Georgia Establishes Economic Development Corporation to Support Business and Investment

Georgia has established an Economic Development Corporation that will consolidate existing business support programs and introduce new financial instruments. The government expects the corporation to help stimulate up to GEL 40 billion in investment over the next ten years. One of its main objectives will be to improve access to financing for businesses.

How the New Corporation Will Operate

The corporation will be headed by Irakli Gabriadze. The new institution will bring together existing government support mechanisms, including the Enterprise Georgia program, and expand cooperation with the private sector. Current support measures for small and medium-sized enterprises will remain in place, while additional instruments will be introduced for other sectors of the economy.

The corporation will be able to provide direct government loans without commercial bank involvement, acquire equity stakes in companies, finance joint projects, and invest in investment funds. Plans also include the development of a factoring platform and alternative financing mechanisms.

Government Objectives and Expectations

Irakli Gabriadze explained that the corporation was established to consolidate the experience gained through existing government programs and improve the effectiveness of business support. He believes that maintaining economic growth will require new approaches and greater government involvement.

Prime Minister Irakli Kobakhidze described the corporation as an important instrument for cooperation between the government and businesses. He emphasized that entrepreneurs should have access to support at every stage of development, from launching a business to entering international markets.

Minister of Economy and Sustainable Development Mariam Kvrivishvili noted that the reform would expand the scope of government support and strengthen the new institution's responsibility for the country's economic development.