Amid the current situation in the country and non-recognition of the 2024 parliamentary elections by Georgia’s Western partners, some businesses are already talking about a deteriorating investment climate. Not only new projects have stopped new projects, but ongoing projects are also in question.
In an interview with Commersant, the founder of the Dio company, Irma Daushvili, assessed the business environment and spoke about the problems driven by the lari exchange rate fluctuations.
"Stability is very important for business, any fluctuations in the global or local market will have a negative impact on it. The current events definitely have a negative impact on business. Moreover, war in our region also limits business development in recent years.
In the past years, Georgia has become a country that export its products to the European Union, and we must protect this fact.
The lari exchange rate is one of the major factors that influence pricing. It is very difficult for companies that depend on the purchase of materials to maintain stable prices in the event of fluctuations in the lari exchange rate. All enterprises in the chain are dependent on each other, and naturally, an unstable environment leads to rising prices. We have many European partners who constantly watch current events in the country. At this stage, investors avoid launching new projects, investors are very cautious. I think this is more noticeable in projects in which larger financial resources are poured , such as the construction sector or grant programs. They will refrain from investing in a country with unstable environment," Irma Daushvili stresses.
