E-Commerce in Georgia Lags Behind European Counterparts, Says Nino Chokheli

In a recent appearance on the "Business Partner" broadcast, Nino Chokheli, Deputy Head of the USAID Economic Management Program, highlighted that e-commerce's share in Georgia's total trade significantly trails behind that of European nations.

Despite recent advancements in creating a conducive environment for e-commerce, Chokheli notes that Georgian users remain hesitant to fully embrace online platforms.

"For years, the absence of relevant laws, consumer rights protection, and standards in e-commerce has been a norm in Georgia. However, recent legislative strides have been made to safeguard consumer and private sector rights. These include the establishment of effective mechanisms and the Competition Agency's proactive role in consumer rights protection. Another crucial initiative is developing an ethics code for e-commerce platforms, aiming at higher consumer rights protection standards through self-regulation. Here, the e-commerce association will play a pivotal role in granting certifications to platforms, assuring customers of their credibility. This initiative will see active collaboration between us and Mastercard," explained Chokheli.

Chokheli acknowledges that while economic policy planning in the country is generally on the right track, there are areas where improvements are necessary. "Our approach involves assessing existing reform capabilities before taking any action. This is where donor assistance, such as from USAID, becomes crucial. Through leveraging international expertise, USAID aids the government in devising appropriate strategies and implementing key reforms," he added.

The conversation also touched on a recent cooperation memorandum between USAID and Mastercard aimed at supporting Georgia's digital transformation in e-commerce and central bank digital currency. This partnership seeks to enhance Georgia's e-commerce ecosystem, boost trade, and foster digital development. It will encompass an awareness campaign to build business and consumer trust in e-commerce and provide technical expertise based on global best practices to develop tools supporting the central bank's digital currency, such as "Smart Contracts."