They hire them, but they are often obliged to train them, as their level of education and skills are poor. This requires an extra investment, besides the initial one that a foreign businesses has planned on making in Albania, when starting a private activity. What we’re referring to here are Albanians working for foreign companies that exert their activity in our country. The majority of these companies consider them as a labor force which is not very skilled to meet their needs. This is a fact which is confirmed by German companies operating in Albania, whereby only 7% of them think that “the labor force in Albania has the necessary skills to meet their needs”. This indicator has dropped compared to a year ago, where such thing was confirmed by 10% of these companies.
The latest survey carried out by the German Association of Industry and Commerce in Albania (DIHA) on the business and investment climate in Albania suggests that 30% of respondents have responded “no” to the question if Albanian workers have the necessary skills to meet the needs of these companies, while 64% have responded “partially”.
Meanwhile, 73% of these companies may consider the possibility of offering professional training for their employees according to their specific needs. We also need to add the fact that “academic education; flexibility in work relations; professional education; infrastructure and conditions for research and development” are some of the factors that indicate a slight drop compared to the previous year.
Meanwhile, another phenomenon that foreign businesses operating in Albania, criticize, relates to bureaucracy or the problems encountered while administrating clients. Austrian companies have been the ones that have recently pointed this out, adding another list of problems which, according to these companies, are acting as an obstacle to do business in Albania. The list includes corruption or problems with the rule of law.
For these reasons, Advantage Austria Albania, an organization that represents Austrian businesses in our country, has given a very poor score on the possibility of foreign investments in our country, stating that only 30% of companies would want to invest in Albania. According to the results of this survey, 43% of Austrian businesses believe that the economic situation has deteriorated during 2016, while 72% of them believe that the situation is not expected to change this year. They also believe that this year’s general elections are not expected to assist the economic situation in our country.
RESERVATIONS
“Academic education; flexibility in work relations; professional education; infrastructure and conditions for research and development” are some of the factors that indicate a slight drop compared to the previous year
AIDA’s REACTION
Meanwhile, Albanian authorities don’t seem to agree with the concerns pointed out by foreign businesses that operate in our country, claiming that Albania offers a positive business climate. It’s been the head of the Albanian Investment Development Agency, Genti Beqiri, who during the last meeting with the Austrian business, declared that there are individual negative examples that can be identified, but according to him, in essence, the climate for foreign investments in our country appears to be positive. “The most important reforms are being passed. We also have a full legal basis as far as strategic investments are concerned. AIDA too acts as a One Stop Shop for businesses”, Beqiri said.
Almost half of foreign companies operating in Albania don’t expect the situation to change
While almost one third of German companies that operate in Albania have a positive view on the business climate, half of them do not seem to be very optimistic that this climate will change in the future. This is another phenomenon which is confirmed by the latest report of the German Association of Industry and Commerce in Albania (DIHA). “More than one third of respondents see an improvement, while for almost half of them, expectations remain unchanged”, the report states. This sends a signal that foreign businesses are not very optimistic of any possible improvements in the situation in which they have been obliged to exert their private activity in Albania.
Foreign companies are not ready to hire more people
“31% of respondents are ready to increase the number of employees. Meanwhile, 62% are not planning to make any changes”, DIHA says
Foreign companies that exert their activity in our country don’t seem to be ready, like they used to be before, to hire more people. This is shown by the latest report of the German Association of Industry and Commerce in Albania (DIHA) on the climate of investments and business. According to this report, “the readiness to increase the number of employees has seen a slight drop compared to a year ago”.
“31% of respondents are ready to increase the number of their employees, while last year, in 2016, this percentage was 35%. Meanwhile, 62% are not planning to make any changes compared to a level of 55% a year ago”, the report in question suggests. This not only shows the problems that exist in regards to the qualification of the labor force that they find in Albania, but at the same time, it also reveals problems regarding the increase of the number of employees, because this seems to incur extra costs. This is also associated with their demands for a better financial situation, stability and security and this situation seems to exist with almost all foreign businesses that operate in our country, German, Austrian, American, etc.
