New guide urges British business to invest in Albania

TIRANA, Sept. 13 – Abundant natural resources, geographical location, extensive coastline and sea ports, availability of inexpensive labour with good language skills (English is widely spoken), continuously improving infrastructure and membership of CEFTA all contribute to the strengths of Albania as a potentially good country to conduct business with. This is how 2011 Commercial Insights, prepared by the Council of British Chambers of Commerce in Europe, describes Albania. The recently promoted booklet by the British embassy in Albania also highlights investment, export and trade opportunities in the markets of Kosovo and Macedonia. “In Albania, Kosovo and Macedonia there is a strong entrepreneurial spirit and appetite for trade, enabling opportunities for British business looking for new markets and trade possibilities,” says the report highlighting opportunities in different sectors such as tourism, energy, infrastructure etc. The report identifies the issue of small land parcel and proof of land ownership as potentially problematic in Albania, advising due diligence and careful checks before agreements are entered into. As in all countries in transition, the changing regulatory frameworks present a challenge for business. There is a high degree of perceived corruption in the Balkans in general but in practice it is not necessarily worse than other parts of the developing business world. Albania has reached market saturation in some aspects of the real estate market such as office space, retail and residential apartments in the capital city of Tirana. However, there remain potential niche opportunities in the construction of high-end residential villas, particularly on the coast. Also, under a new government initiative there is an opportunity to build school and tourism facilities too, says the report. As energy security in the region is a top priority and each country seeks to increase capacity for potential export to their neighbours there is an emphasis within the governments to attract investment to this sector. In Albania, building transmission lines to support its future energy needs and export aims is a government priority. The government aim to meet these goals by the building of a number of hydro power plants (HPP’s), together with solar, wind and biomass plants. As the region requires a substantial amount of improvement in its infrastructure there are many opportunities that present themselves. In Albania there is an emphasis on the coastline as the country attempts to develop tourism and with 500km of roads planned, paid for by the government, the World Bank and local banks, there is room for UK companies to provide equipment, expertise, raw materials and also bid directly for construction contracts. Add to this the 380 municipal projects for secondary roads, village lanes, waterworks and drainage and Albania has a reasonable number of projects that would be suitable for UK SMEs and larger companies too. The region represents a suitable location for niche manufacturing that can benefit from low cost skilled and semi-skilled labour. Albania and Kosovo have flexible conditions for larger companies seeking to build new facilities and the governments are generally open to negotiating favourable conditions in return for job creation. The mining sector presents a substantial opportunity for (small) UK companies. The government in Albania has been working to simplify the process by which concessions are obtained in a bid to attract investment into the sector. With copper, nickel, chrome and an array of minerals available it is worth consulting with the National Agency of Natural Resources, suggest the report. All three countries have a tradition in the textile industry and presently have a low cost skilled work force available to businesses looking for a near-shoring solution. Albania is a large producer of shoe and leather products, has a good track record of high quality products within ISO standards and has a skilled labour force in this sector, making mainly for export to Italy and Greece (for onward distribution to the EU market). The tourism sector in all three countries is undeveloped and each government is making concerted efforts to stimulate this sector providing some ground level opportunities for pioneer SMEs. None of the countries presently have golf courses and all would be ideally suited for high end, eco tourism (e.g. mountain-biking, hiking, spas and tours), particularly if treated as a single cross-border destination tour. Albania has a stunning coastline that extends down from Montenegro to Greece and also has a diversity of inland mountainous areas for ski-resorts and lake tourism. Albania also has a myriad of Roman, Byzantine, Hellenistic and Ottoman cultural and heritage sites, including the UNESCO World Heritage site of Butrint (in south-west Albania in the straits of Corfu). All of which mean, it is a prime destination for exploring by archaeological, independent and organised tour companies and groups.