Georgia’s drive to privatize state assets is paying off, with the Ministry of Finance revealing that privatization activities brought nearly 205 million Georgian lari (GEL) into the state budget from January through July 2025. That’s almost 90% of the government’s target for the first nine months of the year, which is set at 228 million GEL.
Breaking down the numbers, the Treasury report shows that about 108.7 million GEL came from selling fixed assets like buildings and other state-owned properties. This accounts for more than 82% of the forecasted revenue from this category for the period. Meanwhile, sales of non-produced assets—which include land and licenses—brought in around 96 million GEL, slightly exceeding expectations.
Privatization activities brought nearly GEL 205 mln into the state budget from January through July 2025
Digging deeper, land sales contributed roughly 17.7 million GEL, just nudging past the forecast, while auctions of radio frequency spectrum licenses added a hefty 78.3 million GEL. These spectrum licenses are especially valuable, as they’re crucial for mobile networks and broadcasting, making them a key revenue source for the government.
Overall, Georgia aims to raise 300 million GEL from privatization in 2025, with about 87 million GEL expected from future spectrum license auctions. These funds are vital in supporting the government’s budget without the need for extra borrowing or tax hikes.
Why Privatization Matters for Georgia
Privatization has been a cornerstone of Georgia’s economic strategy for over two decades. By selling off state-owned businesses, land, and other assets, the government can free up resources to invest in public services and infrastructure. This approach also helps lighten the fiscal load by generating steady revenue without increasing debt.
In recent years, the focus has shifted more toward selling non-produced assets like land and radio spectrum licenses. With technology and urban development booming, these assets have grown more valuable, and their sale has become a smart way to boost state income. The Georgian National Communications Commission (GNCC) regularly holds auctions for spectrum licenses, drawing significant interest from telecom companies eager to expand their services.
The Bigger Picture: Georgia’s Fiscal Strategy
Georgia’s privatization program isn’t just about raising money—it’s part of a broader effort to maintain a healthy economy. The government is working to keep debt levels manageable while ensuring enough funding for important projects and social programs. Privatization revenues are an important piece of this puzzle, helping to support the budget alongside taxes and other income.
Looking back, privatization proceeds brought in about 280 million GEL in 2024, showing a steady and reliable income stream. The slightly higher goal for 2025 reflects confidence that investors still see value in Georgian assets, despite some economic challenges like inflation and global uncertainties.
The strong start to the year in hitting privatization targets is encouraging, especially as Georgia navigates these headwinds. The revenue helps the government fund everything from roads and schools to healthcare reforms, without having to take on additional debt.
How Georgia’s Privatization Program Has Evolved
Georgia’s privatization journey has been a fascinating one. In the early 2000s, after gaining independence and transitioning away from a Soviet-style planned economy, the government faced the enormous task of shifting state assets into private hands. At that time, privatization meant selling large state-owned enterprises, factories, and land—often under urgent pressure to attract foreign investment and stimulate economic growth.
These early sales were sometimes criticized for lack of transparency or low prices, but they laid the foundation for a market economy and helped reduce the bloated state sector. Over the years, Georgia has learned from those experiences, steadily improving the legal framework and institutional capacity to make privatization more transparent, fair, and competitive.
Georgia aims to raise GEL 300 mln from privatization in 2025, with about GEL 87 mln expected from future spectrum license auctions
In recent years, the focus has shifted toward more strategic and high-value assets. Instead of large factories, the government is now concentrating on auctioning land plots in growing urban areas and licenses like those for radio frequencies, which reflect the country’s expanding digital economy. This shift highlights Georgia’s move toward a more modern economy where services, technology, and real estate play bigger roles.
Today, the privatization process is characterized by open auctions, strict regulatory oversight, and clear rules designed to maximize revenue for the state and ensure that sales benefit the broader economy. This approach has helped Georgia build a reputation as a reform-minded country attractive to investors, which is reflected in the steady demand for its assets.
What’s Next?
The Ministry of Finance expects privatization to continue gaining momentum in the coming months. More auctions for spectrum licenses and sales of state property are planned, with a clear focus on transparency and competitive bidding to get the best value for the country.
Privatization remains a key part of Georgia’s economic reforms—not only helping balance the budget but also encouraging a vibrant private sector and a more dynamic market economy.
By Team GT
