Economist and former Deputy Agriculture Minister Gocha Tsopurashvili says approving just eight projects under Georgia’s agro-financing program in two months is a very low figure, indicating that the process was not sufficiently prepared.
He said the Agriculture Ministry should continue reviewing and modifying the program and negotiate with commercial banks to simplify financing conditions. Tsopurashvili noted that the eight projects represent about GEL 4 million in financing, with the state expecting to recover around GEL 2 million through the cashback mechanism.
According to Tsopurashvili, the current model risks confusing small and medium-sized businesses while failing to attract even large investors, who remain concerned about weak regulation and uncertainty across agricultural supply chains.
The program, launched on July 1, may soon be revised following discussions between the ministry and banks. One option under consideration would place the state co-financing amount in a bank deposit after a business plan is approved, providing additional security for lenders. The Rural Development Agency has so far approved eight projects.
