Although you may have lots of money and are ready to invest them and make a profit, if you don’t find the right sector to invest them, some of them may “leak” on the way. This is a dilemma that exists in every entrepreneur’s mind, ready to invest his money in Albania. And perhaps, we should not blame him for this. Maybe we should blame the policies followed by governments on economic development. Fragmented and subjected to changes in time, more than being united into a long-term strategy which could last for decades, they seem to force the business sector to take frequent “turns” in its decision to invest in the country. So, up until four years ago, one way of investing was in the energy sector by buying a license and building a hydro-power station. But now, this investment opportunity is no longer viable, because in the past four years, the left wing government has cancelled many concessionary deals, while the right wing government that preceded it, had declared energy as a priority. Meanwhile, the tendency to invest in the energy sector of the country four years ago was also confirmed by the Bank of Albania in a recent report that was issued by it, saying that these investments accounted for 35% of the total amount of investments that were made in the country.
HISTORY
Lots of money were spent on infrastructure too
A similar scheme has also been applied in other sectors of the economy, such as infrastructure, which in the last decade, managed to absorb lots of energy and money. Let us recall the arrears that governments incurred as a result of public works that went unpaid for a long period of time in the roads of the country. So, at the end of 2013, the state owed around 200 million euros to businesses. This amount was later paid in full. This figure shows that during those years, the government’s priority to build the roads of the country was actually implemented and obliged the business sector to focus on this, even if it meant getting the money much later. And in the form of a chain reaction, this process also led to construction companies to make initial investments such as the purchase of machinery and special equipment, but also to invest on human resources. As a result, many Albanians worked in this construction industry.
Tourism and agriculture, the two priorities of the current political class
They can now be considered as the two priority sectors of the Albanian government. In other words, the government is also waiting the contribution of the business to develop them in the coming years. Tourism and agriculture have been declared as two priorities of the country’s economy, as they have been considered as sectors with development potential. So, with a contribution of up to 8.4% of GDP or 1 billion euros, according to the World Council of Travel and Tourism, the former is expected to generate more incomes in the years to come. Therefore, this organization is expecting a bigger focus on the improvement of its existing structures through new investments, be them public or private, domestic or foreign. This is expected to make tourism a clear priority, but also a tangible one, in contrast to several years ago when public opinion was not “bombarded” with optimistic figures of thousands of tourists who visited the country each summer holiday season. Now, everything seems to point to tourism. We can also mention the measures being taken for tourism, such as the reduction of Value Added Tax for accommodation outlets from 20% to 6%, which, according to the Association of Albanian Lodgers, is expected to have a new impact on this sector starting as of next year, when the effects of its implementation will be felt. Let us recall that according to the World Council of Travel and Tourism, until 2027, the number of tourists that will visit Albania is expected to be 6.25 million. On the other hand, as far as agriculture is concerned, it seems that governments are becoming aware of the fact that this sector employs almost half of the population and contributes 20-25% of the Gross Domestic Product. Therefore, this sector must be listed as a priority in the economy of the country. Thanks to this, the interest of entrepreneurs to invest in this sector is growing. In the recent years, there have been more and more investments in agricultural farms, poultry farms or other types of agro-business in the country. Meanwhile, there have also been significant investments in the cultivation of special medicines which are now exported. Here we can mention saffron or medicinal plants. All of these efforts, which are also being backed by the government through subsidies, aim at turning agriculture into a key sector for the economy, while the country has a lot of advantages for the development of this sector, starting with the climate, environment and human aspect.
