Georgia’s natural advantage as a gateway between Europe and Asia provides many benefits to investors in the manufacturing sector. In particular, Georgia offers competitive labor and energy costs, low taxes, and a corruption-free environment for serving the region, as well as numerous preferential/free trade agreements.

Manufacturing accounts for 11% of GDP and around 5% of employment. The food and non-metallic mineral products industries provide the largest industrial base for Georgia, while non-metallic mineral products, chemicals and food are the fastest growing industries.

With the establishment of the Free Industrial Zones in Georgia there are new incentives and opportunities to produce and export goods with a minimal tax burden – in the FIZs, businesses are exempted from all tax charges except Personal Income Tax.

Why Invest In Manufacturing

Free Trade Agreements with 900 million markets

Georgia has Free Trade Agreement (FTA) with Turkey and post-soviet countries. The country has singed Deep and Comprehensive Free Trade Agreement (DCFTA) with EU on June 27, 2014. Additionally Georgia has GSP agreement with US, Canada, Japan, Norway and Switzerland.

Growing regional market

Companies operating in Georgia can benefit from the growing regional market and various import substitution opportunities, specifically in the following industries: food processing, chemicals, plastics, construction materials, packaging, household goods, ceramic and glass products, etc.

Competitive labor costs

The average monthly salary in manufacturing industry is 355 USD and given the high level of unemployment in Georgia, salary growth is expected to remain low. Additionally companies can benefits from Free Training Opportunities – there are over 100 Vocational Education Training Centers around Georgia, which provide professional courses in different types of practical subjects and most of the course’s fees are financed by the Government of Georgia.

Low utility costs

Currently, up to 80% of electricity is generated via hydropower plants, which gives Georgia possibility to have competitively priced energy – standard cost for 1 kWh is 6 USD cents for 30-110 kV high voltage electricity. However factories consuming more than 1 million kWh per year can be registered as direct consumers and purchase electricity directly from energy producers.