Georgia: Technical Assistance Report-State-Owned Enterprises Reform: Progress, Challenges, and Next Steps

Over the past decade, Georgia has made significant progress in strengthening the financial oversight, transparency, and fiscal risk management of state-owned enterprises (SOEs), supported by coordinated reforms led by the Ministry of Finance and the Ministry of Economy and Sustainable Development. Key achievements include enhanced fiscal risk disclosure, the introduction of Statements of Corporate Intent, and the adoption of the Strategy for the Comprehensive Reform of SOEs to align state ownership and corporate governance with international good practices. This technical assistance report takes stock of these reforms, assesses remaining gaps, and outlines priority next steps to further strengthen SOE ownership, governance, and accountability. It emphasizes the need to expand and consistently apply financial oversight, formalize public service obligations, professionalize SOE boards, and complete the legislative framework underpinning SOE reforms to reduce fiscal risks, limit political interference, and improve SOE performance for the benefit of Georgia’s economy.