Georgia’s current investment climate is not attractive enough for European investors, says Beka Bekaia, managing partner of Nutrimax. According to him, both internal and regional instability are negatively influencing business activity and investor confidence.
Speaking to BM.GE about the business environment, Bekaia noted that uncertainty in Georgia’s domestic politics, coupled with ongoing tensions in the wider region, has made European companies increasingly cautious.
“At this stage, the situation is very difficult, both internally and externally. Internally, political tensions are visible, and no one, neither business nor other sectors, is satisfied with this. Externally, we see what is happening in our neighborhood, especially between Russia and Ukraine. A positive development is that Armenia and Azerbaijan seem to have moved toward peace, and this is certainly good for the region,” he said.
Bekaia pointed to a specific case where instability has already halted investment plans. A €10 million project involving European and Dutch capital, which was suspended at the end of last year, has not yet been renewed.
“Last year, around this time, we began discussions [on the project]. However, in November-December it was stopped. It was a fairly large-scale investment for us, but now it is already a thing of the past,” he explained.
The businessman stressed that while European companies remain interested in Georgia, they are reluctant to take risks in the current environment.
“Overall, I do not think that today is a very desirable environment for investment. The European companies with whom we have relations are still very cautious. Hopefully, the situation in Georgia will stabilize, and with that, the interest of strategic investors will increase,” Bekaia concluded.
