Georgia snapshot 2015

Size: px

Start display at page:

Download "Georgia snapshot 2015"

Madeline Andrews
5 years ago
Views:

1 Manufacturing

8% (2015*) FDI: USD 1.4 bln (2015) Export: USD 2.2 bln (2015) Import: USD 7.

2 Growing Economy Georgia snapshot 2015 Population: ~ 3.8 mln GDP: USD 13.9 bln (2015 ) GDP/Capita (PPP 2015): ~ USD 9,160 GDP growth: 2.8% (2015*) FDI: USD 1.4 bln (2015) Export: USD 2.2 bln (2015) Import: USD 7.7 bln (2015) Unemployment rate: 12.0% (2015) *Preliminary Data Sources: National Statistics Office of Georgia, World Bank

Business Friendly Environment Doing Business Economic Freedom Corruption Perception Crime Index #24 #23 #48 #6 #1 Up from #112 in 2005 Up from #99 in 2005 Up from #130 in 2005 World Europe Georgia is

3 Business Friendly Environment Doing Business Economic Freedom Corruption Perception Crime Index #24 #23 #48 #6 #1 Up from #112 in 2005 Up from #99 in 2005 Up from #130 in 2005 World Europe Georgia is one of the leading Majority of Georgia s reforms Alongside recognitions as the In the last ranking of countries in the world in are oriented on the top reformer in the world, countries by crime index, terms of starting a business, development of free, open Georgia is the leader in the Georgia was named as one of dealing with bureaucracy and and transparent, private- wider region in terms of the safest place in the world the number of procedures sector driven market fighting with corruption with the lowest crime rate in required to launch and economy the Europe operate an enterprise

4 Strategic Location Located at the crossroads of Europe, Asia, Middle East and Africa Key link in the shortest transit route between Western Europe and Central Asia for transportation of oil and gas as well as dry cargo Access to over 1 billion people markets

5 Economic Freedom 2015 Doing Business 2015 Hottest destinations for investments #22 #15

Regional Hub for Doing Business EU DCFTA

Nation (MFN) since 2000 Immediate Region

6 Regional Hub for Doing Business EU DCFTA CIS FTA State Incentives Most Favored Nation (MFN) since 2000 Immediate Region US, Canada, Japan, Norway, Switzerland On-going negotiations on FTA with FTA GSP Very simple and service oriented customs policy 0% customs tax on over 80% of imports Efficient tax administration 0% customs tax on all exports No quantitative restrictions or tariff barriers 0% VAT on all exports Average Customs Clearance ~15 minutes Maximum customs tax on imports 5-12%

Taxation Burden is Simple, Low, Flat and Efficient

Personal Income 1% Property Tax NO Payroll Tax or

Foreign source income of individuals fully exempted

repatriation of capital & profit Dividend/Interest

7 Taxation Burden is Simple, Low, Flat and Efficient 15% Corporate Profit Tax 18% VAT (Value Added) 20% Personal Income 1% Property Tax NO Payroll Tax or social insurance Tax Capital gains Tax Wealth Tax Foreign source income of individuals fully exempted No restrictions on currency convertibility or repatriation of capital & profit Dividend/Interest Tax 5% Double Taxation avoidance treaties with 47 countries

8 Available Young & Educated Work Force Unemployment Rate Labor Freedom Index According to Heritage Foundation, Labor Freedom Index in Georgia is 91.2 out of 100 score Average Monthly Salary Including white and blue-collar workers All ILO core conventions are ratified by Georgia 12.0 % ~ 50 % 91/ USD Flexible Labor Code Young and Educated Labor 50% of unemployed population are aged between 20-34

Manufacturing Sector of Georgia USD Million, 2014 Value Added Production Value Industry Production Value and Value Add Top Products Top Exports Top Companies Food & Beverages 519 1,778 Grain Mill

9 Manufacturing Sector of Georgia USD Million, 2014 Value Added Production Value Industry Production Value and Value Add Top Products Top Exports Top Companies Food & Beverages 519 1,778 Grain Mill products Mineral waters & soft drinks Wine Nuts Spirituous beverages Wine Agara Company IDS Borjomi Lomisi Metals Ferro-alloys Basic metals Fabricated Metal Products Ferro-alloys Ferro waste Bars and Ores Georgian Manganese Quartzite Geosteel Non-metallic mineral products Cement Articles of concrete and cement Glass Cement Articles of concrete/cement Glass Heildelberg Georgia Georgian Cement Chemicals Basic Chemicals Pharmaceuticals Cleaning&polishing preparations Fertilizers Medicaments Cleaning & polishing prerp. Rustavi Azot GMP Aversi Transport Equipment Railway locomotives Aircraft Ships Parts of aircrafts Parts of railway Rail locomotives Elmavalmshenebeli Vagonmshenebeli TAM Tbilaviamsheni Plastics Plastic Products PET products Plastic Products Caucasian PET Alfa PET AA Plast Wood, Paper and Furniture Publishing and printing Furniture Wood Wood Furniture Paper Embawood Star RG Hualing Group Textile and Leather Apparel Textiles Footwear Apparel Textiles Footwear BTM Textile Ajara Textile Machinery and Equipment Wires and cables Motors, generators, transformers Machinery Machine Tools Compression Engines Household machines Saqkabeli ICES Saqenergoremonti

Highly Attractive Import Substitution and Export Opportunities Export Import Substitution Pharmaceuticals Food products Textile/Apparel Industrial Equipment

10 Highly Attractive Import Substitution and Export Opportunities Export Import Substitution Pharmaceuticals Food products Textile/Apparel Industrial Equipment Electronic Equipment Other light manufacturing Beverages Packaging Fertilizers/ Chemicals Paper and Cardboard Construction Materials Wood Products Plastic & Rubber

Produce in Georgia Support Mechanisms: Interest Rate Co-financing on the loan or the subject of lease for the first 2 year (up to 10%) Partial collateral guarantee for the first 2-4 years, 50% of the

11 Produce in Georgia Support Mechanisms: Interest Rate Co-financing on the loan or the subject of lease for the first 2 year (up to 10%) Partial collateral guarantee for the first 2-4 years, 50% of the total loan (Upper limited USD 1,000,000 equivalent in GEL) Infrastructure Support: Provision of State Property for a symbolic price of GEL 1 Consulting Support: Co-financing of consulting services, export market diligence, business matching, installation of technology and innovation, skills development, quality management, standardization, etc. Eligibility At least 80% of the loan must be oriented on the purchase of PPE Manufacturing must be oriented on either Industrial Manufacturing or Agriprocessing Investment obligations for provided state property Financial Assistance to New Enterprises Interest Rate Co-financing Partial Collateral Guarantee Financial Assistance to Upgrade of Existing Enterprises Interest Rate Co-financing Financial Assistance to Companies seeking to Lease Equipment Interest Rate Co-financing Infrastructure Support for New Enterprises Consulting Support for all types of beneficiaries

12 Co-Investment Opportunities 100% State Fund 100% Private Fund Total Assets USD 3 billion Investment Options: PF participation should not exceed 50% of the total investment Equity Co-Investment Senior and Subordinated Loans Total Assets USD 6 billion Investment Options: Minimum size of Investments of USD 5 million Equity Co-Investment from 25 to 75% of the project Minimum IRR of the project 17%

13 Thank You

Entrepreneurship Development Agency

Entrepreneurship Development Agency Marjanishvili str. 5/16-18, 0102 Tbilisi Tel: +995 32 2 99 10 44 Web: www.qartuli.ge; www.enterprise.gov.ge Mail: info@enterprise.gov.ge Growing Economy Georgia Snapshot