Report: renewables, transport, logistics, digital transformation key sectors for boosting Georgia’s growth

A new report published on Wednesday by the International Finance Corporation, a member of the World Bank Group, identified renewables, transport and logistics and digital transformation as key sectors to boost Georgia’s private sector-led growth and help the country reach high-income status. 

Alfonso Garcia Mora, the IFC's Vice President for Europe, Latin America, and the Caribbean, said reforms in key sectors could help the country realise its renewable energy potential, increase its participation in global value chains and drive productivity. 

Attracting private sector investment would be key and IFC is ready to underpin these efforts”, he said.

Rolande Pryce, the World Bank Regional Director for the South Caucasus, said Georgia had the potential to “further unleash” private sector development. 

As the report shows, this could be achieved by increasing the enforcement and predictability of laws and regulations as well as by supporting connectivity and logistics, digital transformation, and green investments as catalyzers of growth”, she said.

Here are the key sectors identified by Georgia Country Private Sector Diagnostic report:

Renewable energy

The report says Georgia boasts a substantial renewable energy potential of 18 gigawatts - with less than 20 percent harnessed - and says the country would benefit from a clear and reliable policy, regulatory, and permitting framework and sustainable incentive schemes to tap into this potential.

Transport and logistics 

In order to accomplish the goal of becoming a regional logistics hub, the report suggests Georgia expand the capacity of seaports, strengthen information flows and data accessibility, and improve the reliability of railroad operations, among others. 

Enhancing connectivity along the Middle Corridor [a multimodal transport corridor connecting China to Europe through the South Caucasus] would facilitate the integration of Georgia into the global economy”, it notes.

Digital business

The report said e-commerce and financial technology were among the “most promising” digital subsectors, suggesting the country to foster programming skills and address challenges related to technology and early-stage finance.