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Unlocking Private Sector Opportunities to Achieve Georgia’s Full Potential
The Georgia Country Private Sector Diagnostic (CPSD) provides a comprehensive analysis of Georgia's private sector and identifies key constraints and opportunities for its development. The report focuses on three sectors: digital business, renewable energy, and transport and logistics. It highlights the need for policy reform and investment to support private sector growth and drive economic development in the country. The Government of Georgia recognizes the importance of tapping into the potential of the private sector to sustain economic growth, diversify the economy, boost shared prosperity, and create more and better formal sector jobs. To help foster this agenda, the Georgia CPSD provides valuable insights into the private sector landscape and offers policy recommendations to promote private sector development, enhance export performance, and drive economic growth. By addressing the identified constraints and leveraging the opportunities, Georgia can unlock the potential of its private sector and achieve sustainable development.
For digital transformation, the CPDS highlights the need for broader adoption of digital solutions across sectors and the development of the digital business ecosystem. It recommends building awareness, supporting human capital development, and providing technology extension services to foster technological modernization and improve the private sector's digital economy ecosystem. The renewable energy sector has significant potential for development in Georgia. The CPSD recommends developing a long-term energy strategy, improving energy data availability and transparency, passing legislation governing the electricity and gas markets, and protecting vulnerable groups. The report emphasizes the government's commitment to aligning its energy strategy with sustainable development goals and European Union directives. In the transport and logistics sector, the CPSD emphasizes the importance of developing the Middle Corridor (MC) as a key transport network connecting Central Asia with Europe. It suggests addressing physical and nonphysical bottlenecks to ensure the sustainable competitiveness of the MC route. The report also recommends improving agricultural logistics and developing third-party logistics facilities.
