Investment Opportunities in Georgia - Branded as "Switzerland of the Caucasus"

In the heart of Eastern Europe, nestled between the Black Sea and the Caucasus Mountains, lies Georgia - a country with a rich history and an even brighter future. This small nation, with a population of 3.7 million, is making waves in the global economy, thanks to its strategic location, robust banking sector, and embracement of new technology.

Georgia, which became only the second country in the world to legalize marijuana in 2018, is a representative democracy with relatively low taxes, around 20%. The country's taxes, coupled with its centralized key databases using digital technology, have helped reduce corruption, making it an attractive destination for foreign investment.

Two of the key players in Georgia's economy are the Bank of Georgia (LSE: BGEO) and TBC Bank (LSE: TBCG). The Bank of Georgia, founded in 1903, offers wealth management, insurance, retail, and corporate banking services and accounts for around 40% of the banking sector's total assets in Georgia. With a market capitalization of £2 billion, a 5% yield, and a p/e of three, the Bank of Georgia is a FTSE 250 stock that is also buying back stock and expanding into Armenia. TBC Bank, on the other hand, is the largest banking group in Georgia, with a market value of £1.7 billion, a yield of 7%, a p/e ratio of five, and a strong digital presence catering to 1.6 million customers.

Historically, Georgia has been known for its gold mining and wine production industries. However, it has also emerged as an important player in the energy sector, thanks to its key oil and gas pipelines. The country's economy relies heavily on trade and is an international transport corridor for commodities such as uranium, oil, and gas.

Georgia's ports of Batumi and Poti are currently operating at 100% capacity, and the Chinese are building a deep-sea port in the country. This, along with its strategic location looking west towards Europe and east towards Asia, makes Georgia a key player in international trade.

The Bank of Georgia, with connections to London through international placement agents and managers, has been actively involved in Georgia's economic development. In recent years, the bank issued perpetual subordinated capital bonds worth $300 million, with participation from banks linked to London financial markets. This reflects ongoing foreign investment and financing activity supporting Georgia's economy.

Georgia has also embraced the digital revolution, both in public bodies and in the private sector. This is evident in the country's efforts to reduce corruption by centralizing key databases with digital technology.

Georgia's economy is rapidly growing, making it one of the fastest-growing economies in Eastern Europe. The dark days of post-Soviet Union corruption are mostly behind it, and it is now attracting investors from all over the world.

In fact, two presentations at a recent conference in London, organised by Swen Lorenz, suggested investing in Georgia. The country has even applied to join the EU, further showing its commitment to integration with the global economy.

Georgia may also join the Shanghai Cooperation Organisation (SCO), which would further boost its status as a bridge between Europe and Asia.

Despite its rapid growth, Georgia remains a prolific wine producer, with a deep-rooted tradition in this industry. About 35% of Georgia's population lives in the capital and largest city, Tbilisi.

In conclusion, Georgia is a country on the rise, with a robust economy, strong banking sector, and a strategic location that makes it a key player in international trade. Its embrace of new technology and digital revolution, coupled with its commitment to reducing corruption, make it an attractive destination for foreign investment. Whether you're an investor looking for new opportunities or a traveller seeking new experiences, Georgia is a country worth considering.