Georgia’s Economic Development Corporation targets ₾40B in investment over next decade

Irakli Gabriadze, Economic Development Corporation's General Director, on Friday announced that Georgia’s newly established Economic Development Corporation aims to facilitate ₾ 40 billion ($14.8 billion) in investment over the next decade.

Speaking on Imedi TV’s Business Insider Georgia segment of Imedi TV, Gabriadze said Georgia had recorded average annual economic growth of 9.3% over the past five years, an unprecedented rate in the country’s post-independence history.

He stressed that maintaining this momentum would require continued support for businesses of all sizes and the introduction of additional financial mechanisms to stimulate investment.

According to Gabriadze, existing programs supporting small and medium-sized enterprises will remain in place, while new instruments will expand assistance to the broader economy, including large businesses and strategic investment projects.

He said one of the corporation’s main responsibilities would be to facilitate major projects designated as strategically important by the government, coordinate state involvement and help attract private investment. The energy sector is expected to be a particular priority, with several major energy projects planned for the near future.

“The corporation will act as a coordinating body in these projects, represent the state, protect its interests and help mobilize private investment. If necessary, it will also facilitate state investment and manage the process”, Gabriadze said.

The corporation plans to mobilize the targeted ₾ 40 billion ( $14.8 billion) through several funding channels. Around ₾16 billion ($ 5.9 billion) is expected to be facilitated through existing business support programs, including interest-rate subsidies on loans, the credit guarantee scheme and microloans.

A further ₾15-16 billion ( $ 5.6-5.9 billion) is expected to be mobilized through bond issuance and measures aimed at developing Georgia’s bond market. Another ₾ 7-10 billion ($ 2.6-3.7 billion) is expected to come through new financial instruments, including direct lending, investments in funds, a factoring platform and other mechanisms designed to improve private-sector access to financing.

Gabriadze also outlined plans to expand private equity investment in Georgia, saying the corporation aims to encourage private equity funds to invest up to ₾1 billion ($ 370 million) in direct equity assets over the next decade.

Another key objective is to support more than 2,000 exporters by helping Georgian businesses increase exports, enter new international markets and begin selling their products abroad.

“These are ambitious plans, but concrete steps have already been taken in this direction. Intensive work has been carried out over the past three months”, Gabriadze said.