The monitoring process of the Albanian Investment climate remains one of the main objectives of FIAA. In June 2016, FIAA and Business Alliance of Slovakia presented the final outcomes of Project, “Improving Business Environment in Albania” during a Conference with Members of FIAA, Slovak Team, Slovak Deputy Ambassador and other related partners. The project was financed by the Official Assistance of the Slovak Republic.
During the conference were presented the results of the quarterly Business Environment Index and the Assessment of the Law impact in Albania based on the monitoring of trend and developments of the Business Climate in Albania for January 2015 – April 2016 period.
The following Chart presents the results of the quarterly monitoring Indexes in the Business Environment in Albania.
Business Environment Index 2015 & Q1- 2016
The Business Environment Index was monitored and prepared with the participation of companies operating mainly in energy, mining and hydrocarbon sectors (Year 2015 + Q12016).
The graph has shown that the perception of the foreign businesses in the country is evaluated with negative terms related to many key elements of the business climate. Those elements which were perceived as factors with negative impact during year 2015, continue to be with negative perception even during the first quarter of 2016.
Most problematic issues remain: law enforcement, judicial effectiveness; Variability of legislation, its complexity and difficulty in its implementation. Also, bureaucracy and corruption in public institutions as well as presence of unfair competition continue to be among barriers in doing business in Albania.
Whilst, other elements such as labor legislation, regulations related to licenses and certifications, infrastructure and access to finance have been perceived as positive by this group of companies.
Another element was the monitoring of the Business Climate in the country through the impact of adopted or forecasted economic and social laws and regulations, which are expected to have an impact on the conditions of doing business during the following months.
Although the Albanian Government has undertaken a series of measures and reforms to improve the business climate in the country, it is still required time in order that business perception changes and creates positive expectations about the business climate in a near future. FIAA compliments the Ministry of Finance which has introduced a Draft Fiscal Package for 2017, which does not foresee changes in the tax level, but only an improvement and simplification of tax procedures in the country. FIAA considers a major challenge the implementation of these measures and other reforms in support of business and is confident that a key factor that will help in the proper implementation of any reform in the country and for the return of confidence to foreign investors, is the adoption of the justice reform.