Funded by the European Union (EU), the United Nations Development Programme Georgia (UNDP) implements a project “Inclusive Access to Markets” (IA2M). This initiative is designed to support Georgian small and medium-sized enterprises (SMEs) in improving their inclusive access to EU and other European markets. As part of the initiative, ACT is launching comprehensive research focused on enhancing logistics connectivity and enabling SMEs to fully leverage the benefits of the Deep and Comprehensive Free Trade Agreement (DCFTA).
Despite the opportunities presented by the DCFTA, Georgian SMEs face high freight costs, small shipment volumes, weak logistics infrastructure, and cumbersome certification processes, all of which reduce their competitiveness. In 2023, Georgia ranked 79th in the World Bank’s Logistics Performance Index, with particularly low scores in infrastructure and logistics competence.
The research will draw on international best practices, tailored to the Georgian context. It will incorporate both quantitative analysis of trade and transport data, as well as qualitative insights from SMEs, logistics providers, business associations, and government agencies. The main goal is to develop practical, evidence-based recommendations that will help Georgian SMEs overcome the transport and logistics barriers preventing them from fully benefiting from the EU-Georgia DCFTA and expanding their exports to European markets.