MINISTRY OF ECONOMY, TRADE AND ENERGY
GENERAL DIRECTORATE OF POLICIES
Sarajevo, 19 June 2013
“BUSINESS AND INVESTMENT DEVELOPMENT STRATEGY (BIDS) 2013-2020”
In line with:
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NSDI Strategy 2014-2020, with strategic priorities and policy objectives in the field of private
sector (SME-s) ;
National Plan for the Implementation of the Stabilization Association Agreement (NPI SAA)
2012-2015.
EU Strategy “Europe 2020”(smart, sustainable and inclusive);
Recommendation of the European Commission dated 9.01.2013 ” Entrepreneurship 2020
action Plan”,
Strategy of South East Europe 2020;
European Small Business Act (SBA)
The National Vision:
“A competitive Albania with a dynamic entrepreneurship and productive industry”.
The challenge of the strategy :
“ to enable and guide investments, which will gradually transform the economic structure and
products with more added value”.
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The implementation of BIDS (2013-2020), fits with SEE regional strategy and is a key
contributor for the realization of the headline targets of SEE 2020 strategy .
The convergence of 4 pillars:
-Business climate and SMEs;
- Industry and mining;
- Trade integration, promotion of exports; and
- FDI-s;
 Support sustainable economic development based on the development of domestic
manufacturing capacity, expansion and diversification of the export products and increase
employment;
 Improving competitiveness ability at enterprise level;
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ICT -as a cross cutting issue, which helps to revolutionize both processes and business
methods, increasing both productivity and competitiveness, stimulating ”Digital
entrepreneurs”;
Costs and financial resources of this strategy are in compliance with budgetary programming
policies;
The measures set out in each of objectives will be converted into project fiches in order to be
welcomed by the donors.
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Strategic objective for exports: Integration of products and services towards regional
and European markets.
Increase exports in goods, by increasing and diversification of new products, aiming an
increase progressive annual value by 9%;
Maintaining the export growth and reaching 20% of GDP in 2020.
Increasing exports from domestic production to 60% and 40% from export processing
in 2020;
Strategic Objective of FDI-s : Increasing FDI inflows through: the green field
investments, concessions in the sectors of energy, oil, mining, tourism, infrastructure,
etc;
Development of economic zones and industrial parks;
Improving the country image as an attractive investment destination;
Increase the FDI-s value by 6,3% annually;
FDI share to GDP by 9% in 2020.
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The strategic objective : Skills development and stimulating the increase of
new enterprises and employment;
Promotion of entrepreneurial culture & trainings to support growth and new
enterprises;
Implementation of the training program for 2,000 young entrepreneurs and
start-ups;
Support for 470 creative businesses;
Increase the share of women-led companies (35% of total active businesses
till 2020);
Promotion of the social business (legal framework, regulations and financial
incentives in this area).
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Strategic Objective : Create a business environment where entrepreneurs can flourish
and grow ;
Easier business transfers : adoption of a legal framework and the financial account
provisions that address obstacles for cross-border transfer of a businesses within the
European market;
“Second chances” for honest bankrupts, development programm in terms of
mentoring, training and involvement in the business network;
The consolidation of the Inspection System - Reduction the number of inspection
bodies and time of inspection from 45 to 12 days;
The full installation of RIA system and establishing the RIA structures in each ministry;
The establishment of the National Council for Competitiveness ;
Adoption of legal framework for new financial schemes like venture capital, equity
fund and business angels;
Strengthening the institutional capacities in policy- making levels & implementing
agencies like AIDA/BRIC and ARTI
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Increasing the range of industry products, based on energy efficiency and cleaner
production, aiming the average growth of enterprises of 3-5% per year;
Promoting and supporting the industrial enterprises by spill over effect : as a result of
cooperation between foreign investors with local industries, estimating an increase of
the output in average of 0.5 - 1% per year;
The development of recycling industry, in the field of metals, plastic, glass and paper.
Growth, diversification and stimulation of inward processing operations;
Support towards 100% full cycle of production (BYOB), to become direct exporter;
Increasing access to finance for SMEs :
Strengthen the Albanian Credit Guarantee Fund, (second phase with the support of Italian
government of €15 million);
Creation of financial schemes to support start-up for subsidizing loans/lower interest;
Creating venture capital schemes, business angels, etc;
Financial support to 100 women entrepreneurs through subsidized or low interest loans;
Establish a program to support 1,000 new businesses (start- ups), through grants and low
interest loans.
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Increase the ability of the Albanian businesses to develop, use, adopt and commercialize
technology;
Capacity development and technology transfer will be achieved through the provision of
information, demonstration of projects, technical assistance programs, training of labor
force and technical institutions, such as centers of excellence and innovation centers;
The support of business innovation – in order to offer help to Business Service Providers
(BSPs), and consultancy, to increase human capacity in the auditing of technology, the
management of innovation, exchange of information as well as easiness of financing for the
enterprises;
Development of business infrastructure : the establishment of 1 technology business
incubator & 3 new industry clusters;
Promoting "Digital entrepreneurs“, in this context, the EU initiative: " Smart use of
information technologies and the integration of SMEs in global industrial value chains” ,to
become part of the global digital network;
Improvement of business services, the dissemination of the Nucleus Approach , which aims
at mobilizing individual enterprises, particularly SMEs, as well as stimulating
organizational development processes of chambers of commerce or business associations;
Strengthening the national innovation system;
Support business innovation - 500 businesses will benefit with information, services and
grants from Innovation Fund;
The alignment of the implementation of BIDS under IPA II is a need and a
“guarantee” for the contribution of Albania in realizing the headline targets of SEE
2020 strategy;
I. Dedicate sufficient funds to the implementation of the Innovation strategy, policies and
programmes:
1. Awareness raising;
€10 Mio. (20% state
2. Business Innovation Support Programme;
budget + 80% donors)
3. Innovation Fund;
4. Business Incubation programme and Cluster programme
II. Access to Finance for SMEs
€ 108 Mio. (15 Italian
Gov.)
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Investment readiness and financial reporting of entrepreneurs
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Voucher innovation, venture capital and business angels schemes development
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Grants and guarantee schemes for innovative SMEs
€ 6 Mio. (IPA )
III. Export development programme:
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Programme for import substitution;
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Reducing administrative costs and non-tariff trade barriers;
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Promotion of products "Made in Albania"
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Support business associations and exporting companies; further extension of the
Competitiveness fund; Export credit guarantee fund;
IV.
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€ 14 Mio. (state
budget
+ donors)
The full installation of RIA system and establishing the RIA structures in each
ministry;
The support for the establishment and operation of the National Council for Competitiveness ;
Training program for SMEs and potential young entrepreneurs and start-ups;
Programmes for the development of creative economy, programmes for the promotion of
entrepreneurship culture, support for economic empowerment of women in business ,
programmes for social business and Corporate Social Responsibility;
Technical assistance in legislative area, for :
 business transfer;
 new financial schemes like venture capital, equity fund and business angels;
Technical assistance in support for capacity building for BRIC & AIDA;
Technical assistance and strengthening capacities within METE, creating a new sector for
entrepreneurship and sector for business innovation.
IV. Promotion of FDI-s
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€ 102 Mio. (5.1 state +
Development of the FDI promotion programme; donors + 97 private inv.)
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Establishment of the Industrial Parks & economic zones.
V. Industry sector:
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€ 21 Mio.
Technical assistance programme in support of the development of recycling industry;
Programme in support for the development the range of ecological products that are
based on the effective use of resources for cleaner production;
Support programme Increasing investment in scientific research and development of new
products and innovation in the manufacturing industry.
VI. Mining sector
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€ 20 Mill. (mainly state
budget)
Assistance in drafting Legal framework in comply with EU directives;
Strengthening institutional capacities;
Development programme for monitoring;
Development programme for environment protection .
MONITORING INDICATORS OF BIDS 2013-2020
Description
Unit
Opening a business
Procedures
business
to
open
a
new
Nr. of active enterprises
Increase by % nr.of enterprises
Nr. of Employees
2013
2015
2016
Business Climate
2017
2018
2019
2020
Nr. Days
5
4
3
2
2
2
2
2
Number
5
4
3
2
2
2
2
2
000/nd
113
Performance of SME-s
115
117
119
121
123
125
127
%
1.8
1.8
1.7
1.7
1.7
1.7
1.6
1.6
000/empl.
285
4%
299
5%
314
5%
330
5%
346
5%
364
5%
382
5%
401
5%
%
28%
29%
30%
31%
32%
33%
34%
35%
%
29%
30%
31%
32%
33%
34%
34,5%
35%
1
1
1
1
Increase in % of employees
Nr. of woman-led companies as
% of Total
Disbursed credits by business
women
2014
Innovative SMEs
Technology Incubators
Cluster creation
nr
nr
Export of goods total (X)
Mil./€
1668
1818
Exports
1981
2160
2354
2566
2797
3049
Increase in % of exports
%
9
9%
9%
9%
9%
9%
9%
9%
Export Contribution to GDP
%
16%
17%
18%
18%
19%
9%
20%
20%
Mil. Euro
855
905
FDI
950
1005
1o52
1095
1140
1220
5.8%
4.7%
4.1%
4.1%
7.0%
8.5%
8.4%
8.2%
8.1%
9%
Total FDI
Increase in %of FDI
%
FDI as a % of GDP
Competitiveness Indicator /
Score
14%
5.8%
8.3%
8.4%
5.0%
4.1
4.15
4.2
4.25
4.3
4.35
4.4
4.5
8.4%
Competitiveness
Increase in % of turnover
%
5%
7%
Industry
7%
8%
8%
8%
8%
8%
Increase in % of Added Value
%
9%
10%
11%
12%
12%
12%
12%
12%
Increase in % of productivity
%
5%
5%
5%
5%
5%
5%
5%
Increase in % of employees
%
10%
5%
5%
Mining
4%
4%
4%
4%
4%
4%
Increase in % of production
%
5%
5%
5%
5%
5%
5%
5%
5%
Value of mineral products
%
5%
6%
6%
6%
6%
6%
6%
6%
Manufacturing enterprises
%
5%
4%
4%
3%
3%
2%
2%
2%
Increase in % of investments
%
5%
5%
5%
5%
5%
5%
5%
5%
THANK YOU !
Bashkim Sykja
DIRECTOR OF COMPETITIVENESS POLICY DEPARTMENT
Ministry of Economy, Trade & Energy
bashkim.sykja@mete.gov.al