“Attracting investment in Georgia’s agricultural and food value chain – collectively accounting for 10% of GDP and 44% of employment – has the potential to generate substantial benefits for key sectors.
Beyond providing capital and jobs, investment in agri-food value chains can help enhance productivity growth, bolster incomes, improve food security, support rural development, and maintain competitiveness in international markets” – such is one assumption from the OECD’s recent investment policy review for Georgia.
Beyond providing capital and jobs, investment in agri-food value chains can help enhance productivity growth, bolster incomes, improve food security, support rural development, and maintain competitiveness in international markets” – such is one assumption from the OECD’s recent investment policy review for Georgia.
According to OECD, in the past decade since liberalisation of Georgia’s economy, the most significant structural change is the decline in value added of agriculture. Deriving from mainly ILO’s assessments, the Review argues that the agriculture accounted for more than one-third of GDP following independence; while it now contributes just 8%; however, this decline was not accompanied by a re-allocation of labour, and agriculture remains the country’s largest employer, absorbing 42% of the workforce in 2019.
“With favourable soil conditions, climate and water resources, Georgia has strong potential to attract FDI in the sector, but boosting exports of high-value food products will require addressing a unique set of challenges for investors. Most food products are predominantly grown by small-scale family holdings, which are often subsistence-oriented and with surplus production frequently sold on local markets. The farm structure is also highly fragmented. Addressing these structural deficiencies is essential to promote investment and generate new growth opportunities for the sector” – OECD argues.
