...

OECD recommends Georgia to support land registration reform for increasing FDI-SME linkages

Business Materials 2 March 2021 21:11 (UTC +04:00)
OECD recommends Georgia to support land registration reform for increasing FDI-SME linkages

BAKU, Azerbaijan, March 2

By Tamilla Mammadova – Trend:

Whilst Georgia has made enormous progress in improving its investment climate in recent years, the agrifood value chain presents a unique set of challenges for investors, the Organisation for Economic Co-operation and Development (OECD) told Trend.

"The predominance of small-scale family holdings, which are often subsistence-oriented, with surplus production frequently sold on local markets complicates things," the OECD said.

According to the source, farm structure is highly fragmented, with an average farm size of 1.4 hectares in 2014, and 77% of farms operating on landholdings of less than 1 hectare. Investors are unlikely to invest directly in small-scale farms, so a degree of consolidation would be desirable.

"That is why we recommend supporting the land registration reform to encourage greater consolidation of land holdings, and FDI-SME linkages to increase small-scale producers’ access to markets and participation in value chains," the OECD added.

The Organisation for Economic Co-operation and Development is an intergovernmental economic organization with 37 member countries, founded in 1961 to stimulate economic progress and world trade.

---

Follow the author on Twitter: @Mila61979356

Tags:
Latest

Latest