1. MINISTRy of economy trade and energy general directory of policies
STRATEGY GUIDELINES OF
BUSINESS & INVESTMENT DEVELOPMENT ( )
Tirana, May 29, 2012

2. STRUCTURE OF STRATEGIC DOCUMENT
Current situation
Vision, policies and policy’s aim
Policy objectives and products
Costs and financial resources
Monitoring indicators

3. ECONOMIC DEVELOPMENT INDICATORS
Albania is an economy dominated by services. The share contribution of agriculture sector is 21% of GDP in The rest of GDP, is covered by industry approximately 20% and 59% services.
During the last three years , the Albanian economy was increased with an average estimated at 3.4% of GDP, inflation 2 - 4%. Unemployment rate has shown decline, reaching 13.3% from 13.5% in 2010.
Exports of goods increased by 23%.
FDI flows in 2010 amounted 793 million Euro. In 2011 Albania attracted 742 million euros, an amount slightly lower than the previous year.
Competitiveness, in the overall ranking for , Albania was ranked 78/142 with an improvement of 10 places from last year.

4. AIM & STRATEGY FEATURES
Develop and implement policies that affect the dynamic and sustainable growth of SMEs, industry and mining sector, in accordance with the National Strategy for Development and Integration
Focus: enhancing the competitiveness of entrepreneurship & non food industry sector.
It is based on the principles of the European Strategy "Europe 2020" (smart, sustainable and inclusive growth).
Support sustainable economic development based on the development of domestic manufacturing capacity, expansion and diversification of the export market and increase employment.
It has a horizontal character, which also applies in other sectors of the economy; part of the priorities identified in this strategy requires active support from other sectorial policies.
Ensure equal conditions in terms of competition development.

5. STRATEGY VISION AND CHALLENGES
"Development of a dynamic entrepreneurship and a productive industry, able to respond to the challenges of development and integration, regional and global competition”; its vision will focused on :
Continuous improvement of business and investment climate, reducing administrative barriers and business costs;
Development of a productive industrial and mining sector, capable of processing raw materials in the country and increasing the added value through investments and application of new technologies, clean production, increased professionalism and employment, which stimulates creation of a competitive industry.
Creating a partnership between government and business regarding the needs for improved technology, innovation and ability to prepare "skilled workforce".
Creation of an competitive and dynamic industry, foreign investment, growth and diversification of exports, and stimulating the creation of new businesses.
The challenge of this strategy is to enable and to guide investments, which will gradually transform the economic structure to an economy with sectors and products with more added value.

6. THE MAIN STRATEGY OBJECTIVES
Improving the Business Climate and Institutional Strengthening
Establishment of a full system of Regulatory Impact Assessment-RIA.
Reforming the inspection system in Albania through the consolidation of the number of inspectorates and enforcement of the Central Inspectorate.
Update the registry of Electronic Business Legislation
Amending and further improvements of laws and regulations that affect the cost reduction of doing business in Albania.
Work will focus on reducing the days needed for: procedures for starting a business; obtaining a construction permit; getting electricity; registering property; getting credit; tax payment, customs procedures for export-import; enforcing contracts, bankruptcy procedures, etc..
Maintaining a continuous dialogue with business community.

7. SMEs AND ENTERPRENEURSHIP OBJECTIVES
Entrepreneurship development; drafting and implementation of entrepreneurship and lifelong learning strategy; creative economy; the CSR program; support for start-ups, women in business and youth, expansion of micro credit in rural and urban areas;
Increasing competitiveness of SMEs and strengthening technological capacities: establishment of the National Competitiveness Council , the implementation of the innovation program; drafting legal framework for the creation of financial schemes for innovation like voucher, business angels, etc., strengthening the BRIC, the establishment of parks and technological incubators, clusters development, financial support for innovation etc.
Improve business services
Improve SME lending - the extension of credit guarantee schemes, the creation of schemes to subsidize bank loan interest, the creation of venture capital schemes, etc..
Strengthening institutional capacities – AIDA, etc.

8. INDUSTRY SECTOR OBJECTIVES
The strategic objective for the industry sector: Encouraging investment in technology, processing the raw materials, modernization, diversification and specialization of industrial products in regional & global markets.
Specific objectives
Manufacturing sector towards value-added products using raw materials of the country( import substitution).
Use of existing industrial facilities and cheap labor cost in disadvantaged areas for product development.
Promote and support the industry sector in terms of innovation, offering new products and services to market.
Enhancing professional capacity and support them in establishing joint ventures for competitive products.

9. EXPORT DEVELOPMENT OBJECTIVES
The strategic objective of exports: Integration in regional and European markets.
Promotion of trade mark "Made in Albania“.
Support for export product’s certification.
Promoting cooperation between manufacturers will allow the potential use of "economies of scale“.
Developing and implementing new credit support schemes for the development of exports.
Support to business associations and exporting companies operating in sector and product base.
Implementation of an export promotion program with the support of the Diaspora.
The disbursement of government funds for competitiveness, ECGF, etc.

10. FDI OBJECTIVES
Increase FDI flows through the completion of privatization process and through concessions in sectors with competitive advantages.
The increase of FDI flows in specific sectors such as the shoes &garment industry, sector services and construction materials.
Increasing the flow of investments in the sectors of mining, oil and gas, agribusiness, tourism and physical infrastructure.
Strengthening the institutional capacities of promotional and implementing structures of investment promotion/AIDA.
Development of Economic Zones (industrial parks and free zones).
Improving the image of Albania in international markets.
Further Improvement of business climate.
Undertake a study on the possibility of opening two or three representative offices abroad.
Identification of appropriate investors in Albania of converting 15% -20% of foreign companies targeted as potential investors in Albania;

11. THE STRATEGY COSTS
For the period , is estimated to require a budget of around million ALL.( 266 Mil. EURO)
Million ALL or about 55% of the total cost are intend to implement through project fiches with donors.
The cost planned to be covered by state budget is Million ALL or 17% of the total cost.
By private foreign direct investment it is about Million ALL or 28% of total cost.
Also the state budget will cover costs related to human resources, research and development, trainings etc.

12. STRATEGY COST BY SECTORS
2013
2014
2015
2016
2017
2018
2019
2020
Cost Mil.ALL
Innovative SMEs and entrepreneurship development
990
1024
1443
1958
2554
3117
3980
4240
19306
Export promotion 98
100
105
110
115
120
125
130
903
FDI promotion
151
306
615
935
1600
2515
3225
4930
14277
Mining
298
304
313
325
341
358
380
403
2721
Total
1,537
1,734
2,476
3,328
4,610
6,110
7,710
9,703
37,207

13. MONITORING INDICATORS…
Continuous Improvement of business climate by: -Reducing the time of opening a business that is 5 days to 1 day in 2013, -Reducing steps for opening a business from 5 steps to 1 step, -Reduction of days to obtain construction licenses, -Improvement of service for online payment of taxes etc..
For SMEs and entrepreneurship: Creating three (3) technological business incubators, creating 6 new clusters; support of 500 businesses with information and grants for innovation, creation of program to support 300 women-led businesses through low interest loans; creating program support of around 1000 new businesses (start up), through grant funds and low interest loans; creation of grants fund for the support of 450 creative businesses, especially those in the field of handicrafts .

14. MONITORING INDICATORS…
Internationalization of SMEs: Support of 350 companies with grants to increase their competitiveness; support 100 exporting companies with ECG funds. -Increase the annual value of exports to 10-15%. -Maintain export growth rate and reaching to 20-25% of GDP in The increase of exports towards domestic production from export processing reaching in 2020 in 60% with 40%. - Establishment and operation of 9 industrial parks and economic zones. -Improved service for 210 foreign investors. -Increased production by 40% at the end of 2020 compared to Increased investment by 40% at the end of 2020 compared to Increase employment by 47% at the end of 2020 compared to 2013

15. THANK YOU! BASHKIM SYKJA Competitiveness Policy Department METE bashkim.sykja@mete.gov.al