Foreign Direct Investment (FDI) for Country’s Sustainable Development

The agency Enterprise Georgia stands as one of the pioneering state agencies in Georgia, dedicated to enhancing the business environment, fostering private sector growth, advancing Georgia’s investment climate, and facilitating exports.

In pursuit of dynamic economic development, the Agency integrates three interconnected pillars: business (local production), export, and investment.

The business dimension of Enterprise Georgia strives to cultivate entrepreneurship in Georgia, providing support to entrepreneurs and fostering the establishment of new enterprises/hotels, as well as the expansion or retooling of the existing ones.

As for the export facet of Enterprise Georgia, it seeks to showcase Georgia’s export potential, elevate the competitiveness of Georgian products on the global stage, amplify the export volume of Georgian goods, and diversify Georgia’s export markets.

In the realm of investments, the objective of Enterprise Georgia is to attract, facilitate, and cultivate direct foreign investments in the country. Serving as an intermediary between foreign investors and the Georgian government, this aspect operates as “one stop shop principle,” aiding interested investors in acquiring diverse information and facilitating effective communication with the Georgian authorities.

Mikheil Khidureli, the Director of the Agency Enterprise Georgia, talks about foreign direct investment and the endeavors of the agency in this domain.

The International Finance Corporation (IFC), in collaboration with Enterprise Georgia, funded the project and engaged ‘FDI Center,’ a German consulting company. The experts from ‘FDI Center’ commenced work on the new FDI Strategy in August 2023. Can you provide insights into the components of this strategy and share your long-term vision?

In the development of our new FDI attraction strategy, we are crafting a comprehensive plan that builds on our previous accomplishments while introducing innovative methods to attract quality foreign investment projects to Georgia.

Central to our strategy are several pivotal elements. Our primary focus is on sectors and target companies that could realistically perceive Georgia as a viable option, considering global economic trends and factors and leveraging Georgia’s distinctive strengths.
 
Moreover, we’re implementing innovative mechanisms to raise further awareness about Georgia’s investment proposition. This includes tools, much like the lead generation program, through which we hire international representative companies to work alongside us to make investors more aware of Georgian’s opportunities.

Our long-term vision is centered around sustainable growth. We aim to position Georgia as a strategic investment location and a hub of innovation and development. By doing so, we hope to create a revolving effect that benefits our economy, enhances our workforce’s skill set, and fosters a sustainable environment for future generations.

Returning to the question of the significance of sustainable Foreign Direct Investment (FDI), what role does Enterprise Georgia play in this direction?

The attraction of high-quality Foreign Direct Investment (FDI) has been a cornerstone of our strategies for several years. Within this framework, a key aspect of ‘quality’ is the sustainability embedded in each investment project.

That being said, our view of sustainability transcends environmental considerations. It encompasses the enduring impact of job creation and value addition that investment projects can bring. This includes the potential for knowledge transfer and other lasting benefits that FDI can impart to our nation.
 
As we’ve highlighted, FDI is integral to our strategic positioning. Through it, we aim to support Georgia’s evolution as a hub of innovation and development within our region and on a broader stage. This vision of FDI as a transformative force underlines our commitment to attracting investments that are not only economically fruitful but also sustainable and beneficial in the broader context of our nation’s progress.