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MACEDONIA INTRODUCTION • President Highlights Macedonia’s Progress and Future Goals

• Prime Minister Discusses Development Targets

• Protecting the Environment a Top Priority

• Italy a Committed Partner for Macedonia

• Promoting a Globally Integrated Economy

• Small Country with Big Advantages for Foreign Investors

• Brilliant

• Agriculture, Forestry and Water Resources Crucial for National Economy

FINANCE & INSURANCE

• Austria a Strong Diplomatic and Economic Partner

BUSINESS & INVESTMENT OPPORTUNITIES

• Solid Macroeconomic Fundamentals and Strong Growth Rates

• National Bank Inspiring Confidence

• One of Europe’s Fastest-Growing Economies

• IMF Praises Macedonia’s Economic Performance

• Mens Legis

• Triglav Insurance Macedonia

• Free Zones Authority Helping to Draw FDI

• Invest Macedonia, the Main Gateway for Investors

• The Voice of Macedonia’s Business Community

TOURISM • Supporting the Promotion of Macedonia’s Rich Cultural Heritage

• Setkom Rent a Car

• Bushi Resort and Spa

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President Highlights Macedonia’s Progress and Future Goals European Times: What progress has Macedonia made since the fall of Yugoslavia?

Dr. Gjorge Ivanov, President of the Republic

of Macedonia since 2009, was born in

Macedonia in 1960. He had a distinguished

academic career before entering government service, serving as a professor at the Law

Faculty in Skopje, visiting professor at the

University of Athens and other institutions,

and as the president of Macedoniaʼs Council for Accreditation in Higher Education. A supporter of free-market principles and

“I believe that if we Macedonians promote and support good people with good ideas, the future will be a positive one.”

political pluralism since the Yugoslavia era

European Times: How has Macedonia improved its business climate in recent years?

also known for his commitment to bringing

Gjorge Ivanov: Business is like water. It has to ﬂow downward, without obstacles. If investors face a lot of administrative barriers, they will choose another location for their investments. Macedonia has removed red tape for business ventures. The government’s reforms – for example of the education system, our administration

and as leading expert on civil society, he is Macedonia into the EU and NATO and to promoting peace in Europe.

Gjorge Ivanov: Macedonia has been an independent nation for 24 years and is committed to supporting a thriving, modern, open economy with a democratic government and a high quality of life. Macedonia successfully achieved the difﬁcult transition to democracy and a freemarket economy and is focusing on joining the EU and NATO, in spite of opposition from Greece. My government is dedicated to responding to the needs of the people of Macedonia and being very open to all. We have established People’s Ofﬁces where citizens can express their views. The government of Macedonia is also determined to offer the right conditions for the private sector to thrive. Thanks to the government’s reform measures, Macedonia now has a favourable business climate and is attracting more and more domestic and foreign investment.

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Sector

School of Young Leaders

and the business sector – have all been based on fulﬁlling the needs of foreign investors. We have had to change our former socialist system into one that encourages a free market and a strong private sector. Macedonian companies have demonstrated a willingness to adapt to new conditions and learn from foreign partners, and our people welcome foreign investors. Macedonia has positioned itself as a role model for the region in creating a successful modern economy. Macedonia is also making the most of its strategic location by investing in signiﬁcant improvements in transport infrastructure, including new roads and highways as well as renovations at the airports in Skopje and Ohrid. Macedonia offers low-cost building land, access to electricity, low costs and many more advantages, which is why Macedonia now has a high “Doing Business” ranking. The hard-working, hospitable Macedonian people remain our country’s most valuable asset. European Times: Macedonia is the home of many ethnic and religious groups. What is your government doing to promote harmony in the country’s diverse population and enhance inclusive growth?

Gjorge Ivanov: The Macedonian model is inclusive. All ethnic and religious groups have a voice in Macedonia and the Ohrid Framework Agreement is part of Macedonia’s constitution. Macedonia is currently organising an international conference on tolerance, the Global Conference on Dialogue among Civilisations. Macedonia has been a cultural crossroads throughout its long history and today our country cherishes its rich cultural heritage and is a positive example of a successful multi-ethnic, multi-cultural, multireligious democracy. European Times: As a former university professor, what is your vision and objective for Macedonia’s young people? Please elaborate on some projects you have initiated. Gjorge Ivanov: I have created many new programmes to encourage leadership among our younger generation. These include the School for Young Leaders, established by me and funded by the private sector for future leaders in business, culture, sports, education and government. Another project is the Best Young Scientist award to honour young people who can serve as positive examples

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for others. Macedonia already has many successful young people, for example musicians who perform all over the world. My message to Macedonia’s youth is that this country must continue to be dedicated to attaining the highest standards in every area and to supporting peace in the Balkans, a region that has seen too many conﬂicts. Macedonians want their country to join the EU and NATO because we view the EU and NATO as forces for peace. The present generation wants future generations to enjoy peace and prosperity.

“I want my son and later generations to live in a stable Macedonia where they feel safe and can build on the accomplishments of those who came before them rather than having to start from scratch all over again.” European Times: Macedonia is a country with a rich bio and cultural diversity. How do you see the country’s potential as tourism destination? Gjorge Ivanov: Macedonia has beautiful mountains, rivers and unspoiled rural areas. In addition, although Macedonia is a young country, it has an ancient, vibrant cultural heritage based on centuries of history since the Neolithic period, including the time when Macedonia was part of the Byzantine and Ottoman empires. The Struga Poetry Festival and the Ohrid Summer Festival, both international events held here in Macedonia, are just two examples of Macedonia’s support for culture. Macedonia also has many monuments cherished by different religious groups, from mosques to churches and our Holocaust Centre, which includes a school. Visitors can view Byzantine frescoes; walk along Macedonia’s part of the Via Egnatia, which was part of the great Silk Road; explore Ohrid’s 365 churches and

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monasteries; tour historic Bitola or the beautiful painted mosque in Tetovo; and much more. People come to Macedonia for the first time by accident, and then they come back because of their positive experiences on their first visit. Those who have come to Macedonia once will continue to come here, especially because of the people in Macedonia, their hospitality, receptiveness, openness and willingness to communicate. Macedonia also offers wonderful food and great wine. European Times: What is your personal message about Macedonia? Gjorge Ivanov: There is an American saying which is very true for Macedonia: the past is history, the future is a mystery, but the present is a gift. I believe that this means that we must work in the present to make sure that future generations can build on a positive past. Our country has already seen significant changes. For example, our ancestors might have spent all their lives in the same village while the country’s national status changed seven times. Their children lived in a country whose status changed six times. My father’s generation experienced four changes of national status, and I have seen two such changes in my lifetime. I want my son and later generations to live in a stable Macedonia where they feel safe and can build on the accomplishments of those who came before them rather than having to start from scratch all over again. I want to ensure that Macedonia has solid foundations on which we can build a bright future for all. The world is in a volatile state, with problems in Africa, the Middle East, Ukraine and other areas causing fear in people all over the world, including in Macedonia. I believe that if we Macedonians promote and support good people with good ideas, the future will be a positive one. My personal message to potential visitors and investors is, “Come to Macedonia!” This country is unique but is also similar to other countries around the world. I believe that if you come to Macedonia, you will fall in love with the country on first sight. I urge you to come and see for yourself what we have, so that you can personally experience the hospitality and openness of the Macedonian people and the many opportunities our developing economy offers to investors.

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Introduction

Prime Minister Discusses Development Targets European Times: What have been your main priorities and focus as Prime Minister of Macedonia for the past eight and a half years?

Nikola Gruevski, Prime Minister of Macedonia

since 2006, is known for his modern, pro-business

approach

economic

development. He was the ﬁrst trader on Skopjeʼs stock exchange, published articles on economics, and began his political career

as a city counsellor in 1996. Later he served as Macedoniaʼs Minister of Trade and Minister

of Finance. Known for spearheading the deregulation and opening of the Macedonian

economy, he introduced the value-added tax, a ﬂat tax, and a policy to restore property,

which had been conﬁscated by the communist regime. He heads the VMRO-DPMNE political

party. The Prime Minister discusses his

administrationʼs accomplishments and goals for Macedonia.

Nikola Gruevski: My administration has always focused on five key strategic goals. One goal is to develop the Macedonian economy and enhance quality of life for Macedonians through improving the business climate and creating investment incentives. The second goal is to integrate Macedonia into the EU and the Euro-Atlantic region. Our third goal is to promote good relations among members of Macedonia’s ethnic groups and to give every Macedonian an equal chance to achieve a good life. Our fourth goal is to maintain the rule of law and to fight corruption. Finally, we aim to promote a knowledge-based economy in Macedonia through supporting education and innovation. We also have goals concerning healthcare, agriculture and the environment, but these five strategic goals are our main targets. European Times: The World Bank’s “Doing Business” report for 2015 ranks Macedonia the third-best country in the world for starting a business. How has your administration achieved this and what was its main strategy? Nikola Gruevski: When I became Prime Minister in 2006, the biggest challenge Macedonia faced was unemployment. In the belief that establishing better conditions for doing business would lead to job creation, my administration reduced taxes and introduced flat 10% corporate and personal income taxes, lowered the costs of doing business in Macedonia (including reducing VAT in 10 sectors from 18% to 5%), streamlined bureaucracy through our Regulatory Guillotine project (developed with the help of the Chamber of Commerce and around 300 private companies), reduced customs duties, and reduced companies’ contributions to health and pension funds by about one-third. Because of these measures, Macedonia is now one of the most competitive countries in the world concerning business costs. European Times: Your administration has made remarkable changes in Macedonia’s education system. Can you elaborate on those changes?

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Sector

Nikola Gruevski: We have focused on improving the quality of education as well as expanding opportunities for education. My administration introduced free, mandatory secondary school in addition to primary school, added instruction in several languages to the curriculum, introduced classes in ICT training, and ensured that every child in primary or secondary school would have access to a computer and to training in how to use it. Concerning higher education, we invested extensively in equipping laboratories to support research and had around 1,000 textbooks used by the world’s top universities translated into Macedonian. My administration also introduced a programme to connect universities with the private sector. For example, a company creating a project that will require a certain kind of human resources can work with a university to ensure that the right human resources will be available. European Times: What are the main assets for any international investor to come and do business in Macedonia? Nikola Gruevski: My administration developed Technological, Industrial and Development zones (free zones) to serve as the ideal base for foreign investors. Four of these zones are fully operational and another 10 are under construction and will be completed by the end of 2015 or 2016. These zones provide additional investment incentives, including 10-year tax holidays which exonerate export-oriented companies from paying VAT, customs duties or other taxes. In addition to this advantage, companies can beneﬁt from Macedonia’s free-trade agreements with the EU and with Turkey, Ukraine, Switzerland, the EFTA countries and all other countries on the continent except Russia. Although Macedonia is a market of only two million, it provides privileged access to around 600 million consumers through its free-trade agreements. The Macedonian government also

offers subsidies of up to €500 million for establishing a new business and creating jobs. So, in Macedonia investors will find skilled workers, low costs, some of the lowest taxes in the world, free zones, free-trade agreements, and a worldclass business climate. In 2006, Macedonia was ranked 94 in the world for doing business according to the World Bank, and we have raised that ranking to 30, which means that Macedonia is a better place to do business than 16 EU countries and better than all other countries in the region. Macedonia is also number one in Europe and number six in the world concerning its central registry of companies. Investors can register a new company in only four hours. European Times: What about macroeconomic and political stability? Nikola Gruevski: Macedonia’s economy has been performing very well. Inflation is low (around 1% to 2% per year), public debt is 38% of GDP (one of the lowest in Europe), unemployment has declined from 38% in 2006 to 27.9%, and Macedonia’s GDP in the first three quarters of 2014 grew by 4.1% over the previous year, which was the third-strongest growth in Europe. Macedonia’s economy was also the third-fastest-growing in Europe in 2013. Concerning political stability, my administration earned a victory in the latest parliamentary elections, so its projects will continue until 2018 at least. European Times: Accelerating economic growth is one of the key pillars on the agenda of your administration. How are you ensuring that this growth is inclusive and thus beneficial for the entire society? Nikola Gruevski: My administration is promoting inclusive growth and development in all sectors, but we particularly welcome investment in ICT and software development, electronics, auto components, agriculture, food

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Introduction Sector

products, and pharmaceuticals. Macedonia aims to attract investment in both labour-intensive industries that create jobs and in knowledge-based projects demanding highly skilled human resources. European Times: What is the main focus of your administration for the nearby future? Please elaborate on some major future projects. Nikola Gruevski: We are discussing creating an international financial zone in Skopje to attract FDI in financial services. We want the zone to offer ideal conditions (including low taxes) for global financial-services companies, which could establish their headquarters here in Macedonia. We are structuring new laws for this project and hope to welcome the first companies by the end of 2015 or the beginning of 2016. We will continue to develop Macedonia’s energy sector and its road and rail infrastructure through massive projects supported by the World Bank, the EBRD and the EIB. European Times: What is your vision for Macedonia within five years from now?

Nikola Gruevski: Macedonia will have many more companies, much lower unemployment, even more satisﬁed investors, and many new projects in development. Macedonia will continue to offer some of the best conditions for doing business in Europe. I believe that if international companies come to Macedonia, they will ﬁnd that this is not only an excellent investment location but also a very attractive place to visit and live in. At last year’s World Economic Forum, Macedonia was named number four in the world in openness to foreigners. My message to international investors and travellers is that Macedonia is not only an outstanding investment choice but it is also a wonderful place to live and make new friends.

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Protecting the Environment a Top Priority building more wastewater-treatment plants. Continuing challenges include a need for both local administrators and the general public to be more aware of the importance of environmental protection, and a need for more investment in projects to protect the environment, such as upgraded public transport or central heating systems in urban areas. We also need to obtain more ﬁnancial support for protecting Macedonia’s biodiversity and to implement policies to mitigate against climate change as we develop our energy and agriculture sectors. Macedonia welcomes FDI projects which will help us to improve and protect our environment. European times: What are some of the ministry’s current projects? Macedonian Minister of Environment and Physical Planning Nurhan Izairi, who recently participated in the international

Economic Cooperation Organisation Climate Change Conference, is a strong advocate for environmental protection in Macedonia and beyond. He discusses his ministryʼs priorities and projects. European Times: What role does the Ministry of Environment and Physical Planning play in Macedonia’s economic development? Nurhan Izairi: The ministry is currently regulated by more than 10 laws and more than 400 bylaws, which reﬂects the emphasis Macedonia’s government places on environmental protection in all areas of the economy and society. The ministry’s main goals are to regulate industrial operations through issuing and enforcing integrated environmental-protection permits, to attract national and international funding for wastewater and

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water infrastructure and management, and to establish central and local administrations committed to ensuring highquality environmental performance. The ministry focuses on helping Macedonia meet EU environmental criteria as the country works toward EU membership. European Times: What progress has Macedonia made in protecting the environment? Nurhan Izairi: Macedonia has made great progress in recent years. Most industrial facilities have improved their environmental performance and we are

Nurhan Izairi: The ministry has developed a number of strategies to improve air quality in Macedonia, including a national programme to reduce air pollution over the period 2012 to 2020. The ministry is also implementing a national water strategy for the coming 30 years, in line with EU directives, as well as EU-mandated measures to safely dispose of electric and electronic waste products. These are just examples of the many environmentrelated projects currently underway. European Times: What are your goals for the future? Nurhan Izairi: Now that Macedonia has established a comprehensive legal framework for protecting the environment, the ministry will focus on enforcing these laws. Transition periods for adjustment have already expired. There is no longer any excuse for non-compliance.

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Introduction

Italy a Committed Partner for Macedonia HE Ernesto Massimino Bellelli, Ambassador of Italy in Macedonia

European Times: What are some recent trends in bilateral trade and investment? Massimino Bellelli: The value of the two countries’ bilateral trade rose by 7.45% in 2014 to reach around €672 million and Italy expects this to continue to grow to €1.5 billion in the next 10 years. Italian investment in Macedonia is also increasing. The Italian embassy organised a business forum last year to promote investment in Macedonia, and almost 100 Italian entrepreneurs participated. In 2014 alone, three new Italian investment projects were launched in Macedonia. Macedonia’s agriculture, ICT and automotive sectors are very attractive to Italian investors, and the tourism sector is another economic opportunity, especially now that Alitalia has daily ﬂights between Rome and Skopje. The Italian embassy is supporting bilateral cultural exchanges; such as an exhibit in Skopje last year on Ravenna’s mosaics, and Italy is ready to help Macedonia develop cultural tourism.

Italy and Macedonia are strengthening their trade and diplomatic ties, and the Italian Embassy

in Macedonia is an inﬂuential advocate for more partnerships between the two countries.

HE Ernesto Massimino Bellelli, Ambassador, discusses recent bilateral projects.

European Times: Can you describe the relationship between Macedonia and Italy? Massimino Bellelli: Italy is deeply engaged in Macedonia on the economic, diplomatic and military levels. Italy, as a member of both the EU and the Quint Group, is committed to supporting Macedonia in its efforts to achieve EU integration, NATO membership, and a resolution of the name dispute with Greece. Italy is helping Macedonia strengthen its regional ties, for example through supporting the Corridor 8 transport project as well as Macedonia’s presidency of the Central European Initiative this year.

European Times: Why should investors choose Macedonia? Massimino Bellelli: Macedonia offers very attractive costs of doing business along with many potential investment projects. Macedonia is ranked number three in the world in starting a business in the World Bank’s “Doing Business” report for 2015. A problem is that many international investors and especially in Italy still do not know much about Macedonia and its potentialities, although, Macedonia is quite popular name in our cultural background, being a sort of a harmonious melting pot for its ethnical and religious variety and representing, under this point of view, a “successful story”. The Italian Embassy is trying to promote this image and to present the investment and business opportunities here in Macedonia towards the Italian companies. European Times: What is your personal message about Macedonia? Massimino Bellelli: I believe Macedonia has a very positive future and could grow tremendously in the next few years compared to other countries in the region. Macedonia has a lot of assets and investors should be aware of opportunities here.

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Austria a Strong Diplomatic and Economic Partner strives to promote balance and cooperation among Macedonia’s ethnic groups. Gerhard Schlattl: Concerning economic ties, bilateral trade between the two countries totalled €186 million in 2014. Austria’s main import from Macedonia is textiles, while its major export to Macedonia is beef for the food-processing industry. European Times: What are some trends in Austrian foreign investment in Macedonia? Thomas Michael Baier, Austriaʼs Ambassador to Macedonia since November 2011, and Gerhard

Schlattl, Commercial Attaché

at the Austrian Embassy in Macedonia, discuss the bilateral

ties between the two countries and its economic relationship.

European Times: Can you describe the relationship between Austria and Macedonia? Thomas Michael Baier: Austria and Macedonia have had diplomatic relations for two decades. Austria strongly supports the entry of Macedonia and other Balkan countries into the EU as a means of ensuring regional stability. In August 2015, Austria hosted the Second Western Balkan Summit, where discussions about regional political as well as economic issues were held. Austria and Macedonia already partner in a number of projects, including the ﬁght against organised crime, arms trading, human trafﬁcking, illegal drugs and terrorism. Austria and Macedonia also cooperate in several cultural, educational and tourism initiatives. In these projects Austria

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Thomas Michael Baier: Austria’s investments in Macedonia have not only created many jobs but have included a commitment to corporate social responsibility. Gerhard Schlattl: As the commercial section of the Austrian Embassy and at the same time part of Advantage Austria, the investment and export-promotion agency within the Austrian Federal Economic Chamber, we bring business delegations to Macedonia and provide a number of services to our member companies. Austria is one of the top two or three foreign investors in Macedonia today. Austrian companies are active in a wide range of sectors, including ICT, energy, electricity distribution, hydropower (including smallscale hydropower), banking and insurance, logistics, food processing and more. Austrian companies have created around 10,000 jobs in Macedonia and, thus, are an integral part of the Macedonian economy. European Times: What are the main challenges for foreign investors in Macedonia? Gerhard Schlattl: According to our latest business climate survey among Austrian companies, the main challenges are a lack of liquidity, corruption and a need for better infrastructure. Getting paid by state-owned companies and

government institutions for equipment and services can be a challenge because of the liquidity problem, which also affects the local private sector. However, Austrian companies are very active in Macedonia. We serve around 400 companies a year which seek business contacts with Macedonian companies. In short, the better you treat and ﬁnd solutions for companies here, the higher the chance is that these companies will act as the most credible and best promoters for the country among future potential investors. Thomas Michael Baier: Macedonia needs to create an investment climate with a certain guarantee of stability. If an investor enters the market and laws are changed a few months later, this would foster insecurity. Macedonia’s entry into the EU and NATO would certainly promote more FDI into the country. European Times: Why should investors choose Macedonia? Gerhard Schlattl: Macedonia has been successful at attracting foreign companies to its free zones, which offer special incentives. Sectors with good growth potential include energy, hydropower and food processing, where Macedonia has the potential to move up the value chain and export higher-value products. European Times: Your vision for the future? Thomas Michael Baier: The future primarily depends on the question of the Euro Atlantic agenda. This is the most important thing that we all have to work for together, if it comes to further developing Macedonia and our bilateral ties. This objective is crucial for the future of Macedonia and for the entire region.

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• One of Europe’s Fastest-Growing Economies • Free Zones Authority Helping to Draw FDI • Invest Macedonia, the main gateway for investors

Business & Investment Opportunities

“Macedonia’s economy was the third-fastest-growing in Europe in 2013 and 2014. Macedonia remains committed to the reform process in order to continue to improve its business climate and economy.” Bekim Neziri, Minister of Economy

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One of Europe’s Fastest-Growing Economies Bekim Neziri, Minister of Economy

Macedoniaʼs strategic-development plan, which is fully aligned with EU policies, focuses on promoting economic growth and competitiveness,

improving the business climate, upgrading infrastructure and facilitating human-capital development while also enhancing quality of life for Macedonians. Bekim Neziri, Minister of Economy, discusses his countryʼs economic strategies.

European Times: What is the main strategy and objective of the Ministry of Economy? Bekim Neziri: The government’s main goal is to achieve Macedonia’s entry into the EU and NATO, and the Ministry of the Economy is contributing to this effort. The ministry is also working to attract foreign and domestic investment to Macedonia through upgrading the business climate.

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Macedonia aims to develop a competitive economy which offers opportunities for all, in line with the EU’s Europe 2020 and South-eastern Europe 2020 strategies. Macedonia’s economy was the third-fastest-growing in Europe in 2013 and 2014, and in the Global Competitiveness Report 20142015, Macedonia was ranked number 63 out of 144 countries. Macedonia remains committed to the reform process in order to continue to improve its business climate and economy.

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Sector Opportunities Business & Investment

European Times: Please elaborate on some major projects running under the Ministry of Economy currently? Bekim Neziri: The ministry is developing cluster programmes for key economic sectors, promoting entrepreneurism and SMEs, implementing EU standards of quality, facilitating growth in exports, and supporting an efﬁcient, competitive and ﬁnancially viable energy sector which is integrated into regional and international energy markets, among many other initiatives. The Ministry of Economy partners with the World Bank in many projects, including concerning competitiveness, the business environment, SME development, industrial policy, indicators for monitoring and evaluating private-sector development, innovation support, creating links between foreign investors and local suppliers, energy development, tourism and many other areas. The World Bank-Macedonia Country Partnership Strategy for 2015-2018 focuses on two pillars: economic growth and competitiveness, and skills development and inclusion. European Times: How are Macedonia’s leading export-oriented sectors performing? Bekim Neziri: Macedonia’s industrial production accounted for around 15.7% of GDP in 2013 and grew by 4.8% in 2014. The main industrial sectors are metallurgy, textiles, food processing, pharmaceuticals and the automotive industry. Over the past few years, the ICT sector has also grown rapidly. These sectors are Macedonia’s top sources of exports. For example, in 2014, exports of metals and metal products accounted for 24% of Macedonia’s total exports, while textiles accounted for 16.7% (as well as 42% of total industrial jobs) and the production of food products and beverages accounted for over 10% of exports. Macedonia is currently promoting adding value to our traditional exports.

of its energy and is working to reduce this burden by building major hydropower plants on the Crna River along with small hydropower plants. Tenders will be offered for these projects and Macedonia aims to sign 23 concession agreements for small hydropower plants in 2015. Macedonia is also building a 400-kV electricity-transmission line and aims to connect this line with Albania’s energy grid. Another major energy project is to build a new natural-gas pipeline as well as new gas-distribution systems. Macedonia also supports projects to build small biogas and solar energy plants. Concerning the minerals sector, many major projects are underway to exploit Macedonia’s copper, gold, silver, lead, zinc and other minerals resources. Macedonia encourages FDI which has a positive influence on GDP, boosts exports, opens up new markets, transfers technology and know-how, develops new skills and creates new jobs. European Times: How has FDI contributed to Macedonia’s economic development so far? Bekim Neziri: FDI has played a major role in Macedonia’s GDP growth, which totalled 3.7% in 2014, a 1% increase over 2013. Macedonia attracted €2.9 billion in FDI between 1997 and 2013 and €200.6 million in 2014. Last year, FDI accounted for 3.6% of Macedonia’s GDP and we expect that this percentage will continue to grow to reach 4.2% in 2017. Macedonia has a very favourable tax regime, with a flat 10% tax on profits and income, 18% VAT with a 5% preferential rate for tourism services, no tax on profits for SMEs, and no tax on reinvested profits. Macedonia’s legislation treats foreign and local investors equally and protects investors. Thanks to a strategic location, growing productivity and competitiveness, many free-trade agreements and investment incentives, one-stop-shop services for investors, publicprivate partnerships, low-cost building land and many other advantages, Macedonia has positioned itself as a very attractive choice for FDI in many sectors. Macedonia is ranked number 30 and the leader in the region in the latest World Bank “Doing Business” report.

European Times: Which industries in Macedonia’s economy have strong potential for international investors?

European Times: What is your personal message to potential investors looking at the Balkan Region?

Bekim Neziri: Macedonia welcomes FDI in energy, mining, manufacturing, ICT, tourism and other sectors. In the energy sector, for example, Macedonia now imports 47%

Bekim Neziri: Macedonia is an excellent choice for FDI and an ideal gateway to a European market of 650 million consumers.

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World-Class Law Firm Essential Partner for Investors Ljubica Ruben, founder, owner and Managing Partner

The Mens Legis team is characterised by a passion for excellence and a commitment to providing the highestquality legal services for every client, every time. Ljubica Ruben notes, “We seek to ensure that our clients can beneﬁt from our local excellence, knowledge and experience. We are determined to help our clients achieve their goals and even go beyond them. We aim to exceed our client’s expectations.”

Thinking outside the box

Mens Legis, founded in 1995 as Macedoniaʼs

ﬁrst law ﬁrm, has developed a wide range of

world-class

legal

services.

Oﬃcially

rated a top-tier law ﬁrm, Mens Legis has an

exceptional track record in serving individual and corporate clients, both local and foreign.

Ljubica Ruben, founder, owner and Managing Partner, studied in the US and Europe and has a clear understanding of the needs of international investors. The firm’s prestigious client list includes the Euromax Resources Group, EBRD, Matav Rt. (Hungary), RWE Energy (Germany), Sencap SA – Greece, McDonald’s (US), GE Capital Aviation Services, Bombardier (Canada), Porsche AG – Germany, Chrysler LLC – USA, Fiat Group, IBM, Imperial Tobacco Group, the IFC, Siemens (Germany), Dräxlmaier Group and many more. Mens Legis has been singled out as the best choice in Macedonia for banking, finance and mergers and acquisitions. The firm also plays an important role in upgrading Macedonia’s legal environment. Ljubica Ruben points out, “We are helping to improve Macedonia’s legislation, make it more business-friendly and ensure that regulations are implemented.”

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Known for its proactive approach and ability to think outside the box, Mens Legis has developed expertise in many areas, including foreign direct investments, legal due diligence, mergers and acquisitions, privatisation, competition and anti-trust legislation, industrial-property protection, capital markets, banking, taxation, public-private partnerships, investment structures, environmental law, energy, insurance, infrastructure, real estate, franchises and more. Mens Legis has offices in Skopje and Ohrid and works with law offices in New York, London, Paris, Brussels, Dubai, Washington DC and other international locations. The firm has participated in most of the major local and cross-border transactions in Macedonia and is particularly active in duediligence, including large due-diligence initiatives for the privatisations of state-owned companies in Macedonia’s energy and telecom sectors. For foreign investors seeking a reliable, expert legal partner in Macedonia, Mens Legis is the right choice. As Ljubica Ruben explains, “We offer transparent services which meet high international standards. We are against corruption and favouritism of any kind, and our special personalised services set us apart from other firms.” Mens Legis Bul. Sv. Kliment Ohridski 54/3-2 1000 Skopje Tel.: +389 2 3126 462 mlegis@t-home.mk www.menslegis.com.mk

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MASTER REGIO

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Business & Investment Opportunities

Free Zones Authority Helping to Draw FDI Viktor

Mizo,

CEO

facturing, followed by services. Slowly but surely Macedonia is carving out a place on the global investment map. For example, ﬁve years ago Macedonia was not ranked among the region’s top 10 countries for investments, but now Macedonia is usually ranked in the top four or ﬁve.

the

Directorate for Technological Industrial

Development

Zones (Free Zones Authority),

discusses key developments concerning TIDZs and their advantages for business. He

European Times: How do you communicate Macedonia’s beneﬁts to potential investors?

also highlights Macedoniaʼs investment and for

unique

potential

investors.

opportunities

selling

points

international

European Times: How are free zones contributing to Macedonia’s economic development? Viktor Mizo: When investors consider Macedonia for their business development, they take into account many aspects, especially the fact that doing business in Macedonia means that companies can beneﬁt from advantageous operational costs, particularly in regards to infrastructure, as well as a qualiﬁed workforce and accessibility to decision-makers. Macedonia is focused on creating a customised package of incentives, and this puts us at the top of the list of many major corporations looking to expand their operations. So far, thanks to all the measures undertaken by the government, this strategy has proven to be successful and our free zones are working well. In 2014, 30% of Macedonia’s overall exports were from TIDZs. European Times: What is the role of the Free Zones Authority concerning foreign investors?

Viktor Mizo: The Free Zones Authority aims to develop 14 different free economic zones throughout Macedonia. These zones will foster economic development all over the country and will give industries access to the workforce they need. The Authority is a one-stop-shop institution whose services include dealing with customs and the public-revenue office, obtaining work or residency permits for expats, and communicating with government institutions. European Times: What progress are you making in developing free zones? Viktor Mizo: At the moment, we have 13 free zones at different levels of development. Three are fully functional, and more will be operational by the end of this year, as we are finalising the infrastructure for them. By the end of 2015, we will have around 20 companies operating in our free zones. In our efforts to promote economic development and investment, we are first focusing on manu-

Viktor Mizo: We make an effort to get in direct contact with potential investors and to supply relevant information through international publications, congresses and events. When people see presentations on Macedonia and receive some information about us, they are interested in coming here to learn more. The Free Zones Authority is actively engaged in enhancing Macedonia’s international exposure, as we consider that only with an open approach we can show the country’s true potential. European Times: What changes would you like to see in Macedonia in the coming ﬁve years? Viktor Mizo: I would like unemployment to drop from 27.9% to 20% and for Macedonia’s GDP growth to top 4% per year. I would also like to see three times the current number of foreign multinational companies present in Macedonia. European Times: What is your personal message to our readers? Viktor Mizo: We are a country with a solid plan for development, stability, and competitive advantages compared to other countries in the region. Investors should visit Macedonia to discover its advantages for themselves.

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Invest Macedonia, the Main Gateway for Investors European Times: What are the main tasks of Invest Macedonia? Kliment Sekerovski: Invest Macedonia is a government institution in charge of attracting new foreign investments to the country and supporting the growth of foreign companies already present in our country. The Agency also promotes local companies in foreign markets and helps them boost their exports. Invest Macedonia’s in-depth experience of the domestic business environment, knowledge of opportunities both present here and abroad, and close collaboration with many partners and organisations, including all the government ministries, allows the Agency to help both local and foreign companies add value to their business ventures. Invest Macedonia is a proactive, professional organisation committed to meeting the needs of our business community. European Times: What services does Invest Macedonia provide to investors?

Kliment Sekerovski, Deputy CEO of the Agency for Foreign Investments and Export

Promotion of the Republic of Macedonia -

Invest Macedonia, discusses the countryʼs outstanding

investment

opportunities.

He also highlights the many services the dynamic, pro-active Agency oﬀers foreign investors.

Kliment Sekerovski: The Agency has 35 promoters around the world, with a particularly strong presence in strategic markets. For example, we have seven promoters in the US, five in Germany and three in the UK, since these are the markets from which we anticipate the most FDI. Wherever Invest Macedonia operates, our goal is to work directly, face-to-face with investors to help them find solutions to any problems and make their operations more efficient and successful. If a company needs to be advised on labour law or local regulations, we are here to provide assistance. If a foreign company is looking for local suppliers, we can suggest some. Invest Macedonia is available to investors 24/7 and is the ideal local partner for foreign companies. We provide support for FDI projects through every phase of the process, from initial queries to expansion after the business has been operating. In fact, a special division has been created to help companies expand, for example through helping them find the right employees and local suppliers. We completely focused on providing services to investors.

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Business & Investment Sector Opportunities

European Times: Why should foreign investors target Macedonia? Kliment Sekerovski: Our country offers both macroeconomic and political stability as well as a very strategic location which allows the country to serve as a bridge between Europe and global markets. Macedonia’s economy is growing; unemployment has been reduced from around 36% in 2006 to 27.9%, which reﬂects the country’s economic health. We have a low inﬂation (around 2% for the past 15 years), a low debt level, a streamlined process for registering a company (now only four hours), low and stable labour costs, a business-friendly regulatory environment that is constantly being improved, reliable sources of energy, advanced ICT infrastructure, skilled workers and a strong commitment to making Macedonia a productive and fully integrated member of the EU. As a further advantage for investors, we have created 15 special economic zones all around the country, all of them with access to the right kinds of labour resources. We provide the investors with a number of incentives for investments, including tax holidays.

intensive manufacturing companies, high-tech companies, and companies involved in research and development. Macedonia offers incentives to all three types of companies and welcomes enterprises which can create new job opportunities and bring in new knowledge and technologies.

“Our country offers both macroeconomic and political stability as well as a very strategic location which allows the country to serve as a bridge between Europe and global markets.”

European Times: Which economic sectors are particularly strong in Macedonia?

European Times: What is your personal message to potential investors?

Kliment Sekerovski: Thriving sectors in Macedonia include automotive manufacturing, which has already attracted signiﬁcant international investment; the ICT sector; and business-process outsourcing. Investors in ICT are attracted to the highly skilled ICT labour force, competitive costs and fully digitalised infrastructure. Concerning BPO, we offer a skilled, multilingual and almost 100% English-speaking population, and more and more companies are moving their BPO operations from India to our country.

Kliment Sekerovski: Invest Macedonia! The government is 100% committed to providing you with the best possible conditions for making your business ventures in Macedonia a success. You can beneﬁt from these conditions as well as from Macedonia’s very strategic location. Macedonia has also positioned itself as a strong international partner. Even though we have not yet been allowed to join the EU, the country has signed 45 bilateral agreements, including with the EU, EFTA, Ukraine, Turkey, and Moldova. Macedonia has also signed agreements with many countries to allow investors to avoid double taxation. These many agreements mean that any company operating in Macedonia can count on privileged access to markets throughout Europe and beyond, including the market with its 650 million potential customers. Macedonia is the right choice for international investors.

European Times: What kind of investors is Macedonia looking for? Kliment Sekerovski: We have created the Free Economic zones in order to attract three types of enterprises: labour-

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The Voice of Macedonia’s Business Community enterprises, creating a platform where companies can share experiences and learn from one another. Our motto Membership is power! - reﬂects our view that only unity can give businesses a strong voice.

Jelisaveta Georgieva, Vice President

and

Chamber

Executive

Director of the Economic discusses

the

Macedonia,

Chamberʼs

main goals. She also outlines the services the Chamber oﬀers to its members, both domestic and foreign.

European Times: Can you describe the Economic Chamber of Macedonia? Jelisaveta Georgieva: The Economic Chamber represents around 15,000 individual members as well as 20 associations representing different sectors in the Macedonian economy. These include the banking, energy, mining, construction, agriculture and insurance sectors, which are the most prominent ones in the Macedonian economy and create the foundation for other sectors to develop and thrive. In fact, the Chamber unites the country’s biggest private employers and a substantial number of small and medium

120

The Economic Chamber also cooperates with regional and local chambers, as well as with the Foreign Investors Council, and is a member of the European Chambers of Commerce, the International Chambers of Commerce, and the Association of Balkan Chambers, of which we are serving as the president this year. European Times: What role does the Economic Chamber play in Macedonia’s private sector? Jelisaveta Georgieva: The Economic Chamber is the voice of the local business community and plays an important role as a liaison between the private sector and the government. Our Chamber is in daily contact with Macedonia’s ministries and represents the interests of our members when the government is discussing new laws and regulations. One of our central goals is to foster successful communication and networking, which are essential to successful business cooperation. European Times: How can the Economic Chamber help foreign investors? Jelisaveta Georgieva: Our mission is to help all of our members, both

domestic and foreign. We have developed a number of initiatives to connect domestic and foreign companies and have established programmes with several embassies. The Chamber also provides its members with up-to-date information – for example through our award-winning web site – about all issues affecting the business sector. European Times: What are some of the Chamber’s current projects? Jelisaveta Georgieva: The Chamber is very involved in educational and training programmes for our members, our staff and local chambers. The Chamber established a department for projects last year and is currently coordinating a project titled “BUILD UP Skills - Builders’ Energy Efficiency Training” aimed at improving the energy efficiency skills of building sector workers. We also collaborate closely with CEFTA countries concerning the elimination of non-tariff barriers. In addition to this, we are working on projects with the Association of Balkan Chambers focused on improving the flow of goods on European corridors VIII and X. One of our key projects is EII: Export, Infrastructure and Investment. Another of the Chamber’s top priorities for the coming five years is to enhance the competitiveness of Macedonia’s economy. Foreign investors should know that Macedonia offers huge potential and the Economic Chamber is the ideal local partner.

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Promoting a Globally Integrated Economy European Times: What is your mandate as Minister of Foreign Affairs? Nikola Poposki: Macedonia’s foreign policy focuses on the country’s integration with NATO and the EU. Macedonia wants to join NATO not just for security reasons but because NATO membership is a sign of a country’s stability, prosperity and predictable environment. Concerning the EU, Macedonia has been a candidate country since 2005 and will continue to work towards EU membership in spite of opposition from Greece. The Macedonian economy is already extremely integrated into the EU, which accounts for around 90% of our country’s trade and investments. Macedonia sees itself as a productive member of the regional and global economy, not just as a country of two million people in the Balkans. Macedonia is positioning itself as a desirable base for business where companies can beneﬁt from easy access to a market of 660 million in the EU, EFTA and CEFTA trade blocks as well as (through bilateral free-trade agreements) Turkey and Ukraine. Macedonia even has strong ties to the Greek market in spite of the two countries’ political disagreements. Greece is one of Macedonia’s main trade partners, and six of the top 10 companies on the Skopje Stock Exchange have Greek capital.

Nikola Poposki, Macedoniaʼs 37-year-old

Minister of Foreign Aﬀairs, represents a new generation of dynamic, young, internationally minded

leaders

the

Macedonian

government. Educated in France, he studied and worked in the UK and Ireland and

served as Macedoniaʼs representative to the EU in Brussels before taking up his current post in 2011. He discusses Macedoniaʼs foreign-policy priorities and objectives.

European Times: What is the Ministry of Foreign Affairs doing to help Macedonia join the EU? Nikola Poposki: It is clear that Macedonia needs an invitation from all 28 EU member states to join the club and that our road to the EU must pass through Athens. Macedonia is very motivated to overcome this obstacle. This ministry is focusing on three main pillars regarding Macedonia’s EU future. One is to improve relations with Greece to help counter resistance to Macedonia’s EU accession. The second is to make EU leaders more aware that the International Court of Justice has ruled that it is illegal for Greece to block Macedonia’s EU accession based on a name issue. In 2011, the message Macedonia received from Greece was essentially “You may be right in terms of international law, but we still have power over you.” This may be a valid argument in a jungle but not in a European context where the rule of law

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to a favourable tax regime, a strategic location near growing markets, stability and predictability, a skilled multilingual population, and a very business-friendly administration. European Times: What progress is Macedonia making in attracting FDI?

Arena Filip Vtori

should be paramount. The third pillar which the Ministry of Foreign Affairs is focusing on is the international market. Like all other European countries, Macedonia must prepare for the future, and this means strengthening our international diplomatic and economic ties and not just our European ones. European Times: Why should international investors choose Macedonia even though it is not yet an EU member? Nikola Poposki: The Macedonian government is well aware that the country needs the capital, know-how, management skills and technologies which foreign investors can bring. Foreign investments can have a multiplying effect on the national economy by spurring on growth and creating jobs as well as new opportunities for local suppliers. To help draw FDI,

Macedonia complies with EU regulations, including in our free-trade industrial zones. Macedonia is committed to being competitive not only in the EU but also in the global marketplace. The government has been working hard to make sure that Macedonia offers everything a potential international investor might have on a check list and has made great progress in enhancing the country’s investment attractions by cutting red tape, streamlining procedures and in general improving the stability and efﬁciency of the business climate. In the World Bank’s global “Doing Business” report, Macedonia has climbed from 98 in the ranking to 30. In addition, Macedonia has been ranked one of the world’s top ﬁve reformers for the past four years and its central registry system is ranked number one in the world. Macedonia offers a complete package of attractions, from low costs of labour and doing business

Nikola Poposki: As a result of the government’s efforts to improve the business climate and offer investment incentives, Macedonia has attracted major investments from around 25 leading global enterprises in a variety of sectors, including automobile components, electronics, pharmaceuticals and more. Most of these companies do business mainly with the EU. Around one-third of Macedonia’s foreign trade is with Germany, for example. Now the government is working to attract investors in new sectors, including ﬁnancial services, manufacturing of new kinds of products, and ICT. Attracting FDI will continue to be at the top of Macedonia’s list of priorities for the coming decade. Over the past two years, the number of foreign investors in Macedonia has grown rapidly and we anticipate that this will have a multiplying effect on FDI in the future. Macedonia is deﬁnitely on the right track in positioning itself as a very desirable investment destination. European Times: How is Macedonia making global investors aware of its attractions? Nikola Poposki: In spite of the

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impressive progress Macedonia has made in recent years, many investors still do not even know where the country is on the map, so we have been promoting ourselves worldwide. For a small country, Macedonia has an extensive network of embassies, including one we opened in 2014 in Tokyo, Kazakhstan and Abu Dhabi, and all our ambassadors are promoting Macedonia globally. The Macedonian government has also launched international road shows to bring the message about Macedonia to a global audience. In addition, Macedonia’s high-level government leaders, including the Prime Minister, are travelling all over the world to have direct contacts with potential partners. Macedonia is also stepping up its international marketing, but we believe in emphasising direct contacts as much as possible.

Students can delay this return if they are hired by a Fortune 500 company. Macedonia will continue to improve the educational system to foster a successful multi-ethnic, multilingual society with high-quality human resources and good job opportunities. Macedonia’s top challenges will remain NATO and EU membership. We have already met all the criteria for NATO and we will continue to focus on EU membership standards, including rule of law, more efficient administration, a predictable environment and other factors. Over the coming five years, Macedonia will invest even more in reform programmes, not primarily to please Brussels but instead to benefit our own citizens.

European Times: What are your main goals for the next ﬁve years? Nikola Poposki: One of Macedonia’s challenges is a brain drain, and the government is working hard to improve the national educational system and create attractive job opportunities for capable people. Macedonia already provides scholarships which cover all the costs of a university education, including accommodations, in any of the top universities in the world, if the student agrees to return to Macedonia after obtaining a degree to work here in the country for at least six years in the public or private sector.

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Small Country with Big Advantages for Foreign Investors Vele Samak, Minister for Foreign Direct Investments

Macedonia has adopted a proactive approach to attracting FDI, and the strategy is paying

oﬀ. Vele Samak, Minister for Foreign Direct

Investments, has been leading the countryʼs

foreign-investment drive for the past eight years. He had previously worked in the US generating business development for Microsoft

and has in-depth understanding of the needs of global companies. He discusses Macedoniaʼs investment appeal.

European Times: What is your role as Minister for FDI? Vele Samak: The Prime Minister wanted someone with private-sector experience who would take a practical approach to attracting FDI by going out there and meeting executives and convincing them to consider Macedonia. In my eight years as minister, I have had more than 2,000 direct meetings with potential investors in Europe, North America and Asia, and these meetings have generated around 100 FDI projects, eight of them very large. European Times: What are some of Macedonia’s recent FDI projects? Vele Samak: Large projects, in both capital investments and job creation, include a 2007 investment by Johnson Matthey, an investment by Germany’s Kromberg & Schubert which created 2,200 jobs, a project by Draxl Maier which created 4,800 jobs, and an investment by Van Hool, a Belgian manufacturer of premium buses which chose Macedonia as the site of its ﬁrst manufacturing facility outside Belgium. Our ministry recently got the green light for an investment by a Fortune 500 US automotive supplier which will set up opera-

tions in Macedonia and employ around 2,500 people. This will be the second-biggest foreign company investing in Macedonia after Johnson Controls. Recent FDI projects by eight or nine companies have generated more than 10,000 jobs and €1 billion in exports.

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Business & Investment Sector Opportunities

European Times: What is the secret of your success in attracting such significant FDI? Vele Samak: Our strategy has been to go deep with the companies we meet. We spend a lot of time with each executive to learn about each company’s strategies, how that company might fit into Macedonia’s economy and what we can do to help. This approach has given us credibility among investors. We also narrowed our focus to concentrate on key sectors. When we meet potential investors, we explain everything about investing in Macedonia, including logistics, local suppliers and partners. The next step is to host the investor on a visit to Macedonia where we arrange as many meetings as possible with local officials and business leaders. European Times: What kinds of investments are you looking for? Vele Samak: We are focusing on Greenfield projects, both for manufacturing and for business-process-outsourcing. For investments in manufacturing, Macedonia offers advantageous costs and good logistics connections to EU markets. Concerning BPO, Macedonia offers flexibility, costs comparable to India’s, and multilingual human resources with knowledge of European markets and cultures. Several potential investors are currently looking into establishing manufacturing facilities or call centres in Macedonia. My personal objectives included developing closer collaboration between foreign and domestic companies and ensuring that foreign investments result in technological advancement and higherquality, skilled jobs. European Times: Why should investors choose Macedonia over neighbouring countries? Vele Samak: Labour, construction and operating costs are lower in Macedonia. In addition, Macedonia has a very business-friendly and accessible government and, as a small country, can provide the best possible services. The World Bank’s “Doing Business” report has ranked

Macedonia among the world’s top countries for many years and recently raised Macedonia’s ranking based on the country’s upgraded standards and streamlined business processes. FDI projects employ around 20,000 people in Macedonia and we want that total to rise exponentially. European Times: What are your main challenges in attracting FDI? Vele Samak: Macedonia is a small country and has to work hard to get a place at the table. In addition, some potential investors are worried about corruption. The Macedonian government is dedicated to eliminating corruption through new laws, penalties, stronger enforcement and accessibility. Providing foreign investors with accessibility to government leaders at the highest level, including the Prime Minister, is a good way to combat corruption. We have had no corruption issues with foreign investors so far and we intend to keep it that way. European Times: What is your vision for FDI in Macedonia in the future? Vele Samak: Given the current difficult conditions for enterprises in Europe, Macedonia has an advantage because of its attractive costs. I anticipate growth in FDI in ICT and related industries, production of medical equipment and other sectors in which Macedonia can be more and more competitive. I hope that by 2020 Macedonia will be the home of many more companies employing the latest technologies and offering job opportunities for skilled engineers and other highly-trained professionals. European Times: What is your personal message to potential investors? Vele Samak: For the cost of a ticket to visit Macedonia for two or three days, you will discover a wealth of opportunities here. You will never regret taking a closer look at Macedonia.

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MASTER MACEDONIA REGIO

Edible-Oils Producer Has Excellent Track Record

The Brilliant Company was established in 1991 as a private company owned by Mite Nikolov. The

production capacities and the administration building of Brilliant are located in the industrial

zone of the city of Stip, located in the eastern part of the Republic of Macedonia.

Modern technology and an enthusiastic team of highly professional technologists, electro-engineers, chemical engineers, economists as well as a large percent of highly qualified workers made it possible for the company Brilliant to grow into a well known, innovative and competitive subject in the food-processing industry in the Republic of Macedonia. Brilliant produces high-quality and safe vegetable oil which meets the highest EU and international standards: ISO 9001:2008, ISO 22000:2005, ISO 14001:2004 and GMP. Kosta Taskov, Deputy Manager, explains, “With the acquisition of the Bulgarian enterprise in 2009, we were able to cover the entire process of manufacturing sunflower oil.” Today, the Bulgarian factory produces around 100 tonnes of crude sunflower oil per day and then transports this crude oil to a factory in Macedonia for refining. Kosta Taskov points out that Brilliant invested in Bulgaria because Macedonia produces only around 8,000 tonnes of sunflower seeds per year while Bulgaria’s production is much higher. He says, “We need around 100,000 tonnes of sunflower seeds per year, and we currently purchase around 70,000 tonnes per year from Bulgaria.

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The refining process in Brilliant uses the latest scientific achievements in correlation with the latest German technology. The refinery’s capacity is 150t/day. The refinement process is managed through the managing unit PLC (programmable logic controller), and in order to follow the process easier, all its stages are presented visually. With the new, continuous and automated process of refinement we have maximum control and follow the process from all key aspects, all with the result of reducing the loss and production expenses. The Brilliant factory has formed a laboratory from the first day, in order to control the processing and quality of the oil, as well as control the entire technological process. The laboratory employs trained professional personnel. The method of packing is also of great significance in regards to the maintenance of high quality, as well as the organoleptic characteristics of the refined edible oil. The capacity of the filling and packing line is 8.000 l/h. Brilliant also has its own waste water purification station which is located near the factory, all in order to provide total protection of the environment. Brilliant is the leader of the domestic market and exports to Albania, Serbia, Greece, Australia and the US. “In the future, Brilliant will continue to improve its technology according to new world’s achievements and increase its capacity,” Kosta Taskov emphasizes.

Brilliant Ltd. Bregalnicka, bb, 2000 Stip, Tel.: +389 32 391 319 info@brilliant.com.mk, www.brilliant.com.mk

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Agriculture, Forestry and Water Resources Crucial for National Economy Mihail Cvetkov, Minister of Agriculture, Forestry and Water Economy since June 2014, highlights the exceptional investment potential of Macedoniaʼs agriculture sector. He discusses current projects

now underway as well as the key goals in the governmentʼs strategies for Macedoniaʼs agriculture, forestry and water resources up to 2020.

European Times: What are your ministry’s main tasks? Mihail Cvetkov: The ministry focuses on ensuring sustainable agricultural activities in Macedonia and manages the country’s forests and water with the goal of implementing EU standards in all areas. This ministry also handles food-safety and quality regulations, oversees the management of ﬁsheries and state-owned land, promotes rural development, and develops policies concerning agriculture and natural resources in Macedonia. One of the ministry’s most important roles is to set up co-ﬁnancing of investment projects in the agriculture sector, for example projects funded by the EU IPARD programme.

rural development and optimal use of the country’s natural resources. To achieve the goals of this strategy, the ministry has launched a programme to consolidate agricultural land and aims to bring new technologies and equipment to the agriculture sector through IPARD and national financing programmes. Introducing more productive livestock and crops and developing efficient irrigation systems are two specific targets. The ministry will provide financing for young farmers and for established farms looking to expand. One of the ministry’s priorities is to ensure horizontal integration in the agriculture sector as well as strengthen vertical contractual relationships. To support the growth of the agriculture sector, Macedonia has a policy of 5% VAT on feed and livestock and provides financial support for rural-development projects through the Macedonian Bank for Development Promotion. Concerning water resources, Macedonia is promoting investment in water infrastructure for the period 2015 to 2025 and will establish a new joint-stock company, Water Management of Macedonia. Promoting agricultural research, providing instruction for farmers, planning tree seedlings to renew Macedonia’s

European Times: How important is agriculture in Macedonia’s economy? Mihail Cvetkov: Since 2007, agriculture has been considered a key driver for the Macedonian economy and the sector receives some €150 million in funding per year for subsidies, investment incentives and other initiatives. Around €700 million in subsidies will be provided from 2014 to 2020 and around €20 million per year will be invested in around 500 rural-infrastructure projects. The National Strategy for Agriculture and Rural Development for the period 2014-2020 focuses on further improving the competitiveness of Macedonia’s agriculture sector as well as ensuring

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MACEDONIA Sector

forests, and developing policies to cope with climate change and protect the environment are other priorities for this ministry in the coming years. All in all, a lot of work is ahead of us up to 2020. European Times: What are the main challenges the agriculture sector faces? Mihail Cvetkov: In addition to small, fragmented farms, Macedonia’s farmers face inadequate infrastructure to get their products to market. In addition, since most of the country’s farms are small, competitiveness is hard to achieve and controlling product quality is also a challenge. Macedonia’s farmers and wine producers need to concentrate on meeting EU standards. The ministry is promoting agricultural cooperatives where farmers can join forces. Macedonia also welcomes local and international investors in agriculture projects. European Times: Why should investors target agriculture in Macedonia? Mihail Cvetkov: Through its strategic location and the EU Stabilisation and Association Agreement, Macedonia offers privileged access to EU markets. Macedonia also has a sunny climate, fertile agricultural land, a long tradition of agriculture, low labour costs, and various incentives for investors. The Ministry of Agriculture welcomes the chance to support local and FDI projects in agriculture, forestry,

fisheries and water projects. Macedonia’s vegetables, fruit, tobacco, wine and other agricultural products are already well known for their high quality. Macedonia exports dairy products, delicious fresh and processed vegetables and fruits, wines and other products, but needs more investment in food-processing and in greenhouses to boost its exports. Since 2011, Macedonia is particularly encouraging exports of bottled wine as well as fresh and processed fruits and vegetables. Many niche products have strong growth potential, including organic foods, honey, aromatic and medicinal plants, olives, seeds and more. Incentives for investors include the chance to lease state-owned agricultural land as well as sites and direct financial support for establishing wineries, logistics centres and processing plants. The ministry signs contracts of up to 70 years with investors to guarantee security. We have seen strong interest from EU investors in such projects as growing flowers, producing almonds, and establishing processing and logistics centres for agricultural products. European Times: What is your personal message to potential investors? Mihail Cvetkov: Macedonia’s agriculture and food sector is a great opportunity for investors and the Ministry of Agriculture, Forestry and Water Economy warmly invites you to come to Macedonia and let us help you make your project a success.

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• Solid Macroeconomic Fundamentals and Strong Growth Rates • National Bank Inspiring Confidence • IMF Praises Macedonia’s Economic Performance

Finance & Insurance

“Macedonia offers many investment opportunities, skilled labour, a favourable tax rate and diverse investment incentives, including a new free financial zone designed to attract FDI in the financial sector.” Zoran Stavreski, Minister of Finance

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MASTER MACEDONIA REGIO

Solid Macroeconomic Fundamentals and Strong Growth Rates Macedoniaʼs

Ministry

Finance

sets

fiscal

policies,

maintains macroeconomic stability, coordinates efforts to improve the business environment, establishes the state budget and manages public spending. Zoran Stavreski, Minister, discusses his ministryʼs strong track record and current projects. European Times: What are some recent developments in Macedonia’s public-sector ﬁnances? Zoran Stavreski: To cope with the European economic crisis, Macedonia adopted fiscal policies designed to boost domestic demand and consumption while at the same time increasing capital expenditures and gradually increasing wages, pensions and social programmes. These polices proved very effective in helping Macedonia weather the crisis. Macedonia has maintained strong macroeconomic fundamentals for many years, including a low

Zoran Stavreski, Minister of Finance

budget deficit and low to moderate public debt of 45.8% as well as government debt of 38%. These are among the lowest debt rates in Europe. Greece’s debt, in comparison, is 175%. Macedonia achieved average GDP growth of 2.5% from 2010 through 2014, with 3.9% GDP growth in the first three quarters of 2014. This was the second-highest growth rate in Europe for that period. European Times: What were the main factors behind this growth? Zoran Stavreski: The main factors were increases in both investments

Real GDP Growth Rate (%)

5.1

6.5

5.5 3.4

2006

2007

2008

-0.4 2009

2010

2.7

2.3 2011

-0.5 2012

2013

3.7

4.0

4.2

2014* 2015* 2016* Source: SSO and MoF; *Projection

130

and exports. Investments grew by 17% last year while exports grew by 15.3%. Macedonia has stepped up its efforts to attract FDI while also increasing capital expenditures and implementing major infrastructure projects which will not only create jobs but enhance the country’s long-term competitiveness. Macedonia has also greatly improved its business climate by streamlining procedures, implementing regulatory reforms, creating one-stop-shop services for investors and adopting a flat 10% tax on personal income and profits, with zero tax if profits are reinvested. We have also created additional incentives for investors in free economic zones. These efforts have brought more FDI to Macedonia and helped us reduce the unemployment rate by 10% since 2006. Around 11,000 new jobs have been created in Macedonia’s free economic zones and we expect around 13,000 more jobs to be created in these zones over the next three years. Macedonia obtained a €350 million loan from the EIB to support SMEs, which has helped to create an additional 6,000 jobs.

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FinanceSector & Insurance

European Times: What are some of your other projects?

FDI (% of GDP)

8.3 6.3

2006

5.9

2007

2008

4.6 2.1

2.3

2009

2010

3.1

4.1

4.8

5.1

1.5 2011

2012

2013

2014* 2015* 2016* Source: SSO and MoF; *Projection

European Times: What are the Ministry of Finance’s accomplishments that you are most proud of ? Zoran Stavreski: Macedonia implemented policies in 2009 to cope with the European economic crisis, and five years later the EU recommended these same policies for other countries. Today, Macedonia is the only European country which has a trade surplus with Germany. This is the result of significant FDI from Germany in projects to manufacture auto components in Macedonia for export to the German market, which demonstrates Macedonia’s attractiveness for EU investors. I am also very proud that Macedonia’s macroeconomic fundamentals are strong. Reducing the state debt to 45% shows that we have been very conservative and disciplined when it comes to spending. This careful approach has helped Macedonia to avoid the pressures that many other countries are facing, for example austerity measures or the rapid consolidation of public finances.

European Times: What is your ministry’s biggest challenge? Zoran Stavreski: Continuing to reduce unemployment and stimulating the development of local companies so that they can supply foreign investors are two of our current priorities. Although we reduced the unemployment rate by 10% between 2006 and 2014 to reach 27.9%, this is still high. We hope to reduce the rate to 23% by 2018. To help encourage foreign investors to work with domestic companies, the Ministry of Finance has launched a pilot project with the Ministry of the Economy, other government organisations, the World Bank and the IFC. This project will identify domestic companies with potential to partner with foreign investors, analyze the needs of foreign companies in Macedonia, and try to bring the two together. External challenges for Macedonia include the situation with Greece as well as the economic stability of Europe as a whole.

Zoran Stavreski: Macedonia has several major infrastructure projects in the works, including three key highways and a railway to Bulgaria and Albania. In addition, Macedonia is investing in education and healthcare with the help of our international partners and has launched energy projects with funding from the state and from international ﬁnancial institutions. Macedonia’s government is committed to inclusive growth and is focusing on job creation. We have implemented new incentives for companies to hire young people and members of vulnerable groups and we are working to stimulate job creation in the construction sector, which has been reaching double-digit growth; the agriculture sector, through subsidies and various incentives; and the industrial sector, through improvements in the business climate. The World Bank, with which Macedonia has been cooperating for 20 years, as well as the EBRD, the EIB, the Council of Europe Development Bank, KfW Development Bank and other international organisations have demonstrated their conﬁdence in Macedonia and will continue to be strong partners in many important projects. European Times: How do you expect Macedonia’s economy to evolve over the next few years? Zoran Stavreski: Macedonia will achieve solid growth rates over the coming three years thanks to our economic model, which has already been

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proved to work in challenging times. I also anticipate continued growth in FDI, job creation and exports. Exports by companies operating in Macedonia’s free zones totalled €1.17 billion in 2014, or one-third of the country’s total exports, and many of these companies have not yet reached their full potential. The Ministry of Finance anticipates 4% to 4.5% annual GDP growth for Macedonia between 2015 and 2017, although external factors might cause us to change some of our projections. Longer-term, Macedonia has made a commitment to even stronger ﬁscal consolidation through constitutional amendments. We aim to reduce the budget deﬁcit to 3% and public debt to 60% by 2017. European Times: Why should foreign investors choose Macedonia? Zoran Stavreski: Macedonia offers many investment opportunities, skilled labour, a favourable tax rate and diverse

Export Growth Rate (%) 30.9

29.2 16.6 2006

2007

2008

2009 -28.2

2011

investment incentives, including a new free financial zone designed to attract FDI in the financial sector. Macedonia’s healthy economy is a major draw. Investors who have chosen Macedonia are increasing their investments here, for example by making new investments of €30 million to €40 million. These new investments are the clearest possible vote of confidence in Macedonia as a business base. Foreign investors already present in Macedonia praise the country’s stability, predictable policies, commitment to reforms (Macedonia

75 94

2010

-2.8 2012

2.8 2013

15.9

10.7

11.0

2014* 2015* 2016*

Source: SSO and MoF; *Projection

2008

26.8

8.9

Rank of Macedonia on the Ease of Doing Business Indicator, World Bank “Doing Business” Reports 2006-2015

2006

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MACEDONIA

2011

2015

is ranked among the world’s top ten reformers), transparency, efforts to fight corruption, and significant improvements in the business climate. For example, Macedonia has raised its ranking in the World Bank’s “Doing Business” report from 94 in 2006 to 30. European Times: What is your personal message to potential investors? Zoran Stavreski: Macedonia will continue to work towards EU integration and to welcome FDI, particularly in projects which create jobs and bring in new technologies and know-how. Macedonia’s economy is dynamic, flexible and resilient. Potential investors should not only look at what Macedonia promises to do but at what the country has already accomplished. Our track record demonstrates our drive to upgrade the business climate and support FDI. If investors are looking for a very business-friendly environment with efficient government services and attractive costs, they should take a closer look at Macedonia.

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Finance & Insurance

National Bank Inspiring Confidence taining a stable exchange rate for the Macedonian denar against the euro. The current rise in household savings reflects consumer confidence in the bank’s policies and practices. Macedonia has enjoyed a stable exchange rate and an average inflation rate of around 2% since 1997 in spite of external shocks. We have achieved this through our main monetary-policy instruments, our policy rate on central-bank bills and our reserve-requirement ratio. The National Bank has developed a strategic plan for 2015-2017 which focuses on price stability, financial stability and institutional capacity-building to adapt the bank to the criteria of the European System of Central Banks, which the National Bank will join once Macedonia is part of the EU. European Times: What is your prediction for Macedonia’s GDP for the coming year(s)?

Dimitar Bogov, Governor of the National Bank

of the Republic of Macedonia (the countryʼs central bank) for the past four years, previously

served as the bankʼs Vice-Governor and as the chief economist for Stopanska Banka Skopje,

the countryʼs largest bank. He discusses the

National

performance.

Bankʼs

priorities

and

recent

European Times: What is the main strategy and focus of the National Bank of the Republic of Macedonia? Dimitar Bogov: The bank’s primary goal is to ensure price stability, and we are achieving this through main-

Dimitar Bogov: After a slight recession in 2012 as a result of the recession in the euro zone, Macedonia’s GDP grew by 2.7% in 2013 and by 3.8% in 2014. We anticipate 4.1% growth this year. The main drivers of this growth will continue to be fiscal stimulus, FDI, and increasing demand from EU markets for Macedonia’s traditional industrial exports. More than 70% of Macedonia’s exports are to the EU and the euro zone. We expect inflation this year to be slightly positive, around 1%, and to normalise to our long-term target of 2% in 2016. European Times: Please elaborate on some recent and major developments within Macedonia’s banking sector? Dimitar Bogov: Macedonia’s banking sector has been stable and resilient for many years. It is dominated by foreign banks, mainly from the euro zone, particularly Slovenia and Greece. Banks in Macedonia are very healthy, with excellent liquidity and capital, and they do not have to rely on their parent banks for financing. Macedonia’s two strongest banks are Stopanska Banka, which is owned by Greece’s NBG, and Tutunska Banka, owned by NLB from Slovenia. The National Bank encourages consolidation of smaller and medium-sized banks in the banking sector, which currently includes 15 banks. Some Macedonian banks are looking for strategic international partners. Macedonia is an excellent base in the Balkans for financialservices companies.

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IMF Praises Macedonia’s Economic Performance economic crises thanks to sound macroeconomic policies and effective uses of economic stimulus when necessary. European Times: What are the IMF’s main goals for Macedonia? Patrick Gitton: Macedonia’s GDP growth is now 3% to 4% and the IMF would like to see this higher. This would allow the country to bring its standard of living closer to EU levels. To achieve this goal, Macedonia needs to shift from public-sector-led growth to private-sector growth and to strengthen the business environment for domestic ﬁrms. Bringing Macedonia into the EU as well as job creation are also high on the agenda, as is boosting exports by domestic and foreign companies operating here. The IMF encourages the Macedonian authorities to further strengthen the country’s business environment, in particular by enforcing payment discipline in both public and private companies to avoid liquidity problems. Patrick Gitton, the IMFʼs representative in Macedonia since 2013, discusses the IMFʼs

perspective on the Macedonian economy. He

also notes the Fundʼs role in strengthening Macedoniaʼs macroeconomic fundamentals.

European Times: Can you describe the IMF’s involvement in Macedonia? Patrick Gitton: The IMF has been present in Macedonia since 1995 and has had three major lending programmes here since 2003. The IMF advises the Macedonian government on macroeconomic issues and has provided extensive technical assistance to help build capacity for instance in compiling financial and fiscal statistics. The Fund also assists the government concerning fiscal policies and instruments, economic modelling and tax administration. A recent milestone for the IMF in Macedonia was the fourth and last Post-Programme Monitoring review held in November 2014. Macedonia has repaid all its debt to the IMF now, has sufficient short-term capacity to pay its debts, and has weathered

European Times: How is the IMF helping Macedonia cope with its public-sector debt? Patrick Gitton: The IMF advises the government to carefully control its spending, for example its agricultural subsidies and other current expenditure, and investment in large infrastructure projects, to make sure the investments are conducive to growth. Careful cost-benefit analyses are essential, as is a commitment to transparency. The IMF has a new, international-standard fiscal-transparency code covering budgets, macroeconomic projections, reliable data and other factors. European Times: Why should foreign investors target Macedonia? Patrick Gitton: Macedonia is achieving stronger economic growth than most other countries in the region, its macroeconomic fundamentals are stable, inflation is under control, and the Macedonian government encourages FDI. Several sectors offer excellent potential, and investors should come to Macedonia and see the opportunities for themselves.

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Finance & Insurance

Local Insurance Leader Offers Regional Strength and Local Knowledge Triglav Insurance Macedonia oﬀers in-depth local knowledge as well as the expertise and regional reach of the Triglav Group, the

leading insurance-ﬁnancial group in Slovenia and in the Adria

region and one of the leading groups in South-East Europe. In 2007, the Triglav Group acquired a Macedonian insurance company with more than 40 years of experience in the local market. Today,

Triglav Insurance Macedonia is present throughout the entire country through its 16 branch oﬃces and many smaller oﬃces.

Triglav Insurance Macedonia offers all types of non-life insurance for both corporate and individual clients, including liability and accident insurances, protection from ﬁnancial losses, property insurance, Macedonia’s preventive health-insurance and many more.

Strong track record

Sanja Tancevska, Executive Director

For both local customers and international investors in Macedonia, Triglav Insurance Macedonia has positioned itself as the insurance provider of choice. Executive Director Sanja Tancevska points out, “Our main focus is to provide every client best value for money. Triglav Insurance Macedonia maintains the high standards of the Triglav Group and is well known for its high-quality services as well as for its commitment to corporate social responsibility. Our company supports socially challenged categories, environmental projects, development of the national sport in the country and more.”

Many of Triglav Insurance Macedonia’s clients are foreign investors. As Sanja Tancevska explains, “Foreign investors and companies are aware of the need for reliable insurance coverage and they choose Triglav because we are the local market leader with premium quality service, a very strong track record in paid claims, the highest rating for our reinsurance policy, and the backing of the parent Triglav Group. Additional conﬁrmation for the public trust awarded to the company is the quality medal that Triglav received in 2014. We invest in our employees, who are highly skilled and dedicated. This has been one of the major reasons for our success, which only conﬁrmed my belief that with talent you can win the game though, with teamwork you will win the championship! ”

Triglav Insurance Macedonia will continue to develop new products, including innovative healthcare coverage, while educating the local customers about the advantages and beneﬁts of insurance. Macedonia’s insurance market has exceptional potential; as an example, only around 8% of local homeowners insure their homes. Sanja Tancevska concluded, “It is not enough to look upon the stairs in front of you, you need to have the courage to climb them. Hence, Triglav aims to be the leader in developing Macedonia’s non-life insurance market. Our company grew by 6% in 2014, while the average growth of the non-life market was only 4%. As the local market leader, Triglav is committed to providing the best products, the highest quality and outstanding services, which will further strengthen our clients’ trust and loyalty.”

Triglav Insurance Macedonia Bul. 8 Septemvri No. 16 Oﬃce Building “Hyperium”, Skopje 1000 Tel.: +389 2 510 2222 info@triglav.mk, www.triglav.mk

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Tourism

â&#x20AC;&#x153;Macedonia has a remarkably rich cultural heritage from all periods, and it is our objective to duly preserve and promote this cultural heritage which is part of the world cultural heritage.â&#x20AC;? Dr. Elizabeta Kancheska-Milevska, Minister of Culture

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Tourism

Supporting the Promotion of Macedonia’s Rich Cultural Heritage institutions, the associations of citizens and the individuals. There are signiﬁcant investments in the culture domain in our country. In the times of economic crisis, when many countries cut the assets for support of activities in the culture area, the Government of the Republic of Macedonia increased the budget of the Ministry of Culture whose programme includes a great number of capital projects. European Times: Could you indicate some of the projects your Ministry has recently completed?

to promotion, preservation and support of the

Dr. Elizabeta Kancheska-Milevska: In the past few years Macedonia, as never before, has realized capital investments in all segments of culture. Parts of the projects were deﬁned in the programme of the government, and most of them were included in the Annual Programme of the Ministry of Culture. Signiﬁcant parts of these projects are already completed and operational. The new Macedonian National Theatre, the Theatre in Veles, the Memorial House of Mother Teresa, the Memorial House of the Macedonian music legend Toshe Proeski, the Museum of Macedonian Struggle, the Archaeological Museum have been opened. It is a small part of the capital investments we are realising throughout Macedonia. All these projects and investments are of great importance for our culture, for its advancement, as well as for the cooperation and exchange with other states.

current projects and objectives as a Minister.

European Times: Could you please elaborate on some of the current projects of the Ministry?

European Times: What are the roles and objectives of the Ministry of Culture in the Republic of Macedonia?

Dr. Elizabeta Kancheska-Milevska: We are currently intensively working on the construction of the

Dr. Elizabeta Kancheska-Milevska, Minister of Culture, dedicated herself in the past eight years

Macedonian cultural heritage. She speaks of her

Dr. Elizabeta Kancheska-Milevska: The national culture interest is to secure availability of the principal values of creation and cultural heritage for all citizens of the state. In that respect, the Ministry of Culture is creating its long-term and short-term priorities based on which the projects in the Annual Programme shall be supported. We are exclusively working on the principle of openness to all good initiatives and projects of the national

Macedonian Archaeological Museum

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MOLDOVA Sector

Sector

Car-Hire Enterprise Offers Value-Added Services

Setkom Rent a Car has been providing world-class car-hire services since 1990 and now the company

also oﬀers a full range of value-added tourism services, including ﬂight and hotel reservations, Macedonian National Theatre

hew hall for the Macedonian Philharmonic Orchestra, reconstruction of the Albanian Theatre, construction of the Turkish Theatre, restoration of the St. Clement University. We have also launched projects which shall enable the opening of new theatres in Skopje through public private partnership. One of the more significant ongoing investments is the construction of the new Universal Hall which shall have capacity of 4,000 seats and shall operate as a congress centre, a venue for international events and meetings. European Times: Why is the government of the Republic of Macedonia strongly dedicated to culture? Dr. Elizabeta Kancheska-Milevska: Macedonia has a remarkably rich cultural heritage from all periods, and it is our objective to duly preserve and promote this cultural heritage which is part of the world cultural heritage. In that respect, the government is strongly dedicated to the affirmation of the Macedonian culture beyond the borders of our country, since we believe that in this manner we can enable the visible positioning of our country on the world map, as productive member of both the European and the international community. European Times: What is your message to potential partners and tourists on why they should visit the Republic of Macedonia? Dr. Elizabeta Kancheska-Milevska: The Ministry of Culture always cordially welcomes the international partnerships in culture projects, and we are also planning the realisation of many more ambitious initiatives in the field of culture. For the foreign tourists, my message is: “Visit Macedonia, the country that makes the world more beautiful”.

guided tours of Macedonia for groups, organisation of conferences and meetings, shuttles, travel insurance and more.

As owner Mira Maneva explains, “We are emphasising competitive services with business travellers and corporate clients in mind.” Setkom Rent a Car has worked with a number of leading corporate customers, including Hewlett Packard, Alpina, the Economic Chamber of Macedonia and many others, as well as foreign embassies and individuals. Setkom welcomes the chance to partner with more foreign investors in Macedonia. Mira Maneva says, “We can supply our corporate clients with affordable long-term contracts for vehicles for a year or more. Clients can beneﬁt from our regular servicing, insurance and technical check-ups. In addition, we are a member of the Auto Moto Union of Macedonia and we take care of everything in case of an emergency. Our clients have access to us 24/7, even if they have taken the cars abroad.” In all its activities, Setkom Rent a Car strives to be competitive and to offer the best service possible at the most affordable prices. Setkom Rent a Car - Hotel Continental Aleksandar Makedonski Str. b.b, 1000 Skopje Tel.: +389 2 3298 392, +389 2 313 5339,+389 72 228 052 www.setkom-rent.com.mk

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Tourism

Bushi Resort and Spa: a New Hotel with an Old History of an original spa centre. This large facility boasts an indoor swimming pool, Jacuzzi, sauna and a traditional Turkish bath. Moreover, it offers six massage rooms with four professional trained therapists who are experts in the Thai massage treatments, as being their trade mark/ﬂagship treatment. The conference room of Bushi is popular within Skopje, as it is open for any cooperation and as it had around three events a day during the last peak season. Currently the conference room can cater a clientele up to 200 people though future plans will increase this number until 500 participants.

A slice of history has been wonderfully resurrected in the form of the luxury Bushi Resort and Spa. This brand new hotel has quintessentially captured the essence of Macedoniaʼs 500 year old bazaar in Skopje, where it is located. Bushi Resort and Spa has been the lifelong dream of the Bushi family, famed throughout Macedonia for their presence in the jewellery industry. The dream of the Resort’s owner, Lalip Bushi, has come to a realization in the hotel’s recent opening. New players in the tourism and hospitality industry, Lalip and his brother, Selami Bushi have utilized their personal extensive travel experience in order to bring everything the business and leisure tourist needs to ensure a comfortable and relaxing stay. In the short time the hotel has been open it had marked high occupancy rates which are expected to soar to the

100% capacity within the next year, as visitors are checking in from around the world. The exclusive Old Bazaar vibe of this hotel is attracting both business and leisure clients, and any guest is sure to appreciate the ancient Macedonian style decorated throughout with wood, stone and historic details. So far the feedback of guest has been very positive, especially commenting on the friendly staff in the hotel. As it stands, visitors are already able to select from an extensive range of 48 rooms, from standard, superior (and suites) through to prestigious presidential suite. The unique hotel brings something fresh to the regional market in the form

After a four year construction process, where every detail was checked and ﬁnessed, Lalip and Selami Bushi remain ambitious as they have big plans for their hotel’s future: “We are expanding our capacity, and build one more conference centre. We will have a new Turkish restaurant and we are planning to make the spa more spacious,” they told The European Times. The Bushi brothers want to attract more international visitors, and the owner, Lalip Bushi concluded with the message: “I want to bring the shine of the Old Bazaar back in place. This is a new hotel with a beautiful history. Come visit Bushi Hotel Resort & Spa, you will not regret it! Our dream is your staying here to be memorable. “ Bushi Resort and Spa Kjurchiska 21 (behind Rubin Karmin, Fort Kale) Samoilova Str., Old Bazaar, 1000 Skopje Tel.: +389 2 312 5130 www.bushiresort.com

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