After TAP and Devoll, direct foreign investments in Albania are declining

Albania is registering a constant decline of direct foreign investments in its territory. This is reflected by the latest figures of the Bank of Albania. According to these figures, given that big projects such as the Trans-Adriatic Pipeline (TAP) or Devolli Hydro Power Plant are nearing completion, direct foreign investments are registering a drop. The Bank of Albania reports that foreign investments for the year to September were 677 million euros, marking a fall of 4.2% compared to the same period a year ago. According to experts, such negative trend of direct foreign investments is being affected by the completion of two important investments, which have been realized in the country: the Trans Adriatic Pipeline (TAP) and Devolli Hydro Power Plant.  Both of these are powerful projects in the country’s energy sector. This sector also accounts for the highest level of direct foreign investments in the country, namely 59% of the total. “Referring to the figures of the Bank of Albania, for the year 2016, Albania has attracted more foreign investments compared to last year, thus preserving this trend. So, from a value of 890 million euros in 2015, the amount of direct foreign investments in 2016 amounted to 983 million euros. So, the investments that foreign companies made in the Albanian economy were 10.5% higher than the previous year”, the Agency for Direct Foreign Investments says in relation to this fact, stressing the weight of such investments which had a strategic importance for the Albanian energy sector in the past two years, 2015-2016.

Energy, the sector which is attracting most investments

The energy sector is the sector which attracts more direct foreign investments in Albania. So, accounting for 59% of the total amount of foreign investments, energy seems to be the main “gate” where foreign entrepreneurs, who are interested on investing their money in our country in different domains, knock. After, energy, there are two other sectors for which the interest of foreign entrepreneurs to make investments in our country seems to be the same. These two sectors are fossil fuels and financial services. Each of them account for 12% of direct foreign investments in our country. Meanwhile, other sectors such as manufacturing, tourism, agriculture, etc, attract fewer investments and provide lower figures than mentioned above.

Why should you invest in Albania?

There are several reasons why a foreign entrepreneur should take the courage and spend his money in Albania. This is confirmed by the Agency for Direct Foreign Investments, which has listed these reasons as follows: “1. Liberal and reformatory investment environment. 2. Competitive labor cost. 3. Young and educated population. 4. Competitive taxes and incentives. 5. Optimal geographic positioning. 6. A strong growth potential. 7. Free economic zones. 8. Free access to big markets. 9. Macro-economic stability”, the Agency for Direct Foreign Investments. Meanwhile, in its latest “Doing Business” report has ranked several other reason which according to this institution, make Albania an optimal country to invest in.

Authority of Competition, 10 million USD worth of fines in 13 years

The number of decisions taken by the Authority of Competition since it was established 13 years ago is 488. These decisions have also been accompanied by a total value of 10 million USD worth of fines, issued to companies which have breached market competition, by creating monopolies and by engaging in other acts prohibited by the law.   Meanwhile, the head of this institution, Juliana Latifi says that the country’s future integration in the European Union makes it a necessity to implement more rules and principles in the framework of a larger international cooperation. According to her, in front of the challenges that this process imposes, the role of the Authority of Competition in an increasingly global economy, increases the need for anti-trust regulations and principles. “Promoting and protecting free and effective competition in the market, serves, above all, consumers’ interests, efficiency of the markets and long term social and economic prosperity of the country”, she said.