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Doing Business in Albania: Reforms & Opportunities
2. INVESTING IN ALBANIA: A SWOT OVERWIEW STRENGTHS
WEAKNESSES
Catch-up growth potential Emerging Market Access to Regional Market (CEFTA) Government Support Liberal Model Adopted Clear EU perspective Relatively low labour costs Young and skilled labour force
OPPORTUNITIES
2.1
Albania is a fast developing country and offers a multitude of investment opportunities in rewarding sectors of the economy. Proximity with West and Central Europe, low unit costs for labour, and the lowest flat tax regime - only 10% - are some of the competitive advantages Albania offers. Additionally, it offers access to the regional market, regulated by the new-CEFTA for the Western Balkans - designed to eliminate barriers to trade and provide appropriate protection of intellectual property rights in accordance with international standards. CEFTA has been adopted since 2007 as part of the SAA with the EU. The latter highlights an all important fact that should be kept in mind: Albania has a clear EU perspective and we hope will be granted a candidate status by the EC and Council this year - providing the conditions set by the Commission are fulfilled. www.ibde.org
THREATS
Consumer Market Energy/ Power Generation Tourism Mining Information Communication Technology Technology/Telecoms Agro-Business Manufacturing Sector Services
Strengths:
Property Rights Corruption Rule of Law
2.2
Eurozone Crisis: Banking Sector Currency Corruption
Weaknesses:
Corruption remains a major challenge, but progress has been considerable and significant, especially with regard to corruption as perceived by foreign investors in Albania which has fallen by 50% from 2005. For a more detailed account see Economic Reform section 3.3. Challenges. 2.3
Opportunities:
Albania offers a high level of investment potential in infrastructure, telecommunications, information technology, energy/power generation and tourism. Although many of the strategic sectors have already been privatised, a new wave of state property privatisation has been declared by the government. Additionally, Albania is very keen in embracing Public Private Partnerships (PPPs) in an array of sectors including highway maintenance, transport infrastructure in Tirana, waste manageIBDE – Integrating World Markets