Business Plan for Agronavti Mobile Application Spin-Off Company
Client: Chemonics International
Origin of Funding: Chemonics International
The main objective of the project is to develop a comprehensive business plan for the Agronavti mobile application spin-off company, which provides a platform on which farmers can market their products to potential buyers.
In order to attain its goals, PMC Research, under the USAID Zrda Activity in Georgia, will undertake the following activities:
Provide a comprehensive analysis of the current service provision capacity of Agronavti under the GFA;
Conceptualize and build a revenue model based on current service provision capacity as well as expected future functionality of new services/modules that are under development or planned for development in the near-term;
Provide an accurate, up-to-date market assessment of the competitive landscape for similar product/service companies in Georgia and surrounding markets (South Caucasus, Ukraine, Moldova);
Propose options for the organizational/staffing structure of the new company as well as a board composition based on the legal analysis provided by Zrda;
Prepare a full financial forecast covering a period of five years, including the capability of the financial model to run sensitivity analyses to test different assumptions. The financial forecast will include both income and expenses, with an emphasis on the minimization of fixed costs in the early years of operations. Break-even analysis will also be provided;
Prepare a baseline marketing strategy for the new company that targets near-term domestic scaling-up and international expansion scenarios within the five-year time horizon of the business plan (international expansion scenarios will include the licensing of Agronavti’s intellectual property to third parties in other countries to operate, and the entry of this new company into new markets);
Analyze and prepare recommendations for potential new grant, equity and/or debt facilities that may be accessible to the new company to be used in the initial scaling-up of operations during the first three years; and
Prepare risk analysis and corresponding recommendations.
We are pleased to announce that, after more than a year of having permanent representation in the country, we have officially opened an office in Kyiv, Ukraine. Our goal there is to engage in projects aimed at advancing the economy and supporting the development of democracy and good governance through policy, structural and administrative reforms.
We are pleased to announce that PMC Research recently became a partner of the Atlas Network through which it will contribute to making the world freer, and more prosperous, transparent and accountable, with the principles of individual liberty, property rights, limited government, and free markets all ensured.
We recently launched a new program entitled “Good Governance Fund (GGF),” aiming to reduce corruption, promote transparent and accountable institutions, and to build open, inclusive economies and societies in Armenia, Georgia, Ukraine, and Moldova.
Bolnisi Municipality is one of the most active members of the Mayors for Economic Growth (M4EG) initiative, supported by the European Union. In June 2017, the municipality joined the initiative and swiftly began the implementation of its Local Economic Development Plan, which had been commended by the World Bank’s technical experts.
Due to the COVID-19 pandemic, global remittance flows are expected to fall by 20% in 2020 (World Bank), while the decrease in Georgia is forecast at 15% (IMF);
In the first half of 2020, remittances have declined by just 4.8% compared to the same period of 2019;
Remittance inflows have been growing by an average of 8.5% over the past decade;
The contribution of remittance inflows in GDP has increased significantly over time and amounted 11% on average for the period of 2015-2019;
In 2020, remittance inflows saw a sharp drop (-42.3%) in April, however, the recovery in June was also strong (17.8%), compared to the same period of 2019;
Remittances from Russia declined the most in the first half of 2020 compared to the first half of 2019 (-27%), while Italy recorded the strongest growth (14%).
In the third quarter of 2020, Georgian economic climate has slightly improved. In this period, Georgian economists assessed Georgia’s present economic situation negatively; Moreover, the assessment of present economic situation in this quarter has improved compared to the second quarter of 2020, but worsened compared to the third quarter of 2019. In the third quarter of 2020, Georgia’s economic situation for the next six months has also been assessed negatively by Georgian economists. Furthermore, expectations for the next six months have enhanced compared with second quarter of 2020, but deteriorated slightly compared with the third quarter of 2019.
In Georgia, the average cost of a room1 in a 3-star hotel was 135 GEL per night in June 2020. While the average cost of a room in a 4-star hotel in Georgia was 223 GEL per night and the average cost of a room in a guesthouse2 was 73 GEL per night. The average cost of a room in a 5-star hotel in Georgia in June 2020 was 322 GEL per night. In Tbilisi, the average price was 471 GEL, followed by Kakheti - 327 GEL, Samtskhe-Javakheti - 279 GEL and Adjara – 273 GEL.
Using various assumptions, in Q3 of 2020, the maximum capacity of domestic tourism expenditures is to replace 33% of revenues from international tourism;
Using various assumptions, total revenues generated from tourism (both, domestic and international) in 2020 could amount to $1730 mln, which is 44.1% of the corresponding figure in 2019;
Domestic tourism in Georgia reopened on June 15th, while the reopening of borders is postponed to the near future;
The number of international travelers declined by 94.6% in May compared to the same period of 2019, while the number of inter- national visitors fell by 94.1% and the number of international tourists fell by 93.8%;
In June 2020, hotel prices do not provide an accurate guidance of the situation in accommodation market due to the fact that the market for accommodations is just starting to recover from the COVID-19-induced crisis.
It’s been five years after DCFTA was implemented and two years have passed since FTA with China. It is interesting to conduct ex-post analysis to find out how these FTAs affected Georgia’s economy. Goal of ex-post analysis will be to determine what qualitative and quantitative impacts are observed after Georgia signed DCFTA and FTA with China, on macro and sectoral levels. Also, the research paper will try to find if DCFTA and FTA with China resulted in welfare gains. To be more precise, the paper aims to determine whether the increase in trade was a result of trade creation or trade was diverted.Another aim is to analyze quantitative effects on imports and exports on different aggregation levels. For conclusion, research paper will analyze differences and similarities between DCFTA and FTA with China and based on these empirical findings, the research will identify possible threats and opportunities, which may come from future free trade agreements.