Poti Free Industrial Zone: Empowering Regional Growth and Economic TransformationAn Interview With CEO David Ebralidze

In this interview, we speak with David Ebralidze, the CEO of Poti Free Industrial Zone (FIZ), to discuss the role of Poti FIZ in the regional development of Georgia and its contributions to the economic transformation of the region. We delve into the initiatives undertaken to attract and support local and international businesses, successful partnerships benefiting the local economy, the sectors that have developed within the zone, and the impact on job creation and regional trade.

What is the role of the Poti Free Industrial Zone in the regional development of Georgia? How did it contribute to the development and economic transformation of the region?

One of the main concepts of free economic zones is the development of the region in economic, social, and other directions, which implies the growth of employment, the development of other supporting businesses and services, and the development of infrastructure. The concept of creating a free industrial zone in Georgia was based on this. With the investments attracted in Poti FIZ over the years, a number of enterprises were launched, workplaces, distribution centers, and a logistics platform for moving goods in the region were created, which has helped to develop related services and businesses such as transportation, cargo handling, brokerage, and others.

Which of your initiatives or projects would you single out that particularly impacted the local community?

Every project is special and important to us. We treat all FIZ investors with special responsibility and realize that even a small business can develop and turn into a major player in the regional market. In general, we are positioning ourselves to attract medium and small businesses. Today, in the industrial zone, we have companies that have been operating since the establishment of FIZ and are developing from year to year, increasing the area of their business activities, cargo turnover, and the number of employees.

Nevertheless, among the recent projects, we will single out Poti Textile, a textile factory that has been operating since November 2022 and currently employs about 250 locals. The factory sews different types of clothes for export. The company plans to maximize productivity and, accordingly, the number of employees.

How does the Poti Free Industrial Zone attract and support both local and international businesses to invest in the region? Can you share with us examples of successful partnerships and collaborations that have particularly benefited the local economy?

It is substantial for the country, especially for the developing economy such as the Georgian economy that apart from the recognized transit corridor, the country acquires the status of a manufacturing country and develops production. The importance of FIZ is particularly noteworthy in this direction, as our focus is on the development of production projects.

Currently, about 15 enterprises are operating in Poti FIZ, producing a variety of Georgian products. We highlight textile/clothing production, where we have several investors, and today this sector employs the most local people in FIZ. The goods produced by them are exported to EU countries. In addition to textiles, there is also the production of industrial lubricants, a factory of building materials, namely cement additives, and a factory of flavorings. The food industry is developing as well, with a cashew processing plant and others operating in FIZ. Accordingly, the sectors are diversified.

What are the main sectors or industries that have developed in the Poti Free Industrial Zone, and how have they had a positive impact on the region? Are there plans to diversify industries or attract new sectors?

FIZ legislation allows various types of sectors to be developed in FIZ, including light industry, food industry, chemical industry, construction materials, pharmaceuticals, heavy industry, industrial machinery, and others. Accordingly, the territory is divided into relevant sectors/zones for the proper distribution of enterprises taking into account various environmental regulations.

Poti Free Industrial Zone is known for its favorable business environment and infrastructure. Can you discuss the infrastructure development initiatives undertaken by your organization to improve connectivity and logistics in the region? How has this contributed to overall regional development?

Our principal function as FIZ administrators is to create infrastructure as well as its frequent development. Accordingly, depending on the demand and necessity, we try our best to develop the infrastructure to attract more diverse sectors.

An example of this is the construction of the phyto-vet laboratory, which we have completed and will be handed over to the Revenue Service/Customs Department in the near future. The mentioned infrastructure allows us to attract to FIZ such sectors that require appropriate Phyto-VET certification. It is also worth noting the fact that we are the only industrial zone in Georgia that will be able to receive/handle similar types of cargo.

Additionally, the presence of a railway line and terminal in Poti FIZ is crucial for receiving/handling cargo in the region, contributing to overall regional trade and export activities.

In terms of job creation, how has the Poti Free Industrial Zone affected the employment rate in the region? Can you provide us with statistics or figures that highlight the number of jobs created and the opportunities available to the local workforce?

The legislation allows the investor to determine the number of employees in accordance with their business activities. Both the number of companies registered in FIZ and the number of employees are increasing annually.

For example, we can cite textile enterprises where a total of 300 locals were employed during the last year. There are also various small enterprises operating in FIZ, where packing and packaging of various household goods (including textiles) are carried out, employing about 100 local employees. In total, Poti FIZ has created up to 500 jobs.

Poti Free Industrial Zone is located close to major transport routes and ports. How has this favorable location affected regional trade and export activities? Are there any plans to further leverage this location to benefit the region?

The Black Sea Corridor became a demand and safe corridor. In addition to this, the construction of the new terminal of the Port of Poti which will further increase the possibility of receiving and processing cargoes, will have a positive effect on the activities of Poti FIZ.

Due to its strategically important geographical location, Georgia can actively engage in international and regional integration processes. That is why the improvement of the transport infrastructure is the prime condition for the economic and social development of the country. The function of the transit and energy corridor of Georgia is gaining more and more importance in the current geopolitical reality. As the main transit hub of the region, the development of transport infrastructure is a priority. Therefore, the free industrial zone of Poti and the construction of a new terminal will further contribute to the utilization of the existing logistics/transit potential, to receive/carry/process more cargo, which will affect regional trade and export growth.

Sustainability and environmental responsibility are increasingly important factors in economic development. Can you share a sustainable practice or green initiative implemented by Poti Free Industrial Zone to minimize environmental impact?

Poti FIZ complies with environmental norms and requirements as thoroughly as possible. When considering every project, we definitely carry out appropriate research to determine if it requires any kind of permission from the National Environmental Agency of Georgia. Therefore, in coordination with them, the development, construction, and commissioning of projects take place while ensuring environmental compliance.