Better investments policy for petty fry required
01 May, 2014
Better investments policy for petty fry required
Georgia lacks proper regulation of petty investors since it provides neither a clear policy on investment opportunities nor due protection of their investments. Sector pundits say Georgia as an investment-deficient country cannot ignore even the pettiest investor. The creation of a fair investment climate for all investors in the country is a must. Surprise or not, but an economically underdeveloped small country like Georgia with an unemployment rate of 16% [that stretches to 45% behind the screen] and over a million
of its citizens looking for job opportunities abroad, lately became attractive to labor migrants from Asian countries. Labor migrants from China, India, Taiwan, Egypt, Iran and Africa come to Georgia for business opportunities. They open small trade outlets, run restaurants or a hotel business, some go to the regions for agriculture activity, and some simply trade on the street. However, their life is not easy in a country that has neither a clear migration policy nor investment regulation while the local population takes newcomers as rivals who seize their lands and jobs.
Some were attracted by Georgia’s image as a place were doing business is simple and red tape-free. Others had no option. Christian Copts for example who fled upheaval in Egypt and faced Christian-hunt faced difficulties to get visas to the US and Europe. For them Christian-dominated Georgia with a relatively easy visa regime and a liberal economic image looked like the best option. Out of 2 000 visas granted to Egyptians in 2013 in Georgia, the biggest part constitutes Christian Copts while their number stood at only 222 in 2012. Egyptians in Georgia mainly run small businesses including hotels or are involved in farming. However, doing business in Georgia turned out to be not so easy for local petty business traders, wholesalers and distributors frequently deceive labor migrants [who do not understand Georgian] in the pricing of goods and services. Sometimes labor migrants ask locals for advice in investment opportunities, but seldom get an answer. Some withhold good advice while most people are simply ignorant of this.
This bespeaks of a lack of state investment policy, economic analysts say. They believe it is high time for the Georgian authorities to think of a solution of the problem because Georgia does not have the luxury to neglect any investment opportunity and must care for every investor whether they are big or small.
“It is up to the State to work out a clear investment policy which will provide potential investors, no matter what their size, with full information on investment opportunities. And this policy must provide full guarantees that the investments they made are protected and safe, which the State does not do at the moment,” Levan Kalandadze, an economic analyst, told Georgian Journal.
On the other hand, the state interests should be observed and never sacrificed for the investors’ interest as it happened during the liberally disposed previous government that put agriculture lands up for free sale to foreigners. This led to a clash of interests and local farmers tried to hurl foreigners out by both fair and foul means. Around 2 000 Indian farmers for example who, tempted by cheap agriculture lands as the India-based broker agency Crown Migration touted in India, acquired a total of hundreds of hectares of lands in the Kakheti region, face problems with the locals now. The local population who cannot afford land acquisition got discontented and now threatens foreign farmers into leaving the lands.
“Even the most democratic countries do not put up their lands for free sale, they put out certain terms the investor must observe and that fall within the state’s interest,” Soso Archvadze, an economic stated. To mitigate the problem the new authorities introduced a moratorium on lands sale past spring, but Archvadze does not approve of the ban either. He believes a reasonable restriction could be the better way-out and the State must regulate the issue in a way to please both locals and foreign investors.
Tourist agencies run by Arabs from Iraq dominated the downtown of Tbilisi. They hung out boards in the Arabic language with no Georgian translation which also lays ground to a certain discontent of the locals.
Economic analysts believe that the State must elaborate a proper policy before an incident takes place, and find a golden middle that will observe both state interests and ensure a fair investment climate for all investors.

Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30