJDQG0LFUR¿- foreign big funds. Some 25 percent of most investors hold them until maturity nance Organisation Crystal. However, the total trading amount was made by the and never sell. USD denominated bonds George Paresishvili, CEO of the Geor- IRUHLJQLQYHVWRUVLQWKH¿UVW\HDUVLQFH are more liquid than GEL ones because gian Stock Exchange, expects more to admission,” Sharikadze said. their investor base is typically more follow. “With an already strong pipeline “So, this move brings the potential diverse (high-net-worth individuals in of new publicly listed corporate bond investor pool to a whole new level and, addition to institutional investors, both issues, we expect their number to grow for instance, a Frankfurt-based invest- local and international),” he said. even further following their inclusion in ment fund can easily invest in Georgian National Bank of Georgia Vice Presi- the Clearstream link.” At Georgian bro- securities without even having an ac- dent Archil Mestvirishvili pointed out kers Galt & Taggart, Managing Director count in Georgia,” Sharikadze explained. that there has now been a succession of Otari Sharikadze regards this as “a very “It is hard to predict when we will measures to increase foreign interest in the Georgian bond market. “[. . .] we have recently undertaken a set of reforms to remove all tax-related risks; for example, non-residents are now exempt from capital-gains tax and withholding tax on coupons and dividends. By November, we will ensure delivery-versus-payment settlement for all corporate bonds and equities in central bank money.” %DQNRI*HRUJLD&(2.DKD.LNQD- velidze welcomed the move as “greatly facilitating” the administrative proce- dures for investors on time-saving and HI¿FLHQF\JURXQGV

24 | Investor.ge OCTOBER-NOVEMBER 2018 BANKING & FINANCE LAW PRACTICE

Nodia, Urumashvili & Partners has the preeminent banking and finance law practice in Georgia. The company has been recognized by the international legal directories as one of the leading law firms in Georgia in this field. According to Legal 500, “Nodia, Urumashvili & Partners is a popular choice for Georgian banks and has notable expertise in licensing issues”. Also, the managing partner Lasha Nodia is recognized as one of the best lawyers in Georgia in banking law (IFLR 1000).

Associate Ketevan Kharebava has recently returned to the company after studying a one-year joint master’s degree in Law and Finance at Queen Mary University of London. The costs of her studies were fully funded by the International Education Center of Ministry of Education of Georgia. Ketevan acquired an in-depth interdisciplinary knowledge of the financial law with a particular focus on recently adopted EU legislation MiFID II/MiFIR (The Markets in Financial Instruments Directive II/ the Regulation on Markets in Financial Instruments) regulating investment services in EU. Ketevan worked at Nodia, Urumashvili & Partners for four years focusing her practice on banking and finance law.

Nodia, Urumashvili and Partners anticipates that Ketevan’s return will further expand the company’s banking and finance law practice and enhance the company’s involvement in public discussions related to harmonization of Georgian law on capital markets and financial services with EU legislation.

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/DVKD1RGLD0DQDJLQJ3DUWQHU .HWHYDQ.KDUHEDYD$VVRFLDWH /DVKD#QSODZJH NHWHYDQNKDUHEDYD#QSODZJH 2൶FH)ORRU%ORFN9D]KD3VKDYHOD$YH 2൶FH)ORRU%ORFN9D]KD3VKDYHOD$YH 7ELOLVL*HRUJLD 7ELOLVL*HRUJLD 3KRQH 3KRQH he Georgian government has Braeckeveldt underscored that the Georgia drafted a new customs code that secondary legislation will be the most Tit says will help the country in- LPSRUWDQWEHFDXVHLWGH¿QHVKRZWKHODZ tegrate into the European market. is interpreted on the ground. Drafts “The new customs code will become He noted that the challenges “tra- an important stimulus for attracting ditionally” appear in the secondary European investments and will support legislation and the business community “European” the integration process of Georgian busi- should be involved when such legislation nesses on the European market,” Prime is written. Customs Minister Mamuka Bakhtadze said. FH Bertling Logistics Georgia’s Na- The Prime Minister said that Georgia talia Nikitina noted that there are several ZLOOEHWKH¿UVWFRXQWU\LQWKHUHJLRQWR changes she would like to see in the new Code adopt European customs infrastructure customs code but at this stage it is too and legislation, which will contribute to HDUO\WRVSHDNDERXWVSHFL¿FDPHQGPHQWV the “development of international trade.” in the new version. THE GEORGIAN John Braeckeveldt, Director of Gos- “The current customs code draft is GOVERNMENT HAS selin Group in Georgia, noted that it very general; when [a customs code] PRESENTED THE DRAFT is “quite logical” that the government comes into force, usually a lot of ad- OF A NEW CUSTOMS wants to adopt a European-type customs ditional instructions are issued in order CODE, DEVELOPED IN code, given the potential to increase trade to clarify individual articles,” she said, COOPERATION WITH with a large, neighboring market. adding that the Revenue Service is not THE EUROPEAN UNION’S “The customs code itself was already making any comments at this stage be- TAXATION AND CUSTOMS quite evolved. I presume the new cus- cause the document is only a draft. UNIT. INVESTOR.GE toms code will only be technical changes; [. . . ] [T]hey worked directly with Europe POSITIVE DIRECTION SPOKE WITH TRANSIT AND [on the draft customs code]. I presume Lezhava added that at this point it SHIPPING EXPERTS ABOUT it will be streamlining and making sure appears that all the planned changes “are THE WEAKNESSES IN THE everything is correct,” he said. in a positive direction.” CURRENT CODE AND David Lezhava, Public Policy Sector “One of these changes is a harmo- THEIR EXPECTATIONS FOR Director at PMCG, agreed that, in gen- nization of the Customs Code with THE NEW DRAFT. eral, Georgia’s tax and customs laws are the requirements of international con- well regarded in the ventions. This will region and beyond. result in documents “The current customs t7KHQHZFXVWRPV and guarantees pro- code cannot be con- code will become an duced by local banks, sidered to be one of customs and insur- the major obstacles important stimulus for ance companies to be for economic devel- attracting European recognized in other opment. However countries. This is very there is always room LQYHVWPHQWVu much in line with the for improvement. goal to better integrate &RPSODLQWVRIWHQÀRDWLQJLQWKHDLUZHUH with the world,” he said. [about] ambiguity and the possibility of Lezhava also noted that Georgia dual interpretation of individual provi- needs to make certain changes under sions. Whether this issue was addressed its Association Agreement with the EU. or not should be seen during practical “It should be noted that currently implementation,” he said. Georgia doesn’t have a Customs Code

26 | Investor.ge OCTOBER-NOVEMBER 2018 as a separate document, but it is a part of HELP ACROSS THE BOARD WUHDWPHQWRILPSRUWHGLQSXWVDQG¿QDO the Tax Code. Customs regulations were Lezhava noted that some of the pro- goods, now will be able to choose similar spread throughout the Tax Code, the gov- MHFWHGFKDQJHVVKRXOGEHQH¿WEXVLQHVV WUHDWPHQWIRULQSXWVDQG¿QDOJRRGVWKXV ernment’s and ministers’ decrees. Now “across the board.” For instance, he noted eliminating [such earlier] disadvantages; everything will be combined under the that plans to simplify border crossing this should stimulate imports of inputs Customs Code. That should be helpful formalities (general declarations will be and local production rather than imports for businesses,” he said. RI¿QDOJRRGV,QWURGXFWLRQRI He noted that while 7KHVHFRQGDU\OHJLVODWLRQZLOOEHWKHPRVW a new type of guaranty will there is some concern the EHQH¿WPRVWO\60(VZKLOHD WUDQVLWLRQZLOOEHGLI¿FXOW important, because it defines how the law is new type of data exchange be- for businesses, because tween private businesses and they are used to dealing interpreted on the ground. the customs [authorities] will with the current legisla- PRVWO\EHQH¿WLPSRUWHUVZKR tion, the long-term impact of the changes allowed 150-200 days in advance) “will have large volumes of imported goods,” should be good. benefit both exporters and importers he said. “The full extent to which the “In our opinion, this transitional cost by the reducing time needed for border new code is better than the old legislation LVRXWZHLJKHGE\WKHEHQH¿WRIKDYLQJ crossing[s].” will only become clear when the new the entire [body of] regulations under “Some categories of producers who code becomes operational and is tested one code,” he said. were disadvantaged due to uneven tax in practice,” Lezhava concluded.

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OCTOBER-NOVEMBER 2018 Investor.ge | 27

$1,864 a month, whereas in Vietnam it Untapped Potential for Made in is $234 a month.” Georgia Apparel EXPORTING TO EUROPE AND BEYOND A RECENT STUDY BY KPMG FOUND GEORGIA HAS SIGNIFICANT .DYWDUDG]HVDLGWKHDVVHVVPHQW COMPETITIVE ADVANTAGES FOR FOREIGN INVESTORS showed that the consumption and pro- INTERESTED IN MANUFACTURING FOOTWEAR AND BAGS, duction of footwear in Georgia has ESPECIALLY FOR EXPORT PRODUCTS DESTINED FOR THE EU. increased by 10 percent over the past LIKA JORJOLIANI ganized, starting from design and ending several years, and 35 percent of the total ZLWK¿QLVKHGSURGXFWV´.30*¶V7DPDU volume of this production is exported. UHFHQWUHSRUWE\.30*IRUWKH .DYWDUDG]HWROGInvestor.ge. 0LNKDLO.KLGXUHOLWKH+HDGRIWKH government’s Enterprise Geor- She added that the study also identi- Enterprise Georgia agency, noted that A gia agency found that Georgia ¿HG3RODQG5RPDQLD7XUNH\9LHWQDP there are already production plants man- RIIHUVGH¿QLWHEHQH¿WVIRUPDQXIDFWXUHUV and Ukraine. ufacturing clothing under contracts with producing footwear and bags: competi- “It was revealed that we have many major international brands, including tive wages, a low-tax base, and attractive advantages, mainly comparatively cheap Nike, Zara, Puma and M&C. He added trade agreements with one of the largest labor, low electricity and water costs and that the free trade plans with the EU and consumer markets in the world. inexpensive land. For example, while China are providing more opportunities “We see Georgia as a country where a minimal salary in Georgia is $365 a for Georgian factories to export clothing whole cycles of production may be or- month, the average salary in Turkey is and footwear abroad.

30 | Investor.ge OCTOBER-NOVEMBER 2018 “Georgia has concluded an Associa- contract for Georgian-made products to He added, however, that his company tion Agreement and Deep and Compre- EHVROGLQ+RQJ.RQJ has obtained a production facility in hensive Free Trade Area agreement with Rustavi that has the capacity to produce the EU, a free trade regime with CIS LOCALLY SOURCED RAW ¿QLVKHGKLJKTXDOLW\SURGXFWV countries, Turkey, and the Association of MATERIAL Gotsiridze said Alexander Gotsi Free Trade of Europe (EFTA). In addi- Alexandre Gotsiridze, the founder products are largely exported to markets tion, the free trade agreement with China of the company Alexander Gotsi, told in the West and in the CIS region. DQG+RQJ.RQJZLOOHQWHULQWRIRUFH>E\ Investor.ge that his company has been “Currently, we have support from the the end of the year], and that will enable producing handmade leather bags and German development agency, GIZ, to companies operating in Georgia to gain accessories from locally sourced materi- ¿QGD*HUPDQSDUWQHUWRKDQGOHLQWHUQHW access to markets with billions of con- als for the past two years. sales for our products,” he said. His sumers without paying customs taxes,” “We use local raw materials, mainly company is currently using the Georgian .KLGXUHOLWROGInvestor.ge. leather from the local cattle, produced at Post to sell its products in e-commerce. Enterprise Georgia is also trying to local factories. These factories have been Elselema, a Georgian production connect potential investors and Georgian working since the Soviet period [. . .] It plant, is producing uniforms for a Czech companies. is a high quality leather,” he said. company, according to the owner of the In March, it helped local businesses Gotsiridze noted that a large volume plant, Elguja Mamasakhlisi. send representatives to an exhibition of of raw Georgian materials, including The company, which opened in Tbili- OHDWKHUPDGHJRRGVLQ+RQJ.RQJ$VD leather, is exported, but it is usually semi- si 27 years ago, employs 300 people and result, a Georgian company, Geferin, and ¿QLVKHGZLWKWKH¿QLVKLQJSURGXFWLRQ has expanded to include a production fa- ,QWHU%ORFN+RQJ.RQJ/LPLWHGVLJQHGD done abroad. cility in western Georgia, in Lanchkhuti.

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AMC Tbilisi AMC Batumi 24/7 Hotline: +995 32 250 00 20 24/7 Hotline: +995 32 250 00 77 11 D. Arakishvili Str. 114 Z. Gorgiladze Str. [email protected] [email protected] WKH ZRUOGµ HVSHFLDOO\ LWV PDLQ WUDGLQJ tion fell from 64 percent to 55 percent in partners. July 2018, while deposit dollarization fell IMF Upbeat “Global trade tensions could dampen from 70 percent to 61 percent. The authori- EXVLQHVVFRQÀGHQFHWUDGHDFURVVFRXQ- ties have recently announced an increase tries, and economic activity. Furthermore, in the reserve requirements on short-term on Georgian market volatility in Turkey and the threat of FX deposits from 20 to 25 percent, which additional sanctions against Russia could would further help with de-dollarization. adversely affect economic prospects The gradual de-dollarization of the econ- Economy in those economies. Negative develop- omy signals increased credibility of the ments in Russia and Turkey, Georgia’s authorities’ monetary policy framework THE INTERNATIONAL second- and third-largest trading partners LQDQFKRULQJLQÁDWLRQH[SHFWDWLRQV/RRN- MONETARY FUND HAS accounting for 15 and 8 percent of total ing forward, concerns about dollarization exports in 2017, respectively, could under- should be addressed with targeted and REVISED PROJECTS FOR PLQH HFRQRPLF SURVSHFWV LQ *HRUJLDµ market-based prudential measures that GEORGIA’S GDP GROWTH he said. KHOSLQWHUQDOL]H);FUHGLWULVNVµKHVDLG IN 2018, RAISING IT FROM 4.8 He noted that to “bolster resilience to PERCENT TO 5.5 PERCENT. H[WHUQDOVKRFNVµ*HRUJLDVKRXOGFRQWLQXH HOUSEHOLD INDEBTEDNESS INVESTOR.GE SPOKE WITH IMF LWVSUXGHQWÀVFDOSROLF\DVZHOODVEXLOGLQJ Painchaud also noted the govern- up foreign exchange reserves and main- ment’s steps to address “the rapid growth RESIDENT REPRESENTATIVE WDLQLQJH[FKDQJHUDWHÁH[LELOLW\ LQKRXVHKROGLQGHEWHGQHVVµ TO GEORGIA FRANCOIS “Efforts to promote diversification “The National Bank of Georgia (NBG) PAINCHAUD ABOUT THE ZRXOGDOVREHEHQHÀFLDO:KLOH*HRUJLD has established a cap on loans to house- REVISED PROJECTION. fares well in terms of export market diversi- holds without verifiable income (at 25 ÀFDWLRQWKDQNVWRIUHHWUDGHDJUHHPHQWV percent of banks’ regulatory capital), KHKLJKHUSURMHFWHGJURZWK´UHÁHFWV *HRUJLD·VH[SRUWSURGXFWGLYHUVLÀFDWLRQLV awaiting upcoming regulations to pro- Georgia’s strong economic perfor- relatively low due to its narrow production mote responsible lending. The latter TPDQFHVRIDUWKLV\HDUµ,0)5HVLGHQW base. Mobilizing FDI in export-oriented sec- would include guidance on evaluation of Representative to Georgia Francois tors would be instrumental to enhancing income to assess the ability of a borrower Painchaud told Investor.ge competitiveness, reducing external vul- to repay, and additional restrictions on “In particular, the economy has grown nerabilities, and generating broad-based payment-to-income and loan-to-value faster than expected, expanding by 5.5 growth. Increasing productivity, promoting ratios to protect households from a high SHUFHQW \\ GXULQJWKHÀUVWVHYHQPRQWKV innovation, and better institutions can debt service burden. In addition, the of 2018. Helped by supportive economic help expand Georgia’s current capac- maximum interest rate on loan, which has conditions in major trading partners, Geor- LW\ WR GLYHUVLI\ LWV H[SRUWDEOH SURGXFWVµ already been capped at 100 percent, will gia’s exports have been robust, increasing Painchaud said. EHIXUWKHUUHGXFHGWRSHUFHQWµKHVDLG E\DOPRVWSHUFHQW \\ GXULQJWKHÀUVW Painchaud added that the IMF half of 2018. Growth in remittances and DOLLARIZATION ´EURDGO\VXSSRUWVµWKHUHVSRQVLEOHOHQG- credit has also positively contributed to He noted that dollarization has de- ing initiative. Georgia’s economic growth. With strong FOLQHG ´VLJQLÀFDQWO\µ LQ WKH FRXQWU\ EXW “We understand that the industry economic activity, the unemployment remains high overall. has some concerns about the proposed rate, while still stubbornly high, declined Painchaud added, however, that the policy. We would encourage continued by 2 percentage points to 12 percent in government’s larization measures, “ to- and constructive dialogue between the 4µKHVDLG JHWKHUZLWKKLJKHUHFRQRPLFFRQÀGHQFH industry and the NBG. Continued discus- prudent macroeconomic policies, and sion may lead to an improved policy, that GLOBAL SHOCKS HQKDQFHGPDFURSUXGHQWLDOWRROVµKDYH could strike a better balance between Painchaud noted that Georgia is not \LHOGHG´SRVLWLYHUHVXOWVµ ¶DFFHVVWRÀQDQFH·DQG¶ÀQDQFLDOVWDELO- “immune to developments in the rest of “Since December 2016, loan dollariza- LW\·µKHVDLG The Best Minds In The Business: Famous Economists Weigh In On Georgia

IN THE FIFTH ARTICLE IN THIS SERIES, INVESTOR.GE SPOKE WITH NIKLAS Niklas Dornbusch, together with Ri- DORNBUSCH, WHO COORDINATES THE GERMAN ECONOMIC TEAM GEORGIA; cardo Giucci and Georg Zachmann, IMF RESIDENT REPRESENTATIVE TO GEORGIA, FRANCOIS PAINCHAUD; AND HEAD recently published “Mining cryptocurren- OF MACROECONOMIC POLICY RESEARCH CENTER AT ISET POLICY INSTITUTE cies in Georgia: Estimation of economic YAROSLAVA BABYCH TO WEIGH IN ON THE POTENTIAL IMPACT OF THE GROWING CRYPTOCURRENCY MINING OPERATIONS IN GEORGIA. UHOHYDQFHµ

32 | Investor.ge OCTOBER-NOVEMBER 2018 A request from the National Bank tocurrency mining sector could serve as they can be misused as vehicles for money of Georgia to look into how to regulate an “advertisement to attract FDI to the ODXQGHULQJÀQDQFLQJRILOOHJDODFWLYLWLHV FU\SWRFXUUHQFLHVLQWKHÀQDQFLDOPDUNHW ,7VHFWRUµ and tax evasion. Furthermore, excessive inspired the study, Dornbusch told Inves- The IMF’s Francois Painchaud agreed SULFH YRODWLOLW\ DQG WKHLU LOOGHÀQHG FRQ- tor.ge. The study estimated that mining that developing the cryptocurrency indus- QHFWLRQVWRWKHWUDGLWLRQDOÀQDQFLDOZRUOG turnover in 2017 was $311 million, and that try could “hopefully lead to innovation FRXOGUHVXOWLQÀQDQFLDOYXOQHUDELOLWLHV7KLV the sector contributed $181 million or 1.2 and productivity gains spilling over to the calls for the development of a regulatory percent to Georgia’s GDP. To put that in EURDGHUHFRQRP\µ IUDPHZRUNWRPHHWWKHVHFKDOOHQJHVµ perspective, the report noted that mining But he warned that those gains would ISET’s Yaroslava V. Babych also sees and quarrying contribution 1.1 percent to have to be balanced against the risks WKHFU\SWRFXUUHQF\LQGXVWU\DV´RQHRIIµ GDP, as does the manufacture of alco- LGHQWLÀHGZLWKFU\SWRFXUUHQF\ for the Georgian economy. holic beverages. “As noted by the IMF Managing Di- She noted that much longer term “In Georgia [the role of cryptocurrency rector Lagarde, the underlying technol- measures need to be in place for high mining] is much more important than in ogy behind the cryptocurrency industry, tech industries to develop in the country. RWKHUFRXQWULHVµ'RUQEXVFKVDLG including blockchain, is an exciting de- “Bitcoin itself, I think, will have a one The report highlighted, however, that YHORSPHQWWKDWFRXOGUHYROXWLRQL]HÀHOGV off affect: it will create interest in young while cryptocurrency mining was register- EH\RQGÀQDQFHµKHVDLG people for these kinds of things. But unless LQJSURÀWVRIPLOOLRQLQWKHVHFWRU “They could lead to faster, cheaper, the government policies and the actions ZDVSD\LQJ´SUDFWLFDOO\QRWD[HVµ and more secure payment systems; bol- of private owners and so on support this, in $SDUWIURPGLUHFWHFRQRPLFEHQHÀWV VWHULQJ ÀQDQFLDO LQFOXVLRQ %XW WKH\ DOVR WKHORQJWHUPWKHUHZLOOQRWEHDQ\WKLQJµ Dornbusch noted that a successful cryp- SRVH VSHFLÀF UHJXODWRU\ FKDOOHQJHV DV she said.

OCTOBER-NOVEMBER 2018 Investor.ge | 33 Georgia’s Tourism Boom: In numbers

34 | Investor.ge OCTOBER-NOVEMBER 2018 AN ILLUSTRATED LOOK AT WHO IS TRAVELING TO GEORGIA, WHERE THEY ARE COMING FROM, AND THE MOST POPULAR DESTINATIONS WHEN THEY GET HERE.

OCTOBER-NOVEMBER 2018 Investor.ge | 35 GEORGIA’S TOURISM BOOM HAS BEEN WELL DOCUMENTED AND THE NUMBERS ARE UP ACROSS THE BOARD IN THE FIRST HALF OF 2018: THERE ARE MORE INTERNATIONAL VISITORS, MORE MULTI-DAY VISITS, MORE PEOPLE TRAVELING TO GEORGIA FOR RECREATION, AND MORE MONEY BEING SPENT. NOT ONLY ARE THE NUMBERS GROWING FROM GEORGIA’S TRADITIONAL TOURISM PARTNERS, LIKE RUSSIA AND TURKEY, BUT ALSO FROM TARGET REGIONS, LIKE ASIA (SOUTH KOREAN TOURISTS WERE UP 138.8 PERCENT COMPARED TO THE SAME TIME LAST YEAR) AND EUROPE (VISITORS FROM BELGIUM WERE UP 53.1 PERCENT COMPARED TO THE SAME TIME LAST YEAR). THIS TREND HAS HELPED INCREASE THE NUMBER OF MULTI- STAY TRIPS, ONE INDICATOR THAT HELPS UNDERSTAND THE DEPTH OF THE TOURISM SECTOR IN THE COUNTRY. IN THE FIRST HALF OF 2018, 64.5 PERCENT OF ALL VISITORS STAYED IN GEORGIA FOR MORE THAN ONE DAY, COMPARED TO 61.1 PERCENT FOR THE SAME PERIOD LAST YEAR. ALL OF THAT MEANS MORE MONEY FOR THE GEORGIAN ECONOMY: TOURISM BROUGHT IN OF $1.36 BILLION IN THE FIRST HALF OF 2018, $305 MILLION MORE COMPARED TO THE SAME PERIOD LAST YEAR. A SIMILAR TREND WAS NOTED LAST YEAR, WHEN TOURISM BROUGHT $2.7 BILLION TO THE ECONOMY, UP $594 MILLION FROM 2016. MORE TOURISTS VISITING NATIONAL PARKS

A growing number of tourists in Georgia, both local and foreign, are traveling to the country’s national parks, according to the Agency of Protected Areas.

36 | Investor.ge OCTOBER-NOVEMBER 2018 ,QWKH¿UVWHLJKWPRQWKVRIWKHQXPEHURIYLVLWRUVWRVL[QDWLRQDOSDUNVLQFUHDVHGFRPSDUHGWR

Machakhela National Park — 98 percent increase, to 7,709 visitors Tbilisi National Park — 65 percent increase, to 69,080 visitors .REXOHWL3URWHFWHG7HUULWRULHV ² SHUFHQWLQFUHDVHWRYLVLWRUV .LQWULVKL3URWHFWHG7HUULWRULHV ² SHUFHQWLQFUHDVHWRYLVLWRUV Mtiarala Protected Territories — 20 percent increase, to 42,533 visitors .RONKHWL3URWHFWHG7HUULWRULHV ² SHUFHQWLQFUHDVHWRYLVLWRUV

OCTOBER-NOVEMBER 2018 Investor.ge | 37 Overall, the number of international Spending in Georgia by international The Georgian National Tourism visitors to Georgia continues to grow an- visitors was up 49.3 percent year over Agency reported that in 2017 half of all QXDOO\,QWKH¿UVWHLJKWPRQWKVRI year, equaling 3.3 billion lari in the international trips were to Tbilisi, fol- 14.1 percent more tourists arrived in the ¿UVWKDOIRIDFFRUGLQJWRRI¿FLDO lowed by 29.7 percent of trips to Batumi. country compared to the same period statistics. Close to one-third of visitor Other popular destinations in 2017 were last year. expenditures were on food and drink 0DUQHXOLDQG.D]EHJL Travelers to Georgia are coming from (900 million lari). Visitors spent less on The capital remains tourists’ favorite increasingly diverse countries, accord- accommodations and recreation —700 destination in 2018, but there is growing ing to the Georgian National Tourism million lari and 600 million lari, respec- interest in cities and communities outside Agency. tively. Galt & Taggart noted that visitors the capital: Galt & Taggart Research )LJXUHVIRUWKH¿UVWHLJKWPRQWKVLQ are shopping more: spending at retail IRXQGWKDW.DNKHWL XSSHUFHQW 2018 show an increase in visitors from shops increased 32.1 percent year over and Mtskheta-Mtianeti (up 35.3 percent) nearly every geographic region. \HDULQWKH¿UVWKDOIRIHTXDOLQJ ³VDZVLJQL¿FDQWLQFUHDVHVLQWRXULVWWULSV The biggest increase was from north- 500 million lari. in 1H18.” east Asia: 83 percent more people came Statistically, tourists from India, Trips to other regions were also up to Georgia from that region compared to Saudi Arabia and UAE spent the most 44.8 percent, according to Galt & Tag- the same period last year. while in Georgia, Galt & Taggart found: gart Research’s September 2018 report. More people arrived in Georgia by Collectively, tourists from these three Perhaps more importantly, 40 per- land than by air or sea: 74.3 percent, an countries make up 28 percent of all visi- cent of visitors traveled to Georgia for increase of 10.7 percent compared to last tors to the country and their expenditures UHFUHDWLRQDOSXUSRVHVLQWKH¿UVWKDOI year. But the share of people arriving by in Georgia made up 42.1 percent of total of 2018, up 33.2 percent from the same air and railway is increasing. expenditures —2.4 billion lari in 2017. period last year. ,QWKH¿UVWHLJKWPRQWKVRIWKH\HDU Visitors from neighboring countries Visiting friends and relations was the 25.6 percent more people arrived by (Armenia, Azerbaijan and Turkey) also second most popular reason for traveling air—and 26 percent more by railway— PDGHDVLJQL¿FDQWFRQWULEXWLRQLQWHUPV to Georgia. compared to last year. of spending in 2017: in total, visitors from these three countries contributed 2.2 billion lari, or 37.9 percent of total spending.

38 | Investor.ge OCTOBER-NOVEMBER 2018 NEWS

CONTENT

AmCham Members Meet 50 Presidential Hopefuls

40 AMCHAM MEMBERS MEET OPIC 43 MEMBER NEWS: VICE PRESIDENT HEIDELBERGCEMENT’S 7TH ANNUAL TBILISI MARATHON 41 AMCHAM OFFICERS MEET FINANCE MINISTER 44 MEMBERSHIP DIRECTORY

41 AMCHAM MEMBERS MEET 48 SOCIAL: BACK TO BUSINESS PRESIDENTIAL HOPEFULS COCKTAIL RECEPTION

42 MEMBER NEWS: PWC GEORGIA 50 SOCIAL: AMCHAM MEMBERS MEET BRINGS ON TWO NEW DEPUTIES PRESIDENTIAL HOPEFULS

OCTOBER-NOVEMBER 2018 Investor.ge | 39 NEWS

AMCHAM MEMBERS MEET OPIC VICE PRESIDENT

AMCHAM WAS PLEASED TO HOST DAVID BOHIGIAN, THE EXECUTIVE VICE PRESIDENT OF THE OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC), AT THE AMCHAM MONTHLY ROUNDTABLE EVENT ON AUGUST 16.

MR. BOHIGIAN DISCUSSED OPIC’S SUCCESSES IN GEORGIA AND ITS CONTINUED SUPPORT FOR U.S. BUSINESSES, AS WELL AS NEW DEVELOPMENTS IN OPIC AND PLANS FOR THE FUTURE. MEMBERS THEN ENGAGED IN AN ENERGETIC Q&A SESSION WITH MR. BOHIGIAN.

40 | Investor.ge OCTOBER-NOVEMBER 2018 NEWS

AMCHAM OFFICERS MEET FINANCE MINISTER AmCham Georgia President Michael Cowgill, First Vice President Sarah Williamson and Vice President, Trea- surer Irakli Baidashvili and Executive Director George Welton met Georgian Finance Minister Ivane Matchavariani on September 28. The group discussed AmCham’s long-standing engagement with the Ministry of Finance, the plans of the new minister and ways AmCham can support MoF reforms. CSR Committee Discusses Gender Equality in Business with UN Women AmCham CSR committee met an international consultant from UN Women, Ms. Rut Gomez Sobrino, on September 24. Ms. Gomez presented her future campaign strategy that will be implemented through 2019 in Georgia. The goal of the campaign is to engage SULYDWHVHFWRU¿UPVLQWKHLPSOHPHQWDWLRQ of the Women Empowerment Principles with the aim of enhancing gender equality in the business sector in the country. CSR Committee members shared their companies’ as well as their personal experiences with each other and Ms. Gomez.

AMCHAM MEMBERS MEET ADVERTISEMENT PRESIDENTIAL HOPEFULS www.ilf.com AmCham Georgia arranged a series of meetings between members and several of the most prominent candidates running for president. The election will be held on October 28. Two meetings with candidates and members were held in September. Members had a chance to meet Mr. David Usupashvili from Development 50 years of experience and innovation in providing world-class Movement on September 17. Mr. Usu- project management, engineering and consultancy services shaped pashvili presented about his views and ILF Consulting Engineers into your trusted advisor worldwide. initiatives as a presidential candidate. The second meeting was held with Mr. 50 YEARS OF ENGINEERING EXCELLENCE Zurab Japaridze from the New Political Center – Girchi on September 26. 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

Hires Two New Directors PWC IN GEORGIA HAS Georgia in the region as a fantastic place quality and client services, innovate and STRENGTHENED ITS PRACTICE to live and work,” Lasha Janelidze said. inspire those around them. Investing in WITH THE ADDITION OF TWO “The new directors demonstrate the next generation of leaders is critical NEW FEMALE DIRECTORS. PwC’s investment in its strategic growth to our success and these promotions rein- INVESTOR.GE SPOKE WITH areas and the changing needs of its cli- force our ongoing commitment to having COUNTRY MANAGING ents, including increasing demand for the best capabilities available to help our PARTNER LASHA JANELIDZE. advice in technology, cyber security, clients be successful. This is indeed a private business and the public sector.” motivation for PwC Team in Tbilisi and 1LQR.DGDJLVKYLOLWKH$VVXUDQFH elsewhere and a good illustration that Director, began her career with PwC in hard work and dedication really makes 2008 as a consultant in the audit depart- a difference,” he said. ment. Working across public and private Tamta Shermadini, Advisory Direc- sector organizations, the team has grown tor, has over 10 years of professional VLJQL¿FDQWO\DQGFXUUHQWO\3Z&*HRUJLD practice. Over her career she has super- is increasing the service offerings to vised and managed various fund-rising public sector. projects, deals, feasibility studies and “A great example of how we can strategy. Currently, Tamta has been translate PwC’s experience into very actively delivering projects for the Gov- valid solutions for governments is ernment of Georgia and various donors PwC’s recent collaboration between in the country. *HRUJLDDQG8.SUDFWLFHVLQSUHSDUDWLRQ Tamta Shermadini ³7KHVHSURPRWLRQVUHÀHFWWKHLPSRU- RIDGHWDLOHGUHSRUWRQWKHEHQH¿WVRID tance of PwC Georgia’s place on the re- potential Free Trade Agreement (FTA) gion’s role in the economic success. The between the USA and Georgia. Price- ¿UP¶V\HDUVSUHVHQFHLQRXUFRXQWU\ waterhouseCoopers’ contribution has and in the region has been possible as been mentioned in the remarks with the a result of our vision and commitment, U.S. Secretary of State Mike Pompeo,” and PwC Georgia’s continues work to Janelidze said. support the country,” Janelidze said. “Another great example is PwC 7KH\DOVRUHÀHFW³RXULQYHVWPHQWLQ *HRUJLD¶VFROODERUDWLRQZLWK8.¶V*RRG our people, continuous demonstration of Governance Fund, aiming to assist our commitment to strengthening the Geor- country in improving investment climate, gian team and our aspiration to invest in promoting local Small and Medium Nino Kadagishvili our region and grow PwC’s business in Sized Businesses and build trust in ju- PwC Georgia has expanded its the region,” he said. dicial area.” services with two new directors: Nino “We believe that by promoting our In addition to public sector consult- .DGDJLVKYLOL $VVXUDQFH'LUHFWRU DQG women talent with right level of exper- ing, Janelidze noted that the PwC Geor- Tamta Shermadini (Advisory Director). tise and experience, we will bring value gia team is providing services in real “With over 100 staff we’re still grow- WRRXU¿UPDQGZLOOGHOLYHUYDOXHWRRXU estate consulting through high and best ing, we’re committed to investing in our clients. Both of our directors genuinely use studies, valuations, due diligences, people and passionate about promoting live our PwC values, deliver exceptional feasibility studies and business plans.

42 | Investor.ge OCTOBER-NOVEMBER 2018 NEWS HeidelbergCement’s 7th Annual Tbilisi Marathon FOR THE PAST SEVEN YEARS, HEIDELBERGCEMENT IN GEORGIA HAS BEEN INSPIRING PEOPLE TO RUN AND BE HEALTHY AS PART OF ITS ANNUAL CORPORATE SOCIAL RESPONSIBILITY EFFORTS. INVESTOR.GE SPOKE WITH HEIDELBERGCEMENT GEORGIA’S SALES AND MARKETING DIRECTOR IRAKLI MAKHAROBLIDZE AND FINANCIAL DIRECTOR EKA TKESHELASHVILI ABOUT THE EVENT AND ITS GROWING POPULARITY.

Seven years ago, when Heidel- The annual event has continued to children with special needs, will receive EHUJ&HPHQW*HRUJLDODXQFKHGLWV¿UVW grow: TbilisiMarathon (the half mara- donation, the largest sum raised by the half marathon, it was far from a sure thon and 10 km race) is now a member event to date. thing. of the Association of International Mara- TbilisiMarathon has also played a The event, part of the company’s thons and Distance Races and nearly role in inspiring other marathons and branding and CSR program, was initiated 3,000 runners registered to participate in running events in Georgia. by the Director General, Michael Hampel the most recent race, on September 30. Financial Director Eka Tkeshelash- who wanted to inspire Georgians to adopt Organizing and preparing the race vili noted that the race director of Hei- a healthier lifestyle. is no small undertaking: a large part of delbergCement Georgia, Peter Gottwald, Prior to the half marathon, Heidel- Tbilisi’s historic old streets were closed brought to the country from Germany bergCement Georgia had sponsored a for several hours for the event and Hei- for HeidelbergCement half marathon, great many sports teams and sporting delbergCement Georgia had to comply has started organizing running event in events, everything from football to with the international standards for a Batumi. rugby. half-marathon race. But the company was looking for The event cost the company around BIODIVERSITY AWARD something that would make a bigger im- 250,000 lari to host this year and, thanks In addition to the annual race, Hei- pact, noted Sales and Marketing Director to increased participation and additional delbergCement Georgia holds a bian- Irakli Makharoblidze. sponsors, the company was able to do- nual award for the best ideas to nurture He said the Georgian team was a bit nate 78,280 lari to charity. Last year the biodiversity at old quarry sites. “skeptical” about the idea of holding a race raised 51,495 lari for charity. .QRZQDVWKH4XDUU\/LIH$ZDUGV marathon, since seven years ago running All registration fees go to charity, the program is an opportunity for the was not a popular pastime for Tbilisians. and HeidelbergCement Georgia doubles company “give back” to nature, Ms. %XWWKH¿UVWUDFHZKLFKZDVDW7ELOLVL its own contribution for every runner Tkeshelashvili said. Sea, was a success: 500 runners and a who starts the race. This year First Step “We take a lot from nature because sizeable contribution to charity. Georgia, an organization that helps we extract the limestone but we give back by restoring biodiversity in the quarries,” she said. The Quarry Life Award is a scien- WL¿FDQGHGXFDWLRQFRQWHVWSURSRVHGE\ HeidelbergCement. The competition is held at national and international levels and the prizes range from 1,500 to 3000 euros. The next competition will be held in 2020.

OCTOBER-NOVEMBER 2018 Investor.ge | 43 AmCham Company Members as of October 2018

PATRON MEMBERS Betsy’s Hotel / Prosperos Books Diplomat Georgia Gosselin Mobility Georgia 32/34 Makashvili St. / 65, Kakheti Highway 3 M/D, Didi Digomi 34 Rustaveli Ave. Tel: 2984950 Tel: 2596601/02/03; Fax: 2596600 Tel: 2987624, Fax: 2923592 www.diplomat.ge www.gosselinmobility.eu BP Exploration Georgia www.betsyshotel.com 24, S. Tsintsadze St. Tel: 2593400 www.bpgeorgia.ge Grant Thornton LLC Best Western Hotel Tbilisi EY Georgia 61 D. Aghmashenebeli Ave. 11 Apakidze St. 44 Kote Abkhazi St. Tel: 2604406 Tel: 2300777 Tel: 2439375; Fax: 2439376 www.grantthornton.ge KPMG Georgia LLC www.bestwesterntbilisi.ge www.ge.ey.com 5th Floor, GMT Plaza, 4 Freedom Sq., 0105 Tel: 2935713; Fax: 2982276 British American Tobacco Greco Group www.kpmg.ge 71 Vazha Pshavela Ave. F H Bertling Georgia Ltd. 1 Nutsubidze St. Tel: 2157500/01/02; Fax: 2157503 Room 3, 4th Floor, Tel: 2393138; Fax: 2311107 www.bat.com 154 Agmashenebeli Ave. www.greco.ge PwC Georgia Tel: 2252287 12 M. Aleksidze St., 0160 www.bertling.com King David Business Center Budget Rent a Car - Otokoc GT Group Tel: 2508050; Fax: 2508060 Georgia LLC 48 B. Cholokashvili St. www.pwc.com 37 Rustaveli St. Tel: 2740740 Tel: 2234112 FINCA Bank Georgia www.gtgroup.ge www.budget.com.ge 9D]KD3VKDYHOD$YHUGÀ Tel: 2244949 UGT ZZZ¿QFDJH D&KDYFKDYDG]H$YHWKÀRRU Tel: 2220211; Fax: 2220206 Caucasus University GULF Georgia www.ugt.ge .RVWDYD6W%OGWKÀ by Sun Petrolium Georgia LLC Tel: 2377777; Fax: 2313226 Pixel Business Center, www.cu.edu.ge Frontera Resources Georgia 34 Chavchavadze Ave. 12 Paliashvili St. Tel/Fax: 2496444 Tel: 2252412 www.gulf.ge CORPORATE A MEMBERS CleanTech Ltd. www.fronteraresources.com 5 Avlip Zurabashvili St., 0144 Tel: 2922202 Hilton Batumi AECOM Georgia LLC www.cleantech.ge 13 Takaishvili St., Batumi 34, Chavchavadze Ave. Gazelle Finance Georgia LLC Tel: 292092 Tel: 555603200 Tatishvili st. 3/5 (Melikishvili Ave. www.hilton.com www.aecom.com Colliers International $ZRUG%XVLQHVV&HQWHUWKÀRRU Georgia LLC Tel: 2904304 11th Floor, King David Business ZZZJD]HOOH¿QDQFHFRP Alliance LLC Center, 12 M. Aleksidze St. 0171 Iberia Refreshments, JSC 135 King Parnavaz St., Batumi Tel: 2224477 Tetri Khevi Hesi District, Orkhevi Tel: 591555757 www.colliers.com Tel: 2241091; Fax: 2241090 www.alliancegroup.ge www.pepsi.ge General Electric 5th Floor, Pixel Bulding, 34 Chavchavadze Ave. Alliance Group Holding, JSC Conformity Assessment International (CAI) LLC Tel: 2259516 / 2259505 47/57 M. Kostava St., 0179 IMSS Ltd. 8 Politkovskaya St., 1086 www.ge.com Tel: 2424181; Fax: 2998112 10a Bakhtrioni St. Tel: 595690008 www.agh.ge Tel: 2920928 www.ca.international www.imss.ge

American Medical Centers, Georgian American Alloys, Inc. Georgia &XVKPDQ :DNH¿HOG*HRUJLD 200 S Biscayne Blvd Suite 5500, 11 D. Arakishvili St., Tbilisi WKÀRRU%ORFN Miami FL 33131 USA Kavkaz Cement JSC Tel: 2500020 71 Vaja-Pshavela Ave. Tel: (1)3053757560 29 Andronikashvili St., 0189 114, Gorgiladze St., Batumi Tel: 2474849 www.gaalloys.com Tel: 2619090 Tel: (+995 32) 250 00 77 ZZZFXVKPDQZDNH¿HOGJH www.kavkazcement.ge www.amcenters.com

Deloitte Georgian American University Anaklia Development Maersk Georgia LLC King David Business Center 8 Aleksidze St. Consortium 6 Khetagurov St. WKÀRRU0HUDE$OHNVLG]H6W Tel: 2206520; Fax: 2206519 6 Marjanishvili St. Tel: 2200800; Fax: 2200815 Tel: 2244566; Fax: 2244569 www.gau.ge Tel: 2959910 www.maerskline.com www.anakliadevelopment.com www.deloitte.ge

Avon Cosmetics Georgia LLC Dentons Georgia LLC GMT Group Marriott Hotels, Resorts & Suites 117 Tsereteli Ave. 10 Melikishvili St. 4 Freedom Square 13 Rustaveli Ave. Tel: 2226805; Fax: 2226806 Tel: 2509300; Fax: 2509301 Tel: 2988988; Fax: 2988910 Tel: 2779200; Fax: 2779210 www.avon.com www.dentons.com www.gmt.ge www.marriott.com

44 | Investor.ge OCTOBER-NOVEMBER 2018 Mastercard School of Tomorrow LLC Air Astana Airlines JSC %/&/DZ2I¿FH 2 Leonidze St. /1 G.Tabidze St., 21, Petre Kavtaradze St. 5th Floor, Pixel Business Center, 129a D. Agmashenebeli Ave., 0102 Premises No.315, Floor 4 Tel: 2233199 34 Chavchavadze Ave. Tel: 2922491; Fax: 2934526 Tel: 2900815 hwww.st.edu.ge Tel: 2514999 www.blc.ge www.mastercard.com www.airastana.com

SEAF Management LLC BMC Gorgia 7, Niko Nikoladze St. II Floor. 140 Tsereteli Ave. Meridian Express Tel: 2998115; Fax: 2923533 Aliance Georgia Ltd Tel: 2960960 15-17 Ketevan Tsamebuli Ave.0103 www.seaf.ge Tel: 2745188 33 Samurzakano St. www.gorgia.ge www.ups.com Tel: 2243773 www.groupaliance.com Sheraton Metechi Palace Hotel 20 Telavi St. Borjomi Likani International 16 Meskheti St., Borjomi 0*/DZ2I¿FH//& Tel: 2772020; Fax: 2772120 www.sheraton.com/tbilisi Tel: 2292292 WKÀRRU3L[HOEXLOGLQJ Aversi Pharma 34 Chavchavadze Ave., 0179 148/2 Aghmashenebeli Ave. Tel: 2206633 Tel: 2987860 SICPA Security Solutions CaspiGroup Ltd. www.mglaw.ge www.aversi.ge Georgia 29 Bochorma St. 79 Chargali St., 0178 Tel: 2550818 Tel: 2434580 www.caspigroup.com Microsoft Georgia LLC www.sicpa.com 34 Chavchavadze Ave. Baker Tilly Georgia Ltd. Tel: 2970123 Meidan Palace, 44 Kote Abkhazi St. www.microsoft.com Spotcoin LLC Tel: 2505353; Fax: 2505353 CaucasusTransExpress Ltd. 13 Shalva Radiani St., 0179 www.bakertillyinternational.com 10a Tashkent St. Tel: 599258539 Tel: 22375716 www.spotcoin.net www.cte.ge M & M - Militzer & Munch Georgien, FedEx GSP Bank of Georgia 39 Ketevan Tsamebuli Ave. T&K Restaurants (McDonald’s 3 Pushkin St. Caucasus Online LLC Tel: 2748240, 2748941 Georgia) Tel: 2444134; Fax: 2983269 71 Vazha-Pshavela Ave. www.fedex.com/ge 1 Dzmebi Kakabadze St. www.bog.com.ge Tel: 2000022 Tel: 2921246; Fax: 2251422 www.co.ge www.mcdonalds.ge 2I¿FH7HFKQRORJLHV6WHHOFDVH Dealership TBC Group Basel LLC Channel Energy (Poti) Limited 4 Freedom Sq., 0105 7 Marjanishvili St. 49 Krtsanisi St. Georgia LLC, By Petrocas Energy Tel: 2999980, 2688229 Tel: 2272727; Fax: 2228503 Tel: 2550110 Group ZZZRI¿FHWHFKQRORJLHVJH www.tbc.com.ge www.krtsanisi.com 52, David Agmashenebeli St., Poti Tel: (995493) 2-7-08-60 www.petrocasenergy.com Orient Logic Ltd. TMC Global Professional 8 Beliashvili St. Services Basis Bank JSC Tel: 2541818 6001 Indian School Road NE, Suite 1 Ketevan Tsamebuli Ave. Château Mukhrani, J.S.C. www.orient-logic.ge 190, Albuquerque, NM 87110, USA Tel: 2922922; Fax: 2986548 Sangebro St. Tel: (1 505) 8723146 www.basisbank.ge Tel: 2201878; Fax: 2201878; www.tmcservices.com www.mukhrani.com PepsiCo Wimm-Bill-Dann Village Ponichala, Tbilisi 0165 Visa International Service Batumi International Container Citicorp Funds Tel: 2475290 Association Terminal 32/34 I. Abashidze St. www.wbd.ru 900 Metro Center Boulevard, Foster 11, Baku Street, 6010, Batumi Tel: 555446699 City, CA 94404, USA Tel: 422 276452 laboheme.restaurant Tel: 599374877 www.bict.ge Philip Morris www.visa.com 1 Tabidze St. Tel: 2439001; Fax: 2439005 City & Co. West Invest Ltd. 4 Besiki St. www.philipmorrisinternational.com BDO LLC 13a Lortkipanidze St. Tel: 2920921 2 Tarkhnishvili Str. Tel: 2997275 Vere Business Centre, 0179 www.west-invest.ge ProCredit Bank Tel: 2545845; Fax: 2399204 www.bdo.ge CMC LLC 154 Agmashenebeli Ave. 4 Besiki St. Willis Towers Watson Ltd. Tel: 2202222; Fax: 2202222-2226 Tel: 2240717 17 M. Lebanidze St. www.procreditbank.ge www.cmc.ge Tel: 2905509 www.willis.com BGI Advisory Services Georgia 5XVWDYHOL$YH,,ÀRRU Radisson BLU Iveria Hotel Tel: 2997292; Fax: 2996615 Crowne Plaza Borjomi 1 Rose Revolution Sq. www.bgi.ge Baratashvili Str. 9, 1200 Borjomi Tel: 2402200; Fax: 2402201 Tel: 995 367 220260 www.radissonblu.com CORPORATE B MEMBERS www.cpborjomi.com

Biltmore Hotel Tbilisi Renstor LLC Adjara Group Hospitality 29 Rustaveli Ave. Crystal, MFO JSC Building I , Gamrekeli St. 1, 26 May Sq., 0179 Tel: 2727272 72 Tamar Mepe St. Kutaisi, 4600 Tel: 551122392 Tel: 2300099 http://www.millenniumhotels.com/en/ Tel: 431253343 www.renstor.com www.adjaragroup.com tbilisi/the-biltmore-hotel-tbilisi/ www.crystal.ge

OCTOBER-NOVEMBER 2018 Investor.ge | 45 AmCham Company Members as of October 2018 NEWS

Dio Ltd. Georgian Airways HeidelbergCement Georgia Legal Partners Associated LLC 12th Km David Agmashenebeli Alley 12 Rustaveli Ave. 21 Al.Kazbegi Ave. 2I¿FH%HVLNL%XVLQHVV&HQWHU N3, Parsadani St. Tel: 2999730; Fax: 2999660 Tel: 2474747 4 Besiki St. 0108 Tel: 2361112 www.georgian-airways.com www.heidelbergcement.ge Tel: 2200203; Fax: 2250458 www.dio.ge www.lpa.ge

Georgian Beer Company Liberty Bank JSC Domson’s Engineering Herbalife Nutrition 3311 Saguramo, Mtskheta District 74 Chavchavadze Ave. 8a Sanapiro St. Bld. 4a Tamarashvili St., 0116 Tel: 2437770 Tel: 2555500; Fax: 2912269 Tel: 2050303 Tel: 2202929 www.geobeer.ge www.libertybank.ge www.domsons.com www.herbalife.com

Luca Polare Dorche Branch Prepabrik Iapi Ve Georgian Express 54 Oniashvili St. Inshaat Sanai Tijaret JSC 105, Tsereteli Avenue, 0119 Hualing International Special Tel: 2990399 026/13 Ilia Chavchavadze Ave. Tel: 2696060 Economic Zone www.lucapolare.com Tel: 593472419 www.dhl.com 25 Apt. 34/36 Kobuleti St. www.dorce.com.tr Tel: 591005900 www.hualing.cn Maqro Construction 22 Panjikidze St. Georgian Hospitality Group Tel: 2000909 Duty Free Georgia 22 Peritsvaleba St., 0103 www.maqro.ge UGÀRRU%HVLNL6W Tel: 2987789 Hydrolea LLC Besiki Business Center www.ghg.ge 11 A. Apakidze St. Tel: 2430150 Tel: 790420015 www.dfg.ge Maqro Food “Dinehall” www.hydrolea.com 28 Rustaveli Ave. Tel: 2001616 Georgian Industrial Group LLC www.dinehall.ge Efes Brewery in Georgia - GIG Plaza, 14 Gazapkhuli St., 0177 Tel: 2210187 Lomisi JSC ICS Ltd. TNT Agent in Georgia www.gig.ge Village Natakhtari, Mtskhta Region 25 Agmashenebeli Ave. Mercure Tbilisi Old Town Tel: 2357225 Tel: 2910220 9 Gorgasali St., Old Tbilisi, 0105 www.natakhtari.ge www.tnt.ge Tel: 2006060 www.mercure.com Georgian Integrated Systems (GiS) Enviroserve Caucasus 2I¿FH$EDVKLG]H6W [email protected] Tel: 2243724 ILF Beratende Ingenieure ZT Mgaloblishvili Kipiani Dzidziguri www.enviroserve.ae www.gis.ge GmbH Branch in Georgia (MKD) 15 Tamar Mepe Ave. 2I¿FH9D]KD3VKDYHOD$YH Tel: 2199453 Tel: 2553880 www.ilf.com www.mkd.ge ExpoGeorgia JSC Geo Steel LLC 118 Tsereteli Ave., 0119 36 Davit Gareji St., Rustavi, 3700 Tel: 2341100 Tel: 2243794 Mina JSC www.expogeorgia.ge 4 Besiki St. www.geosteel.com.ge International Black Sea Tel: 2449981/82/83; Fax: 2449980 University www.mina.com.ge David Agmashenebeli Alley 13 km, Gebrüder Weiss LLC 2, 0131 Airport Adjacent Territory, Globalink Logistics LLC Tel: 2595005 Kakheti Hwy 60 Sh. Nutsubidze St., 0186 www.ibsu.edu.ge Mira Hotels Ltd. Tel: 2710011 Tel: 2000238, 2208147 Brose Street Turn,Old Tbilisi www.gw-world.com www.globalinkllc.com Tel: 2242244/55/88 www.riverside.ge

Isbank Georgia JSC 140/B Agmashenebeli Ave., 0102 Geocell *ORULD//& 7LÀLV3DODFH Tel: 2310515 Murphy Bridge 3 Gotua St. 3 Gorgasali St., 0105 www.isbank.ge 8th Floor, Building 6, Saakadze Sq, Tel: 2770100, ext. 7435; Tel: 2000245 0160 Fax: 2770119 ZZZWLÀLVSDODFHJH Tel: 2007107 www.geocell.ge www.murphyshipping.com

JTI Caucasus VII Floor, Pixel Business Center, GeoEngineering LLC GM Capital LLC MyGPS 2 Tarkhnishvili St., 0179 34 Chavchavadze Ave. 6 Bokhua St., 0159 15a Tamarashvili St. Tel: 2604111 Tel: 2311788; Fax: 2311787 Tel: 2912626 Tel: 2180180 www.jti.com www.mygps.ge www.geoengineering.ge www.gmcapital.ge

National Center for Dispute Geomill LLC Gvinadze & Partners LLC Kordzahia, Jgenti Law Firm Resolution 4, Chirnakhuli St. 44 Kote Abkhazi St, 0105 10 Petriashvili St. 4/7 Rustaveli St., Rustavi Tel: 2400000 Tel: 2438970, Fax: 2438971 Tel: 2921878 Tel: 2193406 www.geomill.ge www.gvinadzeandpartners.ge www.kjlaw.ge www.ncdr.ge

46 | Investor.ge OCTOBER-NOVEMBER 2018 NEWS

NCC Ltd. Qebuli Climate Terabank JSC CARE International in the 9, Erekle II turn 101, Tsereteli Ave. 3 Ketevan Tsamebuli Ave. Caucasus Tel: 2725088 Tel: 2356201 Tel: 2507700 37 Tsagareli St., 0162 www.ensisi.ge www.qebuli.ge www.terabank.ge Tel: 2291941 www.care-caucasus.org.ge Terma JSC Rakeen Development LLC Floor 1, 10 Budapest St. Nexia TA CENN Pixel Business Center, Tel: 599554794 4th Floor, 19 David Gamrekeli St., 27 Betlemi St., 0105 34 Chavchavadze Ave. www.terma.ge 0160 Tel: 2933393; Fax: 2933993 Tel: 2751903 Tel: 2242559 www.rakeen.ge www.cenn.org www.nexia.ge Terrace Hotel & Restaurant 7 Polikarpe Kakabadze St. Tel: 2999001 Regus, Georgian Branch, Tbilisi www.theterracetbilisi.com (CiDA) Civil Development Noblet Media Business Centre Agency Level 4, 1 Tabidze St., 2 Leonidze 2I¿FHQG)ORRU 9/1 Pirosmani St., Rustavi, 3700 Theco Ltd. 47/57 M. Kostava St., 0179 St.,0105 Tel: 341258822 16 Chikovani St. Tel: 555 003933 Tel: 2900039 www.cida.ge www.regus.com Tel: 592107515 www.nobletmedia.com www.tbilisia.ru Europe Foundation Rentals LLC University of Georgia 3 Kavsadze St. Nodia, Urumashvili & Parnters 46 Rustaveli Ave.; 36 Griboedov St. 77a Kostava St. Tel: 2253942; Fax 2252763 (ext. 112) 2I¿FH,9%ORFN Tel: 2454567 / 2996412 Tel: 2552222 www.epfound.ge 71 Vazha-Pshavela Ave. www.rentals.ge www.ug.edu.ge Tel: 2207407 www.nplaw.ge Feel Harmony Veziri Ltd. Resolution Insurance Brokers, 187 E. Warm Springs Rd. 7 Luarsab Andronikashvili St., 0131 Georgia LLC Suite B172, Las Vegas, Tel: 2251614 61, Gorgasali St. Nevada 89119, USA www.veziri.net Nutrimax Ltd. Tel: 2936305 Tel: +1 702 781 7460 68a Rustavi Highway, 0165 www.rib.ge Tel: 2305335 Vinotel (“Aigvinissakhli”) LLC www.nutrimax.ge 4 Elene Akhvlediani Ascent Free University of Tbilisi 140 David Agmashenebeli Alley Rooms Hotel Tel: 2555888 www.vinotel.ge Tel: 2200901 14 Merab Kostava St. www.freeuni.edu.ge Tel: 2020099, 2730099 Overall Management Group www.roomshotels.com Wings and Freeman Capital (OMG) Inc. Green Building, 6, Marjanishvili St. Georgia Red Cross Society 29 Marjanishvili St. Tel: 2940051; Fax: 2940053 15 J. Kakhidze St. Tel: 2436052; Fax: 2436052 Sakcable JSC www.wfcapital.ge Tel: 2961092 Suite 414, 19 Gamrekeli St. www.redcross.ge Tel: 2221418 Wissol Georgia www.sakcable.ge Paine Stevens LLC 74b Chavchavadze Ave. Good Governance Initiative 1 Ivane Javakhishvili Sqr. Tel: 2915315; Fax: 2915615 Pixel Center, 8th Floor, 34, Tel: 2903211, Fax: 2903291 www.wissol.ge Chavchavadze Ave. www.painestevens.com Silknet Ltd. Tel: 2243111 95 Tsinamdzgvrishvili St. Zarapxana LLC www.ggi.ge Tel: 2910345; 15 Lubliana St. www.silknet.com Tel: 2510001 PASHA Bank Georgia JSC www.zarapxana.ge QSI International School of 15, Shota Rustaveli Ave. Georgia Tel: 2265000 SRG Investments LLC Village Zurgovani, Tbilisi www.pashabank.ge D&KDYFKDYDG]H$YHUGÀRRU Tel: 2537670; Fax: 2322607 Tel: 2253581 NON-PROFIT ORGANIZATIONS www.qsi.org www.silkroad.ge

Policy and Management Agricultural University of San Diego State University - Consulting Group (PMCG) T3Concept Ltd. Georgia Georgia $JKPDVKHQHEHOL$YHWKÀRRU 13 Radiani St., 0179 140 David Aghmashenebeli Alley 5 Kostava St. 0108 Tel: 2921171 Tel: 2434455 Tel: 2594901 Tel: 2311611 www.pmcg.ge www.turner.com, www.t3concept.ge www.agruni.edu.ge www.georgia.sdsu.edu

Transparency International Primera Golf & Residence TBC Leasing JSC Alliance for Progressive Georgia 36, Khetagurovi St., 0102 8 Bulachauri St., 0161 Healthcare 61 Agmashenebeli Ave. 0102 Tel: 2200036 Tel: 2272727 27/29 Chavchavadze Ave., 0179 Tel: 2932129 www.tbcleasing.ge Tel: 2242413 www.transparency.ge

Publicis Ltd. Tbilisi View American Friends of Georgia Union of Busines Ladies 17 V. Jorbenadze St. 4a, Freedom Sq. 77 Nutsubidze St. 8 D. Gamrekeli St., 0194 Tel: 2745672; Fax: 2745671 Tel: 2999980 Tel: 2397174; Fax: 2388495 Tel: 2308661 www.publicis.ge www.tbilisiview.ge www.afgeorgia.org www.ubl.ge

OCTOBER-NOVEMBER 2018 Investor.ge | 47 NEWS

AMCHAM HOSTS BACK TO BUSINESS COCKTAIL RECEPTION

AMCHAM GEORGIA HOSTED A BACK TO BUSINESS COCKTAIL RECEPTION FOR MEMBERS AT THE HOLIDAY INN ON SEPTEMBER 14. AMCHAM PRESIDENT MICHAEL COWGILL GREETED THE GUESTS AND THANKED HOLIDAY INN FOR HOSTING THE RECEPTION. MEMBERS USED THE OPPORTUNITY TO RECONNECT WITH FRIENDS, COLLEAGUES AND FELLOW REPRESENTATIVES OF MEMBER COMPANIES.

48 | Investor.ge OCTOBER-NOVEMBER 2018 NEWS

OCTOBER-NOVEMBER 2018 Investor.ge | 49 NEWS

AMCHAM MEMBERS MEET PRESIDENTIAL HOPEFULS

AMCHAM GEORGIA ARRANGED A SERIES OF MEETINGS BETWEEN MEMBERS AND SEVERAL OF THE MOST PROMINENT CANDIDATES RUNNING FOR PRESIDENT. THE ELECTION WILL BE HELD ON OCTOBER 28. TWO MEETINGS WITH CANDIDATES AND MEMBERS WERE HELD IN SEPTEMBER.

50 | Investor.ge OCTOBER-NOVEMBER 2018 NEWS

OCTOBER-NOVEMBER 2018 Investor.ge | 51 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 Nino Bakradze, Lika Jorjoliani, Sally White

Copy Editor Photographs of Georgian protected areas provided by Agency of Protected Alexander Melin Areas of Georgia

Marketing & Promotion Special thanks to all the contributors to the magazine, AmCham Georgia’s Nini Kapanadze staff, and all our contributors. This magazine would not be possible without your help Promotional Design Levan Baratashvili

Magazine Design and Layout Giorgi Megrelishvili 52 | Investor.ge OCTOBER-NOVEMBER 2018 NEWS

STEVE JOHNSON OTAR KIPSHIDZE KETTI KVARTSKHAVA DIRECTOR DIRECTOR DIRECTOR

CHRIS SCHLUETER BETSY HASKELL, DIRECTOR FOUNDING ADVISOR

GEORGE WELTON LIZ ZENTOS 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. No part of this magazine may be re-printed, or the pages of this issue. reproduced or utilized in any form or by electronic, mechanical Investor.ge is printed by CEZANNE or other means now known or hereafter invented, including AmCham Georgia: photocopying and recording, or in any information storage or rd retrieval system without permission. 36a Lado Asatiani Street, 3 ÁRRU7HO 7KHRSLQLRQVH[SUHVVHGLQWKLVPDJD]LQHGRQRWUHÁHFWWKHRSLQLRQ [email protected] of the American Chamber of Commerce in Georgia nor its Board HGLWRU#DPFKDPJHɕZZZDPFKDPJH Members or staff, unless otherwise stated. AmCham Georgia neither endorses, nor can be held liable for any eventuality www.investor.ge OCTOBER-NOVEMBER 2018 Investor.ge | 53

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