“We are ready to offer free facilities and lands near Albanian ports for manufacturing businesses to ease transport,” said minister Prifti
TIRANA, June 18 – Albania has invited German investors to increase their investments in Albania, especially in the manufacturing industry, because of the low tax burden, cheap labour force and young age of the population. The appeal was made by Economy Minister Dritan Prifti during a meeting with the German-Albanian Chamber of Commerce and Industry in Albania (DIHA) also attended by German Ambassador Bernd Borchardt.
“We are first in Europe for the lowest tax burden and this is very important for foreign investments, we have the lowest minimum wage at 18,000 lek (170 dollars per month) and the youngest population in Europe with an average age of 31 years,” Prifti told German representatives.
Trade exchanges with Germany, Albania’s fourth trade partner and one of the main donors, account for 6.5 percent of the total with a volume of 211 million euros annually, of which 190 million euros are imports.
Minister Prifti said he had introduced Albania’s opportunities to German manufacturing businesses even in Hamburg in a recent meeting with German companies interested in investing in Albania. He said Albania offers better investment opportunities even compared to China because of lower transport costs and taxes. Manufacturing companies operating in Albania are excluded from import and export taxes and pay only 10 percent in profit tax and 15 percent in social security contributions.
“We are ready to offer free facilities and lands near Albanian ports for manufacturing businesses to ease transport,” said Prifti.
According to the German Federal Foreign Office, bilateral trade relations suffer from the small size of the Albanian market, legal uncertainty and the lack of Albanian supplies. Nevertheless, the Albanian market for German consumer and investment goods is larger than in the past thanks to an increase in purchasing power.
Since 1988, Germany has made available to Albania a total of more than 387 million euros in bilateral development cooperation. Areas of development cooperation agreed between the two governments in 2001 are electricity supply, water and waste management as well as the promotion of private businesses.
Albania’s principal exports to Germany are finished textiles, raw materials for chemical products and, in smaller quantities, food, beverages and tobacco. Albania’s main imports from Germany are vehicles and electrical goods as well as food, beverages and tobacco. A number of German companies are active in Albania. The Hochtief Airport GmbH is the chief partner in a consortium that rehabilitated and now operates the country’s only international airport at Rinas near Tirana.
