Economic Newsletter
April 2013
Embassy of the Kingdom of the Netherlands in Tbilisi
Content
Foreword by the Ambassador
1
News from the Embassy
2
Upcoming Events
5
Dutch Companies looking for Georgian Counterparts
7
Key Marco-Economic Indicators
9
Useful Links
10
Foreword by the Ambassador
Dear all,
Although cohabitation between government and opposition parties can still not be considered to be
smooth, the recent constitutional amendments adopted in Parliament are a welcoming step to take
away existing political tension. It shows that Parliament is functioning and willing to collaborate on
contentious issues. This is positive news for the business community in Georgia, which needs political
stability and predictability to flourish. Although the economy is still in a stand-by mode, it might
increase foreign investors’ confidence in due time.
There are more positive signs that could positively influence businesses willingness to invest. The
Governments ambition to focus on small and medium sized agricultural businesses, the development
and the institutionalization of several investment funds are important signs of the new government’s
commitment to stimulate the economy. The economic foundations of the Georgian economy are still
good.
I was also pleased to participate in the recent visit to the Netherlands by the Minister of Foreign Affairs
Panjikidze. During her visit Minister Panjikidze met with the Dutch Foreign-Minister Timmermans to
discuss foreign policy issues relating to the EU, NATO. Economic diplomacy was also one of the
reasons for her visit. She inaugurated two honorary Georgian consuls, responsible for both Amsterdam
and Rotterdam. The Netherlands Embassy in Tbilisi is looking forward to further broaden and
strengthen the good relationship between Georgia and the Netherlands, also in close cooperation with
the Georgian Embassy in The Hague, the new honorary consuls and the recently founded GeorgianNetherlands Business Association.
Notwithstanding the political transition period Georgia is experiencing for the moment, there are
always new opportunities for Dutch and Georgian companies. Sharing know-how and technology with
regard to water, agriculture, food production, transport/logistics could further benefit trade relations
between both countries. To highlight business opportunities and to bring Dutch companies in contact
with Georgian counter-parts and decision-makers, the Embassy is organizing “Dutch Water Days” on
the 22nd and 23d of May.
In this newsletter you will find more information on these Dutch Water Days and other activities that
the Embassy is organizing. We also included specific trade requests from Dutch companies that are
looking for a Georgian partner in this newsletter.
For information on other activities of our embassy I would also like to refer you to our social media
messages. In case you have any questions, do not hesitate to contact us.
Kind regards
Pieter Jan Langenberg
Ambassador
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NEWS FROM THE EMBASSY
Dutch Phyto-Sanitarian visits Georgia on
request of Ministry of Agriculture
On request of the Ministry of Agriculture of
Georgia the Netherlands' Embassy asked the
phyto-sanitarian expert dr. Jaap Jans of the
Nederlandse Algemene Keuringsdienst (NAK)
to share his expertise on potato diseases with
the Georgian National Food Agency. During his
four-day visit (27 Feb.-2 Mar.) He visited
companies in Akhalkalaki and Keda, a
diagnostic center in Batumi as well as
laboratory in Tbilisi to demonstrate the knowhow that the Netherlands built up. By sharing
his expertise, mr. Jansen assisted the Georgian
National Food Agency in improving the phytosanitary conditions in Georgia to prevent the
spread of particular potato diseases.
Ambassador P.J. Langenberg meets New Government of Adjara
On Thursday 27 and Friday 28 of February the Ambassador visited Autonomous Republic of Adjara.
During his visit he met with the Chairman of the Government of Adjara, Minister of Finance and
Economy and the Minister of Agriculture. The political situation and the investment climate were
discussed among other topics. The Adjarian governmental officials pointed at the importance of
recently implemented projects (among which a by the Dutch government assisted spatial planning
draft scheme project, see below) priorities of the region and planned projects. Besides, both sides
concluded that the Dutch know-how within the fields of agriculture, agricultural products packaging
and logistics might be useful for the further development of these sectors in Adjara.
Closing Conference Dutch funded Spatial Development Project Adjara
On Thursday 28 of February the Ambassador opened the presentation and closing conference of the
project “Development of Spatial Planning for Autonomous Republic of Adjara". During the project
Dutch and Georgian specialists worked together to draft the Adjara spatial development plan. The
project could be seen as a pilot-project for whole Georgia, as there have not been preceding projects
within the country of this particular kind. Both, Dutch and Georgian partners, consider the project as
an example of successful international cooperation.
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Left: The Ambassador opened the closing conference of the Dutch funded spatial development project in Batumi, Adjara.
Right: Maia Todria of the Economic Department (Left) and Anna Schilizzi, Project Consultant of ORIO, visiting the Minister of
Agriculture.
Visit by ORIO-Project Consultant to Armenia and Georgia
From 4 to 8 March Anna Schilizzi, Project Consultant for the ORIO-facility, was visiting Yerevan and
Tbilisi to inform decision-makers in both capitals about the ORIO. This Facility for Infrastructure
Development (ORIO) is funded by the Dutch Ministry of Foreign Affairs to encourage public
infrastructure development in developing countries. It contributes to the realization of good
functioning, development relevant, public infrastructure in developing countries in order to contribute
to human development and private sector development. During her visit Miss Schilizzi, accompanied
by Maia Todria of the Embassy’s Economic department, visited various Ministries in both countries to
inform them about the ORIO facility, the application procedures and feasibility of potential
projects.Consequently the Ministry of Agriculture of Georgia is currently considering applying for
ORIO.
For more information about the ORIO-facility, please visit: http://www.agentschapnl.nl/en/programmas-regelingen/facilityinfrastructure-development-orio
Economic Department Meets with Companies and Partner in the Netherlands
Angele Samura (Deputy-Head of Missions) and Maia Todria (Economic Department) met with several
companies and organizations during their official visit in the Netherlands from the 10 to the 14 of
March. During these meetings they informed the companies and organizations about important
developments in Georgia and emphasized possibilities for further cooperation.
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One of the important fields of interest during this mission was the Dutch water sector, since
the Embassy will organize an event in May to promote the Dutch water sector (“the Dutch Water
Days”). Moreover, agriculture was an important topic as well, as this is a high-priority field for the
new government and as there is a strong interest from the Netherlands to further investigate
possibilities within Georgia. The second half of the year a Dutch trade mission focusing on agriculture
might visit Georgia.
Ambassador discusses sports with Deputy-Minister
On 10 March the Ambassador and economic policy officer Maarten de Boer met the Deputy-Minister of
Sports and Youth-Affairs Tamaz Tevzadze to discuss the latest developments within the Georgian
sport sector. Georgia will organize several big sport events, among which the European Super Cup and
the European Olympic Youth Festival in 2015. Therefore opportunities for Dutch companies regarding
infrastructural projects and the organization of these events were also touched upon. The embassy will
contact branch organizations in the Netherlands to point them at these interesting.
Briefing by PUM representatives
The embassy has met with Georgian representatives of PUM programme (a Dutch organization
consisting out of senior experts sharing knowledge to help (Georgian) SME’s grow their business to
the next level) on 26 March to discuss the visit of Mr. Henk ten Brinke, country Director for Georgia.
Mr Brinke visited the embassy on April 2 to discuss
the latest developments. Furthermore he will meet
different economic partners in Georgia to discuss
future cooperation.
To apply for PUM, please visit http://www.pum.nl.
MFA Panjikidze meets Minister Timmermans
On the 26th of March the Georgian Minister of
Foreign Affairs Maia Panjikidze met with Dutch
Minister Timmermans to talk about several topics,
like the EU, NATO and bilateral issues. Minister
Panjikidze invited Minister Timmermans to visit
Georgia the second half of the year.
Minister Timmermans met with the Georgian Foreign Minister
Panjikidze on 26-3-2013.
Georgia to have honorary consuls in Amsterdam & Rotterdam
During her visit to the Netherlands from 24-26 of March, Georgian MFA Panjikideze inaugurated the
new honorary consuls in Rotterdam and Amsterdam by giving them the Honorary Consul Certificates.
Gijs de Jager will be Georgia’s consul to Amsterdam and Nico de Borst to Rotterdam. This special
reception ceremony held for inauguration was attended by representatives of diplomatic missions in
The Hague and other invited guests.
Active promotion of the Dutch-Georgian trade and economic relations have earlier led to establishment
of the Netherlands-Georgian Business Council (NGBC) in April 2012.
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Upcoming Events
2 – 10 April
PUM Country-Director will come to Georgia
PUM Netherlands senior experts connects entrepreneurs in developing countries and
emerging markets with senior experts from the Netherlands who gained at least 30
years of experience in a business environment. These senior experts voluntarily
devote their knowledge to execute short-term, solid consultancy projects on the work
floor. During the beginning of April the Country-Director for Georgia, Henk ten Brinke,
will visit Batumi, Kutaisi and Tbilisi.
For more information about PUM, please visit: https://www.pum.nl/
8 – 12 April
Georgian Journalists travel to the Netherlands
The team of Holland Branding (of AgentschapNL) regularly invites journalists for a
theme visit to the Netherlands to increase possibilities for trade and investment. The
theme of the visit for the Georgian journalists that will be coming to NL will be water.
The Georgian water sector faces some urgent concerns, making it a timely moment for
the Dutch water sector to be presented to Georgia.
30 April
Queen’s Day in Georgia
Queen's Day is renowned for being one of the biggest and most colorful festivities in
the Netherlands. This year’s Queen’s Day will be an special event, as the abdication of
the Queen will take place, followed by the investiture of the new king. Many
celebrations are foreseen in the Netherlands.
22-23 May
Dutch Water Days in Tbilisi
Water supply/water quality, irrigation and coastal protection
are urgent concerns for Georgia at the moment. As the
Netherlands historically has a wide reputation with regard to
water technology and know-how, it is a timely moment for the
Dutch water sector to present itself. For this reason the
Netherlands’ Embassy in Tbilisi decided to organize the Dutch
Water Days, to present the Dutch water sector and to
moreover connect Dutch companies to Georgian decisionmakers, companies and useful donor-organizations.
Half of May
Visit by the Country Project Officer
for Private Sector Investment (PSI) Programme
Mr. Eric Tas will visit ongoing PSI projects in Georgia and
Armenia. Additionally several meetings with different economic
partners in both countries are planned during his visit.
For more information about PSI, please visit:
http://www.agentschapnl.nl/en/programmas-regelingen/private-sectorinvestment-programme-psi
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Dutch
Companies
looking for
Georgian
Partners
Many Dutch entrepreneurs work
abroad and invest abroad, and
many foreign companies also
invest in the Dutch economy: it
leads to growth and creates jobs
across
the
global
market.
Currently the Netherlands is the
biggest investor in Georgia and
known
as
an
innovative,
creative and reliable partner.
The Dutch government strives
to increase opportunities for
Dutch entrepreneurs on foreign
markets, as well as to stimulate
the
international
business
climate.
To
serve
both
purposes, the Dutch Embassy
would like to refer to the
following Dutch companies that
are looking for cooperation with
a Georgian counterpart
Tolsma Storage Technology
Website: http://www.tolsma.nl
Contact person: Maarten van
Delden,
maartenvandelden@tolsma.nl
Tolsma
designs
and
manufactures
innovative
storage techniques that improve
the
storage
efficiency
of
potatoes, onions and carrots.
Growers, traders and processors
on a global scale choose Tolsma
products for their innovative
character, ease of use and
reliability.
Looking for: Currently Tolsma
Storage Technology is looking
for a trade partner in Georgia.
Orange Business
Improvement
Website: www.orange-businessimprovement.com
Contact person: Cees A.M. den
Teuling MBA, cees@orangebusiness-improvement.com
Orange Business Improvement
is an alliance of internationally
experienced entrepreneurs and
consultants, working for SMEcompanies
in
the
Eastern
Europe,
CIS
and
the
Netherlands. Our consortium is
specialized
in
advice,
matchmaking,
coaching,
business
optimization,
investment and other forms of
consulting services.
Looking for: a local consultant
or consultancy firm as our
local partner to join forces and
to implement combined projects
Arte Viva.
Website:
http://www.arteviva.com/en/
Contact person: Satar
Opperhuizen,
satar.opperhuizen@arteviva.nl
Arte Viva is a dynamic Dutch
company that offers innovative
high-quality
child
safety
products (e.g. door safety strips
and corner guards) in over 48
countries
divided
over
5
continents. The majority of
products are produced in the
Netherlands,
Germany
and
Belgium.
Looking for: A local trade
partner/distributor
for
the
Georgian market.
KPG Greenhouses
Website:
www.kgpgreenhouses.com
Contact person: Paulina
Komorowska,
komorowska@kgpgreenhouses.c
om
KGP constructs greenhouses
throughout the world, offering
turn-key
projects
with
all
necessary
accessories
and
equipment
for:
heating,
screening, lighting, irrigation,
automation, climate control,
electrical engineering and other
greenhouse components. High
standards
of
production,
customized solutions, financial
advising and 35 years of
experience
on
horticultural
market are guarantee of our
success.
Looking for: reliable partners
who want to use the highest
available growing technology
and
establish
long
term
cooperation.
4
Avalon
RWB Water Services
Website: http://www.avalon.nl
Contact person: Martien
Lankester,
martien.lankester@avalon.nl
Website:
http://www.rwbalmelo.nl/
Contact Person: Fokko Borre
f.borre@rwbalmelo.nl
Avalon seeks to contribute to
large scale adoption of
sustainable agricultural practice.
It advises on the development
of agro-environmental policy
programmes, organic production
and
market
&
chain
development, national action
plans for organic farmers.
RWB Water Services is a
company involved in design and
construct of turn key water
treatment facilities. We focus on
production of drinking water and
process water and treatment of
waste
water
(membrane
filtration, biological treatment
and
chemical
physical
treatment).
Looking for: Business-owners,
entrepreneurs
and
policymakers.
Looking
for:
We
offer
containerized units for drinking
water production with ceramic
membranes, very suitable for
rural areas.
Zwart & Jansma Architects
Website: http://www.zja.nl
Contact Person: Jon Standing
jon@zja.nl
Zwarts & Jansma Architects
(ZJA) is an architectural office
specialized in the architecture of
Transport and Sports & Leisure.
This includes the architectural
design of Stadia, indoor sports
facilities, bridges, under passes,
over
passes
and
light-rail
stations. Our services range
from delivering spatial vision
documents to comprehensive
architectural designs set in
precious
landscapes
and
sensitive urban settings. Our
clients
are
governmental
(public)
bodies,
engineering
firms and contractors.
Looking for: Leading
Engineering companies and/or
contractors with a firm presence
in Georgia and with access to
projects in the field of Transport
and / or Sports & Leisure who
look for support in the domain
of architectural design services
Holland Trading Group
KBM Affilips
Website:
http://www.kbmaffilips.com
Contact Person: Leendert van
de Weerd,
lvandeweerd@kbmaffilips.com
KBM
Affilips
B.V.
is
the
marketing and sales company
for
the
master
alloys
manufactured by its production
companies KBM Master Alloys
B.V. and Affilips N.V.; both
founded in the early sixties of
the last century. Production
takes
place
in
three
metallurgical plants in Holland
and Belgium.
Looking
for:
Businesspossibilities in the nonferrous
metal industry in Georgia.
Website:
www.hollandtradinggroup.nl
Contact Person: Aysel Kaas
akaas@bs-international.nl
Holland Trading Group is a
leading international businessto-business trading company
and wholesaler of fast-moving
and luxury consumer goods in
both duty free and domestic
markets. We carry a wide and
comprehensive range of Abranded products related to
perfumes, cosmetics, medical
disposals, toiletries and hair
care. These brands include Hugo
Boss, Dior, Clinique, Lancome,
Well, Tena, Micro-Fine.
Looking for: We are interested
in
developing
business
relationships with buyers and
suppliers. Under the buyers and
suppliers
falling:
dealers,
distributors,
wholesalers,
retailers/retail
chains,
shops/chains of shops and web
sh
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Key Macro-Economic Indicators 2012/2013
Real Sector
Population (thousand)
Real GDP-growth (%) in 2012
Inflation (February 2013)
Monthly
Annual
4497,6
6.1% (7.2% in 2011)
-0.3%
-2.1%
Unemployment
15.1%
Fiscal Sector
Budget Surplus/Deficit 2012
(% of GDP)
-3.6%
Estimated Budget Deficit 2013
(% of GDP) (source: IMF)
-2.8%
Public Debt
Foreign Public Debt (%/GDP)
(source: IMF)
Domestic Public Debt (%/GDP)
(source: IMF)
27.7%
(34% in 2011)
5.2%
(4.9% in 2011)
External Sector (2012)
Export Growth (in %)
Import Growth (in %)
Turnover Growth (in %)
Trade Balance Growth (in %)
FDI (mil.)
FDI (compared to 2011)
8.6%
11.1%
10.5%
12.3%
865.2
-22.5%
Financial Sector
Exchange rate
USD/GEL (1USD = xx GEL)
Average of 2012
End of 2012
EUR/GEL (1EUR = xx GEL)
Average of 2012
1,6512
1,6567
2.1825
Sources: IMF, Geostat.ge
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Useful Links and Contacts
List of trade fairs in Tbilisi in 2013/2014
www.expogeorgia.ge
Competition and State Procurement Agency
http://procurement.gov.ge
Government of Georgia www.government.gov.ge
National Investment Agency www.investingeorgia.org
Ministry of Economy and Sustainable Development of Georgia www.economy.ge
Ministry of Foreign Affairs of Georgia www.mfa.gov.ge
Ministry of Finance of Georgia www.mof.ge
National Bank of Georgia www.nbg.gov.ge
Georgian Statistics www.geostat.ge
EBRD www.ebrd.com
IMF www.imf.ge
World Bank www.worldbank.org.ge
EU Georgian Business Council www.eugbc.net
American Chamber of Commerce www.amcham.ge
International Chamber of Commerce www.icc.ge
Georgian Chamber of commerce www.gcci.ge
COLOFON
The Embassy of the Kingdom of the Netherlands in Georgia publishes a quarterly newsletter which offers
an overview of Georgian economic news as well as activities of the Embassy in previous months. The
newsletter summarizes news from various publications and aims to collect as accurate data as possible.
The Embassy cannot be responsible for any mistakes or omissions in the information sheet provided.
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