8

BUSINESS

Navigating the
EU Integration
Process
BY KATIE RUTH DAVIES

n a conference entitled Making

the Most of the DCFTA, within
the framework of the Visegrad
Fund project Sharing Experience
of Public-Private Dialogue in EU,
the Policy and Management Consulting
Group (PMCG) hosted high ranking
representatives of the Moldovan and
Georgian governments, the EU delegation, Hungarian, Polish, Czech and Slovakian diplomatic missions and representatives of EBRD, EIB, USAID, WB,
and IFC in Chisinau, Moldova on October 22-23. The aim was to discuss the
most efficient ways for governments and
private sectors to navigate through the
EU Integration Process, more specifically, to assist Moldovan and Georgian
businesses and government bodies to
strengthen dialogue and awareness about
the opportunities and challenges presented by the signing of the Association
Agreement.
Cecilia Malmstrom, EU Commissioner for trade; Luc Devigne, Head
of the EU Commission unit Russia,
CIS, Ukraine, Western Balkans, EFTA,
EEA and Turkey; Archil Karaulashvili,
Deputy Minister on European and
Euro-Atlantic Integration of Georgia;
Aleksi Aleksishvili, Former Minister
of Finance of Georgia, CEO- Policy

and Management Consulting Group

- PMCG (Georgia) and other highranking officials shared their experience and opinions regarding the process of EU approximation.
The focus of the event was on sharing
the experience of the Visegrad countries
(Czech Republic, Hungary, Poland, Slovakia) in developing constructive publicprivate dialogue in a transition period,
while harmonizing legislation and standards with those of the EU. Key topics
discussed were One year of the DCFTA,
external assistance for SMEs to meet
the requirements of the DCFTA, accessing EU markets, building public-private
partnerships, and providing support
services.
Valerian Gvalia, Senior Adviser of EUGeorgia Business Council: The EUGeorgia Business Council (EUGBC), the
only European Business Association in
Georgia, pays paramount attention to
experience sharing with its business colleagues. Indeed, joint efforts from Eastern Partnership member states are necessary in order to move forward towards
the benefits of the Association Agreement and DCFTA. The International
Conference in Chisinau Making the
Most of the DCFTA proved once again
that there is interest from the Georgian
side to enhance the trade relationship
with the EU.
Georgia Today spoke with Nino Samvelidze, EU Programs Manager of PMCG,

GEORGIA TODAY

NOVEMBER 17 - 19, 2015

At the Making the Most of the DCFTA conference. (From left to right) Silvia Radu, GAS NATURAL FENOSA and
President, EBA Moldova; H.E. Ambassador Pirkka TAPIOLA Head of the European Union Delegation to
Moldova; Cecilia Malmstrom EU Commissioner Trade; and Octavian Calmic Deputy Minister of Economy,
Republic of Moldova.

about some of the topics covered in the

conference.

WHAT KEY ACHIEVEMENTS

AND CHALLENGES
WERE HIGHLIGHTED ON
COMPLETION OF THE FIRST
YEAR OF THE DCFTA IN
MOLDOVA AND GEORGIA?
Both Moldova and Georgia started implementation of the norms and recommendations set out by the AA and DCFTA
which also includes legal approximation
of different sectors. The approximation
process creates opportunities for economic advancement of the countries but
there are several areas which still remain
a challenge, one being the capacity and
readiness of SMEs to catch up with the
process and regulations.
The DCFTA has large political meaning for these countries and its proper
implementation is important. At the
same time it is essential not to sacrifice
business interests to accelerated implementation of the DCFTA, namely approximating legal and institutional framework
while disregarding business needs and
interests.
The Moldova conference stressed that
another challenge is possible increased
imports from the EU and additional
pressure on domestic producers, especially in the short run. This, together
with increased costs due to strict compliance requirements with EU standards,

might be a trial for the economy. This is

why assessing the countries competitive
advantage is important; targeting the
most promising fields in the short-run
which might have spill-over effect and
useful gains in the future. Special attention should be paid in correctly utilizing
the technical and financial assistance
provided by the EU, EBRD, EIB and others so they bring tangible results.
One of the challenges for SMEs in these
countries is the lack of available and cost
effective advisory services, lack of interregional and international mechanisms
to exchange best practice, as well as a
lack of internal funding due to underdeveloped capital markets and a financial
sector still in transition. For this, Georgia, Moldova and Ukraine need to develop
local expertise capacity to provide cost
effective advisory services to SMEs,
facilitate exchange of best practice, and
improve access to funding for SMEs to
foster economic development

WHAT KIND OF ASSISTANCE /

SUPPORT HAS BEEN OFFERED
TO SMES IN GEORGIA AND
MOLDOVA IN PARTICULAR?
The European Commission - jointly with
the European Investment Bank (EIB)
and the European Bank for Reconstruction and Development (EBRD) has put
in place the DCFTA Facility for SMEs.
The DCFTA Facility for SMEs is an integral part of the SME Flagship Initiative,

a wide-ranging regional initiative of the

EU which aims to provide support to
SMEs in the Eastern Partnership to tackle
the challenges impeding them from
reaching their full potential. The Facility
will complement the EU programs in
each country that help small businesses
grow and prepare for the new market
opportunities of the DCFTA and help
national authorities to implement their
Association Agreements.
The DCFTA Facility for SMEs will
receive approximately 200 million of
grants from the EU budget. This contribution is expected to unlock at least 2
billion of new investments by SMEs in
the three countries, to be financed largely
by new loans supported by the Facility.
The funding will:
Help SMEs to seize new trade opportunities with the EU and within the
region which have been opened up thanks
to the DCFTA;
Improve access to finance for SMEs,
enabling them to make the necessary
investments to increase their competitiveness;
Allow SMEs to integrate into global
value chains by becoming business partners of foreign direct investors;
Enable SMEs to comply with new
sanitary, phytosanitary, technical and
quality standards, as well as with environmental protection measures, thereby
benefiting local customers and boosting
exports to the EU and beyond.

WHAT IS TRACTION CAMP

TRACTION Camp is a three-day training project for advanced early stage startups based in Georgia,
Armenia, and Azerbaijan. This project is produced by USAID-REG, and is aimed at helping founders of existing startups improve their skills and enhance their competitiveness position globally. An
average of seven (7) founders will be selected from each country to participate in the Camp, with
the goal of augmenting their business operations with top industry insights and best practices.
This will be the third TRACTION Camp, after two successful editions in June in Macedonia, and
October (forecasted) in Odessa, Ukraine. In each edition, 20-25 regional founders participated, learning from six renowned international experts.
The TRACTION Camp agenda is based on experiential, demand-driven skill transfer from experienced operators (founders, growth experts, and investors) to local startup founders. These are the
topics of learning for the three-day program of TRACTION Camp:

Pitching to international investors

Presentation and (oral/written) communication skills

Understanding marketing systems and metrics-based growth

Sales and distribution channels

Hiring strategy and execution

Investment structuring

Cashflow management and optimization

TRACTION Camp will be organized by USAID-REG, with support from local sponsors and partners. Partners will provide assistance and sponsorship in covering a part of the logistical expenses,
and in offering (in-kind) prizes for winning entrepreneurs.

WHEN AND WHERE

TRACTION Camp will take place in Tbilisi, Georgia, on November 27-29, 2015, at Tbilisis state-ofthe-art High Tech Park. Previous editions have been held at off-season resorts (Mavrovo skiing resort
in Macedonia in June, and Odessa seaside resort in Ukraine in November).

EXPERTS

Three US/Silicon Valley and two leading European experts will be invited to provide the trainings
at TRACTION Camp free of charge (no fees, only expenses). Based on previous TRACTION Camp
experience, the project will attract proven investors, exited entrepreneurs and top domain experts
in business development.

APPLICATIONS AND ADMISSION

Applications for TRACTION Camp will open on October 1, 2015. USAD-REG will contact a number of partner organizations in each country to submit applications, which will be handled with
priority. If startup slots remain unfilled, a public call will be announced through the TRACTION
Camp website (http://tractioncamp.me).
Partner organizations in Armenia, Azerbaijan, and Georgia are:

Armenia

Microsoft Innovation Center, Yerevan

Granatus Ventures, Yerevan

Enterprise Incubator Foundation, Yerevan

Saryan Tumanyan, Yerevan

Gyumri IT Center, Gyumri

Azerbaijan

Khazar Ventures, Baku

High Tech Park Azerbaijan, Baku

Georgia

Georgias Innovation and Technology Agency, Tbilisi

Smartex Capital, Tbilisi

Bank of Georgia Incubator, Tbilisi

IBSU Idea Lab, Tbilisi