Page 44 - GEORptJul19

market—but at the same time they face competition from foreign producers on the local market. An upward trend in milk production in Georgia started in 2015 thanks to assistance from the Food and Agriculture Organisation of the United Nations (FAO) and the European Bank for Reconstruction and Development (EBRD). The production of high-quality milk in Georgia more than doubled between 2015 and 2018, the fifth dairy congress in Tbilisi announced earlier this year.
Land O'Lakes International Development, an NGO helping communities around the world build economies by strengthening agriculture, in partnership with the Georgian Farmers Association (GFA), Michigan State University (MSU) and the US Department of Agriculture will host a special event in Tbilisi to mark the launch of the new project.
The goals of the project are to increase agricultural productivity and expand trade among more than 54,000 direct programme participants, primarily along the East-West Highway corridor.
By reducing losses and boosting productivity, the project aims to help Georgian farmers access additional markets for dairy and beef products.
9.1.7 TMT sector news
The World Bank, in collaboration with the Georgian economy ministry, will develop a National Innovation Ecosystem in the country in order to foster the digital economy and innovative start-ups. The World Bank will finance the project, which is estimated to cost $40mn. Countries in the South Caucasus, including Georgia, have been seeking to develop their value-added sectors, such as information technology, in recent years. Armenia is a leader in this sector in the region, with IT and technology accounting for 5% of GDP, and a sizable qualified workforce that has attracted the likes of Microsoft to open up innovation centres in the country. Meanwhile, Azerbaijan has been working on digitising its public services and installing fibre-optic Internet connections across the country. Following in their footsteps, Georgia is also working on Internet connectivity and promoting tech start-ups. The project will comprise four parts, namely the development of an innovation infrastructure through the creation of a network of innovation hubs in selected cities and town; the provision of innovation services; ensuring financing through technical assistance and matching grants; and project implementation support.
9.1.8 Retail sector news
Georgia’s largest retailer Nikora Trade successfully placed 2mn new ordinary shares under a public placement carried out from July 1, 2017 to March 31, 2019, Nikoga group informed on April 3. The share offering brought the company GEL40.2mn ($15mn).
Nikora Trade is one of the country's most successful and large supermarket chains. It is a subsidiary of JSC Nikora group, specialising in meat production and trade. The retail chain holds a 19% share in the organised retail market of Georgia (still dominated by bazaar-like commerce, which covers 70% of the total market). Carrefour is the largest player in the organised market, with a 22% share—but it is not a direct competitor for Nikora since it operates only hypermarkets in the country.
The funds generated by the share issue added to the company’s own resources and were directed towards the development of the retail network. More than 90 supermarkets have been opened in Tbilisi and other regions of Georgia and by the end of the year an additional 60 more facilities will be
44 GEORGIA Country Report July 2019 www.intellinews.com