Georgia—USAID Economic Security Program

Client: U.S. Agency for International Development

Duration: 2019-2024

Region: Eastern Europe and Central Asia

Country: Georgia

Solutions: Economic Growth

Georgia is a country at the crossroads of Asia and Europe on a vital trading and transit route for goods and services. In recent years, Georgia signed free trade agreements that greatly expand Georgia’s market access. The USAID Economic Security Program assists Georgian firms to take advantage of the country’s market access and location to exploit regional economic opportunities and compete with international competitors for Georgia’s domestic market.

The USAID Economic Security Program focuses on enterprises outside of agriculture that show strong potential to create jobs, increase incomes, and increase revenues, as well as support diversification to more productive economic activities, including tourism, light manufacturing, creative industries, shared intellectual services, and solid waste management sectors.

DAI applies a facilitative value chain development approach that places market actors and other value chain stakeholders (public and private) at the center of the change process, inviting them to define problems and co-create solutions. Using timebound “smart incentives,” the program then co-invests with market actors in their own pro-growth solutions.

The program intends to create at least 4,800 new jobs, support at least 720 small firms, increase sales of assisted enterprises by $60 million, and leverage $18 million in partnerships leveraged through partnerships.

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Sample Activities

  • Strengthen cooperation in targeted sectors.
  • Support micro, small, and medium-sized enterprises to improve productivity, sales, and quality, and to develop new products and services.
  • Develop industry-led workforce.
  • Build public-private partnerships.

Select Results

  • Supported the Georgian Anti-Piracy Center to produce videos informing the public about illegal content and intellectual property rights. The videos provide statistical data, specific examples, and the details about the impact of internet piracy.
  • Produced a video tour of Samtskhe-Javakehi that was selected as the best in Europe and one of the five best in the world in the Promotion and Decade of Action category of the United Nations World Tourism Organization’s Tourism Video Competition.
  • Partnered with global e-commerce platform Etsy to onboard more than 100 Georgian artisans, many of whom had lost their traditional sales channels because of the COVID-19 pandemic.
  • Finalized a partnership with Mastercard to achieve specific developmental goals in terms of e-commerce and digitalization, while at the same time utilizing the company’s vast marketing and promotion effort to build overall visibility for Georgia’s positioning within the knowledge economy.
  • Helped operationalize a formerly dormant building, called the Shuamta Gateway, to provide tourists with food and beverage options, services such as four-wheeling, hiking, and horseback riding, and informational services. The building is near the Alaverdi Heritage Trail, another tourist attraction.
  • Since the project began working with Enterprise Georgia, its rank among investment promotion agencies discussed in the 2022 Emerging Europe Investment Promotion Report increased from 17th in 2019 to 5th in 2022.
  • Supported a major local investor and the Ministry of Economy and Sustainable Development to launch a local venture capital fund that will lay the foundation for the recruitment of international and local funds to support innovation.
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