World Bank: Number of foreign investors coming to Albania will drop

World Bank: Number of foreign investors coming to Albania will drop
Foreign investors will not be as eager as before to invest their money in Albania. At least, this is the forecast of the World Bank, according to which, foreign investments in our country will register a fall next year. This phenomenon is directly linked to the completion of two strategic major projects in our country, such as the Trans-Adriatic Pipeline (TAP) the cascade of the hydro power plant of Devoll. Referring to the latest report of the leading international financial institution on the economic developments in Europe and Asia, next year, foreign investments in Albania will fall to 7% of Gross Domestic Product.

This is a low level compared to this year’s figure of 8.3%. World Bank experts go even further by predicting an even bigger decline in 2019. According to them, in two years time, direct foreign investments will fall to 5.6% of Gross Domestic Product. This is a very low value, if we compare it to levels of 8-9% of the recent years. This shows that it’s becoming increasingly difficult for foreign investors to make direct foreign investments in Albania. So, the World Bank suggests that the country must address deterring factors and barriers for formal employment, in order to promote faster economic growth, the creation of new jobs and the reduction of poverty. “The improvement of the business climate and governing practices to enable companies to create jobs, expand and increase their productivity is another recommendation”, the World Bank says.

Political stability, a factor that convinces 50% of entrepreneurs

According to experts of the World Bank, political stability emerges as a very important factor in convincing foreign entrepreneurs who come to invest in a country. Meanwhile, the other 50% relates to other factors. The second most relevant factor relates to the legislation that a particular country has and this factor accounts for 40%. This factor is followed by macroeconomic stability, with 34%, giving way to other less relevant factors such as low taxes or the small labor cost, which account for 18% and 19% of factors that may convince a foreign investor to invest in the country.

The government urges entrepreneurs to invest in the country

Entrepreneurs must not listen to the bad news that goes around on Albania, but they should come and invest in its territory, because it’s worth it. This was a public appeal that the government has launched publicly for this category. “I’d like to assure you that whoever invests in Albania today, will not regret it tomorrow and those who hesitate today will regret it tomorrow. This is the right moment to come and invest in Albania, because this is a country which gives more than it takes, when you know where to give and how to give”, the head of the Albanian government said.

Meanwhile, Premier Rama also said that foreign investors must not listen to ambassadors or the media to have an idea on Albania and to decide whether it’s a good idea to invest there or not.

Bushati: Let us attract foreign investments through diplomacy

Albania must try and attract foreign investments through diplomacy. Such message was given by the minister for Europe and Foreign Affairs, Ditmir Bushati, who declared that Albanian authorities are working for an efficient economic diplomacy. “This is the reason why we’re working in order for our diplomatic centers to become points of contact for economic development, not only to attract foreign investments, but also to promote Albanian exports and tourism and culture. This electoral summer showed how the country’s image is changing very fast”, the head of the Albanian diplomacy said.

Gjiknuri: TAP and Devolli will bring a series of big investments

The Trans-Adriatic Pipeline (TAP) and the hydro power plant of Devoll will attract a number of other direct investments. This was declared by the minister of Infrastructure and Energy, Damian Gjiknuri, according to whom, Kalivaç and Poçem are two of the most important investments in the energy sector, with a value of 220 million euros, alongside investments in road infrastructure or the industry of chrome. So, minister Gjiknuri invited foreign investors to invest in Albania, because, according to him, foreign investments in Albania are a key priority of government policies. Gjiknuri said that the Albanian government has serious plans for infrastructure. “We have just received the first offers and we’re in the process of selecting the companies that will be in charge of the bypass of Fier and Vlora”, he said.

Shpërndajeni me miqtë tuaj: