“The primary strategy of many countries is to nurture the positive sentiment of existing investors” - Mariam Koyava
Mariam Koyava, co-founder and managing partner of the business consulting company SavvY, positively evaluates the dynamics of foreign direct investments made in Georgia in the second quarter. In an interview with the BMGTV program "Tsertili," Mariam Koyava focused on the reinvestment share, which exceeds 83% of the total FDI.
According to Geostat data, foreign direct investment of $506 million entered the country in the second quarter, of which $423 million is reinvestment. That is, the share of reinvestment in total FDI is 83.5%.
“Foreign direct investment plays a pivotal role in our country's economic development. It not only impacts the specific area of investment but also has ripple effects on adjacent sectors. This is why FDI is always in the spotlight, and we strive to attract high-quality, recognizable, and reputable investors to our country.
Regarding the trends, the latest statistics show a continuous increase compared to data from previous years, indicating a positive post-pandemic trend. Furthermore, there is a notably high reinvestment ratio — a critical parameter we closely monitor as it reflects investor satisfaction. A high share of reinvestment indicates that the country is performing well, indicating investor confidence and a willingness to continue investing. This, in turn, contributes to increased employment, economic growth, and other positive outcomes.
Today, many countries worldwide prioritize retaining existing investors over attracting new ones. This strategy aims to foster a positive investment climate, ensure investor satisfaction, and further enhance the reinvestment parameter", as Mariam Koyava explains.
As for the factors hindering the attraction of new investors, the co-founder of the business consulting company SavvY identified the unstable situation in the region as one of the main factors. Additionally, Mariam Koyava singled out the market's small size and the shortage of labor force as weak points of the investment climate.