On January 30 Millennium Challenge Georgia Fund (MCG) inaugurated its USD 32.5 million Georgian Regional Development Fund (GRDF) in an effort to foster tourism and agribusiness in the country?s provincial regions.
MCG, the entity established by the Georgian government to implement the US-funded USD 295 million Millennium Challenge Account (MCA) aid program, has contracted the U.S.-based company SEAF to manage the investment fund.
?Georgia has huge potential in tourism and agriculture business, but our major challenge is to turn these sectors into high-quality products. This Fund also means new jobs,? Giorgi Arveladze, the Georgian Economy Minister, said.
?The implementation of MCG?s investment fund activity will impact the country?s investment climate and stimulate additional foreign direct investment inflow to Georgia?s tourism and agribusiness,? Lasha Shanidze, MCG?s Chief Executive Officer, said.
The investment fund will focus on long-term growth-oriented investments in small and medium sized enterprises operating mainly in Georgia?s regions. Funding will be offered through a combination of concessionary debt and equity investments of up to USD 3 million per investment project. The project also envisages Technical Assistance Activity and Legal and Policy Reform Team work.
The GRDF is one of five MCG projects being implemented in the frames of the Millennium Challenge Program?s Enterprise Development Component.
President Saakashvili’s former economic advisor Giorgi Bedineishvili will be the chairman of the Fund’s supervisory board.
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