TIRANA, Dec. 9 – Tackling frequent legal changes, corruption and reforming the justice system are the three challenges Albania should address in order to attract more foreign direct investment, Dutch Ambassador to Albania Dewi van de Weerd has said.
Dutch foreign direct investment in Albania has seen a sharp increase in the past three years after investments by the Royal Dutch Shell in oil exploration and extraction, making the Netherlands one of the top four foreign investors to Albania.
Speaking in an interview with a local Albanian TV, the Dutch ambassador said the predictability of tax policies is a key concern for investors.
“I think the business climate in Albania is improving, slowly but getting better, but predictability is sometimes the most difficult part for companies operating here because of the frequently changing laws,” she told Scan TV in a translated interview.
The ambassador also stressed the need for a better promotion of investment opportunities in Albania.
“I think that it is important that investors know more about Albania and that this country is interesting for them to come and invest here,” she said.
The justice reform is another requirement by potential Dutch investors to Albania.
“It is very important to focus on the justice reform. Maybe the most important thing for companies is knowing what to expect and they should know that when facing a problem in Albania they can address court and have a fair trial. Corruption, working on predictability and setting up a fair playground are important issues to address,” she was quoted as saying.
Oil, banking and agriculture are some of the sectors where Dutch companies have invested.
The Netherlands registered a sharp increase in its FDI stock in 2014 thanks to huge investments in the oil sector by the Royal Dutch Shell. Dutch FDI stock in 2014 climbed to €505 million, up from €398 million in 2013 and €338 million in 2012, according to the Bank of Albania.
Shell Upstream Albania B.V, the Albanian subsidiary of the Royal Dutch Shell and its Canada-based Petromanas partner have recently been announced winners to explore the onshore Block 4 in south-eastern Albania close to their current drilling site at Shpirag.
Meanwhile, few months after introducing modern berry cultivation techniques, a Dutch-Albanian joint venture has launched a new packaging facility in the city of Fier which has made it certified to export to the EU. Superberry is now certified to export to the EU and will soon be selling their produce in – amongst other countries – the Netherlands.
Dutch cooperative bank Rabobank is also assisting farmers to draft business plans while several Dutch companies are also considering investing in the Albanian textile sector.
Trade exchanges between the two countries remain modest.
Albania’s imports from the Netherlands which mainly include chemicals, machinery and equipment rose to €31 mln in 2014 while exports also rose to €16.5 mln, according to state statistical institute, INSTAT.
