Georgia Agribusiness Competitiveness (IFC)
Activity-ID : SE-0-SE-6-12068A0101-GEO-31110The intervention "Georgia Agribusiness Competitiveness", proposed by the International Finance Corporation (IFC) in Europe and Central Asia (member of the World Bank Group) to the Embassy of Sweden for co-funding, is aimed at supporting the regulatory reforms of Georgia's food safety legislation with the European Union (EU) requirements and capacity building of local agri-industry on modern food safety and industry standards. The intervention is one of the components of the overall project "Georgia Trade, Investment and Agri Competitiveness", which is co-funded by IFC's and IFC Austria Trust Funds, Swiss State Secretariat for Economic Affairs (SECO) and Multi Donor Trust Funds for Trade Facilitation...
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Financial information
Total committed amount: USD 448,397
Total paid amount: USD 454,391
Sustainable Development Goals
More about the activity
The intervention "Georgia Agribusiness Competitiveness", proposed by the International Finance Corporation (IFC) in Europe and Central Asia (member of the World Bank Group) to the Embassy of Sweden for co-funding, is aimed at supporting the regulatory reforms of Georgia's food safety legislation with the European Union (EU) requirements and capacity building of local agri-industry on modern food safety and industry standards. The intervention is one of the components of the overall project "Georgia Trade, Investment and Agri Competitiveness", which is co-funded by IFC's and IFC Austria Trust Funds, Swiss State Secretariat for Economic Affairs (SECO) and Multi Donor Trust Funds for Trade Facilitation. The intervention will be executed by the "Finance, Competitiveness and Innovation Practice" , a joint global practice of the World Bank Group (including IFC), during July 2019-December 2021. Total budget of the overall project amounts to 16 000 000 SEK out of which the expected Swedish contribution amounts to 5 700 000 SEK. The overarching objective of the overall project "Georgia Trade, Investment and Agri Competitiveness" is to promote sustainable private sector-driven growth in Georgia by assisting the public and private sector with the following: (i) Agri competitiveness component: Improve compliance of businesses with Deep and Comprehensive Free Trade Agreement (DCFTA) requirements by supporting implementation of newly adopted food safety legislation; introducing flexible implementation of standards for small traditional producers; changing beekeeping practice of selected honey producers; increasing capacity of inspectors and laboratory on new requirements and, thus, increasing honey export to USD 750,000 (baseline is USD 21, 200) one year post-completion of the agri competitiveness component in December 2022; (ii) Investment component: Attract and retain investments generating at least 12 600 000 USD of investments two years post-completion of the investment component. (iii) Trade component: Streamline customs procedures through establishment of National Trade Facilitation Committee in line with Trade Facilitation Agreement and streamline customs valuation procedures in line with World Trade Organization (WTO) Customs Valuation Agreement. Georgia, with its small domestic market, import dependency, widespread rural poverty, and rural-urban income inequality, needs high value-added, efficiency-seeking agri-sector development and export growth. In 2017, export made up a relatively small share of Georgia’s GDP, not more than 18%. The DCFTA, which removes import duties on EU agricultural imports from Georgia, offers promising opportunities for Georgian producers, provided that the country’s food safety regulations and controls are brought in line with EU standards. The flexible implementation of the EU standards is especially important when it comes to safeguarding Georgia’s smallholders and small and medium sized food producers interest in view of future market openings, both in the EU and internationally. The Swedish contribution envisages to support regulatory reforms in the area of agribusiness competitiveness (project pillar 1) to expedite approximation of Georgia’s food safety legislation with EU requirements, protect Georgia’s traditional producers with the flexible implementation, facilitate compliance with new standards, and open new markets. It is also aimed towards capacity building and awareness creation to transmit knowledge of modern food safety requirements and industry standards to the local agri-industry. The intervention is expected to contribute to increased EU approximation of the food safety regulations in Georgia, contribute to the increase of honey export to EU and other developed markets and to through flexible implementation of the food safety requirements - protect small producers and farmers on the market.
Type (Click to sort Ascending) | Date (Click to sort Ascending) | Value (Click to sort Ascending) |
|---|---|---|
| Commitment |
10/8/2019
| USD 448,397 |
| Disbursement |
10/28/2019
| USD 224,199 |
| Disbursement |
11/28/2020
| USD 230,192 |
Marker (Click to sort Ascending) | Principal objective (Click to sort Ascending) | Significant objective (Click to sort Ascending) | Not targeted (Click to sort Ascending) |
|---|---|---|---|
| Gender Equality |
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| Aid to Environment |
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| Participatory Development/Good Governance |
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| Trade Development |
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| Aid Targeting the Objectives of the Convention on Biological Diversity |
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| Aid Targeting the Objectives of the Framework Convention on Climate Change - Mitigation |
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| Aid Targeting the Objectives of the Framework Convention on Climate Change - Adaptation |
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| Aid Targeting the Objectives of the Convention to Combat Desertification |
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| Reproductive, Maternal, Newborn and Child Health (RMNCH) |
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| Disaster Risk Reduction(DRR) |
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| Disability |
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Expected results
The overarching objective of the project: Georgia Trade, Investment and Agri Competitiveness is to promote sustainable private sector-driven growth in Georgia. The proposed intervention, targeting the Agri Competitiveness part of the project, is aimed at supporting the regulatory reforms of Georgia's food safety legislation with the European Union (EU) requirements and capacity building of local agri-industry on modern food safety and industry standards. The intervention aims to assist the public and private sector: improve compliance of businesses with the Deep and Comprehensive Free Trade Agreement (DCFTA) requirements by supporting implementation of newly adopted food safety legislation, introduction of flexible implementation of standards for small traditional producers, changing beekeeping practice of selected honey producers, increasing capacity of inspectors and laboratory on new requirements and, thus, growing exports of honey to USD 750,000 (baseline USD 21,200) one year post-completion of agri component (Dec 22); Through carrying out regulatory reforms in the area of agribusiness the intervention aims: (i) to expedite approximation of Georgia’s food safety legislation with EU requirements, protect Georgia’s traditional producers with the flexible implementation, facilitate compliance with new standards, and open new markets. (ii) to transmit knowledge of modern food safety requirements and industry standards to the local agri-industry.
Results
Some of the most important results achieved during the 2021 by the partner include the following:Pillar 1: Regulatory ReformSupport for EU ApproximationIFC continued close collaboration with the Ministry of Environment Protection and Agriculture (MEPA) and the National Food Agency (NFA) on the development of following regulatory issues aimed at facilitation of approximation of Georgian food safety legislation with the EU requirements. - Rules of animal identification-registration and registration of permanent/temporary animal stalls. Revised regulation had been approved on 15.10.2021 (coming into force from Jan 2023).-Developed manual on unified methods of temperature monitoring and sampling during the state control of quick-frozen foodstuff intended for human consumption- Developed manual on rules for regulation of packaging wood material- Developed draft of the manual on honeybee disease management and safe honey production.The need for development of the documents within the EU Approximation and Flexible Implementation components, is defined as a result of active cooperation and discussions with the MEPA and the NFA. All regulations in question, are within the national strategy in relation to the approximation of Georgian legislation with the EU requirements.Openning new markets- Rate of contaminated honey reduced to 6% in 2020 from 54% in 2018, which can be seen as a systemic change and result of IFC's work among other stakeholders working on this issue. Its increased quality could be seen as a positive factor for opening new markets for Georgian honey and considerable export increase- Due to continuing pandemic, certain promotion activities such as participation of Georgian producers in international food fairs could not be implemented- Export value in Jan-Nov. 2021 equaled to USD 536 000 compared to USD 60 000 for the same period in 2020. At the same time, export value for 11 months of the current year is already more than 300% greater than total 2020 export value- Although, export increase has not been directly linked to the export shipments implemented by the Project beneficiaries,as based on the partner, in frequent cases honey produced by the beneficiaries is sold locally to intermediary companies/exporters for the purpose of exporting to various countries in such cases direct linkage of beneficiaries honey to specific export shipment is hard to verify for the reporting purposes. Another facilitating factor is availability of full range export related honey testing locally (performed by Project-supported State Laboratory of Agriculture). Technical Assistance to the Beekeepers and Honey Processors- The Project continued working with the selected beekeepers/honey processors in various regions of Georgia. List of participating business-operators is regularly updated based on their commitment to follow recommendations given by the Project and submitted along with the narrative reporting. - Finalized structure of the website (greenhive.org.ge) aimed at supporting awareness increase on the modern beekeeping and food safety issues and web publicity of advanced honey producers. Georgian Beekeepers Society Green Hive is a non-governmental non-commercial organization, founded by the Projects beneficiary beekeepers with the key purpose of focusing on the unique needs of the local beekeepers, including promotion of best beekeeping practices.Technical assistance to the State Laboratory of Agriculture (SLA)As a result of support provided by the Project, SLA performed honey testing for the NFAs national honey monitoring program and has the capacity to perform all necessary honey testing required for veterinary certificate eligible for export to the EU.
Full description
The intervention "Georgia Agribusiness Competitiveness", proposed by the International Finance Corporation (IFC) in Europe and Central Asia (member of the World Bank Group) to the Embassy of Sweden for co-funding, is aimed at supporting the regulatory reforms of Georgia's food safety legislation with the European Union (EU) requirements and capacity building of local agri-industry on modern food safety and industry standards. The intervention is one of the components of the overall project "Georgia Trade, Investment and Agri Competitiveness", which is co-funded by IFC's and IFC Austria Trust Funds, Swiss State Secretariat for Economic Affairs (SECO) and Multi Donor Trust Funds for Trade Facilitation. The intervention will be executed by the "Finance, Competitiveness and Innovation Practice" , a joint global practice of the World Bank Group (including IFC), during July 2019-December 2021. Total budget of the overall project amounts to 16 000 000 SEK out of which the expected Swedish contribution amounts to 5 700 000 SEK. The overarching objective of the overall project "Georgia Trade, Investment and Agri Competitiveness" is to promote sustainable private sector-driven growth in Georgia by assisting the public and private sector with the following: (i) Agri competitiveness component: Improve compliance of businesses with Deep and Comprehensive Free Trade Agreement (DCFTA) requirements by supporting implementation of newly adopted food safety legislation; introducing flexible implementation of standards for small traditional producers; changing beekeeping practice of selected honey producers; increasing capacity of inspectors and laboratory on new requirements and, thus, increasing honey export to USD 750,000 (baseline is USD 21, 200) one year post-completion of the agri competitiveness component in December 2022; (ii) Investment component: Attract and retain investments generating at least 12 600 000 USD of investments two years post-completion of the investment component. (iii) Trade component: Streamline customs procedures through establishment of National Trade Facilitation Committee in line with Trade Facilitation Agreement and streamline customs valuation procedures in line with World Trade Organization (WTO) Customs Valuation Agreement. Georgia, with its small domestic market, import dependency, widespread rural poverty, and rural-urban income inequality, needs high value-added, efficiency-seeking agri-sector development and export growth. In 2017, export made up a relatively small share of Georgia’s GDP, not more than 18%. The DCFTA, which removes import duties on EU agricultural imports from Georgia, offers promising opportunities for Georgian producers, provided that the country’s food safety regulations and controls are brought in line with EU standards. The flexible implementation of the EU standards is especially important when it comes to safeguarding Georgia’s smallholders and small and medium sized food producers interest in view of future market openings, both in the EU and internationally. The Swedish contribution envisages to support regulatory reforms in the area of agribusiness competitiveness (project pillar 1) to expedite approximation of Georgia’s food safety legislation with EU requirements, protect Georgia’s traditional producers with the flexible implementation, facilitate compliance with new standards, and open new markets. It is also aimed towards capacity building and awareness creation to transmit knowledge of modern food safety requirements and industry standards to the local agri-industry. The intervention is expected to contribute to increased EU approximation of the food safety regulations in Georgia, contribute to the increase of honey export to EU and other developed markets and to through flexible implementation of the food safety requirements - protect small producers and farmers on the market.
Transactions
Type (Click to sort Ascending) | Date (Click to sort Ascending) | Value (Click to sort Ascending) |
|---|---|---|
| Commitment |
10/8/2019
| USD 448,397 |
| Disbursement |
10/28/2019
| USD 224,199 |
| Disbursement |
11/28/2020
| USD 230,192 |
Policy markers
Marker (Click to sort Ascending) | Principal objective (Click to sort Ascending) | Significant objective (Click to sort Ascending) | Not targeted (Click to sort Ascending) |
|---|---|---|---|
| Gender Equality |
-
|
-
| |
| Aid to Environment |
-
|
-
| |
| Participatory Development/Good Governance |
-
|
-
| |
| Trade Development |
-
|
-
| |
| Aid Targeting the Objectives of the Convention on Biological Diversity |
-
|
-
| |
| Aid Targeting the Objectives of the Framework Convention on Climate Change - Mitigation |
-
|
-
| |
| Aid Targeting the Objectives of the Framework Convention on Climate Change - Adaptation |
-
|
-
| |
| Aid Targeting the Objectives of the Convention to Combat Desertification |
-
|
-
| |
| Reproductive, Maternal, Newborn and Child Health (RMNCH) |
-
|
-
| |
| Disaster Risk Reduction(DRR) |
-
|
-
| |
| Disability |
-
|
-
|
Documents
Results
Expected results
The overarching objective of the project: Georgia Trade, Investment and Agri Competitiveness is to promote sustainable private sector-driven growth in Georgia. The proposed intervention, targeting the Agri Competitiveness part of the project, is aimed at supporting the regulatory reforms of Georgia's food safety legislation with the European Union (EU) requirements and capacity building of local agri-industry on modern food safety and industry standards. The intervention aims to assist the public and private sector: improve compliance of businesses with the Deep and Comprehensive Free Trade Agreement (DCFTA) requirements by supporting implementation of newly adopted food safety legislation, introduction of flexible implementation of standards for small traditional producers, changing beekeeping practice of selected honey producers, increasing capacity of inspectors and laboratory on new requirements and, thus, growing exports of honey to USD 750,000 (baseline USD 21,200) one year post-completion of agri component (Dec 22); Through carrying out regulatory reforms in the area of agribusiness the intervention aims: (i) to expedite approximation of Georgia’s food safety legislation with EU requirements, protect Georgia’s traditional producers with the flexible implementation, facilitate compliance with new standards, and open new markets. (ii) to transmit knowledge of modern food safety requirements and industry standards to the local agri-industry.
Results
Some of the most important results achieved during the 2021 by the partner include the following:Pillar 1: Regulatory ReformSupport for EU ApproximationIFC continued close collaboration with the Ministry of Environment Protection and Agriculture (MEPA) and the National Food Agency (NFA) on the development of following regulatory issues aimed at facilitation of approximation of Georgian food safety legislation with the EU requirements. - Rules of animal identification-registration and registration of permanent/temporary animal stalls. Revised regulation had been approved on 15.10.2021 (coming into force from Jan 2023).-Developed manual on unified methods of temperature monitoring and sampling during the state control of quick-frozen foodstuff intended for human consumption- Developed manual on rules for regulation of packaging wood material- Developed draft of the manual on honeybee disease management and safe honey production.The need for development of the documents within the EU Approximation and Flexible Implementation components, is defined as a result of active cooperation and discussions with the MEPA and the NFA. All regulations in question, are within the national strategy in relation to the approximation of Georgian legislation with the EU requirements.Openning new markets- Rate of contaminated honey reduced to 6% in 2020 from 54% in 2018, which can be seen as a systemic change and result of IFC's work among other stakeholders working on this issue. Its increased quality could be seen as a positive factor for opening new markets for Georgian honey and considerable export increase- Due to continuing pandemic, certain promotion activities such as participation of Georgian producers in international food fairs could not be implemented- Export value in Jan-Nov. 2021 equaled to USD 536 000 compared to USD 60 000 for the same period in 2020. At the same time, export value for 11 months of the current year is already more than 300% greater than total 2020 export value- Although, export increase has not been directly linked to the export shipments implemented by the Project beneficiaries,as based on the partner, in frequent cases honey produced by the beneficiaries is sold locally to intermediary companies/exporters for the purpose of exporting to various countries in such cases direct linkage of beneficiaries honey to specific export shipment is hard to verify for the reporting purposes. Another facilitating factor is availability of full range export related honey testing locally (performed by Project-supported State Laboratory of Agriculture). Technical Assistance to the Beekeepers and Honey Processors- The Project continued working with the selected beekeepers/honey processors in various regions of Georgia. List of participating business-operators is regularly updated based on their commitment to follow recommendations given by the Project and submitted along with the narrative reporting. - Finalized structure of the website (greenhive.org.ge) aimed at supporting awareness increase on the modern beekeeping and food safety issues and web publicity of advanced honey producers. Georgian Beekeepers Society Green Hive is a non-governmental non-commercial organization, founded by the Projects beneficiary beekeepers with the key purpose of focusing on the unique needs of the local beekeepers, including promotion of best beekeeping practices.Technical assistance to the State Laboratory of Agriculture (SLA)As a result of support provided by the Project, SLA performed honey testing for the NFAs national honey monitoring program and has the capacity to perform all necessary honey testing required for veterinary certificate eligible for export to the EU.