Agricultural entrepreneur Beka Gonashvili believes the new Agro-Co-Financing State Program may reduce the number of “passing investors” in agriculture - a change he welcomes. However, he warns that abolishing the Preferential Agrocredit Program and attempting to fit all agricultural sectors into a single framework could make the field less attractive for investors. He also sees risks in the increased number of bureaucratic steps required to join the program and raises concerns about the competence of officials evaluating projects.
Under the new model, potential beneficiaries must pass four stages at the Rural Development Agency: registration, electronic application, business plan submission, and full documentation upload. Unlike the current system, banks will no longer act as initial filters. Farmers will have to invest their own funds first, complete projects, and only afterward receive up to 50% reimbursement, capped at 2 million GEL. Gonashvili argues that removing subsidized loans, where farmers paid only 3% interest, may discourage investors in a country where capital is expensive.
Gonashvili’s main concern is who will evaluate business plans. Given the shortage of qualified personnel in both government offices and the field, he fears that project assessment may become subjective, slow, and error-prone. While he acknowledges that stricter requirements could filter out unserious investors, he warns that excessive bureaucracy and unclear criteria could hinder the program’s effectiveness. He believes agriculture is too diverse to fit into a single rigid template.
Despite his skepticism, Gonashvili sees potential benefits: the program might reduce demand for “free money” and ensure funds go only to people with real expertise. His core message is that the success of any program depends not on its name or budget size, but on competence, transparency, and the proper filtering of projects - both in government offices and on the ground.
