The French partners of the company MBC Georgia have suspended plans to launch a franchise in Georgia, citing the country’s political instability and regional conflicts, according to company director Aleksandre Ratishvili.
Ratishvili highlighted that the ongoing imprisonment of former businessmen, now opposition leaders, creates a negative message internationally and fuels instability. Despite this, MBC Georgia, known for its Madame De brand, continues to grow based on last year’s results, though foreign partners are hesitant to start new projects.
“We are constructing a new production facility based on last year’s success, but recent political uncertainty has led our French partners to pause negotiations on a promising franchise project,” Ratishvili explained. “They have asked us to stop for now and wait for stability, which is difficult to find at present.”
He also noted challenges in the local market, including competition from low-quality imports, which complicate new business initiatives.
Regarding the decline in foreign direct investment (FDI) in the first quarter, Ratishvili emphasized that development depends heavily on stable FDI.
“Business decisions are sensitive and require confidence in the institutional environment. Without a sense of stability, foreign investment is unlikely. Additionally, regional conflicts like the Russian-Ukrainian war and unrest in the Middle East further reduce investment inflows,” he said.
Ratishvili concluded that without foreign investment bringing expertise and best practices, Georgia’s economic growth remains uncertain.
