Business Insider Georgia has prepared an exclusive interview with the Italian Ambassador to Georgia, Massimiliano D’Antuono.

How would you describe the current dynamics of trade and investment between Italy and Georgia?

Italy is stably one of Georgia’s leading trade partners. 

According to Geostat preliminary data, in 2025 Italy positioned itself at the 3^rd place at the EU level, following Germany and almost equaling Bulgaria, and at the 2^nd place in terms of exports towards Georgia, after Germany. 

On the export side, given Italy’s strong industrial and manufacturing profile, machinery remains a cornerstone of bilateral trade. In particular, exports of machinery for special use increased from EUR 16.4 million to EUR 20.6 million (+25.3%), while standard machinery and other general-purpose machinery declined (respectively -20.2% and -30.3%), suggesting a reorientation toward more specialized, project-based equipment.

A standout development in 2025 is the exceptional surge in automotive exports (+285.2%), a sharp increase which likely reflects not only Georgia’s growing role as a re-export, logistics and distribution hubfor Caucasian and Central Asian markets, but also a strengthening demand and possibly the emergence of new commercial or assembly channels. Exports of ships and boats also expanded dramatically, rising from negligible levels to EUR 12.8 million, confirming progress in high-value, one-off industrial and transport-related projects.

Agri-food and pharmaceuticals remain a structurally relevant component of our bilateral trade as well, in spite of a few moderate corrections (-5.3% and -11.9% respectively).

Traditional Italian consumer sectors show more mixed dynamics, possibly reflecting cyclical demand adjustments. Cosmetics and personal care products continued growing, increasing from EUR 20.7 million to EUR 22.6 million (+9.1%), indicating resilient demand for Italian lifestyle and quality goods. On the contrary, exports of clothing declined from EUR 32.3 million to EUR 29.0 million (-10.3%), while footwear remained broadly stable at around EUR 13.3 million (-2.4%). Furniture exports decreased moderately toEUR 15.3 million (-7.2%), possibly reflecting price sensitivity and weaker discretionary spending. 

But more can be achieved. 

Georgia’s vibrant economic growth, open economic framework and increasing role as a regional hub at the crossroads between Europe and Asia, offer rising scope for deeper Italian engagement, particularly in automotive, specialized manufacturing, industrial projects, renewable energy, construction materials, agri-processing and logistics services. 

Numerous opportunities hence remain still untapped and Italian firms are aware of this. As a result, our bilateral relationship is gradually evolving into a more integrated model combining trade, investment and industrial cooperation. 

Which sectors do you believe offer the most significant potential for deeper economic collaboration?

Key sectors for a deeper economic collaboration include infrastructure and construction, renewable energy, agri-food processing, tourism and hospitality, logistics, and manufacturing. In this context, Italian renowned expertise in engineering, design, and project management perfectly matches Georgia’s ongoing infrastructure development and its ambition to become a regional transit hub. There is also growing potential in IT services and light industry, and advanced manufacturing where Italian technological know-how and SME experience can combine effectively well with Georgia’s competitive workforce. Additionally, cooperation in education, vocational training, and innovation ecosystems could further support long-term, sustainable partnerships between the two countries.

It is with this in mind that the Italian Embassy, in close coordination with the Italian Trade Agency Office, has organized two successful business fora in Tbilisi, in 2024 and 2025, gathering numerous Italian businesses and Georgian firms and authorities operating in the field of agri-food and infrastructures with the objective of fostering cooperation in these promising fields.  

What are the most common challenges Italian businesses highlight when considering market entry to Georgia?

Italian companies wishing to enter the Georgian market most frequently point to the need to become familiar with the local regulatory and legal framework, and the importance of identifying reliable local partners. Additional challenges often mentioned include navigating administrative procedures and understanding tax and customs regulations. Differences in business culture, shortages of high-skilled local workforce, concerns related to contract enforcement, and the availability and enforceability of dispute-resolution mechanisms, as well as access to detailed, sector-specific market information, are also commonly cited challenges, especially for SMEs approaching Georgia for the first time. 

In this context, the presence of Italian institutional actors plays a crucial mitigating role. The Italian Embassy and the Italian Trade Agency Office actively support Italian companies by providing up-to-date economic and regulatory information, market intelligence, and practical, first level guidance on local business practices. They assist firms in understanding the legal environment, identifying potential partners, and navigating administrative procedures, thereby reducing information gaps, transaction costs and entry risks.

Thanks to this institutional support, many of the perceived challenges can be substantially alleviated, creating a more predictable, transparent and supportive operating environment for Italian businesses exploring trade and investment opportunities.

Which types of Italian businesses — SMEs, mid-sized industrial firms, or large groups — show the strongest interest in Georgia?

SMEs and mid-sized industrial firms show the strongest and most consistent interest in the Georgian market, but large Italian groups is gradually appearing as well, attracted by the opportunities of bilateral cooperation and investments in the country. 

With regards to SMEs and mid-sized companies, they typically combine relatively small organizational size with a high level of professionalism, technical expertise, and sectoral specialization, a mix that represents a key competitive advantage in a market like Georgia. 

Italian SMEs are often highly specialized niche players, with strong know-how in areas such as manufacturing, agri-processing, construction technologies, machinery, design-oriented consumer goods, and technical services. Their flexibility and decision-making speed allow them to adapt quickly to local conditions, customize products or processes, and establish close, trust-based relationships with local partners. This makes them particularly well suited to Georgia’s economic structure, which favors high-quality, tailored solutions over standardized mass production and offers opportunities for gradual market entry and partnership-based growth. 

On the other hand, mid-sized industrial firms combine this flexibility with greater production capacity and international experience, enabling them to engage in more structured projects, including technology transfer, local assembly, and training of skilled labor. Their presence can generate significant added value for the Georgian economy through the transfer of know-how, quality standards, and operational best practices and by strengthening local value chains.

Finally, large Italian groups tend to show interest mainly in infrastructure, energy, and large-scale development projects, where financial scale and long-term investment capacity are essential. 

Do you see opportunities for expanding Italian participation in Georgia’s infrastructure development?

There are significant opportunities for expanding Italian participation in Georgia’s infrastructure development, particularly in transport infrastructure, energy networks, urban development, and public-private partnerships (PPPs). Georgia’s modernization agenda, combined with its strategic role as a regional transit hub, creates a favorable environment for Italian companies, which possess a strong expertise in engineering, construction, and project management as well as integrated infrastructure solutions.

These opportunities were clearly highlighted during the recent infrastructure-focused event held in Tbilisi, jointly organized by the Italian Embassy and the Italian Trade Agency, which I mentioned above. The initiative brought together 16 Italian companies, mainly SMEs and mid-sized firms, specialized in infrastructure, engineering, and related technologies. After a morning session dedicated to presenting Georgia’s infrastructure priorities, regulatory framework, and investment opportunities, the participating companies engaged in direct B2B meetings with potential Georgian counterparts, both public and private, in addition to international stakeholders, including multilateral development banks.

The enthusiasm conveyed by both Italian firms and Georgian partners confirms that there is concrete room for expanding cooperation, not only through large-scale projects but also via modular, flexible solutions where Italian companies excel. In this context, Italy’s strengths in design, engineering quality, project execution, and adaptability align well with Georgia’s needs for sustainable, resilient, and technically advanced infrastructure development.

Institutional support from the Italian Embassy and the Italian Trade Agency (ICE) further enhances these prospects by facilitating dialogue, reducing entry barriers, and fostering structured partnerships, thereby helping to transform interest into tangible projects and long-term cooperation.

Given Italy’s strong tradition in food, agriculture, and design, what potential do you see for deeper cooperation with Georgian producers?

There is strong potential for cooperation between Italian and Georgian producers, particularly in value-added food production, wine technology, packaging, branding, and quality certification. Italian expertise in design, agri-food innovation, and product development can help Georgian producers move up the value chain, improve quality standards, and strengthen their presence in international markets through differentiation and stronger brand positioning.

While food, agriculture, and design are the sectors for which Italy is best known to the general public,its true economic strength lies in a broader ecosystem of high-value-added technology and industrial exports, including machinery, engineering solutions, and pharmaceuticals. These sectors represent the backbone of Italy’s trade and industrial know-how, offering advanced technical expertise, process optimization, and innovative solutions that are directly applicable to agri-food and related value chains.

By leveraging both its brand reputation in food and design and its technological and industrial capabilities, Italy can support Georgian producers not only in enhancing product quality and presentation, but also in introducing innovative production methods, machinery, and technological know-how that boost efficiency, safety, and competitiveness. This creates a highly complementary cooperation model, where Italian expertise adds value across both traditional and high-tech segments of Georgia’s agricultural and food sectors and supports their long-term integration into global markets.

Are Italian tech or innovation-driven companies expressing interest in collaborating with Georgian IT firms or startups?

Yes, Italian companies are increasingly eager to explore partnerships with Georgian IT firms, especially focusing on software development, fintech, e-government solutions, and outsourcing. Startups are also attractive partners due to their technical skills, competitive costs, and a rapidly developing and growing innovation ecosystem supported by a growing pool of young, highly qualified professionals in this field. 

To favour these exchanges, the Italian Embassy has been promoting, since 2018, the “STEM Study Visit to Italy”, a study visit program established in collaboration with the Georgian Innovation and Technology Agency (GITA) and the COTEC Foundation. Through this program, young innovators can enjoy a working experience in a STEM company or startup in Italy, allowing an exchange of best practices and strengthening their skills in this sector.

In addition, we are planning a business mission here in Georgia dedicated to research and innovation, further fostering bilateral cooperation in the scientific and technology field.

How do you see the role of digitalization and green technologies in shaping future Italy–Georgia economic partnerships?

Digitalization and green technologies will play a central and increasingly strategic role in our future cooperation. As mentioned above, significant opportunities exist for the development of renewable energy, connectivity, energy efficiency, smart infrastructure, digital public services, sustainable manufacturing as well as in the digital transformation of traditional industries. These areas align well with Italy’s priorities and technological strengths, making them key drivers of long-term partnership and resilient, future-oriented economic cooperation.