Georgia: EBRD and EU to unlock funds for locals firms through Bank of Georgia and TBC Bank
European Bank for Reconstruction and Development (EBRD) President Odile Reno-Basso, on a visit to Georgia, has signed agreements with two Georgian banks on loans to local small businesses.
The EBRD will provide new US$ 20 million loans to Bank of Georgia and to TBC Bank to help local firms across the country increase competitiveness and invest in upgrades, including green technologies.
This funding comes under the EU4Business-EBRD Credit Line – a flagship programme that enables borrowers to enhance production and trade more successfully on the international market, as well as advance environmental practices.
MSMEs can access funds in local currency and benefit from incentive grant funding, as well as technical assistance from international advisers, funded by the EU under the EU4Business initiative. Georgian companies will be able to improve their productivity, competitiveness and working environment for their employees.
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Press conference dedicated to the 30th anniversary of the partnership between Turkmenistan and the EU
On November 22, 2023, as part of the Days of European Culture in Turkmenistan, a press conference dedicated to the 30th anniversary of the partnership between Turkmenistan and the European Union was held at the EU Delegation office.
During her speech, Deputy Minister of Foreign Affairs of Turkmenistan M.Byashimova congratulated paticipants on this significant date and emphasized that Turkmenistan attaches great importance to political, diplomatic, trade, economic, cultural and humanitarian cooperation with the European Union.
It was noted that regular meetings and negotiations at the highest level contribute to the expansion and strengthening of comprehensive cooperation in a wide range of areas. In this context, it was noted that the meeting between the President of Turkmenistan and the President of the European Council, held on September 18, 2023 in New York, became a significant stage in cooperation between Turkmenistan and the EU.
The Turkmen side noted the effective interaction of the parties within the framework of the inter-parliamentary dialogue. In this context, regular meetings between representatives of the Mejlis of Turkmenistan and the European Parliament was emphasized.
The “Central Asia-European Union” cooperation format was noted as one of the important mechanisms for expanding partnerships, within the framework of which programs and projects aimed at strengthening trade and economic ties, partnerships in the field of transport, digitalization, ecology and energy, as well as cultural -humanitarian sphere, including education and healthcare.
The participants of the press conference exchanged views on the successes achieved and prospects for further cooperation.
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EU and UN Showcase Success of EUR 5.1 Million Initiative for Private Sector Competitiveness in Georgia
Partnership Sparks Entrepreneurship, Green Economy, and Economic Resilience
TBILISI. 14 November 2023 – The European Union and the United Nations presented the accomplishments of their EUR 5.1 million initiative, "EU Innovative Action for Private Sector Competitiveness in Georgia". Over five years, from 2019 to 2023, this programme had a profound impact on the business development landscape in Georgia. It supported significant strides in advancing the circular economy, fostering robust business clusters, enhancing legislative frameworks, and boosting Georgian producers' presence in European markets.
This landmark programme directly benefitted up to 100 small and medium-sized enterprises across the country and played a significant role in establishing and nurturing four business clusters, some of which have garnered international acclaim from the European Cluster Excellence Initiative. Furthermore, the programme created learning and development opportunities for over 1,500 entrepreneurs and farmers across Georgia, strengthening their business skills and increasing their prospects in the international marketplace.
With financial support from the European Union, the programme was implemented in close partnership with the Georgian Government and the private sector, with the active involvement of four UN agencies: the United Nations Development Programme (UNDP), the Food and Agriculture Organization (FAO), the United Nations Industrial Development Organization (UNIDO), and the International Organization for Migration (IOM).
The results of this collaborative effort were celebrated at the event on 14 November, where distinguished speakers from the Government and the private sector highlighted its impact.
"The EU’s Innovative Action for Private Sector Competitiveness in Georgia has unveiled various opportunities for the private sector, laying the foundation for ongoing economic progress. The European Union remains unwavering in its support for Georgia's private sector, actively promoting green and sustainable practices and cultivating the prospective growth of Georgia's business and industrial landscape," said Catalin Gherman, Deputy Head of Cooperation at the Delegation of the European Union to Georgia.
Douglas Webb, UNDP Resident Representative a.i. in Georgia, noted that the private sector is the crucial player in safeguarding economic and social rights and achieving sustainable development for all.
“Together with the European Union and UN agencies, UNDP is working hand in hand with small and medium-sized entrepreneurs across the country to support Georgia's transformative journey toward a strong, inclusive, and sustainable economy, focused on the best interests of people and the planet. Our support benefitted one of Georgia’s strongest clusters of packaging companies and producers, PMAG, which has increased its membership network to over 60 companies, excelled in digital transformation, introduced environment-friendly business practices, such as sustainable production and recycling, and gained international recognition from the European Cluster Excellence Initiative and the World Packaging Organization. From 2018 to 2022, these impressive transformations facilitated a more than two-fold increase in sales across the entire PMAG network," said Webb.
“Under this project, FAO has supported the local production of saplings through the development of a legislative framework together with the National Food Agency and the Scientific Research Centre of Agriculture. We also supported around 20 nurseries by increasing their technical capacities and providing equipment. Moreover, FAO has trained up to 1000 producers on modern sustainable practices for agricultural production and facilitated access to markets for local products. All in all, the achievements of this project will greatly contribute to achieving a more sustainable agricultural production in terms of quantity, quality, and environmental impact, implementing good agricultural practices with EU standards, noted Javier Sanz Alvarez, the FAO Programme Coordinator.
“UNIDO directly supported 36 SMEs and trained/coached up to 300 beneficiaries across different business sectors in Georgia. UNIDO helped producers overcome constraints related to production and quality management, allowing them to sustainably resume their business operations. Notably, one company obtained Good Distribution Practice (GDP) certification and gained access to the market. With UNIDO’s assistance, Georgian Marine Fishing and Biopharmaceutical Clusters managed to bring together different producers and through joint activities achieved the objectives, which would’ve been left unresolved without the assistance of the EU-funded project,” said Giorgi Andguladze, UNIDO National Project Coordinator.
“Cultivating a dynamic synergy between the diaspora and local businesses, the International Organization for Migration has mapped the high-profile Georgian diaspora in the EU and globally. Through our extensive database, comprising approximately 4000 diaspora profiles, we have actively engaged with hundreds of individuals, exploring their skills, experience, and interests. Our overarching goal has been to establish robust connections between local businesses and the diaspora, facilitating the effective use of diaspora resources, knowledge, and ideas. This initiative has not only strengthened trade but also facilitated capacity building and driven collaborative initiatives. The diaspora's role as agents for local development was successfully pilot tested,” said Sanja Celebic Lukovac, IOM Chief of Mission.
One of the programme's most notable achievements is the substantial support provided to business clusters in Georgia, increasing the opportunities for participating companies and entire business sectors to excel both nationally and globally. The European and the United Nations assisted four business clusters, each contributing to specific areas of Georgia's economy:
- Packaging Cluster – PMAG, the ECEI Bronze Label holder, full member of the World Packaging Organization (WPO). Supported by: UNDP.
- Seed and Seedlings Cluster, facilitating the National Seedling Certification System development, technical support for nurseries, farmers training and Farmers' Markets. Supported by: FAO.
- Georgian Biopharmaceutical Cluster. Supported by: UNIDO.
- Marine Fishing Cluster. Supported by: UNIDO.
Furthermore, the programme helped strengthen public-private partnerships across various areas of business development, including waste management. In 2023, regional and local authorities in both western and eastern Georgia reiterated their commitment to this cause by signing declarations of intent with packaging companies and international partners aimed at enhancing waste management practices and promoting separation and recycling at the municipal level.
The programme also played a pivotal role in creating strong connections between Georgia's small and medium-sized producers and the Georgian diaspora in EU Member States. This collaborative approach fostered cooperation and partnership across borders, strengthening Georgia's presence in the global marketplace.
The "EU Innovative Action for Private Sector Competitiveness in Georgia" opened new opportunities for the private sector and set the stage for continued advancement towards more up-to-date, sustainable, and greener business practices. The European Union and the United Nations remain committed to supporting Georgia on its journey toward a sustainable and prosperous future.
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Background Information:
The EU Innovative Action for Private Sector Competitiveness in Georgia is an EU-funded initiative, boasting an investment of EUR 5.1 million. This initiative is carried out in partnership with UNDP, the Food and Agriculture Organization (FAO), the United Nations Industrial Development Organisation (UNIDO), and the International Organization for Migration (IOM), in collaboration with Georgia's public and private sectors. It aims to promote entrepreneurship, enhance legislative frameworks, provide better access to finance, and strengthen cooperation with EU Member States.
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EU and UN Showcase Success of EUR 5.1 Million Initiative for Private Sector Competitiveness in Georgia
On 14 November, 10:00 am, at Radisson Blu Iveria Hotel (First Republic Square, Tbilisi), the European Union and the United Nations will present the accomplishments of their EUR 5.1 million initiative, "EU Innovative Action for Private Sector Competitiveness in Georgia".
Over five years, from 2019 to 2023, this landmark programme had a profound impact on the business development landscape in Georgia. It supported significant strides in advancing the circular economy, fostering robust business clusters, enhancing legislative frameworks, and boosting Georgian producers' presence in European markets.
With financial support from the European Union, the programme was implemented in close partnership with the Georgian Government and the private sector, with the active involvement of four UN agencies: the United Nations Development Programme (UNDP), the Food and Agriculture Organization (FAO), the United Nations Industrial Development Organization (UNIDO), and the International Organization for Migration (IOM).
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Attending:
- Catalin Gherman, Deputy Head of Cooperation at the Delegation of the European Union to Georgia
- Genadi Arveladze, Deputy Minister of Economy and Sustainable Development of Georgia
- Vladimer Konstantinidi, Deputy Minister of Foreign Affairs of Georgia
- Douglas Webb, UNDP Resident Representative a.i. in Georgia
- Javier Sanz Alvarez, FAO Programme Coordinator
- Giorgi Andguladze, UNIDO National Project Coordinator
- Sanja Celebic Lukovac, IOM Chief of Mission
- Representatives from the private sector and business clusters
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EU confirms killing of a Georgian citizen by Russian Border Guards near village of Kirbali
The EU Monitoring Mission (EUMM) in Georgia confirmed today the shooting and killing of a Georgian citizen by Russian Federation Border Guards near the village of Kirbali, and reports of another Georgian citizen in detention.
The EU strongly condemned the use of force by Russian Federation Border Guards against Georgian citizens.
“We extend our heartfelt condolences to the family and loved ones of the deceased and we call for the immediate release of the detained citizen,” the European External Action Service said in a press release.
It also reminded that Russia’s military presence in Georgia’s occupied breakaway regions of Abkhazia and South Ossetia continued in violation of international law and commitments undertaken by Russia under the 12 August 2008 agreement, mediated by the European Union.
“We call upon all parties involved to exercise restraint and to take all necessary measures to prevent any escalation. The EUMM continues to monitor the situation closely and is working to defuse tensions,” says the press release.
The European Union also reconfirmed its commitment to stabilisation and conflict resolution in Georgia, and reiterated its firm support to the independence, sovereignty and territorial integrity of Georgia within its internationally recognised borders.
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Georgia: EU announces €16 million to improve road safety
At the Global Gateway Forum in Brussels, EU Commissioner for Enlargement and Neighbourhood Olivér Várhelyi and European Investment Bank President Werner Hoyer yesterday formalised a financial package by which the European Commission will provide a grant of €16 million, through EIB Global, to improve road safety along Georgia’s East-West highway.
The project will include activities improving physical safety of the roads, provide engineering services and awareness-raising actions. The measures aim to contribute to a decrease in the number and severity of road accidents. Moreover, enhanced safety on Georgia’s extended Trans-European Network – Transport (TEN-T), which connects the country to Europe as well as on certain local transport axes, will strengthen the country’s trade links and economic growth.
The project also contributes significantly to improving transport connectivity along the trans-Caspian corridor linking Central Asia to Europe across the South Caucasus.
“In the Eastern Partnership region, our connectivity agenda is implemented through our Economic and Investment Plan. Improving connectivity is a central feature of that Plan,” said Commissioner Várhelyi. “With this new investment in Georgia’s East-West highway, we are improving Georgia’s connectivity to Europe as well as its road safety, travel conditions and ultimately we are reducing travel times for all Georgians. The East-West Highway also opens up new economic and trade opportunities for Georgia as it reinforces Georgia’s role as a trade hub along the trans-Caspian corridor”.
The Global Gateway Forum on 25-26 October brings together for the first time an assembly of government representatives from the European Union and across the globe, alongside key stakeholders from the private sector, civil society, thought leaders, financial institutions, and international organisations to promote global investment in transformative infrastructure – hard and soft- to deliver on SDGs.
Global Gateway is the EU’s positive offer to reduce the worldwide investment gap and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, it aims to mobilise up to €300 billion in public and private investments from 2021 to 2027.
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