The Albanian government should focus on public relation, the legal framework, market entry, taxation and customs, financial relations with companies and education to further improve the business climate and the country’s attractiveness to foreign investors, says DIHA
TIRANA, Jan, 22 – The existence of a reliable structural and legal framework and positive experience by foreign companies operating in Albania would further increase foreign direct investment in Albania, says the German Association of Industry and Trade (DIHA) in Albania. In a letter to the Albanian government, DIHA proposes 20 steps to improve the business climate in Albania.
Representatives of German companies operating in Albania say the Albanian government should focus on public relation, the legal framework, market entry, taxation and customs, financial relations with companies and education to further improve the business climate and the country’s attractiveness to foreign investors.
“If the Albanian government manages to undertake reforms on these suggestions, then the potential, international reputation and Albania’s attractiveness would further increase, investments and cooperation ease and living conditions in the country improve,” says the Association.
“The Albanian government’s assistance is necessary. It can create a healthy business climate under which the capital invested and the legal framework are protected from arbitrariness, corruption and crime through a reliable, transparent and independent legal framework.”
German companies say they believe in Albania and economic potential in areas such as logistics, infrastructure, financial services, energy, mining, oil, light industry, construction, tourism and trade.
German Ambassador to Tirana Hellmut Hoffmann says the Albanian authorities should send the right signals for an increase in reliability among foreign companies already operating in Albania to have more German companies interested in doing business in Albania.
German companies are already present in Albania operating in several key sectors.
The biggest German investments in Albania can be found in the Tirana International Airport, the Durres Port, the Tirana Business Park, and the expected TAP pipeline.
German-owned ProCredit bank also plays an important role, offering loans to SMEs and most recently to renewable energy projects.
German companies in Albania are also actively engaged in other important sectors such as construction, production, retail sales and logistics. Tirana Business Park, a Euro 100 million investment led by Germany’s Lindner Group, is being built outside Tirana.
Rofix, which produces construction materials and Profarma pharmaceutical company which has been acquired by a German consortium, are some other successful German-run companies in Albania.
Germany’s was the sixth top destination of Albanian exports in 2012 and the fourth main partner for imports. Bank of Albania data show Albania imported Euro 228 million of goods of from Germany in 2012 and exported Euro 48 million, mainly garment and medicinal plants.
German foreign direct investment in Albania climbed to 85 million euros in 2011, ranking Germany among one of the top ten investors in Albania, according to Bank of Albania data.
The German Association of Industry and Trade DIHA, which represents the interests of German companies in Albania and promotes German-Albanian economic cooperation, says a majority 87 percent of companies which invested in Albania said they would invest again in the country.
The German development cooperation with Albania was launched in 1988, just before the collapse of the communist regime. Since then, the German federal government has made available around 1 billion euros for financial cooperation projects throughout the country. The focus is on improving municipal infrastructure and energy supply and strengthening the financial sector.
