OFFICES AND HOUSING FOR THE MIDDLE CLASS DOMINATE THE MARKET
October, 2019 / Volume 23, Issue 10
www.business-review.eu
6
TECHNOLOGY BUILDS PROACTIVE LONG-TERM STRATEGIES FOR COMPANIES
18
BUCHAREST DISCOVERING ITS POTENTIAL AS A STARTUP HUB
22
ECONOMIC GROWTH REMAINS SOLID IN CEE REGION AND ROMANIA
32
HUGE POTENTIAL
FOR FOREIGN INVESTMENTS
www.business-review.eu Business Review | October 2019
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Editor-in-Chief • 6 Offices and housing for the middle class dominate the market
COVER STORY
A
Building a sustainable economy
8 Huge potential for foreign investments
ccording to the European Commission’s estimations, the Romanian economy is set to expand this year by 3.3 percent. Meanwhile, the Eurozone will grow by 1.2 percent,
while the overall growth in the EU bloc will stand at 1.4 percent. Therefore, Romania will remain one of the economies with the fastest GDP expansion in the region. This should be a strong reason for foreign investors to come to Romania, either to bring or expand their businesses here. Yet the
STARTUPS 22 Bucharest discovering its potential as a startup hub
26 5G development set to unleash new wave of startup innovation
local economy still faces big challenges, with the lack of proper
EUROPEAN UNION
road infrastructure and the unpredictability of legal and fiscal frameworks having been the most debated in recent years. Plus, the executive directors of the IMF suggest that public investment should be increased by focusing on public infrastructure and
28 The new European Commission:
achieving a more efficient absorption of EU funds.
A weak leadership to pilot the EU boat through the storms
On the other hand, representatives of the local business environment think that the biggest question for Romania at this
CITY
moment is how sustainable its growth is – how long it can keep growing at the current pace and what happens when it is no longer be able to do so? Has there been a real evolution in Romania’s development? Is a spike in FDI rate to be expected after two years of stagnation? Answers to these important questions and many more will be debated during the 6th edition of the Foreign Investors Summit, the most awaited event that brings together foreign business communities, state authorities and diplomats. So, join us for a discussion on leadership and ways to build a brighter and more sustainable future for Romania.
40 The alternative tourism experience
44 Cooking up a storm for local food
45 Restaurant review 46 Cultural calendar
EDITORS-IN-CHIEF: Anda Sebesi, Sorin Melenciuc JOURNALISTS: Anca Alexe, Aurel Constantin, Romanita Oprea, Oana Vasiliu CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | October 2019
4 NEWS
WHO’S NEWS
Emerging market status. “This is extraordinary news for Ro-
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
mania’s economy. The ASF constantly supported the BVB and the capital market in Romania by lifting legislative barriers and cutting costs. I am sure that thanks to its new status, the Bucharest Stock Exchange will get a breath of fresh air and we’ll see new major investors and issuers,” said Leonardo
Tudor Ionescu has been promoted to Head of Advisory & Transaction Services for CBRE Romania’s office segment, starting this November. Ionescu first joined CBRE in 2017 and has over 17 years of experience in the design, office and hotel industries. The decision to promote Ionescu marks the evolution of CBRE Romania’s office department towards the provision of integrated real estate services, based on commercial, technical and architectural knowledge, along with the company’s extended expertise on rental services, for both local and global clients.
Andreea Hamza will lead JLL Romania’s newly-established Living department, which will provide consulting services for the residential sector. Hamza has over 17 years of experience in the real estate industry. Prior to joining JLL, she worked as Head of Marketing and Sales at Hagag Development Europe. Over the course of her career, she has set up 12 sales teams, having coordinated real estate projects throughout the development process, from planning to delivery. page 5
The reclassification follows market improvements implemented by authorities in the country
Romanian stock exchange upgraded from frontier to emerging market status
Badea, the president of the Financial Supervisory Authority (ASF). In September 2018, the FTSE Russell Country Classification Advisory Committee endorsed the following criterion rating changes: “Liquidity – Sufficient broad market liquidity to sup-
By Sorin Melenciuc
port sizeable global invest-
The Bucharest Stock Exchange
subsidiary of the London Stock
ment” was upgraded from “Not
has been reclassified from
Exchange Group (LSEG).
Met” to “Restricted,” follow-
Frontier to Secondary Emerg-
FTSE Russell acknowledged
ing an improvement in broad
ing market by FTSE Russell,
Romania for meeting the require-
market liquidity. “Off-exchange
three years after being added to
ments for attaining Secondary
transactions permitted” was
the watch list. “Following the
Emerging market status. The
upgraded from “Not Met” to
September 2019 annual review,
reclassification follows market
“Restricted.” The “Liquid-
FTSE Russell confirms that
improvements implemented by
ity – Sufficient broad market
Romania, currently a Frontier
authorities in the country, ac-
liquidity to support sizable
market, is to be reclassified as
cording to the company. Romania
global investment” criterion is
a Secondary Emerging market,
was added to the watch list in
the single outstanding criterion
effective from September
September 2016 for a possible
required for attaining Second-
2020,” said FTSE Russell, a
reclassification to Secondary
ary Emerging market status.
Romania’s retail sales remain strong on higher fuel spending during holiday season By Sorin Melenciuc Retail sales, a key index of the
which rose by 13.6 percent year-
consumer market, rose in August
on-year, and by sales of food
by 6.7 percent year-on-year in
products (+5.1 percent). Sales of
Romania, mainly due to higher
non-food products rose by 4.2
fuel sales, according to a Na-
percent.
tional Institute of Statistics (INS) report. Retail trade was sustained in August by the sale of fuels,
Compared to July, retail trade rose in August by 0.4 percent, in seasonally adjusted series. In the first 8 months of this year, retail
Romania’s consumer market rose by 7 percent last year to EUR 123 billion
www.business-review.eu Business Review | October 2019
NEWS 5
Six out of ten companies have experienced IT security breaches in the last three years By Anca Alexe
Alice Ivanovici is the newly-appointed Partner in EY Romania’s Audit Department. She has 17 years of experience in financial audit, of which 13 have been spent at EY. Ivanovici has been involved in auditing major multinational companies. Her professional activity includes special projects regarding capital markets and collaborations with complex teams of EY specialists from Europe, the US and Asia.
About six out of ten companies have suffered a computer security breach in the last three years, and a third of IT security professionals who have not had any incidents say they are very likely to be victims without knowing it, a global Bitdefender study has found. The share of companies that have experienced incidents in the first six months of 2019 is around 25 percent, compared to 32 percent for the whole of last year. More than half of IT security
Most often, executives are reluctant to IT security policies
specialists are concerned about companies’ overall level of
from the rules. In addition, one
such a major stress factor that
readiness to cope with a global
third of respondents found that
many IT security specialists
attack, which is not surprising
employees in the companies
have considered resigning.
considering that 57 percent say
where they work lacked basic
Insufficient investments in
that those in management are
computer security knowledge.
security are the main obstacle
the least likely to comply with
That is why 49 percent of respon-
to building a stronger position
IT security policy.
dents say that their concerns
against increasingly sophisti-
about the imminent cyber-attack
cated computer attacks. Poor
are reluctant to IT security
on the organization causes
security is undoubtedly a
policies, trying to either delay
them stress at home too, largely
major threat to any business,”
or disregard them when they
because of constraints related to
says Liviu Arsene, a computer
come into force as they con-
budgets and qualified personnel.
security specialist at Bitde-
Most often, executives
sider themselves to be exempt
“The lack of resources is
fender.
Kevin Turpin has been appointed as the new Regional Director of Research for Central and Eastern Europe. Turpin will focus on continuing to grow the marketleading research platform Colliers has developed over the past few years, both regionally and locally. He has been working in the Commercial Real Estate industry for over 20 years, now joining Colliers from JLL in Prague where he was Head of Research & Strategy for CEE. Prior to that he worked in HR consultancy, IT and the public sector.
sales in Romania increased by 7 percent year-on-year. The Romanian government has adopted during the last few years a strategy of wage-led growth, stimulating household consumption and GDP growth rates. But this model has generated larger fiscal and current account deficits. Last year, the retail trade growth rate slowed down to 5.4 percent – the slowest pace in 5 years - from 10.8 percent in 2017. Romania’s consumer market rose by 7 percent last year to EUR 123 billion.
Antoaneta Curteanu will take over the role of Vice-President of the Board of Directors and coordinator of the Retail Division of UniCredit Bank Romania starting on November 1. She is currently the Coordinator of the CIB and Private Banking Division and a member of the UniCredit Bulbank Directorate. Curteanu has over 25 years of experience in the banking system, of which 18 were spent within the UniCredit Group.
www.business-review.eu Business Review | October 2019
6 REAL ESTATE
Offices and housing for the middle class dominate the market In the context of a heated discussion taking place lately about the local real estate market, data on the first half of 2019 show that only four transactions of over EUR 10 million were closed during this period, and over 70 percent of the total volume of EUR 340 million was generated by just two transactions: The Office in ClujNapoca and Prime Kapital’s portfolio of shopping centers. By Aurel Constantin
More than half of the investments made in the first semester were related to office buildings
T
In the last 12 months, prices for industrial properties in Romania have increased
he first half of 2019 showed that there
2014, to EUR 1.2 billion. However, buyers re-
Poland, Hungary and Slovakia recorded
is liquidity in secondary cities for
main very careful and due diligence processes
investment drops.
high-quality, institutional products, a
are very detailed,” said Andrei Vacaru, Head
fact supported both by the largest transaction in this time period, namely the sale of The Of-
of Capital Markets at JLL Romania. More than half of the investments made in
In the first six months, the investment market in Central and Eastern Europe exceeded EUR 5.47 billion and was dominated
fice in Cluj-Napoca, as well as by the fact that
the first semester were related to office build-
by Poland and the Czech Republic, which total
70 percent of the volume total investments
ings, a trend that we expect to continue in the
80 percent of the investment volumes.
were directed to cities other than Bucharest.
next period, with offices remaining the most
“It is true that there is an increased number of transactions in various stages of trading
liquid real estate class at the moment. In a regional context, Romania and the
PRICE EVOLUTION In the last 12 months, prices for industrial and
on the investment market, which is likely to
Czech Republic are the only countries that
office properties in Romania have increased
bring the market to its highest volume after
have recorded higher investments, while
(the yields in the industrial segment have
www.business-review.eu Business Review | October 2019
REAL ESTATE 7
fallen by 50 basis points and those on the
tively by the more sophisticated demands
office market have decreased by 25 basis
displayed by buyers, in terms of both budget
percent) live in separate individual dwellings,
points), while prices for retail have remained
and construction materials. Therefore, even
with the proportion being strongly influenced
at the same level.
though the statistics announce effervescence
by the rural environment, while the rest of
on the market, we can say that this is not felt
the households live in buildings with several
regional and global trends, where investors’
at the middle class level, which, at the mo-
dwellings (37.9 percent). The buildings in
appetite is increasing for industrial and logis-
ment, is the most stable sector,” said Adrian
which households reside are almost entirely
tics projects, especially due to the expansion
Stanescu, Imobiliarium Project Manager.
of the detached houses type in the case of the
“The above evolution is in line with
of e-commerce and implicitly of the spaces
The average budget for a home in this
“More than half of households (60.9
rural environment (97.4 percent), while the
that serve online retailers, while the shopping
segment is between EUR 80,000 and 120,000,
urban environment predominantly features
centers’ traditional products are losing their
where factors such as location or built area
apartments in buildings with several dwell-
attractiveness, especially in the case of by-
must be taken into account. On average, the
ings (69.8 percent),” shows the INS survey.
products. It should also be mentioned that, in
price estimate is about EUR 1,400 per square
the context of the apparent market efferves-
meter in Bucharest, relatively lower in the
There is also a need for additional space, bigger houses or apartments, since only
adjacent areas
54.4 percent of dwellings have 3 to 5 rooms.
of Ilfov County,
Households residing in 1-2-room dwellings
and in the next
(43.2 percent) represent a significant share.
period the
If in the urban area a little more than half
price change is
of households (56.3 percent) lived in small
expected to be
dwellings with 1-2 rooms, in the rural area
minimal. At the
more than seven out of ten households occu-
same time, in
pied houses consisting of 3 or more rooms.
relation to the
Overall, 37 percent of all families obtained
geographical
their housing in the 1981-2000 period, with
evolution of this
households in the urban area being above this
segment, the
level (43.4 percent). In rural areas, over two
middle-class
out of four families live in homes built before
areas that have
1980.
developed the
“It is also noted that the share of new
most over the
housing, built after 2001, accounts for only
cence, there is a risk that the gap between the
last years are the North and the East of the
21.9 percent of the total, being higher in urban
price expectations of buyers and sellers will
Capital.
areas (26.5 percent) than in rural areas (16.6
increase in the next period,” said Vacaru.
The average buyer in this segment is between 30 and 40 years old, married, inter-
percent),” the study shows. Last year, the share of households
INCREASED OFFER ON RESIDENTIAL SPACES
ested in a two or three-room apartment, has
equipped with a bath or shower was 73.6 per-
a corporate job and an available budget of
cent, and the share of those with toilets was
The residential market has had an increase in
over EUR 80,000. Their procurement criteria
72.2 percent. In urban areas, over 9 out of 10
the number of homes delivered, but the offer
first include the location, followed by the
households are equipped with baths/showers
is located in big cities, mainly in Bucharest.
construction quality, the infrastructure - easy
and toilets.
According to Imobiliarium, the real estate ex-
access, the surrounding facilities, such as
hibition with the largest number of exhibiting
markets, schools, hospitals, etc., and the price
highly pronounced for both types of utilities,
developers, the residential middle-class seg-
per square meter.
mainly due to the poor development of the
“In terms of residence, the differences are
public water supply system and the sewage
ment in Bucharest is the only one which is on an upward trend and maintains a sustained
A NATION OF OWNERS
and wastewater treatment system in rural
pace, as it is stable in terms of the quality-
It is not a surprise that people aged between
localities compared to urban ones; almost
price ratio. Furthermore, over 80 percent of
30 and 40 years old are the main buyers of
half of the rural households benefit from the
the developers present at Imobiliarium have
new dwellings. On the one hand, they are the
advantages offered by the existence of a bath
offers that fall into the middle-class category.
category with the highest incomes and they
and toilet,” INS reports.
“The market for new residential construc-
are likely to be starting a family. On the other,
Of these households, those of employees
tions has increased in terms of the number
seniors tend to already have a home, since 96
and self-employed workers (including em-
of housing units, with the majority focusing
percent of Romanian families own their own
ployers) who had greater financial resources
on the middle class, especially in the last two
homes, according to the “Survey on quality
were able to provide the two types of utilities
years. This tendency is also determined by
of life” carried out by the National Institute of
in a much higher proportion than the average
the slowing appetite for purchases, respec-
Statistics last year.
for the rural environment.
8 COVER STORY
www.business-review.eu Business Review | October 2019
HUGE POTENTIAL FOR FOREIGN INVESTMENTS With Romania having the potential to remain one of the leaders of economic growth in Europe, the local business environment continues to attract foreign investments. While the FDI stock as of December 31, 2018 amounted to EUR 81.1 billion, according to the most recent data released by The National Bank of Romania (BNR), our country is still facing big challenges as the economic dashboard indicates that industrial output and exports have entered the red zone since the beginning of the summer, while soaring wages have continued to boost retail sales and imports. By Anda Sebesi, Sorin Melenciuc and Aurel Constantin
www.business-review.eu Business Review | October 2019
COVER STORY 9
T
he value of foreign direct investment (FDI) in Romania in 2018 was revised upwards by the National Bank of Romania (BNR) to EUR 5.27 billion, from the EUR 4.94 billion the
central bank had initially reported in February. FDI stock as of 31 December 2018 amounted to EUR 81.1 billion, with EUR 57.5 billion in equity positions, including reinvestment of earnings, and EUR 23.6 million in debt positions. The Romanian economy grew by 5 percent in the first quarter of 2019, driven by a rise in domestic consumption, which was fueled by wage increases. This year, the domestic economy is set to expand by 3.3 percent, according to an estimate of the European Commission, the executive arm of the European Union. Meanwhile, the Eurozone will grow by 1.2 percent, while the overall growth in the EU bloc will stand at 1.4 percent. On this backdrop, Romania will remain one of the economies with the fastest GDP expansion in the region. “Undoubtedly, Romania will remain the leader of economic growth in Europe, hence – as in the case of many Western European companies – we were actively working on entering this dynamically developing – although still very young – market. Its advantages – like most emerging markets – are additionally lower entry barriers and the huge potential of Romanian entrepreneurs, who, following the development of the local economy, are starting their own business activities, looking for fast and attractive sources of financing. Nevertheless, access to capital can be hindered for local entrepreneurs,” says Klaudiusz Sytek, president of board at Aforti Holding, adding that Romania was the first foreign market to which Aforti Group expanded. “It is the country with one of the largest and most dynamically developing economies on the continent, so it was a rather logical step for us. We first entered the market with our fintech Aforti Exchange, which offers online currency exchange services, in October 2017, in order to “test” the market and see whether it would live up to its potential,” he says. According to Sytek, for Polish companies, an expansion to the Romanian market, which is very similar to the Polish one, gives them the opportunity to grow their business as the market in Poland is already mature and requires different strategies than it did a few years ago, when it was a market of rapid growth, as Romania is today. “In Romania, we see two major trends that are attractive for Polish businesses – on the retail side, household consumption is very high and consistently growing quarter to quarter, sustained by the consistent wage growth. For B2B services providers, like Aforti, we see on the one hand the increase in the entrepreneurial mindset, with more and more Romanians starting their own businesses, while on the other hand, there is still low competition among service providers on the local market. Both these trends are further enhanced by the size of Romania’s population, of 20 million, which ensures the appropriate market size to build meaningful businesses,” explains the representative of Aforti Holding. The local economy has maintained high growth rates this year, boosted by higher earnings and spending, but two major engines
www.business-review.eu Business Review | October 2019
10 COVER STORY
have turned red, raising concerns regarding the risk of a looming
owned enterprise reform agenda. However, many Romanian experts
downturn. The economic dashboard indicates that industrial output
doubt that such measures would be implemented during a busy
and exports have entered the red zone since the beginning of the
electoral period.
summer, while soaring wages continue to boost retail sales and imports. These opposite trends are adding pressure on the already high trade and current account deficits. “For the first time since the great recession, high frequency
The Romanian Fiscal Council, led by Daniel Daianu, recently said that the current fiscal-budgetary policy entails significant risks generated internally by the severe tightening of the budgetary construction. This is determined by the very low level of tax revenues and the high degree of spending rigidity, by excessively ambitious
data offers hard evidence of trouble in the tradable sector of the
commitments in relation to the available resources.
economy,” Ciprian Dascalu, chief economist at ING Bank Romania,
“I think the biggest challenge at this moment regarding the Roma-
wrote in a research note. In July, “industrial data showed annual
nian market is the question of how sustainable the growth is, how
contraction on all fronts: mining (-7.4 percent), energy (-4.7 percent)
long it can keep growing at the current pace and what happens
and, most importantly, manufacturing (-4.4 percent). To add insult
when it is no longer be able to do so. The so-called country risk
to injury, the previous month’s data was revised downward,” he
has to be taken into consideration by all the foreign players who
added. Worse, experts now believe that the lagged contagion from
are already present or want to enter Romania,” says Sytek of Aforti Holding.
softer demand in Romania’s main trading partner countries is just
EXTERNAL THREAT
starting to show
At the same
up in the data, “as
time, the exter-
a likely build-up
nal context is
in inventories kept
characterized by
things afloat for
a slowdown of
a while”. For the
economic activ-
moment, weaker
ity as well as by
external demand
the effects of the
is still offset by
trade war between
high domestic
major economies.
consumption and
For Romania, the
by booming investment in the construction sector, helped by the
biggest threat comes from the slowdown of the German economy,
low base effect and fiscal facilities.
accompanied by a visible collapse in car production.
NEED FOR FISCAL CORRECTION
million (about one million less compared to the 2015-17 average an-
Despite higher deficits, considered unsustainable by many, the gov-
nual production) and reached a level close to the lows seen in 2009.
ernment increased spending on wages and pensions hoping to get
Romania is an important spare parts supplier of German car manu-
some traction for ruling party PSD in the upcoming elections.
facturing companies and their troubles threaten to hit local suppli-
Starting in September, pensions increased by 15 percent, a measure
ers and exports hard in the following months.
As of June, German annualized car production plummeted to 4.7
that puts pressure on both fiscal and external deficits. “The current account deficit rose to 4.5 percent of GDP in 2018,
REAL ESTATE
the highest ratio in the EU. The key driver was the continued
As pundits say, the Romanian property sector is facing the same
deterioration of merchandise trade balance on the back of import-
challenges as the rest of the economy, stemming from fiscal instabil-
intensive growth and slower growth of exports of goods and ser-
ity, the lack of public investments in physical infrastructure and the
vices,” IMF experts noted in their latest report on Romania. “These
quality of public policies and administration. In fact, these are some
reflected the eroding competitiveness of Romanian producers in
of the reasons why the volume and size of the Romanian real estate
domestic and export markets as well as the euro area slowdown,”
market place the country behind others in CEE. “The Romanian
they added.
market has not exceeded EUR 1 billion per year in the last three
Following the review of the local economy, the IMF emphasized
years and has not reached the levels recorded before the economic
the need to re-energize the structural reform agenda to improve
crisis, even though the rest of the region had better performance.
Romania’s medium-term growth prospects. The executive direc-
However, this expected market downturn will not be comparable to
tors of the IMF suggest that public investment should be increased
what happened in the previous economic crisis as the financial situ-
by focusing on public infrastructure and achieving a more efficient
ation is now more stable. A market correction is more likely to take
absorption of EU funds, and called for moving ahead with the state-
place, due to the shift in global forces and issues such as the trade
www.business-review.eu Business Review | October May 20162019
COVER STORY 14 11
agreement between China and the US, Brexit, and the situation in
operation, of which 51 percent are in Class A projects, pundits say.
the Eurozone,” said Francesca Postolache, partner, assurance ser-
Last but not least, in large Romanian cities, traffic congestion is
vices at PwC Romania earlier this year for Business Review.
leading property developers to design projects that create new links
Along similar lines, Fulga Dinu, country manager operations at Immofinanz Romania, thinks the local real estate market is
between office and living spaces. “Although it is true that most foreign investors have decided
definitely on the right path. “Recently I have noticed a healthiness
to invest in the office sector, having a more profitable overview of
and good structure of the real estate market thanks to experienced
their capital, more and more companies have shifted their priori-
developers operating here who understand the ingredients of this
ties, considering the development of residential projects as part
business. This automatically leads to a good product that is im-
of a larger mixed-use development. There are a great number of
mediately targeted by long-term investors, besides the fact that
examples on the Romanian market nowadays, besides us,” says
more and more local developers and investors are appearing, prov-
Antoniu Panait, managing director at Vastint Romania. With a vast
ing the high level of trust in the
experience in many other cities
Romanian market,” says Dinu of
in Europe, Vastint Romania has
Immofinanz Romania.
also decided to go further with
Elsewhere, investment activ-
a project that is meant to nicely
ity in the Romanian property
complement its existing portfolio
sector has pointed to a maturing
of office buildings, situated in key
industry that has also boosted
areas of Bucharest. “The project
confidence levels in the field
will have almost 600,000 sqm of
among national and international
built surface and one of the most
companies. In 2018, the invest-
relevant details about this project
ment volume on the local market
besides the fact that is located in
climbed to almost EUR 1 billion
District 1 of Bucharest is that it will
with Romanian investors starting
have great focus on green areas,
to gain visibility on all segments,
in order to increase the quality of
ranging from office to residential
life for those who choose to live
and logistics. In fact, domestic in-
there,” adds Panait.
vestors generated a quarter of the
As pundits say, the residential
total investment volume in real
market in Romania is becom-
estate, followed by South-African
ing more and more stable, with
funds, with a share of 18 percent,
healthy and not-so-spectacular
according to research conducted by real estate consultancy firm CBRE Romania. “On a growth pattern but with a more cautious optimism reflected in the forecast figures of the main macroeconomic indicators, 2019 is shaping up to be a remarkable year with high transac-
price evolutions. Potential buyers are increasingly interested in medium and medium-high apartments, located in areas with easy access to public transport, schools, parks, shopping centers and other social facilities. “As expected, due to the high demands of clients, who are now
tional activity, as
better informed
major real estate
and also more
properties and
aware of their
portfolios are in
needs, the
different purchas-
construction of
ing stages,” said
residential projects
Daniela Boca,
has evolved a lot
head of research at
and the market
CBRE Romania.
is continuously
As for office development in
developing. This growth has led to
Romania, developers are adapting to the preferences of new genera-
more conscious and optimized spaces that aim to meet the needs
tions of employees and changing the very idea of the offer. Develop-
of clients who are more selective and have a clear overview of their
ers now design projects for complex living, providing good quality
choices,” says Panait. He highlights the fact that since a large num-
of life and urban regeneration rather than just work premises. The
ber of constructions are old, all the new players on the market have
Romanian capital only has another 216,000 sqm under develop-
chosen unexploited areas, most of them developing residential proj-
ment in the office segment, on top of the 3 million sqm already in
ects near Bucharest. “Spending less time in traffic and having more
www.business-review.eu Business Review | October 2019
12 COVER STORY
time for family and hobbies are the most important assets in a city
to see business opportunities, have had a major contribution to
that is getting extremely crowded. A good location in the city, with
this success. We are beginning to see the results of their strategy
easy access to all the important daily destinations by alternative
to co-opt Romanian employees in large projects, but we believe
transportation, mixed with facilities that can ease the lives of the
that the potential of this industry has not yet been reached, and
people living in a residential project are the trends that will define
that the next few years will surely bring more returns on American
the next period,” adds the managing director of Vastint Romania.
investments in Romania, in the IT sector,” said Roxana Popescu, the
As for the attractiveness of the local real estate market, Dinu of Immofinanz Romania says that Romania still offers very attractive
managing director of KeysFin. One of the biggest investments made in 2019 in the Romanian
yields, with a gap of approximately over 2 percent to neighboring
IT industry was UiPath’s latest funding round. UiPath, the leading
countries. “We see an increasing transaction volume. A mild yield
robotic process automation (RPA) company founded by two Roma-
compression mainly refers to the good quality of products and
nian entrepreneurs, raised USD 568 million in a Series D investment
demand from the investors’ side.
round to reach a valuation of USD
More generally, economic stability
7 billion, making it the fastest
and the overall interest policy
growing and highest-valued AI
are important factors for yield
enterprise software company
development,” she says. Dinu adds
worldwide.
that Immofinanz’s focus on the
On another level, we can
office and retail segments is the
find that several investments
consequence of the company’s
have recently been made in the
overall portfolio strategy. “There-
country. Blugento, a provider of
fore, we have decided to exit the
e-commerce solutions based on
residential segment. But there is
the Magento platform, received
definitely still enough space on the
a strategic investment of EUR 1
residential market for new projects
million, following the signing of
as shown by statistics: Romania
an investment agreement with
still has a lower stock compared
Polish IT group R22. The part-
to other CEE countries and, in
nership involved the sale of a 31
addition, the yields obtained by
percent stake and was aimed to
developers or investors are still
develop the platform and expand
attractive. Added to this is a low
the Blugento business on several
level of taxation, which completes
European markets, the first being
the larger picture of opportunities,” concludes the Immofinanz Romania representative.
Poland and France. This was the second investment Blugento managed to attract in two years. The first capital injection, worth EUR 120,000, took place in June 2017. Finqware, a Romanian fintech startup that is preparing to launch
IT The IT industry remains one of the top investments in Romania,
on the European bank aggregation market, received a seed invest-
according to an
ment of EUR
analysis by Keys-
180,000 from Gap-
Fin. US compa-
minder VC. It was
nies operating in
the company’s first
Romania recorded
round of external
a total turnover of
financing follow-
EUR 347 million
ing its establish-
and a net profit of
ment in 2018, and
EUR 25.8 million
Finqware is plan-
in 2017, resulting
ning to become the market leader
in a 7.5 percent profit margin. Companies like Microsoft, Stefanini, Amazon or Adobe account
for Open Banking in Europe in the coming years. The amount attracted by the startup founded by Cosmin Cosma,
for approximately 34 percent of the total profit made by US compa-
Dumitru Taraianu and Danut Covalciuc will be used to further
nies in Romania, reaching EUR 76 million.
develop its solution and infrastructure. The company’s objective
“The IT sector in Romania has grown rapidly in recent years, and American companies, recognised worldwide for their quick ability
is for its customers to be part of the first wave of adoption of Open Banking in the autumn of this year.
www.business-review.eu Business Review | October May 20162019
COVER STORY 14 13
TELECOM
that some of the smallest banks in the system will be bought by big-
The most important investment in the communication sector
ger players. It is a trend that we can also see in Europe and it is good
in 2019, so far, has been Vodafone Romania’s takeover of UPC
for the local banking system,” said Dominic Bruynseels, former CEO
Romania. The deal was announced in 2018 by the two companies
at First Bank.
at the international level and it has involved the sale of Liberty
The takeover of Marfin Bank by Vista Bank, part of Vardinogi-
Global (UPC’s owner) operations in 6 European countries. Vodafone
annis group, was finalised this year and the brand was changed.
agreed to pay EUR 10.8 billion in cash and assume EUR 7.6 billion in
The bank has 30 branches in Romania, of which 9 are in Bucharest,
outstanding debt, in the biggest deal completed by Vodafone since
and it is planning to double its market share to 1 percent in the
2000. The acquisition is one of the most significant in the Romanian
coming year. Antonios Mouzas, CEO of Vista Bank Romania stated
telecom industry and it promises to bring higher quality communi-
that the change of name to Vista Bank Romania is the last step of an
cations services to customers after combining Vodafone’s expertise
in-depth process of business consolidation, which included the EUR
in mobile services with the proficiency of UPC specialists in TV and
30 million capital increase in September last year, the expansion of
fixed services. The transaction was completed this year and Voda-
the management team, as well as the improvement of the product
fone immediately launched the first combined offers to clients.
and services portfolio.
While the most important investment in the telecommunications industry in 2019 will be the tender for the 5G frequency
ENERGY
spectrum, the market is waiting for another huge takeover: the sale
The Romanian energy sector is diversified but obsolete, and it
of Telekom Romania Communications (formerly Romtelecom) and
needs investment, good management and functional markets.
Telekom Romania Mobile Communications (formerly Cosmote). We
Today, the best hopes for investment are related to the Black Sea
know for sure that the owners at Deutsche Telekom are looking to
offshore gas projects. Two major projects are now more advanced
sell the operations in Romania, but it is still unclear who will buy it.
than the others and could boost the entire sector. The biggest one,
So far, after rumors circulated about Russian and Bulgarian investors, the media has reported on talks between Telekom and Orange for the sale of the former Romtelecom, which operates the
Neptun Deep, is being developed by a joint venture between US giant ExxonMobil and Austria’s OMV group. In 2012, the two companies said they had discovered between 42
cable TV and fixed-internet division, and between Telekom and
and 84 billion cubic meters of gas reserves around 170 km offshore.
RCS&RDS for the sale of the mobile communications division. None
But this year, ExxonMobil and OMV Petrom decided to freeze the
of the companies involved have yet commented on the information,
project due to both the offshore law and emergency ordinance
so nothing is official. But if the sale is eventually completed this
114/2018, which imposed new taxes on energy players.
year, we shall have another huge deal, just as big as the VodafoneUPC takeover.
The other major project, the Midia Gas Development Project, is operated by Black Sea Oil & Gas, together with two co-venture partners. Despite regulatory problems, the consortium decided to go
BANKING
ahead with the project and approved an investment of USD 400 mil-
The most important takeover this year was the one in which Exim-
lion. Many experts say that Black Sea resources are a great opportu-
Bank and the National Bank of Greece signed an acquisition agree-
nity for both the Romanian economy and the local energy sector.
ment for 99.28 percent of Banca Romaneasca. As a result of this
But there are two key issues for the success of these projects:
transaction, EximBank will operate for the first time in the retail
building transport infrastructure and a functional market to sell the
banking segment in Romania, thus becoming a universal bank, with
gas. For Romania, the key pipeline project is BRUA. But this project
a market share of 3 percent, positioning the bank among the top
“faces severe problems because of Hungary’s signaled opposition to
financial-banking institutions in Romania.
transit arrangements to Austria, a move with potential consequenc-
“I am pleased to announce this transaction, which creates a
es for the development of Romania’s offshore gas,” John M. Roberts,
Romanian bank of reference that will showcase both the experience
a UK-based senior fellow at the Atlantic Council’s Eurasia Center
of the Romanian Bank in the retail banking segment, as well as the
and Global Energy Center, said in a recent report.
ability demonstrated over time by EximBank to support the local business environment,” said Traian Halalai, the CEO of EximBank. The amount paid by Eximbank has not been made public, but it
“Overall, current work on BRUA is intended to fulfil two purposes: to serve as a limited set of interconnectors in the four countries through which BRUA passes, and to enable production from
beat the offers made by First Bank or Patria Bank, another company
Romania’s offshore gas fields to reach both the domestic Romanian
in full ascension. The National Bank of Romania rejected, in 2018,
market and, in a limited fashion, export markets,” John M. Roberts
OTP Bank’s takeover of Banca Romaneasca, not allowing the EUR
wrote.
72 million offer to be finalised. First Bank, owned by the American
Other hopes are related to the revival of renewable energy
investment fund J.C. Flowers, which had been interested in Banca
sources, following years of investment freezes due to a cut in subsi-
Romaneasca, bought Piraeus Bank last year and Leumi Bank at the
dies. The total power of local wind turbines is 3,029 MW, but some
beginning of 2019. It has managed to reach a market share of about
experts say that doubling the production capacity of wind power
1.8 percent and it is still looking for investments. “It is very likely
could solve some of the problems Romania is now facing.
www.business-review.eu Business Review | October 2019
14 COVER STORY
Technology is Romania’s only chance to catch up with developed countries This month, Business Review will host the sixth edition of the Foreign Investors Summit, the largest annual event focusing on foreign investors in Romania. Ahead of the event, we spoke to Ionut Simion, the Country Managing Partner of PwC Romania, to answer some of the most pressing questions on this topic. By Catalin Alistari Last year, Poland became a member of the developed countries’ group, setting a precedent for Eastern European countries. Recent developments in the Romanian economy seem to have created a favourable climate for our country to follow in Poland’s footsteps. As former members of the communist bloc, Romania and Poland seemed to have started on an equal footing. How did Poland manage to gain such an advantage in its development?
insignificant in terms of GDP per
Let’s first note that on September
already made strong investments
26, FTSE Russell upgraded the
using EU funds. In terms of foreign
Romanian capital market from
direct investments, statistics show
frontier to emerging market status,
capita, five years later the others had slowly begun to outline a plan, set out objectives and targets, while we had nothing of the sort. This came to light when the first wave of Eastern European countries joined the EU, ahead of us, in 2004. Three years may not seem like much of a difference, but they were decisive. They didn’t know what to do with the EU money in the beginning either, but they caught up quickly. When Romania finally joined the bloc, Poland had
that Poland had attracted over EUR
which was a historical moment and excellent news for all investors
200 billion by the end of last year, while Romania had only attracted
in our country and particularly for AmCham members, who actively
EUR 81 billion. Indeed, Poland is a bigger country, almost double in
contributed to this achievement through their efforts to increase the
size. But they knew how to use the money, with good infrastructure
quality of infrastructure and the legislative framework. A functional
and development projects. They also had the necessary workforce,
capital market is critical in connecting a national economy to the
even though many people had left the country. But Poland was able
global economy in a fierce and increasingly complex global competi-
to bring people back, with good repatriation programmes, providing
tion for financing, and it was an ingredient that had been missing
support and jobs. This is another major difference. Poland invested
from Romania’s investment offer. It’s true that Poland has performed
in production units and created many jobs. As a regional hub, it can
better in the last 30 years, and one of the possible reasons is their
get finance, science and engineering professionals to come back and
better awareness of the challenges Eastern European countries faced
find good jobs. It also attracted many Ukrainians to cover its work-
after the fall of the iron curtain. But another big difference was the
force deficit. We weren’t even able to attract people from Moldova.
fact that Poland already had the Solidarity movement, which forced the entire nation to really think about alternatives to communism. Meanwhile, Romania was desperate to change the system, moved
Beyond the above-mentioned preconditions, what did Polish governments do differently from those in Romania?
very quickly and ended up in a vacuum, something that I don’t
Poland used fiscal policy as an extremely efficient tool, even though
think any other Eastern European country experienced. A shift in
it didn’t have a fiscal liberalization system. Perhaps Romania’s adop-
the economic paradigm was natural, but Romania suffered the most
tion of a flat income tax was the right decision to make at the time,
because nobody took responsibility. At one point, we carried out a
but this system has been so perverted that we no longer really have
comparative analysis which showed that Romania wasted an entire
a flat tax. We have a 10 percent income tax, a 5 percent dividend
decade between 1996 and 2006. Although in 1990 the difference
tax, a 16 percent profit tax, the 19 percent VAT, and others. Poland
between Romania and the other countries in the region was almost
applied a different system, so at the time of the 2008 crisis they had
www.business-review.eu Business Review | October 2019
COVER STORY 15
two stability pillars that allowed it to be the only European country
Romania has a huge workforce deficit - it needs about a million
to not experience a recession. First, they had the 2012 European
more people in order to sustain an economic growth of 3-3.5 percent
Football Championship project, on which they followed through -
for the next 5 to 7 years. But there are no plans to increase birth
they invested in infrastructure, borrowed money and kept everyone
rates, no projects to bring back those who have left. For example,
employed. They boosted revenues for all the companies involved,
our education system has no strategy, we’ve had multiple reforms,
which had positive effects on the entire economy. At the same time,
and nobody understands it anymore. This is where we can point to
they had enough fiscal space to cut taxes, which was impossible in
another difference between us and countries in the region – a lack of
Romania due to the already reduced 16 percent flat tax.
continuity in governing that is specific to Romania. Since 2012, we’ve
We also have an issue with VAT collection. We’ve only just reduced the collection gap from 44 to 36 percent in the last five years.
had 11 different prime ministers and 12 finance ministers. What kind of vision or national project can you expect from such a country?
Poland’s VAT gap has shrunk from 28 to 14 percent only in two years through a massive fiscal reform. The VAT collection gap is Romania’s biggest problem. While the growth engine represented by the state’s
A developed economy is one that innovates. In your opinion, does the Romanian economy have this capacity?
capital investments is missing altogether, the other engine, namely
I’ll provide a multifaceted response, and I’ll start with the empiri-
the state’s ability to collect taxes, which would allow it to create
cal aspect. The main innovator, empirically, is an individual who
fiscal space and boost development, was
has an idea and decides to act on it – the
killed off at the exact moment when it was
entrepreneur. While we haven’t really had
about to become productive.
an entrepreneur class in Romania so far,
Romania contracted a loan from the
I’ve been talking to more and more young
World Bank to implement a modern IT
people who are thinking of doing some-
system for the ANAF. Poland also borrowed
thing, opening a business, exploring an
EUR 80 million, but from the EU. We know
idea, even though they may not yet have a
the case very well because PwC acted as a
business plan. I like to think that the new
project manager and did what the Pol-
generation of entrepreneurs will come up
ish state would have done – acquired the
with new ideas and solutions.
technological solutions, created a friendly
Then there’s the establishment side
interface, took into account the needs and
– things we’ve invested in as a country.
requirements of the beneficiary, and deliv-
We’ve had tax exemptions for IT workers
ered a modern tax collection system. The 10
for over a decade now. People have been
percent VAT gap is essentially tax evasion,
talking about eliminating these facilities
not what we call “non-compliance”. To make you aware of the size of the problem, a 5 percent im-
and I don’t think that would be good for the Romanian economy. We may talk about introducing such facilities
provement in revenues to the state budget as a percentage of GDP
in other sectors, but the main reason for these facilities in the IT&C
means EUR 10 billion – the equivalent of Romania’s annual public
sector is that can generate added value quickly. This industry, which
investment budget. But lately this money hasn’t been spent, either
was insignificant a few years ago, is now generating 6 percent of
because it didn’t exist due to the failed tax collection or because it
GDP and that number may go up to 12 percent in less than 5 years.
was used to sustain other public spending. We understand the need
It would be a mistake to remove these fiscal incentives because the
to adjust salaries, to increase pensions, but instead of buying the
IT industry is still growing strongly in Romania and we must keep
fish, we should’ve learned how to use a fishing rod. The biggest harm
these professionals in the country. The future is about technology
done by the absence of public investments is the failure to engage
and this is Romania’s only chance to quickly catch up with devel-
the most important economic sector, namely Romanian companies,
oped countries. I greatly trust Romanians’ ability to innovate and
local SMEs. The lack of public investments meant that local busi-
do brilliant research. This is the third pillar: fiscal incentives for
nesses were no longer able to create jobs, forcing people to look for
research. I’ve had many discussions with tax authorities on this sub-
work abroad.
ject. In my opinion, any help provided to those who include at least a small R&D component in their products or services is essential.
We’re touching upon another one of Romania’s major problems. Could the workforce deficit be an obstacle in our country’s development?
We must restore the R&D know-how, and Romanian entrepreneurs
Definitely. Using the reasoning above, Romanian workers in many
this field, but it’s not functional. We haven’t managed to create an
sectors have had to go abroad to find jobs. Most of them initially left
effective system of incentives. “Made in Romania” has had some
for a short period of 3-6 months, but many still haven’t returned,
success but it’s still far from what’s happening in Poland, Hungary or
and those who leave for more than three years tend to never return
the Czech Republic. We should invest more in national pride and put
because they’re highly adaptable and quick to integrate. As a result,
more trust in Romanians who are building something.
will inevitably learn how to go from idea to prototype and then to a final product. At this moment, there is a fiscal credit measure for
www.business-review.eu Business Review | October 2019
16 COVER STORY
EIB Group to remain Romania’s predominant financing partner The European Investment Bank Group has been present in Romania since the early 1990s, backing investment projects in both the public and private sectors. BR spoke to Lara Tassan Zanin, the Head of EIB Group’s Bucharest Representation, about the EU Bank’s operations in Romania and how it can help the country turn investments into the main driver of its economic growth. By Anca Alexe What are the EIB Group’s main activities in Romania and how have they evolved over the years?
EIB resources, and advising. The
In Romania and other EU coun-
manufacturing. In the lending
tries, the EIB supports investment
area, we are actively cooperating
projects that reduce disparities in
with the government and other
regional development, strengthen
public authorities, banks and cor-
economic competitiveness and
porates. We are looking to further
improve living standards. In
develop our operations: in the
2014–2018, the Bank provided EUR
public sector we’ll focus on priority
4.1 billion to projects in Romania.
infrastructure through co-financ-
EIB’s lending commitment in
ing with EU grants, particularly in
Romania since the start of opera-
transport, agriculture, health, and
tions here amounts to EUR 14.6
education. Our priorities include
billion. The EU Bank will remain
supporting projects benefitting
Romania’s predominant, reliable
from guarantees provided by the
financing partner. The EIB also provides technical assistance, with some 40 experts
Bank is present in all major sectors of the Romanian economy: transport, energy, environment, SMEs,
European Fund for Strategic Investments (EFSI) which forms part of the Investment Plan for Europe
located in Bucharest, the group’s largest office, to support Romanian
(Juncker Plan) in energy, innovative and resource-efficient manu-
authorities in preparing and implementing projects in view of speed-
facturing, innovation, municipal infrastructure and telecommunica-
ing up the absorption of EU funds, reforming public procurement
tions. Our main EFSI counterparts are corporates, municipalities and
in order to create value for taxpayers through savings in centralized
utilities. As examples, we can mention the BRUA gas pipeline project
purchases. The impact of these projects should ultimately be felt
promoted by Transgaz and the Arcelik innovative production plant
across Romania through improved water supply, better transport
opened recently in South-Muntenia. In cooperation with banks, we
linkages, modern rolling stock, and greater resilience to natural
will continue supporting SMEs and mid-caps. The minimum loan
disasters. The European Investment Fund is part of the EIB Group.
amount for direct financing is EUR 12.5 million and we finance up to
Its central mission is to support micro, small and medium-sized
50 percent. Smaller amounts, including finance to SMEs and mid-
businesses by helping them access finance. The EIF designs and
caps, is intermediated by commercial banks.
develops venture and growth capital and guarantees microfinance instruments targeting this segment. In this role, the EIF fosters EU entrepreneurship, growth, and employment. In 2018 alone, the EIB
Why do Romanian companies still have a hard time securing investments and what role does the EIB Group play in improving this situation?
Group delivered EUR 1.3 billion to Romania and the support in 2019
Indeed, Romania has one of the lowest shares of firms investing in
is expected to be of a similar magnitude.
the EU, despite the strong growth in recent years and the persistent
objectives in support of innovation, research and development,
need to upgrade the capital stock. There are a number of obstacles
Which sectors is the EIB Group primarily interested in financing in Romania?
which hamper corporate investment and increase investment gaps,
The EIB model will continue to focus on lending, blending EU and
skills. A weak balance sheet structure (high leverage, low equity
including high uncertainty, regulation and a limited availability of
www.business-review.eu Business Review | October 2019
COVER STORY 17
base) is also a factor that limits access to bank credit for many firms
market aware of these challenges. The limited availability of skilled
and makes investments more difficult.
and unskilled workers is hampering investments. Romania cannot
However, some of the firms struggling to access finance are in-
afford to leave women out of the market.
novative and growing strongly. Here, the EIB Group supports Private Equity funds to invest in startups and tech growth companies. The EIB Group provides commercial banks in Romania with a package of
What is the mechanism through which Romanian farmers and agriculture-related businesses can access EIB funds?
guarantee portfolio instruments and competitive loans to reduce col-
An EIB loan of EUR 450 million to finance Romania’s contribution to
lateral requirements and interest rates to make finance more acces-
the implementation of the Rural Development Programme together
sible. On the limited availability of skills, the EIB supports Romanian
with grants from the European Agricultural Fund for Rural Develop-
universities to refurbish or build new labs, research facilities, better
ment in 2014-2020. The loan co-finances rural development projects
campuses and implement digitalization.
supported by EU funds totalling EUR 5.4 billion across Romania, as well as the modernisation of 3,000 farms, and co-finances 400 proj-
What is the SME initiative and what types of companies does it target? Are startups also included in the initiative?
ects for the processing and marketing of agricultural products and
The SME Initiative in Romania, a joint initiative of the EIB Group and
product is available in five commercial banks that will support farm-
the European Commission, has significantly contributed to sus-
ers to fill in the application forms for their projects and get approval
tainable growth and employment by facilitating credit at attractive
for the corresponding co-financing in a loan at very attractive terms,
terms. The initiative is deployed in collaboration with Romanian
thanks to the package the EIB Group provides to banks.
750 schemes to improve services for the rural population. The EIB
authorities responsible for EU structural funds. After a first successful tranche of EUR 100 million, a EUR 150 million top-up
What are EIB Group’s plans in Romania for the coming years?
has just been agreed and will bring the
We are aware that Romania’s economic
overall funding to support Romanian SMEs
growth is funded by private consumption
to EUR 1.4 billion.
that benefits from the reduction of taxes. We hope and expect the main economic drivers in the future to be investments – a
How does the Group promote gender equality in Romania’s business community?
more sustainable way to ensure robust growth – together with sensible economic decisions and structural reforms. This
The EIB lent EUR 22.3 million to Garanti Bank Romania in 2018 – under the EFSI guarantee – to support
could make Romania more attractive to foreign direct investments.
businesses in Romania. EUR 5 million of the loan amount is de-
The EIB Group will continue to support growth and human capital
voted to female entrepreneurs, matched by another EUR 5 million
investments in Romania. In the future we will be focusing on: the
from Garanti. This innovative loan will give female entrepreneurs
public sector, with direct and EU funds co-financing public infra-
representing SMEs and mid-caps access to more favourable financ-
structure, energy efficiency, education, urban infrastructure, health;
ing. To access these loans, companies have to be more than 50
the banking sector, with RON denominated lending, EFSI-backed
percent owned by one or more women or have 26 to 50 percent of
funding, supporting innovation and employment for SMEs and
shares be owned by one or more women, with a woman acting as
mid-caps, and further developing the SME Initiative; the corporate
the chief executive, operating or financial officer. On October 16, an
sector, with continued efforts to deploy the EFSI supporting innova-
ad-hoc workshop is organized by the EIB with PE funds, business
tion and climate change and project finance in sectors like health,
angels, and successful female entrepreneurs to discuss challenges
transport, and energy.
faced by women in accessing finance in Romania. Discussion is
Through our JASPERS and PASSA experts, we will continue deliv-
around barriers faced by female entrepreneurs and what can be done
ering Advisory Services to support the preparation and implementa-
to overcome them. On the one hand, there are several day-to-day
tion of major infrastructure projects, capacity building (solid waste
obstacles adding to women’s difficulties in setting up and growing a
sector, public procurement), and the development of public invest-
business. The average woman entrepreneur is married, has children
ment and governance institutions (PPP, National Promotional Bank).
and is more likely than men to have family obligations, so she often
employment for SMEs and mid-caps, and further developing the
faces time and mobility constraints. To ease them, more structural
SME Initiative; the corporate sector, with continued efforts to deploy
improvements are needed, such as improving the availability and
the EFSI supporting innovation and climate change and project
affordability of childcare, connectivity, etc. On the other hand, part
finance in sectors like health, transport, and energy.
of gender inequalities in entrepreneurship pertain to access to credit,
We will continue delivering Advisory Services to support the
finance and capital. The EIB will try to promote among commercial
implementation of major infrastructure projects, capacity building
banks similar credit lines to the one implemented with Garanti and
(waste, public procurement), and the development of public invest-
facilitate the networking of relevant stakeholders to make the local
ment and governance institutions (PPP, National Promotional Bank).
www.business-review.eu Business Review | October 2019
18 INTERVIEW
Technology builds proactive long-term strategies for companies Florin Popa, Business to Business Director at Orange Romania, talked to Business Review about the main digital trends seen on both the international and local scenes and how the company meets the changing needs of businesses, individual customers and local communities.
consumer behaviour, sometimes at a rapid
By Anda Sebesi
new normal, as the number of internet users
pace. This brings both challenges and opportunities for business.
Which of these trends can be noticed in Romania now? I believe all of them can. Connectivity is the has more than doubled over the last decade, giving way to a more connected society. It is estimated that 3/4 of the global population will have internet access by 2030. Romania is no exception, as each year we see an exponential growth of mobile data consumption. For example, in the second quarter of 2019, Orange Romania registered 40 percent more data traffic comparing to the same period of 2018. The use of applications, websites and smart devices has considerably increased, therefore the amount of data generated has grown exponentially. We have the know-how and resources to help companies get to know their customers better and to grow their business, while optimizing the resources they invest. Data can determine the success of a company on a competitive market.That is why we offer our clients new ways to better use their data, both
What are the main digital trends on the international market?
We call it the “Internet of Enterprises” era,
by consultancy, as well as in the design and
a third phase that follows the first internet
management phase of the systems they need
First of all, probably one of the most promi-
revolution we witnessed in 1985 and the era
for this purpose.
nent trends in the consumer and business
of mobile and social media, which emerged
environments is hyperconnectivity. Two-
around 2000.
thirds of the world’s households own a smart-
The Internet of Enterprises is about the use
We are the travel partner of our clients in what we call “Data Journey”. On this journey, we can accompany our customers to collect,
phone and ubiquitous connectivity is giving
of data to fuel faster and better educated busi-
transport, secure, store & process, analyse
individuals access to more information than
ness decisions based on customer insights
their data and then make the right business
ever before. Also, it is almost impossible to
and instant access to transactions, also help-
decisions at the end of this cycle.
imagine a business that is not connected with
ing to shape new business models.
its customers, suppliers or employees almost
More obvious lately is also the people’s
Integrated services that bring simplicity to end users’ lives was another global trend re-
100 percent of the time. From consumers to
quest for simplicity. Customers want one
flected on the Romanian market. That is why,
governments, communication and interac-
point of contact for as many of the services
in 2016, we decided to provide a complete
tions are constantly evolving, shaping percep-
they use as possible. Convergence delivers
fixed-mobile consumer offer, made steps
tions, priorities and attitudes.
this factor.
into the financial services field by launching
In today’s connected society, data is a
Importantly, the competition for resources
highly valuable asset. Moreover, it is said to
and increasing awareness of environmental
be the new currency of the digital economy.
challenges have a transformational effect on
Orange Money and set convergence as one of our strategic priorities. Just as all over the world, the rapid urban
www.business-review.eu October Business Review | May 20162019
development and the migration of popula-
COVER INTERVIEW STORY 19 14
sought after, alongside data centre hosting or
tal issues Romania must tackle, such as air
the new context. In light of this, what are the main solutions that companies look for when it comes to technology?
pollution, traffic and waste management.
In today’s competitive landscape, companies
technologies in the area of unified communi-
The substantial challenges they pose demand
need partners that bring industry knowledge
cations and solutions designed for customer
different perspectives that also bring op-
and data-driven customer insights to foster
interaction and engagement. In this respect,
portunities. Such opportunities are smart city
co-innovation.
Orange Business Services is a reference
tion to large cities has created environmen-
projects, which use technology in order to
At Orange, our products are designed to
address issues like deficient consumption of
allow companies to be up to date with the lat-
electricity or water.
est technologies, but also to build a long-term
In the last years, numerous smart city projects have been deployed in several Romanian cities, of which I would particularly mention
strategy that is proactive rather than reactive. More precisely, together with customers, startups and technology partners, we create
cloud migration and smart Wi-Fi solutions. At the same time, there is high demand for new
provider for contact centre and call centre solutions.
How has Orange adapted to the changing needs of the local business community? On the local market, Orange already has over
Alba Iulia Smart
products
two decades of experience as a digital trans-
City 2018, an
that address
formation partner for companies.
initiative Orange
users’ spe-
For our business customers and the public
adhered to in
cific needs.
sector, we have developed over the past years
2016 and deliv-
Orange Fab,
products and services to help organizations’
ered the first
a startup
digital transformation in order to help them
integrated smart
accelerator
become more efficient, agile and productive.
city project in
developed
But optimization is no longer the only key to
the country.
by Orange,
success, as digital technologies and the use
Two years later, we finalised the implementa-
is a programme based on the concept of co-
of data can play a significant role in business
tion, with more than 600 operational sensors
creation. We support young entrepreneurs
development, creating new customer interac-
all around the city, connected through mo-
with mentoring, technology and access to
tions, sales contexts and personalized offers.
bile, fixed and IoT dedicated networks. The
clients, as well as B2B clients, through in-
data collected is available to local authorities
novative solutions that transform the way
secured ecosystem of technologies, solu-
and their business partners for better manage-
they work. So far, our overall investments in
tions and partners able to assist our business
ment of city resources or for the improvement
startups has reached EUR 700,000.
customers to better monetize the data they
of their citizens’ quality of life.
As mentioned earlier, our business cus-
This is why we’ve unified an end-to-end
generate every day. Moreover, starting July,
tomers are becoming more aware about the
we’ve combined our experience in the Roma-
How do these trends change businesses and consumers?
risks associated with the business digitali-
nian business environment with international
zation process and therefore are willing to
expertise in business solutions integration, as
Technology plays a crucial role in the custom-
invest in solutions that protect their busi-
our dedicated business division became the
ers’ decision-making and also in the ability
ness against these
local representative
of businesses to meet the needs of today’s
risks. For example,
of Orange Business
consumers. Local companies are facing pres-
our cyber security
Services (OBS).
sures to digitize their customer journeys and
solution, Business
adopt flexible IT infrastructures, able to cope
Internet Security, is
with Orange Busi-
with fast changes.
a highly appreciated
ness Services , an
tool as it can detect
international organ-
inside companies. Employees, customers,
and prevent complex
isation within
suppliers and business partners are teaming
threats in real time.
up across the city, the country or the world,
We’re seeing a
The way people interact has also changed
The association
the Orange Group that is specialized in
whenever necessary, from any device. This is
higher demand for security solutions, both in
business transformation solutions based on
why at Orange, we provide tools to facilitate
the central area of IT architecture as well as in
IT&C, will enable large companies, SMEs and
better collaboration and take advantage of
the mobility area. In the first half of 2019 we
public authorities to transform their organ-
digital transformation. Once accustomed with
saw a 50 percent increase in revenues gener-
isations through the use of technology and
new technologies, you can more efficiently
ated by this type of services compared to the
digital information. OBS is known as a global
manage your resources – time, budgets – or
same period of last year.
infrastructure operator, technology integrator
find easier ways to source them.
Technology forces companies to adapt to
Whether we’re talking about securing
and value added service provider force, with
mobile terminals or securing fixed networks,
over 25,000 specialists in IT&C operating in
these security solutions are increasingly
220 countries and territories.
www.business-review.eu Business Review | October 2019
20 INTERVIEW
These enlarged capabilities provide our
We’ve also added to our national portfolio
market for over 20 years and in this timespan,
clients with access to best-in-class solutions
some of the technologies developed interna-
we’ve seen a total reshape both in terms of
developed in no less than 18 global research &
tionally by Orange Business Services, which
technological advancement and the way the
development OBS centres. Public authorities,
are currently being implemented for clients in
society uses it.
large companies and SMEs will benefit from
banking, retail or agribusiness.
innovations in areas such as smart networks,
For example, the smart networking solu-
On the local market, one of the hot topics is the deployment of 5G, a technology that
Internet of Things (IoT), cloud computing, cy-
tion SD-WAN, the latest development in the
promises to create the premises of a fully
ber security, data analytics, machine learning
move towards the latest development in
mobile society. A 5G network can simultane-
and artificial intelligence (AI).
the move towards software defined ser-
ously support applications such as 4K video,
vices in networking. For a CEO who needs
AR/ VR, self-driving, applications that require
How has Orange invested in technologies so far? Do you have any novelties?
an infrastructure able to cope with rapid
increased operational efficiency. For example,
market changes, mergers and expansions,
low energy consumption and a dynamic allo-
Investments in network infrastructure are a
or the implementation of new processes and
cation of resources. Switching to 5G will allow
prerequisite for service quality and customer
customer interaction tools, it is a platform for
simultaneous connection for a large number
trust. At the same time, they represent the
business transformation.
of devices (sensors, connected objects, in-
foundation for technology developments. We
Another example is Flexible Engine, which
dustrial robots), unlimited access to different
see that the network reliability is one of the
is a cloud computing platform as a service
wireless technologies and a very low latency.
main satisfaction drivers for almost half of our
that uses machine learning algorithms to al-
We are speaking of unseen technical capabili-
clients.
low for big data and
ties, a huge potential
predictive analysis.
for high-perfor-
3.5 billion invested by Orange over the past
The business ap-
mance technological
22 years went into networks and allowed us
plications of such
solutions such as
to sustainably create the best national mobile
predictions are vir-
connected autono-
telecommunication infrastructure.
tually limitless, from
mous machines,
That’s why a significant part of the EUR
the anticipation of
eHealth, cloud VR or
enabling work, access to information or
customer behav-
AI support.
entertainment, but they also lead to industry
iours in marketing
changing services like real-time monitoring,
campaigns to pro-
that, in coming
instant mobile banking transactions or con-
cess optimizations
years, the telecom
nected cities. This brings a long-term benefit
in manufacturing or
industry will be
for both the final customer and to the country
crop harvesting time optimization in modern
redefined by the accelerated adoption of
as a whole, by creating an environment that
agriculture.
Cloud, Big Data analytics or IoT solutions. As
The connected objects are not only
is favourable to investments, a climate which stimulates value creation and stability.
Last but not least, starting this year we’re
Forecasts say
part of our IoT ecosystem, in November 2018
offering Flux Vision. It is a data analysis plat-
we launched nationally the Orange LTE-M
form that provides information on the mobil-
(Long Term Evolution for Machines) network,
tion are key. In our journey on the Romanian
ity of different population segments in order
dedicated to connecting low power devices.
market, we at Orange have brought new
to optimize communication with customers
technologies and new capabilities year after
and create dedicated geo-marketing analyses
brings a great potential for the develop-
year, and we are proud to be recognized as an
or campaigns.
ment of all other industries, from energy to
For this, customer experience and innova-
innovator within Orange Group as well.
The digital revolution requires cohesive
The telecommunications infrastructure
services, thanks to the countrywide span and
solutions with a high degree of service
speeds that place Romania among the top
prove the technological feasibility of 5G in
personalisation. This is why we’ve partnered
countries with the best internet connections
Romania. Following the first real life 5G test
with international and local innovators who
in the world. There is still room for improve-
in Europe, which we ran last year in Florești,
share our vision - device manufacturers,
ment in terms of digitalization. More than
Cluj County, this year we enabled live trans-
platforms, integrators, and technology pro-
one fifth of Romanians have never used the
missions from the main stage of the largest
viders. We also help startups to gain traction
internet and when it comes to digital public
music festival in Romania, using the same 5G
and become commercially viable through
services, Romania has the lowest perfor-
technology, which will become part of our
incubation and acceleration programs such as
mance among the EU member states. In order
day-to-day lives.
Innovation Labs and Orange Fab.
to unleash the potential, the further evolution
We’ve continued the effort to test and
of the industry is closely related to invest-
New in our technological portfolio is also
ments. Romania has to keep up with the Eu-
through the use of connected devices and
What should we expect in terms of innovation in technology on the Romanian market?
process automation.
Orange has been operating on the Romanian
automatization in each and every industry.
Live Objects, a platform dedicated to IoT projects which allows for new business models
ropean market, which is currently investing in implementing new technologies that allow
www.business-review.eu Business Review | October May 20162019
COVER INTERVIEW STORY 21 14
The real estate investment market is on an upward trend in Romania Gijs Klomp, head of INVESTMENT PROPERTIES at CBRE Romania, tells Business Review about the current status of the Romanian real estate investment market and its perspectives, and highlights the sectors expected to be the most dynamic in terms of transactions in the upcoming period. By Anda Sebesi
ABOUT Gijs Klomp head of investment properties, CBRE Romania With over 17 years of experience in real estate, Gijs was involved in investment transactions worth over EUR 2.00 billion. He set up the ING Real Estate Investment Management business in Romania, worked for consultancy companies JLL and CBRE and in 2016, he joined NEPI, the largest retail property landlord in Romania. Currently, he is Head of Investment Properties at CBRE Romania.
majority of the office deals were concluded in Bucharest, the largest single transaction signed nationwide amounted to about 80 percent of the total office volume. Hence, Dedeman’s acquisition of the project named The Office and located in Cluj from NEPI Rockcastle and businessman Ovidiu Sandor at an estimated value of EUR 129 million was the highlight of the transactional activity during the first semester of the year. Cluj is one of the most dynamic regional cities. Another office
How is the Romanian real estate investment market looking right now and how is it different from the CEE one?
transactional volume up to 15 percent higher
project, Liberty Technology Park, was sold
than the one recorded in 2018, surpassing the
in the second part of the year to White Star
EUR 1 billion threshold. A similar value has
Real Estate in partnership with a top private
The Romanian real estate investment market
not been reached since 2014. Prime yields
American University by Fribourg Develop-
is improving in terms of liquidity on the back
are expected to suffer a mild compression
ment, the real estate division of Fribourg
of more supply attracting a greater diversity
towards the year’s end, especially for prime
Capital. Regional cities are also gaining more
of buyers. Investment volumes are expected
office properties, given the quality of the
ground in the CEE markets, as we have seen
to top those seen in 2018. The main differenc-
projects that are in advanced stages of ne-
more deals in regional cities in these markets
es between CEE and Romania remain pricing
gotiation. This is especially true considering
than in previous years, reflecting the maturity
(Romania has not had the significant yield
the mandates on the market for the sale of a
of secondary Romanian, Czech and Polish
compression seen in more established CEE
number of quality office portfolios that gather
cities.
markets) and the buyer’s universe (Romania
class A projects with low vacancy rates and
lacks the international core investors as well
blue-chip tenants located in Bucharest’s office
as the domestic institutional capital that has
market hotspots.
been the driver of other markets).
What are your plans as the Head of INVESTMENT PROPERTIES at CBRE Romania? My plan is to offer high quality services to
Which sectors of the Romanian real estate market are expected to be the most dynamic in terms of transactions?
our clients leveraging on the unique combi-
In your opinion, what are the market’s perspectives? The perspectives are encouraging as the avail-
With almost half of the total investment
property management and valuation business
ability of institutional supply is up, which in
volume, the office sector hasn’t given up
lines), our EMEA INVESTMENT PROPERTIES
combination with the very attractive yield
the leading position it also held in H1 2018.
network which gives us great insight into
spread attracts new capital. In the second
The retail segment claimed 33 percent of the
international investors’ needs, and my experi-
half of 2019, we expect to witness the signing
total, while the industrial and hotel sectors
ence both as an investment agent as well as an
of several large deals which at are currently
attracted a combined share of 19 percent. But
investor, allowing me to understand inves-
under final settlements. Taking the above
this transaction split can also be seen in the
tors’ needs and help build bridges between
into account, we estimate for the entire 2019 a
CEE markets. Even though the overwhelming
buyers and sellers.
nation of CBRE’s deep insight into the local real estate market (thanks to our leasing,
www.business-review.eu Business Review | October 2019
22 STARTUPS
Bucharest discovering its potential as a startup hub With a population close to 2.5 million and an infrastructure for startups that is under development, Bucharest has the potential to become a regional hub for entrepreneurs on the long term. The challenge is significant as the city will have to support the growth of the startup ecosystem that comprises everything from private equity funds to startup accelerators, networks of business angels and co-working spaces. By Ovidiu Posirca of things in order to become relevant and appealing to startups; to become a destination of choice, a hub. First of all, a favorable legal framework. Secondly, an attractive tax regime. Then, affordable and qualified labor, which is usually provided by educational institutions, universities, and technical schools. Then, capital should be available, even abundant. Not lastly, a community as large as possible and geographical density,” Cristian Munteanu, managing partner at Early Game Ventures, told BR. Munteanu says that Bucharest has the “critical mass” to become a startup hub, meaning that the city is big enough. “Several technical schools and universities create a qualified labor market, even though the price of this labor is going up fast. The IT infrastructure is okay – meaning that the internet penetration and speeds are high. Otherwise, Bucharest does not offer even the basic APIs needed to build applications – no real-time traffic data, real estate data, environment data, no data at all,” he adds. But Universities provide quality labor for startups
B
boasting some of the fastest broadband
in a study of the city’s attractive-
speeds in the world. Telecom companies
ness to people born over 1997-2012,
have already tested 5G, the new wireless
namely Generation Z. These are the people
technology that could be launched commer-
that might consider starting a business in
cially next year, in the city. The greater trans-
the coming period. The ranking published
fer speeds provided by 5G could unlock a
by Nestpick places London top, followed by
new wave of startup innovation, which could
Stockholm and Berlin.
also support the growth of the local entrepre-
was obtained for connectivity, with the city
the best city in Romania for entrepreneurs to build startups.
ucharest ranks 86th out of 110 cities
Bucharest’s best score of close to 84 points
his conclusion is that Bucharest is currently
neurial ecosystem, say commentators. “Any city must be able to offer a series
50,000
sqm
the co-working spaces projected to become operational in Bucharest by end-2019
www.business-review.eu Business Review | October 2019
24 STARTUPS
Meanwhile, the municipality made an attempt to fund some 200 startups in a program called Bucharest Start-up City. Each of the eligible companies would have received a grant of up to EUR 50,000. However, the implementation of the program was delayed as the City Hall realized this spring that it was running out of money. By summer, the municipality was running a deficit of more than EUR 210 million and started to cut spending. The initiative designed to help entrepreneurs was axed late in spring. The capital could increase its appeal to
BUCHAREST’S APPEAL TO GENERATION Z INDEX 2019 Factor Score (of 100 points) Government digitalization 59.24 Connectivity/5G 83.35 Digital payment & banking
20.32
Digitalized mobility/Sharing economy
32.79
Education 3.60 Entrepreneurial spirit & innovation
30.55
Co-working spaces 33.61 AI Industry 23.84 Source: Nestpick.com
startup founders by further growing and engaging with the local global tech communi-
ables producer Fitbit opened in Bucharest
stock in the city stood at only 1.7 percent at
ties, building a stronger academic institution
its largest research & development facility in
the end of 2018, according to data from Col-
presence in the ecosystem and increasing the
Europe. These are some of the entrepreneur-
liers International Romania.
qualifications of the existing local technical
ial companies that either have their roots in
talent pool, suggested Florin Vasilica, trans-
Bucharest or have developed their opera-
key role in the entrepreneurial ecosystem as
action advisory services leader at profes-
tions in the capital at a later stage.
they host the startups and welcome funds
sional services firm EY Romania. “The good side of an early-stage ecosys-
“Bucharest scores a good position among EU capitals when talking about the huge
Nonetheless, co-working players play a
and other stakeholders that can engage with entrepreneurs.
tem are the development opportunities.
potential cost benefits by placing offices in
There is still a huge gap to recover, but the
locations outside the primary hub. Due its
have gained international experience and
ecosystem is narrowing year by year with
share of the population, the concentration of
could give it back through bigger, more com-
more startups and financing rounds on the
the talent pool in Bucharest is also expected
plex acceleration programs. We have some
local market,” Vasilica told BR.
to be one of the largest in CEE cities,” says
really good initiatives that support entrepre-
the EY Romania representative.
neurs that could be opened to international participants, attracting them to discover the
SUCCESS STORIES FROM BUCHAREST Already, there are some success stories of companies founded in Bucharest that made it big. UiPath, the robotic process automation (RPA) startup, was founded in 2005 “in a tiny apartment” in Bucharest
“There are many players in Romania that
MORE FLEXIBLE SPACES FOR ENTREPRENEURS
market and the innovation potential,” Oana
The range of offices offering flexible
Bucharest, the co-working operator, told BR
leasing terms has also grown significantly in the past few years, with new co-working
Craioveanu, co-founder & CEO of Impact Hub She added, “On the other hand, I really think we should offer more recognition to Romanian founders that start their business
operators launching in the
here and grow them internationally. They
city. WeWork, one of the
are the living proof that there are quality
In 2012, the company
pioneers of the co-work-
resources here that others could use as well.”
pivoted to RPA and
ing industry, also plans
Speaking about the development of the
landed its first seed round
to open a location in the
local entrepreneurial sector, Craioveanu sug-
as DeskOver, says the company on its website.
in 2015. By 2019, it had reached a valuation of USD 7 billion after raising more than
capital. By providing office space that can be leased for various periods ranging from
gested that the city should see more investments in public-private partnerships. Nonetheless, the CEO of Impact Hub Bu-
one hour to one year, these nimble
charest says that the capital is already build-
funds. The company has developed a large
players have built their own communities
ing its profile as an attractive destination for
R&D center in the Romanian capital.
of subscribers that include entrepreneurs,
startups and investors.
USD 1 billion from various investment
E-commerce group eMAG also has its HQ in Bucharest and its main warehouses near
freelancers and remote workers. The market for co-working spaces in
“There are more and more opportunities for both early-stage entrepreneurs and also
the city. Naspers bought a controlling stake
Bucharest will reach a total surface of 50,000
scaling ones, ranging from opportunities to
in the company in 2012, since when eMAG
sqm this year, according to real estate consul-
get funding, know-how, visibility, validation
has expanded regionally. Its revenues topped
tancies. Some of the largest office developers
and feedback, and that has definitely boosted
EUR 1 billion in 2018.
in the city have hurried to sign lease deals
the image of the Bucharest ecosystem as a
with co-working operators. However, the
cradle for innovative entrepreneurs,” she
share of co-working spaces in the total office
concluded.
After taking over Romanian smartwatch market Vector Watch, American fitness wear-
www.business-review.eu Business Review | October 2019
26 ENTREPRENEURSHIP
5G deployment set to unleash new wave of startup innovation With Romania set to announce the winners of the tender for 5G spectrum by year-end, the local startup community could harness the potential of the new generation of wireless technology, which will impact a wide array of industries, ranging from transportation to healthcare and manufacturing. By Ovidiu Posirca
5G will have a horizontal impact and, ideally, should open a world of possibilities for startups
T
he biggest telecom players in Roma-
“The winning operators might be able
one point to another, will be less than one
nia have already carried out limited
to use part of the spectrum of frequencies
millisecond. This will make it possible, for
tests on 5G, while globally the main
starting January 1 2020,� said Bogdan Iana,
instance, for cars to communicate between
ANCOM vice-president, in a press release.
themselves in traffic or for a surgeon to
smartphone makers are starting to launch products that can use the new network standard.
In short, the deployment of 5G networks will lead to a massive increase in data trans-
remotely conduct a procedure as if he or she were alongside the patient.
Locally, the telecom regulator ANCOM
fer speeds. The current 4G technology has a
aims to complete the tender for 5G by Octo-
transfer speed of 1,000 Megabits per second
ber 31 for spectrum in the frequency bands of
(Gbps), while the theoretical speed with 5G
OPENING FRESH POSSIBILITIES FOR STARTUPS
700 MHz, 800 MHz, 1,500 MHz, 2,600 MHz
could reach 10 Gbps. The latency rate, which
This upgrade will fuel the development of
and 3,400-3,800 MHz.
is the time it takes to send information from
the Internet of Things (IoT) ecosystem, which
www.business-review.eu Business Review | October May 20162019
ENTREPRENEURSHIP COVER STORY 14 27
could connect anything from home sensors
need housing, jobs, services and infrastruc-
and ZTE, Swedish Nokia and Ericsson and
to self-driving cars and energy infrastructure.
ture for their burgeoning and aging lives.
South-Korean Samsung Electronics.
Telecom gear maker Ericsson estimates that
5G will provide the connectivity that will
Everything from the way in which we
some 4.1 billion IoT cellular connections will
transform the lives of new city-dwellers,”
travel in the city to how we shop and learn
use 5G worldwide by 2024, according to CB
Florin Vasilica, transaction advisory services
could be transformed by the new wireless
Insights. The fast development of the
leader at professional services firm EY Romania, told BR.
technology. In the manufacturing sector, we might see
network will also generate
He sees opportunities
the development of smart factories that could
demand for new prod-
for local entrepreneurs
integrate augmented reality, IoT, automation
ucts and services that could be launched
and startups in smart
and artificial intelligence. The new technol-
city projects with a
ogy could support AR systems for training,
by startups. The
focus on the health,
construction and repairs, according to CB
deployment of 4G
transportation and
Insights.
technology allowed
smart buildings
for the massive
components. The EY
growth of startups
Romania representa-
that disrupted various
tive suggested that
industries, ranging from
home automation and
ride-sharing app Uber to social media platform Instagram and movie-streaming giant Netflix. “Like any technology that innovates at
IoT connected devices are another market segment that could get an entrepreneurial boost
In the energy sector, the development of 5G could support the expansion of smart grids that in turn could increase energy management efficiency, thus cutting overall energy costs. The retail segment could see VR dressing rooms and AR experiences in stores or at home, say CB Insights analysts. Spending on VR/AR apps for retail showcasing could reach
going forward. “New business models will arise as part of
some USD 59 billion by the end of next year.
the level of infrastructure, 5G will have a
increased connectivity, creating an innova-
For financial players, the new wireless
horizontal impact and, ideally, should open
tion playground for local entrepreneurs and
technology could help consumers carry out
a world of possibilities for startups. Many
startup,” suggested Vasilica.
transactions instantly on their devices.
industries will be exposed to disruption,
Furthermore, 5G might also provide a
The power of 5G will also be visible in
and new business models will become pos-
shot in the arm to the virtual-reality (VR)
the media and entertainment industry. On
sible. What comes first to mind is video live
sector, which has developed at a slower pace
the upgraded network, movie downloads
streaming. Then data-intensive IoT, V2X
than the predictions of market analysts.
will decrease from an average of 7 minutes
(vehicle-to-everything – e.n.), smart cities, govtech and pretty much anything one can imagine,” Cristian Munteanu, managing partner at Early Game Ventures, told BR.
“I do think 5G in many cases is the linchpin and there will be an earlier adoption curve on the industrial side versus the consumer side for AR (augmented reality – e.n.)/VR,”
to just 6 seconds. Over the next decade, the global media industry stands to gain up to USD 765 billion in cumulative revenues from new services and applications enabled by 5G technology, according to a study conducted by Ovum, which is quoted by CB Insights. In the transportation field, the 5G network
But Munteanu
Chris Bartlett, head
will play a crucial role in the vehicle-to-
wonders how many
of Verizon Commu-
infrastructure (V2I) communications. In this
nications’ Verizon
way, the car could be linked to traffic lights or
startups will actually have access to the 5G
Ventures, told the
hardware infrastruc-
Wall Street Journal.
respect. The first beneficiaries of 5G
Both children and adults could benefit from better education based on AR/VR
ture, suggesting that he is not that optimistic in this
bus stops.
INDUSTRIES THAT COULD BE TRANSFORMED BY 5G At present, the economies that
experiences. The new tools could be helpful for the training of students and specialists in high-risk fields such as medicine and avia-
networks will be living in densely populated
have made most progress in the 5G race are
tion. Meanwhile, states and companies will
cities, and such locations are also ideal for
China, South Korea and the US, according to
also have to solve the security challenges
development under smart cities principles.
a report by CTIA, the association represent-
stemming from the massive increase of de-
ing the wireless communications industry in
vices connected to the internet. Some of the
increasingly urban Romania. Over the next
the US. Globally, there are just five compa-
fears are that hackers could turn autonomous
20-30 years, more and more of the popula-
nies that provide 5G radio hardware and sys-
vehicles, medical procedures or other devices
tion will migrate to cities – people who will
tems to telecom operators: China’s Huawei
into weapons against people.
“This change will be taking place in an
www.business-review.eu Business Review | October 2019
28 EUROPEAN UNION
The new European Commission: A weak leadership to pilot the EU boat through the storms A new European Commission is preparing to take the lead of the EU, at a tense moment dominated by Brexit, a looming economic recession and a trade war, and its composition is generating more concern than trust. By Sorin Melenciuc Federal Republic is suffering, which is totally irresponsible,” he added, cited by Politico.eu. Her priorities at the head of the European Commission have not managed to convince many observers as she seems to focus on topics such as climate change or gender parity but has little to say about the severe issues of competitiveness in the EU or the concerns regarding migration, debts or the economic downturn. Her opening programmatic speech to the European Parliament also raised some eyebrows. “Von der Leyen ticks many of the right boxes, even if her nomination was the result of a complex series of compromises. Yet, alongside the general sense of relief that EU leaders managed to agree on a candidate, a nagging doubt remains as to whether Europe will really have the best person – and team Ursula von der Leyen was picked because she is generally seen as harmless
M
– at the helm,” Dominique Moisi, a special adviser at the Institut Montaigne in Paris, wrote in an article published by Project Syndicate. However, the expert underlines that the
ost observers have already pointed
THE RESULT OF COMPROMISE
out that the new European Com-
Von der Leyen, a weak leader with weak sup-
EU has a history of questionable leaders
mission seems to be far weaker
port even in her own country, was picked be-
and that people should not have very high
than the previous one - a sign of a decline in
cause she is generally seen as harmless. The
expectations from the new president of the
the quality of leadership in Europe.
German press claimed she plagiarized parts of
executive branch.
On July 16, 2019, the European Parliament elected Ursula von der Leyen as the future president of the European Commission. But
her PhD thesis, and many political leaders in Germany have low expectations from her. “Von der Leyen is our weakest minister.
“From José Manuel Barroso – a man notable mainly for his unique ability to say nothing in ten languages – to Jean-Claude
she was not the first choice for the job: the
That’s apparently enough for her to become
Juncker, Europe’s top position has been filled
initial “lead candidate” had been Manfred
Commission president,” former European
by remarkably unexceptional leaders. The
Weber, the leader of the European People’s
Parliament President Martin Schulz said in a
resulting leadership deficit has hurt the EU
Party (EPP) in the European Parliament since
tweet on July 2.
badly by reinforcing a growing sense of alien-
2014. Von der Leyen was elected following
Her mandate at the head of the German
a complex series of compromises that were
Ministry of Defence is also considered a fail-
focused on who should not be at the helm of
ure, even by many of von der Leyen’s fellow
the EU rather than on who would actually be
Christian Democrats.
the best choice.
“The Bundeswehr’s condition is cata-
ation between the continent’s citizens and its elites,” Dominique Moisi said. But he warned that the EU was facing major challenges and needed competent leaders, escaping a long tradition of picking its leaders
strophic,” Rupert Scholz, a former defense
mainly on the basis of their limitations as
woman to hold the EU’s top position, and the
minister, wrote before von der Leyen was
national leaders wanted to make sure they
first German to do so since Walter Hallstein in
nominated to the EU’s top post.
had no rivals in Brussels.
Ursula von der Leyen will be the first
the 1950s and 1960s.
“The entire defense capability of the
“With Europe now facing major external
www.business-review.eu Business Review | October 2019
30 EUROPEAN UNION
and internal challenges, from the rise of Chi-
with serious integrity problems. Among them
proposed in a highly non-transparent manner
na to the spread of populism, it must finally
Sylvie Goulard, accused of exactly what [the
by Romanian PM Viorica Dancila, who did not
switch gears and start selecting its leaders on
former PSD leader] Dragnea did, but forgiven
officially announce her choice and did not
their merits,” Moisi added.
for returning the damage, and Didier Reyn-
consult with any relevant stakeholders.
ders, the former Belgian foreign minister, ac-
According to the local press, Plumb is a
QUESTIONABLE CANDIDATES
cused of corruption and money laundering,”
personal friend of Dancila and was a loyal sol-
But the word “merit” does not seem to ap-
Lucian Pirvoiu, a correspondent in Brussels
dier of her party, and this apparently ensured
ply to most candidates proposed by the EU
for the Romanian public television, wrote on
her nomination.
Member States.
his Facebook page.
The EU system allocates to each Member
It is still unclear who will replace the two
MAJOR CHALLENGES
State a position within the European Com-
rejected candidates, but this situation casts a
Ursula von der Leyen will formally take
mission – and this principle means that the
shadow over the future Commission.
the helm of the European Commission at
Commission includes 27 seats, one for every member state (without the United Kingdom,
“If during the hearings, there is a problem accepting any of the commissioner’s
midnight on October 31, the precise moment when Britain is due to leave the EU.
which is due to leave the EU at the end of October). Among the 27 proposed candidates (including Ursula von der Leyen), 11 are already raising integrity questions. The most serious concerns were raised regarding Rovana Plumb (Romania), Laszlo Trocsanyi (Hungary), Sylvie Goulard (France), and Didier Reynders (Belgium). On September 26, in an unprecedented move, MEPs in the European Parliament’s legal affairs committee (JURI) rejected Rovana Plumb and Laszlo Trocsanyi for conflicts of interest. The decision blocked the two candidates’ planned hearings in front of the relevant European Parliament committees, which would have been the next step in becoming a EU commissioner. Romania’s Rovana Plumb was nominated by Ursula von der Leyen to be EU’s Transport
candidates, the changes will be requested at
commissioner, but a large loan she took out
that time,” an EU parliament spokesperson
ment for the EU as the continental bloc loses
from an unknown individual, which she later
recently said.
one of the major world economies.
donated to her party (PSD), made MEPs doubt
This may prove to be a key, redefining mo-
But there are other challenges for the new
the accuracy of her financial interest state-
SELECTION PROBLEM
Commission: boosting the EU’s competitive-
ment. Plumb was rejected in the legal affairs
These troubles in the EP committees highlight
ness on the global scene, facing the economic
committee by 15 votes to 6.
a key issue: how are candidates for the EU’s
downturn already affecting large economies
Although the two candidates still had
top positions really selected in their home
such as Italy and Germany, facing migration
hopes that the JURI committee might reverse
countries? Is there a transparent and merit-
and finally defining the bloc’s future.
its decision, on September 30, MEPs issued
based selection procedure? Is there a vote for
a final rejection decision, claiming that they
the candidates?
were “unable to exercise their functions in
In fact, there is no standard procedure and
But before the future, there is the troubled present. A recent analysis by Stratfor indicated four major challenges for the EU
accordance with the Treaties and Code of
the government of each Member State pro-
in this period: domestic constraints in the
Conduct.” Many say that this has been a very
poses its candidate without having to explain
eurozone’s largest economies that limit their
poor start for the new Commission.
why or how it made the choice.
ability to cooperate at the continental level,
“The future European Commission looks
In some cases, like in Romania or Hungary,
nationalist and populist political movements,
like it’s going to be a catastrophe, even with-
the proposed candidates happen to have a
major sources of economic risk (trade dis-
out Rovana Plumb and Trocsany. The fact
close relationship with the prime ministers of
putes with the US, Brexit and economic fragil-
that Rovana Plumb and the Hungarian were
those countries. In Romania, Rovana Plumb
ity in Southern Europe), and the domestic
rejected by the JURI committee is a positive
was never the subject of any procedure in Ro-
and external pressure to limit Chinese access
thing, but in total there were 11 candidates
mania, neither good or bad. She was simply
to strategic technology.
www.business-review.eu Business Review | October 2019
32 MACROECONOMY
Economic growth remains solid in CEE region and Romania In 2018, economic activity in the CEE region continued the solid expansion that started in 2017. This was especially the case for Poland, Hungary and Latvia, which recorded GDP growth rates close to 5 percent. Other countries, including Romania, Estonia and Bulgaria, experienced a weaker pace of growth. Despite the differences between countries, the overall economic growth in the CEE region remained solid with 4.3 percent in 2018, after 4.6 percent in 2017. By Aurel Constantin recorded revenue improvements (in comparison with 80 percent in 2017 and 63 percent in 2016). “However, various challenges caused net profits to decrease by 1.6 percent, to EUR 30 billion. Low unemployment and declining working population trigger labour shortages, which have become a major challenge to companies in terms of daily operations and potential expansion. Not only growing wages but also rising input costs have increased companies’ operational expenditures, eroding profits as a result. Competition is getting more intense, resulting in low margins which are not able to offset higher costs,” adds Daly. “The 2018 edition of the Top 500 CEE shows a positive evolution of the big companies operating in Romania. The main driver of this evolution remains domestic consumpThe automotive sector remains strong in the top 10, represented by well-known brands
“
tion, which accounts for 63 percent of the GDP. Amid the widespread improvement of the labour market, the reduction of unem-
The main drivers were private con-
employees, the companies’ frameworks, sec-
ployment by 4 percent at the end of last year
sumption, increasing fixed asset invest-
tors and markets, as well as the new Coface
and the increase in minimum wage in 2019
ments as well as exports, which were
company credit assessments. The economic
will continue to boost domestic consumption,
less dynamic than before but still expanded,
development of the CEE Top 500 is represen-
but it is estimated to have a less accelerated
despite the eurozone slowdown,” states Grze-
tative of the market trend in the entire region.
rate in the next period. The lack of workforce remains a concern for companies, which puts
gorz Sielewicz, Regional Economist at Coface
constant pressure on costs with wages. In
upgraded Croatia and Slovakia, following a
TOP 500 PLAYERS: INCREASE IN TURNOVER AND RECRUITING, LOSS IN NET PROFIT
series of Country Assessment upgrades in the
“Analyses show that the favorable economic
can benefit from a necessary momentum for
previous year.
environment was beneficial for the region’s
development in order to reach the Top 500
The international credit insurance compa-
500 largest businesses, which translated into
CEE in large numbers, but at the same time
ny presented its eleventh annual study on the
higher revenues,” explains Declan Daly, CEO
they must be prepared for the challenges
500 biggest companies in Central and Eastern
of Coface Central and Eastern Europe. The
of an economic global environment that is
Europe – the Coface CEE Top 500. It ranks
cumulative turnover of all 500 companies
increasingly affected by political risks,” said
businesses by their turnover and additionally
increased by a solid 9.6 percent to EUR 698
Eugen Anicescu, Country Manager, Coface
analyses further facts such as the number of
billion. 78.8 percent of the listed businesses
Romania.
Central and Eastern Europe. In 2018, Coface
these conditions, big Romanian companies
www.business-review.eu October Business Review | May 20162019
MACROECONOMY COVER STORY 33 14
BIG BUSINESS IN POLAND AND IN THE AUTOMOTIVE SECTOR
compared to the previous year reflect the
Poland is home to the largest businesses in the
to cyclical slowdown, increased protection-
ent in the region varies from around 60 in
region, with an aggregated turnover growing
ism and structural industrial changes, includ-
Slovakia and Bulgaria to 139 in Poland. While
year by year, the recent study confirms. The
ing investments into innovations and changes
Poland is the biggest economy, the ratio
top companies in the Coface publication are
in consumption behaviour.
between Fortune Global 500 companies
well known from previous rankings. Polish oil
global downturn of this sector. It suffers due
The third sector on the podium is non-
lic count 139 and 111 respectively. The number of these global majors pres-
present and population size is much higher
refiner and petrol retailer PKN Orlen remains
specialized trade. Like the year before, the
in Slovakia, Hungary and the Czech Republic.
unbeaten at the top with a 15 percent increase
main driving force of CEE growth was house-
This correlates with the very high exports-to-
in turnover. The Czech Skoda Auto (2nd), the
hold consumption, which accelerated further
GDP ratio prevalent in these three countries:
multinational oil and gas company MOL Hun-
in 2018 thanks to low unemployment and
97 percent in Slovakia, 87 percent in Hungary
gary (3rd) and retailer Jeronimo Polska (4th)
growing wages. This positive impact of solid
and 79 percent in the Czech Republic. Bul-
defended their positions from the previous
demand is dwarfed by the difficulties experi-
garia follows neatly on both these measures,
year, all with increases in revenue.
enced in this sector: the increasing wages of
with 65 percent. Romania and Poland have
The automotive sector remains strong in
employees and labour shortages paired with a
lower ratios – 42 percent and 55 percent
the top 10, represented by well-known brands
still price-sensitive client base and high com-
respectively.
like Czech Skoda Auto (2nd), Volkswagen Slo-
petition are exerting pressure on margins.
vakia (5th) and Audi Hungary (7th). Compared to the previous year, Volkswagen Slovakia
“Supply constraints, including labor short-
“The quantitative development of the real estate market came naturally as a result of
ages, a high capacity utilization, rising input
Romania’s accesion to the EU, but the qualita-
moved up the ranks thanks to a robust increase of turnover of 37.5 percent. Audi Hungary also recorded a modest 1.1 percent increase in revenues. costs, and the impact of external slowdown
tive growth is closely linked to the increase in
SECTORS: POLE POSITION FOR OIL & GAS, FOLLOWED BY STRONG AUTOMOTIVE & TRANSPORT SECTOR
(direct and indirect) are all worrying compa-
activity among the largest and best perform-
nies operating in the CEE region. Household
ing companies in the world. Whatever hap-
consumption is expected to remain the big-
pens over the short or medium term, given
The three key sectors represented by the
gest driver of growth, although the limited
the caution regarding the global economy,
largest companies in the region (automotive
acceleration of fixed asset investments and
over the longer term we can expect to see
& transport, oil & gas, non-specialized trade)
weaker exports will decrease GDP growth.
lower yields for office or industrial properties
continue to account for almost 60 percent of
Nevertheless, the scale of slowdown will be
thanks to these bluechip tenants, which will
the total generated revenue. However, all in-
limited: Coface forecasts that the average
raise the bar in the local economy,” said Silviu
dustries contributed to the turnover increase,
GDP growth of the CEE region will weaken to
Pop, Head of Research at Colliers.
with the main contributors being the energy,
3.6 percent in 2019 and 3.2 percent in 2020,”
automotive and trade sectors.
adds Grzegorz Sielewicz.
The analysis of FDI flows over the last decade and a half suggests high numbers of Global Fortune 500 companies from the
Net profits showed a positive development only for some sectors, with rises between 4.6
POLAND ALSO LEADS IN FORTUNE 500
Automotive, Industrials, Food, Beverages &
percent (wood & furniture) and 41.9 percent
As Fortune Global 500 companies went out
Tobacco, Telecom & Media and Transporta-
(non-specialized trade). The construction
this year, it was interesting to see how many
tion sectors across the region. Technology,
sector was again the one that struggled the
of the biggest companies in the world were
interestingly, is over-represented as well.
most, with a net loss of -146 percent, despite
present in CEE countries. According to real
This is encouraging for the region’s future
revenues increasing by 10.6 percent.
estate consultancy Colliers International’s lat-
positioning in the world economy.
Automotive & transport lost the leading
est “FDI into CEE infographic”, more Fortune
Romania follows the trend, with Automo-
position it had in the previous year. Company
Global companies located in the CEE-6 will
tive registering the highest numbers – 14
revenues increased by 7.6 percent, while net
increase demand for commercial real estate.
companies – followed closely by Food, Bever-
profits slumped by 11.7 percent. The weaker
Romania now counts 105 companies out of
ages & Tobacco and Technology companies
results of the automotive and transport sector
the global top, while Poland or Czech Repub-
(12 both).
www.business-review.eu Business Review | October 2019
34 INTERVIEW
Brain power is the digital world’s greatest asset In order to find out more about Cognizant Softvision and their view on the digital revolution and the world we talked to Malcolm Frank, President of Cognizant Digital Business, and Andres Angelani, CEO of Cognizant Softvision. By Aurel Constantin
Frank Malcom, Cognizant Digital Business
Andres Angelani, Cognizant Softvision
Why is Cognizant Softvision, a Cluj-based company, organizing an event in Bucharest? Frank Malcolm: Cognizant Softvision is very
structure, the culture, and it’s built into the
tion system or flight operation system for
universities, as the main training platforms
an airline. Those are huge systems of record
have a much stronger computer science base
and that is where the automation is going to
and we can build on that. We think that an
occur. But if you look at how much software
well known in Cluj, as it has a connection
engineer is more like a creative technologist.
is going to be needed to actually create this digital experience you’ll see that it is going
to the university system and the business
to be a massive undertaking and will need a
need to have a network here, bring together
When are we going to see machines that are able to write software like a human? Frank Malcolm: The construct of the algo-
all the business partners and reach out to the
rithms is already there. The way you build
when programmers will go away, they would
community. But if you look at the IT industry in Bucharest, it is four times the size and we
creative process. In the meantime, if you go to Google, Facebook or Amazon and ask them say that this is the weirdest question they’ve ever heard. Some will disappear, but not all of them. Our view is that
broader community. This is the reason we
up an engineer, a creative technologist, is
we are in a panic and that it is caused by the
are organising the 2019 Programmers’ Week
very unlikely to be replaced, but the factory-
fact that we don’t have enough people. And
Conference here and we are planning to open
made developer who knows how to develop
that is actually why we are here.
offices as well.
code in a procedural way has already been
Andres Angelani: If we take art for example,
Andres Angelani: It is an outreach to the
replaced. Machines can produce code now.
we can probably build a mathematical model
community here. Romania has all the right in-
There are still massive back-end systems that
to create a painting. But you cannot replace
gredients for a thriving IT industry. It has the
will never be replaced, such as the reserva-
the way you feel when you paint – it is a very
www.business-review.eu Business Review | October May 20162019
COVER INTERVIEW STORY 35 14
human thing. We can try to model that using
model is to go into your privacy and give your
great news for the next generation of Eastern
a computer code, but we are light years away
information away. That is the culture of that
Europe; they have the means of production
from that. We don’t think that the creative
institution. So, when Libra came along, peo-
and the talent and it’s now part of the cultural
element is replaceable. At least we haven’t
ple thought they were going to give all their
imagination. It is the same in the United
found a way to replace it.
private financial information to an organisa-
States; while people living on the coasts have
Frank Malcolm: Speaking of replacing
tion whose core business model is to share
changed, the ones in the middle of the coun-
humans with machines, it is interesting to
that information. All the changes that we are
try have not.
see that the most industrialized and highly-
going through are huge; they are bigger than
automated countries, like Japan, South Korea
we realise. We may look back in 2030 and
or Germany, are the ones with the lowest
point to 2018 or 2019 and say “oh, that made
unemployment levels.
all the sense in the world, but when we were
What is Cognizant Softvision doing in fields like Artificial Intelligence? Frank Malcolm: We focus on applied AI.
in the middle of it we didn’t understand it.”
The time of just talking about it is pretty
How far into the Industrial Revolution 4.0 are we today? Andres Angelani: As far as Revolution 4.0
We’re going through shifts of the technical,
much over. Applied AI manifests itself in two
economic and political foundations. They’re
places: one is customer intelligence and the
all going through these renegotiations and
second is operation intelligence. Customer
goes, I think we are in the middle of it. We are
transformations and it’s all due to digitaliza-
intelligence is how we help a hundred-year-
now emerging and what we are trying to do is
tion. In the industrial world, the raw assets
old company play the FAANG (Facebook,
maximise that for all. We need to put that tal-
were oil and steel. Some countries were huge
Apple, Amazon, Netflix and Google) game.
ent into the middle of the business in order to
beneficiaries of these geographies. If you look
If you look at Netflix, Amazon, Google, they
prepare for the future, otherwise the growth
at the United States at the time, they had the
are all “watching” us. The good thing is that
are going through pilots, doing prototypes,
home-field advantage, as they had oil and
they give us the right things seen through
trying new things. But we’re actually seeing a
steel, the foundation to move ahead in the
the patterns. So we work with a lot of clients
crisis inside the executive teams in traditional
industrial world. The digital world’s raw asset
on customer intelligence, like big retailers
industries like big banks, insurance compa-
is brain power. And we can all get our hands
trying to replicate the Amazon experience in
nies, manufacturers, because they have been
on these tools and assets, but the winning
a physical space.
talking about digitization for five years now.
factor is the talent. That is going to be the
So they sit on the board and someone asks a
distinguishing characteristic in this race.
simple question: how will this be reflected
I travel a lot and I see a lot of patterns. There
in the revenue? How do we increase margins
are communities around the globe where
through this? The managers all start staring
technology has entered the culture and it has
Where do you see Cognizant Softvision five years from now? What about the general economy? Frank Malcolm: Generally, I am quite opti-
at their shoes because it is still hasn’t reached
gone right through to the education system.
mistic. Softvision has been working for the
the core of a lot of these businesses. And they
That has been the case in India for the past 20
Silicon Valley economy, for the companies,
are really scared. I played a game with a client
years – there is this awakening, the smartest
building products for them. But that is just 5
and asked: if Google decided to come into
kids in school no longer become doctors or
percent of the market. The other 95 percent
your line of business, what would you do?
lawyers; they go straight into information
is just standing around this 5 percent square.
That scares the heck out of people because
technology. And we’ve started to see this in
And every company outside the square needs
they wouldn’t be able to stop it.
Eastern Europe as well. People here are talk-
to get this digital capability. For us it’s just
ing about Old Europe and New Europe, but
meeting that challenge on how to get those
Facebook announced the development of Libra and everybody went crazy. Why? Frank Malcolm: It’s a matter of trust. If a
the East is the new. If you look at universi-
companies to turn digital. As for the overall
ties in Spain, Italy, France, the best kids are
economy, we will have a recession in 2020 or
not going into technology, they still want to
2021. But a storm in nature is sometimes good
big bank had announced that, people would
go into banking, they want to be doctors or
as the trees that need to die are removed. The
have been a lot more open to it. Facebook’s
lawyers or work in government. I think that is
same can be said about companies.
will stall.
Digitization is happening even if we don’t see it. How far off is the digitization of all businesses? Frank Malcolm: It is not that far. A lot of our clients
www.business-review.eu Business Review | October 2019
36 IT
IT companies recruiting in Bucharest, the biggest professionals market from Romania The IT industry is in full swing in Romania and the deficit of specialised IT workforce, estimated at over 15,000 employees per year, is pushing companies to expand to every IT centre they can find. While centres like Cluj, Timisoara and Iasi have been stretched to their limits, many companies are opening offices in or around Bucharest in order to find more people. By Aurel Constantin pants this year. As Untold’s 2019 “Innovation Sponsor,” Cognizant Softvision showcased its brand and capabilities to attendees by designing the festival’s smart assistant info point chatbot. “Romania is a hotbed of digital innovation with some of the best design and engineering talent anywhere,” said Malcolm Frank, President, Cognizant Digital Business. “Our expansion continues to enhance our reputation for quality, sustainability and healthy business development over the last two decades. We’re building some of the most engaging software products for the world’s leading companies. We have helped transform the ways companies conceive, develop
C
Cognizant Softvision specialists from Bucharest Studio attending Programmers’ Week
and pursue business outcomes through software. Here, the smartest engineers can take on their next big challenge and grow
ognizant Softvision, a global leader in
from some of the best and brightest while
their careers while working on transforma-
product engineering, organised the
challenging them to create groundbreak-
tive projects for many industries.”
2019 Programmers’ Week Conference,
ing solutions that use some of today’s most
one of Romania’s largest technology events in Bucharest last month. Activities included
sought after technologies.” Softvision is a software company founded
The company is expanding its Romania operations to meet demand for its digital development and transformation solutions
four days of technology discussions, the 256
by Romanian entrepreneur Laurentiu Russo
used by leading companies in financial ser-
Conference and the largest Coding Contest
in 1994 and bought by US-based Cognizant
vices, insurance, retail and travel, and other
organised in the country to date. The first
last year in a transaction valued by Reuters
sectors. At least 500 new positions were
edition of the event took place 5 years ago in
at USD 550 million. Romania has become a
added for creative technologist roles and are
Romania, and last year Programmers’ Week
major hub of Cognizant Softvision’s global
expected to be filled by the end of the year.
was available to Cognizant Softvision associ-
network of more than 3,000 product, design
With approximately 1,700 employees now
ates around the globe.
and engineering professionals in 30 studios
in Romania, Cognizant is already recognized
across 9 countries on five continents. Cogni-
as one of the country’s leading technology
business, and business is technology,” said
zant reported USD 16.13 billion in revenue in
employers, ranking 19th among the top 100
Alin Turcu, Mobile and Artificial Intelligence
2018.
employers in July 2019, across all industries.
“We live in an era where technology is
Community Manager at Cognizant Softvision.
The merger of Softvision and Cognizant
In addition to new jobs, Cognizant’s digital
“We are pleased to create a bridge between
has created one of the world’s top digital en-
engineering division plans to open design
the business and technology communities to
gineering companies and a leader in software
studios in key metropolitan centres like Bu-
encourage innovation and generate ideas that
product development. The new company
charest, Iasi and Timisoara. The US company
transform not only businesses, but society as
brand was officially launched in August at
is ranked 193rd in the Fortune 500 and is
a whole. Through Programmers’ Week, we’re
Untold, an annual European music festival
listed among the most admired companies in
offering developers the opportunity to hear
which attracted more than 350,000 partici-
the world.
www.business-review.eu Business Review | October 2019
38 RIDE SHARING
Ride-sharing services hit full throttle With the accelerating growth of electric scooter services such as Flow, Lime, and Wolfe, and their increasing impact on Bucharest’s citizens, alongside ride- and car-sharing apps, Romanians have more and more options when it comes to reaching the office or getting home after a night out. By Romanita Oprea strategic positioning. Our promise is to offer our passengers the shortest car response time and the best price for a quality service,” said Ivona Babarelu, head of marketing at Clever, at the time. Through the research, the agency discovered that few of the app’s users managed to tell the difference between taxi companies and Clever and that most of them associate the idea of “taxi” with aspects correlated to motivations and behaviors of a functional nature (a taxi represents a major transport service that gets one from point A to point B at the necessary time). Therefore, believes the firm, Clever is the knot between you and the people that you meet, with whom you spend time, those you care about. Clever is a people connector. From here came the tagline “Go”. Since the new positioning, Clever is a unique app on the Romanian e-hailing market The alternative ride and car sharing solutions app are a big hit among Romanians
W
because it is the only product that offers both ridesharing and taxi services in an integrated platform. Clever covers 30 cities in Romania
ith a more regulated market, ride
brand Clever, alongside a campaign image.
and is expanding its portfolio in offering
sharing in Romania is becoming
Based on rigorous research, in partnership
ridesharing alternatives to these cities and it’s
increasingly popular, with more
with D&D Research, the agency said it had
the is most successful among users in Cluj-
and more Romanian choosing the alternative
found the right insight to enable a correct
Napoca, Iasi, Brasov, Constanta, Oradea and
services over driving their own cars or taking
brand positioning. “In the last five years
smaller towns in Romanian where it is the
public transport. And the advantages are clear
Clever has become the leader among taxi
only e-hailing app for drivers and passengers.
to see. From the ease of using an app and just
booking apps in Romania. Our vision is for
For 2020, the marketing representative said,
jumping in someone’s car and enjoying your
urban mobility to be easily accessible by any-
Clever wants to see more solutions for urban
own personal space, to avoiding the costs of
one; no matter the price, waiting time or loca-
mobility being developed and a smarter city
vehicle ownership and the hassle of finding
tion, transport should be something simple
where every means of transport is connected.
a parking space in a crowded city, the new
and fast. Through the launch of the non-taxi
“The future is about freedom, the freedom
ride-sharing services are here to stay and give
service, we’ve kept the promise of security
of movement and options. Let’s imagine a
consumers an easier journey each day.
and we have grown the number of available
revolution. A revolution that will change the
cars. In this context, Clever’s rebranding and
way one sees and accesses mobility. A future
A REBRANDING BOOST
the entire communication campaign came
where your car is there where you need it
In February, the advertising agency DDB
as a natural step. Clever aims to continue
right now. Where parking is there where you
Romania undertook a new positioning for the
to grow, making sure that we have the right
want it to be right now. Where you’re free to
www.business-review.eu October Business Review | May 20162019
RIDE COVER SHARING STORY 39 14
move through your city and your community
services to choose from, in order to give them
1 million. The service was initially avail-
the way you want, whenever you want, at an
the best solutions for moving around the
able in Cluj-Napoca, followed by Bucharest.
accessible cost,” added Babarelu.
city. Also, Uber Green in Bucharest is the first
“Since we launched the business in 2015, our
Uber product of its kind in CEE,” said Nicoleta
revenue has grown by 50 percent each year,
ket was the transformation of Taxify into Bolt.
Schroeder, head of Uber Romania.
compared to the previous year. We expect
Taxify, the ride-hailing company from Estonia
In this context, the company says it welcomes
2019 to follow the same ascending trend and
backed by Didi and Daimler and now active in
competition, considering it another reason
even exceed the revenue growth by 50 per-
Another important rebranding on the mar-
to push to improve
cent. The future looks bright for car sharing
its services. “The
in Romania. We are the first and biggest car-
growth of the car-
sharing service in Romania. We offer users
sharing industry has
a fleet of over 160 cars which they can drive
impacted our busi-
anytime, anywhere, by using the GetPONY
ness in a good way
app. Our aim is to help create the city of the
because together we
future, with less pollution, less traffic, in
improve the cities
which people spend less on transportation
that we operate in.
but enjoy all the comfort a personal car has
Moreover, it has
to offer,” said Diana Otelea, chief financial
helped users see the
officer at Pony Car Sharing.
benefits of technolo-
Moreover, looking at other services that
gy-driven transpor-
provide ridesharing, the Pony Car representa-
tation services, and
tive believes that they are complimentary and
engage with them
improve the consumer’s experience.
in order to try other
And, for the moment, the company’s
services as well. I am
main challenge on the market is to promote
excited about 2020.
the idea of sharing. In Romania, the draw of
30 countries, removed “taxi” from its name
We have worked hard to have the service well
ownership is still very powerful. In order to
and became Bolt, the name that it has been
defined inside the law so we could pursue
build a long-lasting, reliable infrastructure
using for its new electric scooter service, to
more and more lines of business to support
consumers need to understand the advan-
double down on providing multiple transpor-
the cities in which we operate,” concluded
tages of the sharing economy. In this context,
tation options beyond private cars. Tapping
Uber’s representative.
Pony has made it its mission to educate the
the basic meanings of “bolt,” the new name
The latest company to enter the ride-sharing
public in regards to how a car-sharing service
implies speed, as well as electricity.
Romanian market is Yango, the e-hailing app
can change our cities for the better.
“We are bullish that the future is fully
owned by the Russian company Yandex. At
“Currently our service is available in three
electric and so we wanted a name that moved
the moment of launch, the company had 55
Romanian cities: Bucharest, Cluj and Alba
us away from the combustion engine,” said
partners in Romania and around 3,000 regis-
Iulia. We are focusing on further developing
Markus Villig, CEO and co-founder, quoted by
tered drivers. Moreover, Yango uses its own
the service in Bucharest, where more cars
TechCrunch.
cartography and direction system mapping,
are needed in order to keep up with demand.
navigation and machine learning technology.
In the future we are definitely planning on
COMPETITION MOVES UP A GEAR
“We believe that our users will appreciate our
expanding to other important cities as well,”
Probably Bolt’s biggest competitor interna-
unique functionalities such as ordering a car
concluded Pony Car Sharing’s CFO.
tionally, but also in Romania, Uber, is staying
for someone else, reserving several cars from
And it looks like the competition is rising
strong on its positioning. “We are currently
one phone at the same time, etc,” said Andrei
on the sector with the local launch of Spark,
undergoing a complex transition period
Voicu, regional director Yango Romania and
a company with Lithuanian and Bulgarian
required under the new alternative transport
Moldova, at the time of the launch.
shareholders. Spark Romania describes itself as an alternative transport service, a car-shar-
law. Uber is a multimodal urban transportation platform through which riders all over
STARTING FROM CLUJ-NAPOCA
ing app oriented exclusively towards electric
the world can find an extended service offer
The first Romanian car-sharing service was
cars. With headquarters in Vilnius and Sofia,
in the same place: electric cars, carpooling,
introduced on the market by two young
Spark comes to Romania “to lighten Bucha-
bicycles, taxis, car-sharing, helicopters and
entrepreneurs – Demis Ghindeanu and Iulian
rest’s traffic and free it from the pollution and
public transport – so that we can provide
Padurariu – who got the idea after using a
unnecessary traffic noises”.
many alternatives to the personal car. By in-
similar service in Austria. “Get Pony” was
tegrating many types of transportation, Uber
launched with a EUR 100,000 initial invest-
Caby, which is available only in Iasi, offering
supplies its riders with a large diversity of
ment which in two years’ time reached EUR
also only electric cars.
The local car sharing scene is also home to
www.business-review.eu Business Review | October 2019
40 TOURISM
The alternative tourism experience If Lonely Planet guides are too old fashioned for today’s world travelers, now we have apps that promise us the best of a traveling experience. Does mixing with locals seem a good idea on vacation? Business Review talked to Airbnb representatives to find out how such experiences work. By Oana Vasiliu
Are you an explorer kind of traveller?
economy, this concept that is
W
ties for millions of Europeans and contributes
platform. And this is just the beginning,
now a way of life for many people
to sustainable, healthy tourism that puts
taking into consideration that the service
around the globe. One of the problems in
locals at the heart of 21st century travel. We
was launched locally in March 2019. So what
transitioning to a circular economy is that
know travelers are looking for new, unique
has Airbnb actually done for tourism? An
of unnecessary, excess production. In short,
things to do when they hit the road. Airbnb
offline innovation, offering more than a tour
we own more stuff than we need. That’s
Experiences is meeting that demand, offering
or an activity. “We’re focused on making
where sharing platforms come in, generating
a new way for people to experience a des-
the experiences themselves better. Airbnb
income for owners and squeezing more value
tination or the city they call home,” Airbnb
Experiences was created out of the belief that
out of products, financially benefiting users
representatives told BR.
travel is broken; we want to offer something
e’ve all heard about the circular
on both sides of the rental transaction. And
“Airbnb creates new economic opportuni-
In 2016, the service launched with roughly
active experiences available on the Airbnb
more authentic and less mass-produced by
these sharing platforms offer more and more
500 experiences. Today, over 40,000 experi-
unlocking a different side of destinations
benefits to those using them, Airbnb Experi-
ences are available around the world, while
through the eyes of locals. Experiences on
ences or UberEats, to name a couple.
in Romania there are currently more than 160
Airbnb are defined by access, expertise and
www.business-review.eu Business Review | October 2019
42 TOURISM
The Museum of Living Communism in Brasov
striving to create human connection,” note Airbnb officials. One of the best things is that the platform
Second hand experiences in Brasov
EXPERIENCES CURRENTLY AVAILABLE INCLUDE: Bucharest Night Walkers - The Hip Side offer-
diversifies tourism by bringing the benefits
ing (from 200 RON)
of tourism to neighborhoods that don’t typi-
The Museum of Living in Communism in
cally benefit from visitor spending, divert-
Brasov (from 160 RON)
ing foreign money to the local community.
Unique second hand experiences in Brasov
According to the Healthy Travel and Healthy
(from 80 RON)
Destinations report, the majority of the funds
Romanian cooking class in a local home in
spent on Airbnb flows directly to hosts, who
Timisoara (from 189 RON)
keep up to 97 percent of every Romanian
Bucharest Morning Coffee Tour (from 350
Leu they charge to rent their space. Hosts
RON)
can then spend and reinvest their earnings
Truffle hunting in Transylvania (from 600
in a number of ways, including household
RON)
expenses, rent or mortgage payments, clean-
Sinaia e-mtb Discovery Tour (from 320 RON)
ers, home improvement, healthcare and
Kayak/SUP/hydrobike on a mountain lake in
education.
Cluj county (from 240 RON)
Cooking with a local in Timisoara
“SERGIU AND GABRIEL WERE WONDERFUL HOSTS. THEY TOOK ME TO REALLY INTERESTING AND HIGH QUALITY PLACES THAT I WOULD NEVER HAVE GONE WITHOUT THEM! I REALLY ENJOYED THE WHOLE EXPERIENCE AND THE OPPORTUNITY TO SPEND TIME WITH THE TWO OF THEM. I LEARNED A LOT ABOUT LIFE IN ROMANIA. THEY’RE GREAT AND VERY CONSCIENTIOUS HOSTS!” KATE, NEW YORK
“WE’VE WANTED FOR A LONG TIME TO KNOW WHAT LIFE WAS LIKE DURING COMMUNISM AND ESPECIALLY WHAT LIFE WAS LIKE DURING THE TRANSITION. THIS 3.5 HOUR TOUR WAS AMAZING. OUR HOST WAS LAVI. HE WAS 17 AT THE TIME. WE FOUND HIS INSIGHTS, HIS PERSONAL STORIES, STORIES ABOUT HIS FAMILY AND FRIENDS GRIPPING. WE WOUND UP GOING OVERTIME AND INVITED LAVI TO DINNER WHICH HE ACCEPTED. WE TRAVEL A LOT, ABOUT 9 MONTHS OUT OF A YEAR. THIS WAS ONE OF THE VERY BEST TOURS WE HAVE EVER BEEN ON. MANY, MANY QUESTIONS I’VE HAD ABOUT THE TRANSITION PERIOD AND THE RESIDUAL EFFECTS TODAY WERE ANSWERED. FOR EXAMPLE, WHY DO WE SEE SO MANY SMALL FARMS IN ROMANIA STILL USING HORSE POWER WHEN WE DON’T SEE THAT IN FORMER COMMUNIST BLOC COUNTRIES?” STEVE, HONOLULU
www.business-review.eu Business Review | October 2019
44 GASTRONOMY
Cooking up a storm for local food Romanian cuisine is starting to pan out around the world. It may not yet have conquered everyone’s palate, but the industry is serving up some appetizing starters. Recently, a law passed making the first Sunday of each October the National Day of Romanian Gastronomy and Wine. Food for thought? By Oana Vasiliu drob, polenta etc. (…) On the other hand, there is modern Romanian gastronomy, which is a trend that has begun developing in recent years. It started off with new chefs and restaurateurs who, inspired by international models, trends and experiences, decided to take things one step further and bring home what they discovered. What I see emerging now is an inspiring, author’s cuisine, where each chef does something different and has his own vision and set of principles.” Chef Andrei Chelaru of Fragment, ClujNapoca, who has recently returned to his local kitchen after an internship at Noma, and another Gault & Millau Great Chef of Tomorrow,
I
Still trying to figure out a definition for traditional Romanian food
adds, “The Romanian gastronomy is exactly like the Romanian people, it has a strong per-
t seems that a constant goal for forward-
two World Wars and 45 years of Communism
sonality. At this moment, it’s finishing a hard
thinking chefs has been reinterpreting
which changed viticulture in Romania, now
winter and embracing a very long spring. (…)
classic Romanian fare in original, one-
our wines are steadily and rapidly growing in
With the influences of globalization all around
of-a-kind dishes. And their attempt wasn’t in
quality and offer a diversity that can and will
us, more often than not, we need to celebrate
vain. The idea of this celebration was initiated
be appreciated by wine lovers everywhere in
our culinary traditions and extraordinary
at the first edition of the National Congress of
the world,” concludes Ioan. Meanwhile, Drag-
wines. At the same time, I think that this is a
Gastronomy and Wine by Cezar Ioan (publish-
omir adds, “We suffer from a kind of self-righ-
great opportunity to educate the new genera-
er at vinul.ro), Chef Nico Lontras (Rare Food
teousness, we repeat that we did not invent
tion, when it comes to amazing local produce,
Services) and Cosmin Dragomir (publisher at
anything, that they are all taken from others,
old recipes and dishes that make your heart
gastroart.ro), with the support of the National
basically ignoring the evolution. All gastrono-
skip a beat.”
Association of Cooks and Confectioners in
mies are influenced, only that purism touches
Tourism.
us, especially in the online discourse, alarm-
and tasty, a culture that originates from the
“Romanian gastronomy needs to be simple
ing odds and sometimes fools. It’s extremely
heritage of each family, different region by
portant – primal – bonds that connect a nation
important to know our identity gastronomy
region. Somehow it exists, but one of the best
and give it a distinct identity. And it’s impor-
and to be proud of it. And that’s also a form
ways to get the true taste of these dishes is
tant for us to know where we come from and
of glocalism. Some say all these influences on
directly from local chefs, who are passionate
to consolidate the links between us and our
local cuisine are a disability; I see exactly the
about cooking and want to share their culture
history,” says Ioan, of the decision to support
opposite: an advantage. Diversity is an asset,
with other people, or other chefs. Speaking
and promote such an idea. “With wines, we
indisputably.”
about Romanian gastronomy, wine and food,
“I believe that food is one of the most im-
still have some grape varieties that are found
Alexandru Dumitru, Gault & Millau’s Chef
we need to discover old recipes and educate
only here – at least one of them being culti-
of the Year 2019, comments: “I believe that
people, promote more local grape varieties
vated here before the Egyptian pyramids were
there are two sides to Romanian gastronomy
and local dishes. It’s a must. We need to be an
built (Fetească neeagră). Feteasca alba, Cram-
right now and we can’t discuss one without
entertaining and educational day festival cel-
posie, Zghihara, Francusa, Babeasca are other
the other. Firstly, we have traditional cuisine,
ebrating local food, wine and culture,” argues
vines known only here that can give birth to
centered around classic recipes with which
Alina Iancu, founder at CrameRomania.ro, a
very interesting and unique wines. (…) After
our people identify, such as sarmale, cozonac,
relentless promoter of national wine tourism.
www.business-review.eu Business Review | October 2019
RESTAURANT REVIEW 45
BRUNCH WITH A DIFFERENCE >>> Sheraton Hotel, Calea Dorobanti, 5, 021 201 5000 <<<
L
et’s go to the Sheraton’s first floor
restaurant menus in town due to its high
compotes. I had to try their massive fillet
restaurant. In case you have not
cost. But not here, you can eat as much as
steak, baked in a salt crust. Salt crusting,
been before, it is split into two din-
you like.
like an igloo over the food, is a chef’s best
ing areas. On the left as you enter is their
However I was amazed to see the huge
friend. Even if he falls asleep and forgets
Benihana outlet. Here your order is cooked
long claws of Alaskan King Crab. Discovery
the dish, as long as it is on a low heat, the
in front of you on a Teppanyaki, a flat metal
Channel runs and reruns its program The
meat under the igloo will be perfect and
hotplate. You sit down in front of the Tep-
World’s Deadliest Catch following fishers in
moist.
panyaki hotplate and watch the artistry of
the Barents Sea where numerous fishermen
the chef whilst at lightning speed he cuts,
lose their lives in the storms, just to catch
superb Cabernet under the brand name
chops, spins your dish. It is pure showbiz,
crab. Well, I am heartless, so I am indiffer-
of Zana. It was heavy, but without be-
and well worth the show.
ent to the fate of the fishermen; I don’t even
ing dragged down by too much tannin. A
In the same room there is a sushi
Throughout the meal, we enjoyed a
perfect balance, and bravo House
know their names (hell, they are
for making it the Brunch
just doing their
section, where there were
wine.
job).
30 sushis waiting for you to pick up, or
There was a
better still watch
mountain of
the chef make
duck legs, all
and roll your
tender and
individual
brown.
choice of su-
Something
shi. So now
tells me
let’s move
that next
into the main
week we will be
restaurant.
feasting off
Sunday
duck breast.
brunch is fun-
At this point I
damentally a help
was full, but not
yourself and eat till
smoothies made from a blend of melon,
chocolate fountain beckoned to
is the crab claws, and I got
with a hot carvery. It was a hot Sunday, and I spied a tray of chilled
so greedy Blondie. A
All I want
you burst buffet together them on Sunday!
Then there was salmon in every format,
Blondie and all the kids in the joint. There was every dessert imaginable, as long as it was laced with chocolate, cream and fruit.
orange and passion fruit. Wow, it could not
in vol-au-vents, fresh, marinated… and so
get better.
on. There was a huge cauldron of wonderful
The House has a clear run to captivate
mussels (midii), but enough of the fish. I am
the Sunday brunch market, as the Hilton
soup selection along with their endless
a born again carnivore, so I am hunting for
abandoned brunch last year, and the Radis-
varieties of bread. My eyes fell on a huge
meat. And I was not disappointed. Neither
son relegated brunch to a BBQ around their
platter of oysters on ice. Many years ago
was Blondie who harpooned a pork chop.
pool.
I ate 100 oysters in Galway (Ireland) for a
She professed it to be the best pork of her
bet. I only quit after I ran out of money, I
life. I said, “Dammit woman, it is only pork
engineered the retail price of all the food
could have continued. So I love the little
in wine.” But no. She said it was so slow
I consumed, and I was in credit. Yes, it
beasties, but to help the House, I only took
cooked that it fell off the bone and she was
would have cost more if I had bought it
six of them. Next up was lobster. This used
in awe.
over the counter.
But away to food. I passed on their hot
to be a staple dish when every hotel was
But for me, I had to hit the hot carvery.
competing for your brunch business a few
The chef cooked me a perfect foie gras on
years ago, but it has disappeared from most
toast topped with the traditional fresh fruit
And is it expensive? Well no. I reversed
Go for it. Michael Barclay Mab.media@dnt.r0
www.business-review.eu Business Review | October 2019
46 CITY
Cultural calendar
By Oana Vasiliu
Festival in Sibiu, which will screen 126 films made in over 45 countries from around the world. Some 46 documentaries divided into four sections will be compet-
Béjart Ballet Lausanne October 12-13, Sala Palatului
Calin Stegerean is the Austrian
and intimate, the material was
ing for awards. The program is
artist’s first exhibition in Bucha-
well received by both fans and
completed by dozens of excep-
Late choreographer Maurice
rest. For Lechner, photography
the media. Tickets start from 99
tional films grouped by their
Béjart was a major part of world
is not just a means of recording
RON.
topics into 12 special themes,
choreography throughout the
a pre-existing reality, but a tool
twentieth century. On October
for creating new images and
12 and 13, Béjart Ballet Lausanne
ideas. With roots in the historical
returns to Bucharest with its
avant-garde, the artist’s pho-
latest contemporary show, which
tos are just the visible part of a
includes “Tous les hommes
reflective process that deals with
presque siempre s’imaginent”
human body metamorphoses in
and “7 Greek dances”. Béjart
relation to the superstructure
always wanted to open up the
represented by clothing, work
ballet world to a wider audience.
tools, and entertainment. Made
Encouraged by the same spirit,
using traditional photographic
Gil Roman and his dancers keep
techniques, without digital inter-
Mathias Eick is one of the most
his work alive, representing it in
ventions, the photographs have
highly regarded trumpeters
A pioneer of electronic jazz, Nils
competitions all over the world,
also occasioned the production
in the new wave of European
Petter Molvaer is a contempo-
major events, official receptions,
of sculptural objects included in
instrumentalists. In 2007 he won
rary wizard of sounds. Nordic
and charity events. Prices start
the compositions, which will be
the prestigious International
poetry melts into the rhythms
from RON 150.
seen in the selection in Bucharest
Jazz Talent award given by the
of electronic music, giving way
for the first time.
Jazz Festivals Organization in
to the hypnotic incantations
New York, and in 2009 a Statoil
that Molvaer’s trumpet harbors
scholarship, the most coveted
in delicate layers, announcing a
in Norway. Musically inspired
journey from which you can only
by Miles Davis, Chet Baker and
return richer. Molvaer has put
Enrico Rava, Eick is a member of
his imprint on more than forty
the Trondheim Jazz Orchestra.
albums in different lineups – with
He plays trumpet, double bass,
the famous Masqualero group,
vibraphone, piano, and guitar,
and in collaboration with artists
his signature sound featuring on
such as Dhafer Youssef, Django
no fewer than a hundred record-
Bates, Lars Danielsson, Eivind
ings. Tickets cost RON 50.
Aarset, Manu Katche and Sidsel
Tina Lechner exhibition Oct 4 - Nov 4, Mobius Gallery
Hooverphonic concert October 10, Hard Rock Cafe
Hooverphonic return to Romania
which will bring to the big screen
Mathias Eick Quintet October 14, Control Club
Nils Petter Molvaer October 21, Control Club
Endresen. A composer of film
on a tour to promote the Belgian
and theater music, he is consid-
Stars, launched last year, which
Astra Film Festival Oct 14-20, Sibiu
marked the debut of artist Luka
This year marks the 26th edition
and courageous European instru-
Cruysberghs as a soloist. Intense
of the International Astra Film
mentalists.
band’s latest record, Looking For
The upcoming show, curated by
today’s hot topics.
ered one of the most inventive