Economics

Information that the west has not constructed any enterprises in Georgia, is false

25 July, 2016

In 13-19 June 2016 edition of Asaval-Dasavali, an interview of the former Minister of Internal Affairs, Temur Khachishvili was published in which he stated that:
"The West has not constructed any enterprises in Georgia in 25 years!"

According to the data of the National Statistics Office of Georgia, the EU countries and the United States have made USD 7,458,981 million foreign direct investment since 1997, whereas the analogous indicator in case of Russia is USD 603,730 million.

Foreign Direct Investment in 1997-2015 (Thousand USD).

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Six countries out of ten biggest investor countries are Western. They include: USA, United Kingdom, the Netherlands, British Virgin Islands, Luxembourg, Cyprus. The top ten includes international financial organizations that made USD 16 million investment in the first quarter of 2016 in Georgia.

According to the data of the first quarter of 2015, investments distribute by sectors in the following way (See the pictures).

As for the enterprises, we offer five examples of investments made in creating or developing enterprises:

  1. European Bank for Reconstruction and Development made USD 155 million investment in Rustavi Azot, that employs nearly 2300 people.
  2. Imereti Greener is a greenhouse/storage industry that produces vegetables. The industry has been founded with involvement of a Dutch company Food Venture B.V. The investment capacity reached EUR 4.2 million. The greenhouse currently employs 23 people, however, their number will increase to 50 after an expansion.
  3. Adjaristskali Georgia LTD, constructing Shuakhevi and Koromkheti Hydroelectric power plants, is founded by a Norwegian company Clean Energy, International Financial Corporation IFC and Indian Energy Company Tata Power.
  4. An American company, Georgian-American Ferroalloy made a USD 5 million investment in Zestaponi Ferroalloy Factory for installing new inventory.
  5. ICES LTD, an official representative of a Dutch company, Besseling Group, participated in founding of a construction material producing factory - Panex.

Therefore, the information that the West has not constructed any enterprises in the last 25 years, is false.

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Prepared by Sopo Gelava