Agriculture and Logistics

We believe that the Georgian agricultural sector has a great potential as Government of Georgia is committed to supporting the sector and is actively investing in agricultural infrastructure (irrigation/drainage systems). Moreover, the Deep & Comprehensive Free Trade Agreement (DCFTA) with the EU, which was signed in June 2014, gives us the opportunity to significantly increase exports to the European Union. The growing number of tourists adds attractiveness to the sector as local consumption increases.

Georgia has a great history and traditions in the agricultural sector. Historically agricultural sector was one of the key contributors to the Georgian economy. In 1991, agriculture accounted for 29% of country’s economy, while in 2012 it contributed only 7%. We believe that there is significant untapped potential in the sector as years of underinvestment now gives an opportunity to catch up with EU levels using modern technologies and long term investments.

Georgia has strategic location, which makes it perfect for forming regional hub for exporting agricultural products to region (Caucasus, Central Asia, other CIS countries).

Georgia’s natural resources and various micro-climatic zones are perfect for producing a wide range of grains, vegetables and hard and soft fruits, etc. There are over 21 micro-climates in the country. Soils are of volcanic origin located in the river valleys. They tend to be quite fertile and reasonably easy to cultivate.
 
Our approach in sector
The Fund will focus on investing in the following categories of projects:

Import substitution opportunities
                   Dairy production
                   Pork & beef production

Export opportunities 
                   Wine and mineral water
                   Fruits and vegetables

Setting up projects in agriculture value chain 
                   Storage and distribution infrastructure
                   Processing plants
                   Greenhouses

Transit hub
                   Grain storage elevators
                   Animal feed production