Chairman (American Chamber of Commerce)

“Georgia is the second largest receiver of capital from US”

The American Chamber of Commerce in Georgia is an association aiming to promote the development of commercial relations between Georgia, the United States of America, and the international community in Georgia. The Chamber protects and promotes the common economic interests of its members and represents their opinions on all types of business matters while striving to facilitate constructive solutions to economic issues concerning Georgia-US business relations.

Most of the successful companies operating in the country are the members of commerce and its Chairman assures that “there are very interesting business opportunities in the country and quite many big companies are interested to invest for good reasons.”

Q: Could you comment on the recent meeting of president of Georgia Mikhail Saakashvili and US president Bush?
A: It was a high political meeting and it is pretty clear that it was a preparation for the VIP meeting in Moscow and I do not think that it has much to do with the business or investment environment here in Georgia. I do not think these issues were discussed in details while meeting.

Q: What is the main objective of American Chamber of Commerce in Georgia?
A: We try to influence the investment climate and the business to make it attractive for local or foreign investors in general. It is crucial to understand that two years ago nobody knew about this country, its ex government set the rules but nobody followed them. In two years the state was established, they put in rules and even though still not everybody follows them but it is the structure at least and many people do not understand how important it is. So I have no doubt that Georgia is going in a right direction and the country is the second largest receiver of capital from the US. So there is a lot of progress going on in this region.

Q: Could you speak about the business environment in Georgia? What positive changes were made in this regard by American Chamber of Commerce?
A: One on the things that we have been able to do was to put to end tax legislation and we are working on customs legislation now. And it is no doubt that this is achievement of American Chamber of Commerce, without us actively involved in this process it would have taken longer time and would have looked different legislation.

Q: The situation in this regard apparently changed to the positive way after the Rose Revolution…
A: The one of the things that this government actually achieved quite successfully is that they have made feel Georgians proud of being Georgians. This is the first step to get the unified perception where the country is going to go. As well I find very important the rule of law: every businessmen or investor in the country has to have guaranteed that if it comes to a dispute they will have fair trials. Georgia should display without any doubt that it has impartial judiciary system for the investors to feel safe. Another issue is the rules of operation in like non ambiguous tax law with reasonable tax regulations, reasonable customs law, the ability to protect your trade mark and intellectual property rights. These are very important things that anybody who intends to invest in the country will look for.

Q: How competitive is Georgia in terms of investment possibilities?
A: Georgia is not as competitive as it should be; there are very interesting business opportunities in the country and quite many big companies are interested to invest for good reasons. Georgia is moving in a right direction but still you can argue about the risk of making investments here. It is perceived that it is risky to invest Georgia, but it is not actually. The government is working for improving the situation and they are quite flexible. We closely cooperate with them giving guidelines to ensure reasonable legislation.

Q: US and whole international society is quite active in supporting Georgia, what is the role of US in the reforms undergoing in the country?
A: US is the biggest player in Georgia in terms of money input and American political influence is very big but Georgian aspiration is to closer to Europe and many of the legislation that has been adapted are actually European and not American. Huge trade partner for Georgia can be Europe. What Americans are trying to do is to facilitate Georgia’s transition into internationally acceptable business or trade partner and they are no trying to push American standards.

Q: What about consequences of Russian ban on Georgian products?
A: Russian has been a biggest trade partner for Georgia through years and still be in the future. At this moment, Georgian-Russian relations are very tense but thinks will improve. However, Russia has to understand that Georgia is an independent country; they have right to be independent and right on their territory. Anyway Georgia is trying to find a compromise and solution and I hope Russians will be more constructive as well.

Q: As a representative of Nestle and as a chairman of AmCham could you tell me why investors should put money in Georgia?
A: Nestle is a global company and global means that we have clients everywhere. If you look at the developments Georgia is going through. Georgia is very sophisticated country and it is not a simple culture, but its history, its heritage and to some extend even more sophisticated then some of European countries. It is very interesting market for us and that is why we are here. Besides if you had a time to look around and see some of this country you should be blind not to see that it is fantastic, very beautiful country, absolutely sunning so tourism is also where they can put money.

Q: How was the starting point in Georgia?
A: We started in 1998 when things were much more difficult that they are now, but we have been here with great success and we will continue. We will not leave Georgia. In terms of investment opportunities for example we are in a food sector that is very interesting. Basic industry is agriculture, and it is a good investment possibility there as well, Georgian tomato, strawberries are very good, wine and many other opportunities. Georgia is a fertile country and there is something to be done in an agricultural sector and I think they need to be very careful how to develop it to be competitive.

Q: In personal terms, you are from Denmark and you have been working for the American Chamber of Commerce and for Nestle in Georgia for six years. Could you tell me about your background?
A: Yes, I am from Denmark but I come from a mixed family and have been living in different countries and here is my longest stay as I am in Georgia and that has a reason. First I have two different jobs, secondly my wife has a job here as well and we have two children besides it is a wonderful place to stay.