MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Deputy Minister of Economy and Sustainable Development, Irakli Nadareishvili, participated in a working meeting organised by the Enterprise Georgia Agency, where a new initiative to promote the development of investment funds was discussed.   

The event was supported by the World Bank and was attended by representatives of potential asset management companies, as well as potential investors, financial institutions, the business sector, and donor organisations.

First Vice President of the National Bank of Georgia, Ekaterine Mikabadze, also participated in the meeting. Presentations were given to the audience by the Deputy Director of the Enterprise Georgia Agency, Irakli Gabriadze, and the Senior Financial Sector Specialist of the World Bank, Shanti Divakaran.

The event, supported by the World Bank, was attended by the representatives from potential asset management companies, as well as prospective investors, financial institutions, the business sector, and donor organisations.

The First Vice President of the National Bank of Georgia, Ekaterine Mikabadze also participated in the meeting. Presentations were delivered to the audience by the Deputy Director of the Enterprise Georgia Agency, Irakli Gabriadze, and the Senior Financial Sector Specialist of the World Bank, Shanti Divakaran.

As the Deputy Minister, Irakli Nadareishvili, stated, the development of investment funds is a strategic direction of the country’s economic policy. In his address, Nadareishvili focused on both the capital market reform in general and the specific component of investment fund development. “The development of the capital market is one of the main structural reforms that the Ministry of Economy and Sustainable Development has been actively implementing over the past 5 years in cooperation with the National Bank and international financial organisations. We have created a solid legislative framework that plays a fundamental role in the success of this reform,” – the Deputy Minister noted. The Deputy Minister also emphasised the positive trends in the private sector following the government’s initiated reforms. As the Deputy Minister pointed out, since the registration of the first investment fund in 2021, their number has increased to 19; the total assets under their management are growing at an average annual rate of 60%; the corporate bond market doubled in 2023 and reached 1.9 billion GEL; and the assets managed by the Georgian Pension Fund have exceeded 6 billion GEL, among other developments.

“We have started the second phase of the reform, which aims to strengthen and stimulate venture capital, the bond market, private equity, and similar instruments. Our goal is to promote the establishment of private equity funds focused on the growth of small and medium-sized enterprises. This initiative will help develop alternative financing mechanisms for small and medium-sized businesses,” – the Deputy Minister noted, and highlighted the initiatives implemented by the Enterprise Georgia Agency and the Georgian Innovation and Technology Agency in this direction. According to him, the Enterprise Georgia Agency is currently working on facilitating the establishment of a private equity fund in which it will have the role of a limited partner. In the coming years, with the government’s support and direct participation, it is planned to promote several private equity investment funds with a total capitalisation of up to 200 million GEL.

The concluding part of the meeting involved a discussion.