Hazelnuts and Honey Highlight Georgia's Export Potential
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SOLAR PANELS TO BE PRODUCED GEORGIAN BUSINESSES A BILLION EUROS FOR AT KUTAISI FREE ZONE EMBRACE COACHING CULTURE GEORGIA Investor.A Magazine Of The American Chamber Of Commerce In Georgia geISSUE 68 APRIL-MAY 2019 Hazelnuts and Honey Highlight Georgia’s Export Potential APRIL-MAY 2019 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. The information in this issue was taken from agenda.ge, a government supported website, and other sources. 8 Georgia Pushes for Close Relations with Japan Georgian Prime Minister Mamuka Bakhtadze led a delegation to Japan in March. The prime minister noted that it is possible to increase exports to Japan and increase foreign direct investments from Japanese businesses. 16 9 Solar Panels to Be Produced at Kutaisi Free Zone 10 Georgia Goes All in On Education – Way to Freedom Initiative 11 Breathe a sigh of relief: Georgian government acts to improve air quality 16 A Billion Euros for Georgia: An interview with investor Oleg Ossinovski 19 Georgian Hazelnuts and Honey Highlight Export Potential Georgian agriculture exports are steadily increasing: in 2018 the country exported $959.2 million worth of agricultural products, up 23.2 percent compared to 19 2017. Exports to the EU are still dwarfed by the demand from other countries, but two products — hazelnuts and honey — underscore the potential for growth. 23 Explainer: Anaklia Deep-Sea Port 25 Georgia Ski Resorts Prepare to Host Freestyle Ski and Snowboard World Championships Georgian ski resorts are steadily growing in popularity. The resorts are hosting more skiers and snowboarders but remain under developed. The government and international donors are planning major infrastructure projects, especially new roads, to make the resorts more accessible in time for the 2023 Freestyle Ski and 28 Snowboard World Championships. 28 USAID Programs Encourage Private Businesses to Invest in Local Communities 31 Georgian Businesses Embrace Coaching Culture 32 NEWS ...... 32 4 | Investor.ge APRIL-MAY 2019 ! "# $ " % ! & '$ ( ! APRIL-MAYAPRIL-MAY 20120199 Investor.geInvestor.ge | 5 AZERBAIJAN LARGEST SOURCE factory. The factory produces parts for INVESTMENT OF FDIS IN GEORGIA IN 2018 civil aircraft, including doors and control Azerbaijan (19.5%), the United panels. ATC will produce parts for Boe- Kingdom (16.5%) and the Netherlands ing and other large aircraft companies NEWS (13.6%) topped the list of sources of including Airbus and Bombardier. foreign direct investments (FDIs) in ATC is a joint venture between INVESTOR.GE Georgia in 2018. The total amount of Israeli Elbit Cyclone and the Georgian PROVIDES A FDIs in Georgia was $1.23 billion in state-owned Partnership Fund. It opened 2018, a decrease from 2017, GeoStat in 2018 and has already received ISO BRIEF UPDATE reported in early March. FHUWL¿FDWLRQ ON INVESTMENTS The three sectors receiving the high- AND CHANGES HVWYROXPHVRI)'VZHUH¿QDQFH GEORGIA INCREASES BLUEBERRY IN GOVERNMENT million), transportation ($209.9 million) PLANTATIONS POLICY THAT COULD and energy ($157.2 million), agenda.ge The agriculture cooperative IMPACT THE BUSINESS reported. Agrotema has received state funding ENVIRONMENT. THE worth 100,000 lari to create a six hectare INFORMATION IN THIS STUDENTS CREATE FIRST CANNED blueberry plantation in western Georgia, ISSUE WAS TAKEN GEORGIAN WINE agenda.ge reported on March 19. Two Georgian students have cre- The funding comes from the state-run FROM AGENDA.GE, DWHGDFDQQHGZLQHSURGXFW±D¿UVWIRU Plant the Future program, which aims to A GOVERNMENT- the country, commersant.ge reported in boost agriculture in rural areas. The plan- SUPPORTED WEBSITE, February. tation is planned for Samegrelo-Zemo AND OTHER SOURCES. Inventor Saba Sakhvadze said he and Svaneti. Reportedly 50 people will be his partner George Machavariani were employed on site. Georgian blueberries ELENE TABAGARI inspired by the words of Albert Einstein: are currently exported to the Middle East “Everything should be as simple as it and Europe. can be.” The two students decided to create canned wine – called Mivino – $32 MILLION TO PREVENT when they had trouble opening a bottle NATURAL DISASTERS IN GEORGIA of wine. Sakhvadze told commersant.ge Georgia is launching a $32 million, he wants their wine to be as popular and seven-year project to prevent natural accessible in Georgia as beer. He also GLVDVWHUV7KHSURMHFW¶V¿UVWVWHSLVWR says they plan to export Mivino world- design special geological maps which wide. Mivino’s Rkatsiteli and Saperavi will be used to determine the best places wines are currently available in a limited to install early detection systems. number of shops. Early warning systems have already The students plan to eventually offer been built in the River Vere in the capital canned sparkling wine, semi-sweet wine of Tbilisi and in the Devdoraki Gorge in and rose wine. Mivino will soon be avail- northern Georgia. able at local supermarkets, Sakhvadze The Green Climate Fund is investing added. $27 million and the Swiss government is contributing $5 million to the project. 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