Analysis of Investment Potential of Samegrelo-Zemo Svaneti Region
Analysis of Investment Potential of Samegrelo-Zemo Svaneti Region

Author(s): Gigi Ormotsadze, Tamar Khorbaladze, Tedo Evgenidze
Subject(s): National Economy, Supranational / Global Economy
Published by: EECMD - Eastern European Centre for Multiparty Democracy
Keywords: foreign investment;
Summary/Abstract: Healthy economic development of Georgia largely depends on successful activities in territorial units. According to current statistics, Tbilisi is the center of economic development, including direct foreign investments (FDIs). The dynamics of regional distribution of investments clearly shows that the investment environment of Georgia is created in Tbilisi. Fall and rise in investments directly correlate with the dynamics in Tbilisi. According to the 2020 indicators, investments in Tbilisi dropped by 70% while in other regions remained almost the same. This is because Tbilisi accounts for 73% (due to nature of investment portfolio) of all FDIs implemented since 2009 to date, as compared to 10% in Adjara and 17% in all other regions of Georgia. In 2020, the Samegrelo-Zemo Svaneti region saw GEL 231.6 million worth investments of which 45% was made in transport and warehousing, 31% in electricity, gas, steam and air conditioning supply, and 11% in agriculture, forestry and fishing. A better use of their own investment potential will enable the regions, on the one hand, to play a greater role in the economic development of the country and, on the other hand, to shoulder their fair share of responsibility and stimulate the process of economic decentralization. That’s why the aim of this paper is to assess and analyze the investment potential of Samegrelo-Zemo Svaneti region, including the Tsalenjikha municipality, that will facilitate future economic development of the region.

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