Tbilisi, Georgia, June 30, 2016—
A survey from
IFC, a member of the World Bank Group, which focuses exclusively on the private sector in emerging markets, found there is virtually no perception of corruption in Georgia, according to business representatives, and the vast majority of firms are satisfied with the business environment.
Conducted by the IFC Georgia Investment Climate Project based on 2015 data, the Georgia Business Perception Survey examined more than 800 small, medium, and large local and international businesses in Georgia to help the government identify next steps to improve the investment climate and boost growth.
Only 0.03 percent of survey respondents said their business had encountered government corruption in the past year, while 0.75 percent said they heard about corrupt practices experienced by others. However, the survey also found that the revenues of most businesses declined last year, with the key reasons perceived to be the currency devaluation and reduced purchasing power.
“The survey found that investor expectations have mostly been met and, in spite of the revenue decline last year, the outlook is quite optimistic. Many businesses plan to increase production and employment,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus. “The survey also pinpointed some areas where more needs to be done. We are committed to continue working with the government to implement reforms that can lead to further improvements in the investment climate.”
The survey also revealed that less than half of Georgia’s exporters are aware of the benefits of the Deep and Comprehensive Free Trade Areas (DCFTA) with European Union, suggesting the need for an awareness campaign. According to respondents, the government should also continue to develop infrastructure and create a more competitive environment to help boost business growth.
The survey is part of the work of the World Bank Group’s Trade and Competitiveness Global Practice, a joint practice of the World Bank and IFC, which helps countries accelerate private sector growth by creating simple, efficient, business-friendly regulations while ensuring public interests are protected.
As part of these efforts, the Georgia Investment Climate Project helps the Georgian government improve the investment climate by increasing the efficiency of regulations in three key areas: tax, trade logistics, and investment policy. It is implemented in partnership with the Austrian Federal Ministry of Finance and BP and its Oil and Gas Co-venturers.
Georgia became an IFC member in 1995. Since then, IFC has provided about $1.2 billion in long-term financing, of which $373 million was mobilized from partners, in 55 projects in financial services, agribusiness, manufacturing, and infrastructure. In addition, IFC has supported around $315 million
in trade through its trade finance program, and implemented a number of advisory projects focused on developing the private sector.
In fiscal year 2015, IFC invested almost $18 billion in developing countries worldwide.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
.
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