The project was dedicated to develop the FDI attraction strategy for the agency Enterprise Georgia (under the Ministry of Economy and Sustainable Development of Georgia). SavvY team worked on this project with our international partner FDI Center, which is specialized advisory firm in the field of foreign direct investment Based in Berlin, Germany. FDI Center is entirely focused on helping governments and investment promotion agencies (IPAs) to attract investment and retain more efficiently and successfully.

The project's objective was to pinpoint the sectors and sub-sectors in which Georgia possesses competitive advantages and relevant capacities or resources to attract international companies. This was addressed through a range of expansion initiatives outlined in the operational plan.

The second phase was research intensive and our team worked actively with the secondary data as well as conducted numerous interviews with sector experts, key stakeholders, government representatives, representatives in international companies in specific sectors or fields, etc. The goal of this phase was to determine “target groups” that have genuine potential for locating in Georgia. A target group is defined as a specific group of companies that share similar characteristics with respect to their activities, operations, and investment potential. The term can be translated as “sub-sector” or even more detailed description of the activity that company might perform. Our approach was to identify the longlist of target sectors and then search deep dive on each individual activity to assess the investment potential of each activity. We analyzed the activities’ expansion trends worldwide, while those who might have the potential to expand in Georgia based on the requirements of potential investors in these groups and Georgia’s location characteristics. The assessment focused on the operational requirements of the target groups (e.g., workforce, utilities, and property) as well as the market characteristics of each target group (e.g., key players, geographic concentration of companies, supply chain). 

For the selected target groups, at the phase 2 we developed a detailed action plan for Enterprise Georgia to identify and engage with individual companies. The action plan included:

• Recommended channels for first contact (e.g., direct outreach, industry events).
• The potential for including existing investors in Georgia (and their parent companies overseas) in the action plan.
• Key partners (e.g., industry associations) that can support implementation of the action plan.
• Roles and responsibilities of Enterprise Georgia and other relevant organizations in implementing the action plan.
• Significant barriers that need to be addressed for the action plan to be implemented.
• The resources (financial and other) required for implementing the action plan.
• Timeline for implementing the action plan as well as milestones and KPIs for assessing progress and results

To approach potential investors effectively, Enterprise Georgia requires specific materials that describe the advantages the country for the selected target groups. These materials are most effective when they are customized to the requirements of potential investors and one of the reasons for selecting individual target groups was to develop a clear understanding of their requirements. Thus, for the final phase, our team developed the value proposition marketing materials for each selected target activity.

The project aimed to create a substantial impact on Georgia's investment landscape by strategically identifying and promoting key sectors poised for growth. By thoroughly analyzing Enterprise Georgia's existing structure and operations in the initial phase, we established a foundational understanding of the agency's strategy towards attracting FDI investment.

The second phase involved intensive research, enabling us to pinpoint specific target groups with genuine potential for investment in Georgia. This data-driven approach not only highlighted sectors showing promising revenue growth and favorable market conditions but also identified the operational and market characteristics crucial for attracting international companies. The comprehensive analysis ensured that our recommendations were grounded in evidence, addressing the requirements of both investors and the unique advantages that Georgia offers.

With the identification of five target groups that meet established investment prerequisites, we developed a detailed action plan for Enterprise Georgia. This plan outlines strategic outreach channels, identifies key influencers and partners, and addresses potential barriers to implementation. By fostering collaboration with existing investors and industry associations, the action plan positions Georgia as an attractive destination for investment.

Overall, the project is expected to enhance Georgia's competitiveness in the global market, stimulate economic growth, and foster a sustainable environment for international investment. Through targeted strategies and comprehensive engagement with potential investors, Georgia is poised to attract significant foreign direct investment, creating jobs and driving innovation across key sectors.