Explore the Balkans - Business Opportunities KOSOVO Pia Stjernvall, Ambassador, Embassy of Finland in Pristina Jehona Ademaj, Coordinator, Embassy of Finland in Pristina
KOSOVO Independent since 2008 Recognized by 115 out of 193 United Nations members and by 23 out of 28 EU members. Potential candidate for EU membership Signed the Stabilization Association Agreement with the EU in October 2015, in force since April 2016. The current Government controls a slim majority, only 61 out of 120 parliamentary seats. 27.3.2018 2
KOSOVO Strategic location Land area Terrain Land use Population 10 908 km2 Low flood plains in central Kosovo, surrounded by mountains to the north west and south 52% agriculture, 39% forests 1,8 million Ethnicity 90% Albanians, 5% Serbs, 2% Bosniaks, Gorani, 2% RAE communities and 1% Turks Languages Albanian, Serbian (official) English 27.3.2018 3
KOSOVO POLITICS Kosovo has a high political risk. Lack of transparency, corruption and a weak judicial system are the main risks in Kosovo business environment. However: Kosovo has a population that more than 60 % are under 30. Young people that are hungry for a change. Strong interest in IT and innovation! Kosovo is 10th easiest country to start a business. Transparency International Report - this year Kosovo improved its ranking of three points with a score of 39. 27.3.2018 4
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KOSOVO WB Doing Business (2018) 40 th in overall rank 10 th in starting a business Expected GDP growth in 2018 4.8% (in 2017 4,4%) Currency Euro Stable financial sector Sound banking sector (largely foreign-owned 90%) Youngest population in Kosovo 53 % of its people under the age of 25 Average salary Foreign Investments Law Strategic Investments Law 350 EUR Support and protection of FDI Direct negotiations and fast track admin. procedures 27.3.2018 6
WORLD BANK DOING BUSINESS 2018 77 rank improvements in the past seven years 2018 overall rank 40 Starting a business 10 Registering property 34 Getting credit 12 Paying taxes 45 Trading across borders 48 Enforcing contracts 49 27.3.2018 7
LIBERAL TRADE REGIME CEFTA 2007 Central European Free Trade Agreement Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Moldova, Montenegro, Serbia Population: 21 million GDP (2012): EUR 150 billion Association and Stabilization Agreement singed April, 2016 Unlimited duty-free access to the EU market, October 2015 Trade Preferences with: Japan & Norway and Free Trade Agreement with Turkey 27.3.2018 8
EXPLORE THE BALKANS BUSINESS OPPORTUNITIES SEMINAR Corporate profit tax: 10% Income tax 0-10 % (Progressive) 0 80 = 0% 80 240 = 4% 240 450 = 8% 450+ = 10% Mandatory pension contribution: 5% VAT: 18 %, except for utilities and food basket which is set at 8% Tax on Dividends: 0% Average Wage: 350-450 EUR/month (3,103 EUR in Western Europe) 27.3.2018 9
Kosovo Finland TRADE 2015 2016 2017 Trade between Kosovo and Finland 1,204,958.76 1,411,898.40 2,874,787.04 Imports from Finland to Kosovo 1,182,270.44 1,411,896.40 2,785,125.58 Exports to Finland from Kosovo 22,688.32-89,661.46 27.3.2018 10
KOSOVO - MAIN ECONOMIC SECTORS Agriculture and food packaging IT & Telecommunications Textile and leather processing Mining Energy Construction and Infrastructure Wood processing Tourism 27.3.2018 11
KOSOVO - Agriculture and food packaging Out of total surface area of 1.1 million hectares approximately 588,000 hectares is agricultural land with fertility, nutrient rich soils. Contributing 13% of total GDP Making up 18% of exports A strong tradition in agribusiness Dairy Products Fruits and Vegetables Meat Products Winemaking Other Beverages Packaging 27.3.2018 12
KOSOVO ICT- Ready for you to connect Internet penetration based on users is 76.6%, and based on households is 84.8%. This is the highest rate in the region and is comparable to the most development countries in Europe. Youngest population in Europe average age 27 Workforce both skilled and multilingual English being only just short of an official language 27.3.2018 13
TEXTILES Government is working to revitalize textile sector Imports in 2015 were EUR 122M; exports EUR 12M Important advantages for investors A cheap, well-skilled, and experienced work force A solid base of technology that can be acquired through the ongoing privatization process Different opportunities on business process outsourcing 27.3.2018 14
HOW CAN KIESA HELP YOU? Provide comprehensive advice and support to help you obtain all necessary approvals to enable a fast start-up Registering your business Getting licenses and permits necessary to start your operation Arrange meetings with all local and central institutions Arrange visits and meetings with any business of your interest Help you to identify suitable property options to accommodate your operation We have several business parks and business incubators where you can start your operations Provide information on different projects and partners with whom you can collaborate Provide industry specific information 27.3.2018 15
KOSOVO The Western Balkans Investment Framework (WBIF) supports socio-economic development and EU accession across the Western Balkans through the provision of finance and technical assistance for strategic investments, particularly in infrastructure, energy efficiency, and private sector development. For more information please visit: https://wbif.eu/home The Millenium Challenge Corporation (MCC) program in Kosovo financed by United States amounts to USD 49 million for Kosovo. The Kosovo Threshold Program addresses two key constraints to Kosovo s economic growth: an unreliable supply of electricity; and real and perceived weakness in rule of law, government accountability and transparency. More info: https://www.mcc.gov/where-wework/program/kosovo-threshold-program European Commission: https://webgate.ec.europa.eu/europeaid/onlineservices/index.cfm?do=publi.welcome&nbpublilist=15&orderby=upd&orderbyad=d esc&searchtype=as&pgm=&finpub=&zgeo=35484&debpub= 27.3.2018 16
Photo: Kosovo Minerals 27.3.2018 17
Photo: Artana Castle 27.3.2018 18