By Ardit Bejko
Tirana – The Albanian and Cypriot Foreign Ministers said they would provide complete political support for a stronger presence of Cypriot companies in Albania, while speaking at the Albania-Cyprus Business Mission forum held last Friday, June, 6.
Representatives of ten Cypriot companies, who accompanied Foreign Minister Markos Kyprianou, attended this “exploratory meeting” organized by the Union of Chambers of Commerce and Industry of Albania (UCCIAL).
Ministerial Stimulus
Earlier in the day, the two ministers signed a bilateral agreement on road transport. Albanian Foreign Minister Lulzim Basha said the two countries expressed their intentions to extend the agreement to maritime and air transport. The Albanian government is working on providing “greater mobility and lower costs for using Albania as a hub and as an investment target,” said Basha.
The Cypriot minister joined Basha in saying he had a “firm belief that Albania is a very good environment for foreign investments.” Kyprianou mentioned the signing of the ASA and the strengthening of relations with the EU as a sign of stability and an “encouragement for investments.”
Kyprianou said the two governments would do everything possible at the political levels to assist investments in the country. Further, the Foreign Ministers will discuss, in the near future, new agreements on the protection of investments and the elimination of double taxation. Kyprianou added it is at the private sector level where relations can be strengthened more effectively.
The Chair of UCCIAL, Ilir Zhilla, said the two Chambers would follow the example of cooperation set by the two ministers. “I believe that our companies will soon achieve [to boost relations] what has taken institutions several years to do,” said Zhilla.
Exploratory Meeting
The forum attempted to answer questions the Cypriot investors raised concerning the legal framework, the tax system and possibilities for investments. Representatives of government agencies attended the meeting and explained the current situation concerning foreign investments in Albania.
Vice-minister of Finances, Florian Mima, spelled out the current reforms of the tax system. He said that the first phase of the reform has already been completed. Mima mentioned the introduction of the flat tax, set at ten percent for both corporations and individuals, and the reduction of the social security rate by 30 percent.
The second phase of the tax reform is in the process of negotiation, said Mima. This phase aims at the abolition of the capital income tax. Mima said that Premier Sali Berisha will soon disclose the details of phase two.
Calling corruption “a cancer we should jointly combat,” Mima said the government has introduced online services that minimize the contact between officials and individuals. E-processes such as e-payments, e-filing, and online customs declarations are some of the services recently introduced.
Foreign Minister Basha said the government would make Albania “the most attractive country for investments.” He mentioned receiving the EU roadmap and the NATO membership invitation as signs of progress by the Albanian government. Referring to Albania as “the country that has changed the most in the region,” Basha said that initiatives like Albania for 1 Euro, and the six new industrial parks, open up large areas for investments. “I am confident these initiatives will not escape the trained eyes of Cypriot businessmen,” added Basha.
The Cypriot Interest
The companies visiting Albania are interested in a variety of fields, said Kyprianou. They specialize in energy, banking, construction, tourism, real estate, agriculture and commodities.
The President of the Cyprus Chamber of Commerce and Industry (CCCI), Manthos Mavrommatis, said the Cypriot entrepreneurs are primarily interested in land development, real estate, and tourism. “We are a small country, [and] we are not interested in areas like power plants,” added Mavrommatis. “I know that your government will give concessions for power plants, but that is outside our expertise.”
Mavrommatis stressed the importance of the double taxation agreement and said that the agreement would be “mutually beneficial” for both countries. The treaty would channel some of the international money invested in Cyprus to Albania, he added.
“Cypriot business people are expanding abroad,” Mavrommatis said, mentioning that Cypriot companies have invested heavily in the Balkans and are now beginning to invest in Eastern Europe.
The Cypriot executives said they were positively surprised by the development of Albanian infrastructure. “The other good prospect [Ɲ is that you have a larger part of the population that is young, which is clearly internationally oriented,” said Anthony Indianos, representative of Costas Indianos & Co., a legal consulting company.
Indianos also said that foreign companies would invest if Albania can give them legal security. “They will come because what is now worth 100 thousand Euros in this country will be worth a million in ten years,” he added.
With EU membership becoming a greater possibility, Albania will also become more attractive to foreign investors, said Mavrommatis. “I strongly believe that it is only a matter of time until Albania will join the EU. The earlier you invest, the better prospects you will have,” he added.
Basha and Kyprianou will further discuss bilateral agreements when they meet in Nicosia on June 26.
