TIRANA, Oct. 12 – The Albanian-American Enterprise Fund has marked 20 years in Albania with key contribution to the country’s progress from a centrally planned economy under communism to a market economy competing to attract foreign direct investment.
Speaking at a ceremony hosted at his office last week, Prime Minister Edi Rama described the Fund’s establishment as a new chapter for Albania and Albanian-American relations.
“In Albania, the American Fund became testimony to the truth of making ideas happen. It showed that it is possible to invest courageously, transparently and successfully,” said Rama.
“The model it has established serves as a reference point for all those who need an encouraging model in the process of executing entrepreneurship ideas,” added Rama.
The Prime Minister awarded Michael Granoff with the Medal of Gratitude for his 20-year contribution as the Fund’s executive director.
Michael Granoff, the chairman of the Albanian-American Enterprises Fund, says the Fund’s development in the past 20 years has been in parallel to Albania’s development.
“If you look back at what the Fund has done in these 20 years since we began our efforts when the country was in an almost primitive condition and today when it is quite different, what has happened in these 20 years is amazing,” he said in a TV interview.
Asked about Albania’s current economic situation, Granoff described economic development as a journey rather than a destination. “Economic development is a process and people will look at it in every moment and will be critical about its components and proud when something good takes places,” he said.
Granoff says Albania needs equal opportunities, a fair legal system, efficient judiciary to reduce corruption and increase transparency, a better education and health system and better security.
Investments by the Albanian-American Enterprise Fund (AAEF) have created the financial landscape in the banking and insurance, revitalized Albania by building its international airport and largest shopping mall and facilitated visa liberalization and free and fair elections through the creation of biometric passports and ID cards.
Established in 1995 with $30 million in initial capital by the United States government, the Albanian-American Enterprise Fund has been promoting private sector development in Albania, investing in a wide array of enterprises and disseminating western business know-how during the past two decades of its operation in Albania.
With a capital base of just $30 million, the AAEF has directly invested $109 million in 77 investments in 40 companies. Over 7,000 new jobs have been created and $2 billion has been contributed to Albania’s GDP by current and former portfolio companies. During the time that the Fund was the owner of the American Bank of Albania, $977 million in financing were provided to companies in Albania which contributed $2.2 billion to the Albanian GDP.
In 2009, the AAEF created its legacy organization, the Albanian-American Development Foundation (AADF), whose mission is to facilitate the development of a sustainable private sector economy and a democratic society in Albania, and to contribute to stability in Southeastern Europe.
