EBRD Annual Meeting: Georgia at Host Country investment outlook session

It was standing-room only in the main hall of Tbilisi Parliament when Georgia’s Prime Minister gave his address at the European Bank for Reconstruction and Development (EBRD) Host Country Investment Outlook Session this evening.

‘Georgia – Invest in Growth’ was the theme of the session, which was followed by a discussion panel of Georgia’ Finance and Economy Ministers, banking experts and business envoys, moderated by CNN’s Emerging Markets Editor John Defterios. The event was part of the EBRD 24th Annual Meeting currently being held in Tbilisi, Georgia.

How much the country had changed in the past 20 years, successful joint projects currently underway in Georgia and future plans of the Government were highlighted by Prime Minister Irakli Garibashvili in his opening address. He also spoke about Georgia’s strategic location and the country’s potential as a regional hub for business.

Prime Minister Irakli Garibashvili shares his vision of Georgia at EBRD Annual Meeting Host Country session. Photo by Nino Alavidze/Agenda.ge.

"Our aim is to take advantage of our strategic position between Europe and Asia and revitalize our role in trade and exchange across the Eurasian continent. The Chinese-led New Silk Road project aims to rebuild this bridge between West and East, and Georgia is committed to the success of this vision.”

The opportunities stemming from the Association Agreement (AA) and the corresponding DCFTA deal were vast and would contribute to economic growth, integration with world markets and global supply chains.

He noted the DCFTA "opens new prospects for Georgian business as it does for entrepreneurs doing business in our country,” and it would allow Georgia to gradually integrate and compete in the EU internal market. Already the provisional application of the DCFTA was already producing positive results: Georgia’s export to the EU increased by over 21 percent in the first quarter of 2015.

Garibashvili spoke about his Government’s commitment to protecting and respecting investor and property rights, which was cemented today when Georgia and the EBRD signed a Memorandum of Understanding about the establishment of an Investor Council.

The PM’s 12 minute speech also covered the country’s macroeconomic climate, the banking sector, opportunities to develop tourism and the potential of the energy and agricultural sectors.

He ended his speech by thanking the EBRD for choosing Georgia as the host of this year’s Annual Meeting.

"As you have learnt from my lengthy survey of Georgia’s economic record that Georgia is an excellent place to invest and start a business. I can assure you that my government will continue to do everything possible to improve the business environment. The EBRD is a crucial partner for Georgia in its economic development, European and Euro-Atlantic aspirations.”

Panel Discussion

Following the PM’s speech, Georgia’s economic outlook was scrutinised in a discussion panel.

Vice Prime Minister of Georgia and Minister of Economy and Sustainable Development Giorgi Kvirikashvili, Finance Minister Nodar Khaduri, National Bank of Georgia CEO Giorgi Kadagidze, TBC Bank CEO Vakhtang Butskhrikidze, EBRD Director for Caucasus, Moldova and Belarus Bruno Balnavera and BP Country Manager for Georgia Chris Schlueter gave their opinion of the Georgian economy, challenges currently facing the country and future opportunities.

Georgia's Economy Minister Kvirikashvili is answering questions at the Panel session. Photo by Nino Alavidze/Agenda.ge.

The majority of questions were directed towards Minister Kvirikashvili, who stressed Georgia was introducing new standards, legislation and infrastructure that harmonised with European standards. He stressed while exports to Ukraine and Russia had declined, Georgia had experienced a 21 percent increase of exports to EU countries and a 4.8 percent growth in real GDP in 2014.

Asked his opinion about the pressure on the national currency from external forces and whether he believed the worst was over, Kvirikashvili responded with a resounding yes. 

We should still be cautious but I believe we have already passed the worst. There is no fundamental reason to believe that [the currency] depreciation will go beyond what has already happened. There may be slight fluctuations … but the gap is narrowing”.

The EBRD Annual 24th Meeting and business forum officially opened today and the event continues with the EBRD Board of Governors meeting and Discussion Panels on various issues including gender in business and investing in green infrastructure.

This is the first time the EBRD Annual Meeting is held in the Caucasus region.