Developing Georgian-Kazakh Business Relations

Last week began with a successful Investment Forum in Tbilisi, bringing together leading representatives of Kazakh and Georgian business circles to discuss economic issues, ways of cooperation and potential projects. A few days later, government representatives of the two countries met in Kazakhstan at the 8th Kazakh-Georgian Intergovernmental Commission on Trade and Economic Cooperation in order to resolve existing issues and form a more favorable overall business environment for the private and public sectors.

The Minister of Economy of Georgia, Dimitry Kumsishvili, noted that Georgia and Kazakhstan have enjoyed close trade and tourism relations for many years.

In particular, the Minister said, the Kazakh side invested over USD 300 million (636 million GEL) from 2006 to 2015. “I understand that this amount will increase at least 10 times in the near future,” said Kumsishvili.

The first Georgian-Kazakh Investment Forum, jointly organized by Forbes Georgia and Forbes Kazakhstan, invited 40 representatives of leading companies of Kazakhstan to Tbilisi. At the Forum, the Georgian side demonstrated the potential of the country, advantages of free trade, the tax exemption programs like ‘Produce in Georgia,’ as well as the latest achievements.

“Georgia’s GDP grew by 2.5 percent in 2015. This year, the forecast is 3 percent, but the current economic indicators suggest that growth could reach as much as 3.5 percent. In addition, our country has a successful anticorruption policy and reached 23rd place in the Index of Economic Freedom,” Kumsishvili highlighted.

Kazakh businesspersons paid special attention to the energy, banks, real estate and tourism sectors. “Georgia was able to host 6 million visitors last year,” said the Minister of Economy. “However, we are planning to take 11 million tourists annually. Moreover, we see growth among Kazakh tourists – 12 thousand people from this country have visited Georgia since the beginning of 2016.”

The number of Kazakh tourists increased by 5-6 times in the last three years, and the Tourism Department of Kazakhstan has predicted 20 percent of its tourists will be coming to Georgia this summer. In addition, flights between Georgia and Kazakhstan increased to 20 times a week from June.

In general, the results of the Forum were positive, with both sides appreciating one important component of successful business cooperation in personal meetings and, in particular, this type of forum. With the aim of resolving existing problems, Minister Kumsishvili went to the Kazakh-Georgian Intergovernmental Commission on Trade and Economic Cooperation in Astana a few days after the Tbilisi Forum.

According to the Minister, one of the main goals was to reach an agreement about Georgia’s debt to Kazakhstan, and as a result, a payment schedule has been set. Issues of transport, the Silk Road Corridor, as well as cargo transportation and increase in investment were also in the spotlight during the Commission meeting.

Eka Karsaulidze