Interviews

“Considering Albania’s rigorous efforts towards enhancing its digital infrastructure and services, there is substantial potential for growth in the ICT sector”

FIAA: George, you have lived in Albania for many years and run one of the model companies in the ICT sector. What is your experience with this sector and what are the major developments over the past ten years?

Mr. Blekas: The ICT market in Albania has transformed remarkably since I began my tenure here in 2008. Initially, the landscape was marked by rudimentary connectivity, primarily fixed and mobile 2G networks, while digital services were scarcely understood and utilized. Noteworthy is the significant leap during the COVID-19 pandemic, which catalysed a heightened demand for digital services. This shift accelerated Albania’s progression towards robust digital infrastructure including the introduction of Gigabit fibre in homes and 5G mobile networks. This has been complemented by affordable pricing structures, making these advanced technologies accessible to a much wider audience. The country’s strategic emphasis on enhancing broadband infrastructure, as a pivotal element of its digital strategy, has created a fertile ground for innovation ecosystems. These ecosystems are essential in driving productivity, fostering economic growth, and creating job opportunities. Albania’s focused efforts in this domain aim to propagate the macroeconomic benefits derived from digital advancements across all sectors of the economy.

In addition to Greek market, Intracom Telecom is present also in many other countries. How important is the Albanian market for Intracom Telecom Albania S.A, foreseeing the latest digital development and the new technologies in the country?

Intracom Telecom group steams back in the distant 1977 and is currently approaching half a century of experience, having local presence in over 20 countries, exporting to over 70 countries, running 3 R&D centres, and making 70% of our business in international activities. Our journey in Albania started in 1998, initially providing our payphones all over the country, which have proven to be the connection of Albanians to the world for many years. A few years later, in 2001, this evolved into establishing a fully staffed local office, operating continuously and successfully since then. Over the years, we have spearheaded numerous IT and infrastructure projects across various sectors, both for the private sector (fixed and mobile telco operators, banks, etc) as well as for the public sector. Considering Albania’s rigorous efforts towards enhancing its digital infrastructure and services, there is substantial potential for growth in the ICT sector. This environment could provide significant expansion opportunities for our operations, contributing to Albania’s expanding digital footprint and aligning with our global expansion objectives.

What are the main challenges that you face in terms of investments, human resources, quality of services, and market?

A predominant challenge in the Albanian market is the phenomenon known as “brain-drain”. Despite a steady improvement in the quality and relevance of educational outcomes in ICT and related fields, many skilled professionals opt to pursue careers abroad, creating a deficiency in local expertise. This scarcity compounds the challenges related to project implementation, driving up costs and exerting pressure on operational efficiency. The local business community, including FIAA and other associations, frequently highlights this issue as a critical barrier to sustainable development within the ICT sector. Addressing this challenge is imperative to ensure the availability of skilled human resources that can match the growth trajectory of the ICT infrastructure and service demands in Albania.

Another area that improvement can be achieved for the overall Telco market investments, is the legislation about the Construction and Infrastructure Permits. The Albanian legislation treats Construction Permits (e.g. for mobile telephony antennas) and Infrastructure Permits (e.g. for fixed network optic fibre), the same as any other construction permit, both in procedures, deadlines and in the required documentation. From other countries’ experience, these are considered public services and should not be treated as ordinary private constructions, since their implementation improves not only revenues for the companies that offer these services and the state that accumulates more taxes from the investments, but mainly brings benefits for the general public in providing more and higher quality services. In other words, improving the Albanian digital infrastructure (higher broadband penetration and speeds, in line with EU directives), making Albania even more attractive for investors. The delays in obtaining these permits because of the long procedures, plethora of documents required and delays experienced, have led to a slowdown of the Telco investments and consequently to the lack of quality mobile and fixed networks services in some areas of the Albanian territory, as well as missing revenues for the companies themselves and consequently state taxes.

As a good connoisseur of Albania and Albanian people, if you could change something in the way the ICT sector and business in general functions in Albania, what would it be?

To enhance transparency and accountability within the ICT sector, I would advocate for the establishment of an institution akin to the USA’s Accountability Office. This body would be tasked with auditing governmental and business projects, benchmarking performances, and ensuring compliance with set standards.

In the realm of ICT, the challenges of project delays and failures are not mere setbacks; they are significant impediments to the stride of a country’s developmental march. These stumbles can be attributed to a range of factors, from inadequacies in planning and execution to a lack of expertise and technological know-how. Project delays and failures can have far-reaching consequences. When ICT projects stumble, it’s not just an isolated impact on a single service or application; there’s a ripple effect that can hamper everything from e-governance and infrastructure to education and emergency services. In an increasingly digital world, these delays can significantly restrain a country’s capacity to compete on a global stage, thwarting efforts to attract investment, improve public services, and foster economic growth. To sidestep these pitfalls and accelerate progress, there’s merit in considering a diversified portfolio of project contributors, notably those with a proven international track record.

You are a long-standing FIAA member for nearly two decades. What has been your experience with the association so far and how would you like it to develop in the next few years?

To start with a statement, it has been both an honour and a privilege to be such a long-standing member, where my association with FIAA has been rewarding and enlightening. As a crucial platform for consolidating the interests and voices of businesses, FIAA plays a pivotal role in shaping market dynamics. My vision for FIAA in the upcoming years is to see it evolve into an even more dynamic, participatory organization where members are not merely passive subscribers but active contributors. By engaging more comprehensively in committees and initiatives, businesses can collaboratively work towards expanding the market – benefitting not just individual entities but enhancing the overall economic landscape. This collective effort is essential in fostering an environment conducive to sustainable growth and shared prosperity.

Closing, I would encourage all businesses to join such collective efforts, to join FIAA and get active, participate some of the many business-sector committees and work with FIAA to mature the market and enlarge the pie for us all, the State, the Businesses, and the People.

FIAA: Dr. Acar, it’s been more than two years since you started leading Albchrome in Albania. Could you share some insights about your work in the mining industry in Albania? How does it differ from your previous experiences in Türkiye or elsewhere?

Dr. Acar: It is a well-known fact that Albania is located within the world-class mineralization belt, the so-called “Tethyan Belt,” which extends more than 10,000 km from Eastern Europe through Türkiye and across Asia. Thanks to this rich geological occurrence, Albania has significant mineral potential, particularly in terms of chrome and nickel, along with some minor scale base metal mineralization’s, such as copper. Small to medium-scale chrome resources have been exploited for more than 75 years in the region. Nearly half of the ore production has been converted into a semi-end product, ferrochrome, locally for over 40 years, serving the global stainless-steel industry and adding value to the Albanian economy.

“While building trust in our technology and solutions, we aim contributing to a more sustainable and greener future”

FIAA: In our last General Assembly, we got to know you through your impressive candidature speech and your charisma. What is your background, Philipp?

Mr. Koronowski: I hold a degree in electrical power engineering and business administration, specializing in renewable energy technologies from RWTH Aachen University—one of Europe’s premier institutions for electrical engineering. It was here that I met my friend Bruno, who would become my business partner. Together, we envisioned starting a solar construction company in Albania, attracted by its untapped market potential and abundant solar production capabilities. My initial visit to Albania as a tourist solidified my commitment to this venture. Prior to founding Vega Solar, Bruno and I improved our competence in Germany, working across various residential, commercial, and industrial solar projects. This experience equipped us with the essential practical knowledge to establish and grow our business in Albania.

“I do see a trend towards greater digitization and innovation in the insurance and pension sectors”

FIAA: You are the Chief Executive Officer of SIGAL Uniqa Pension Fund. How challenging is to operate in a field which is still rather unknown to the Albanian citizens? Why does it make sense to look for private pension solutions in Albania and what is the Austrian experience in this regard?

Mr. Ponari: Operating in a field that is still unfamiliar to many Albanians can indeed be challenging, but it also presents an opportunity to educate and inform citizens. Private pension solutions offer individuals the chance to take control of their financial future, rather than relying solely on state pensions. By understanding the benefits of private pensions and dispelling any superstitions or misconceptions, Albanians can make right decisions that will benefit them in the long run.

“Turning Albania into the most important digital hub in the Western Balkans it would require coordinated efforts from business, the government, and universities”

FIAA: Mr. Révész, this year you were appointed CEO of Vodafone Albania, following a successful career in Vodafone Hungary. What are the experiences that you bring to Vodafone Albania?

Mr. Révész: I was born and raised in Hungary, although all of my professional experience of over 15 years was spent into a multinational environment. During the first 12 years of my career, I worked for Procter&Gamble, a well known multi brand, US based company. My latest role with them was Heading the Commercial Operations, responsible for 9 countries in the Central European region. During my tenure with them, I mastered brand management, P&L ownership, marketing, commercial management, and leadership in a highly diverse, multinational corporation.

“FIAA stands as the epitome of excellence in representing the international business community in Albania”

FIAA: Stela, you recently joined for the second time as Member of the Board of Directors of FIAA. What is your perspective for the upcoming two years in the organization?

Mrs. Dhami: Dear Marinela, President D’Oria, esteemed Board members, and honorable members of FIAA,

I am deeply honored to be granted the opportunity to serve on the Board of FIAA for another two-year term. In my view, FIAA stands as the epitome of excellence in representing the international business community in Albania. Over the years, it has played a pivotal role as the primary intermediary between the business sector and the government, driving numerous beneficial business initiatives. Recently, the establishment of the Energy Council and the HR Committee exemplify FIAA’s commitment to enhancing the significance of the energy sector and the impact human resources have in our enterprises.

“Government needs structured feedback from Business on its legislative initiatives”

FIAA: Mr. Constantin, you joined recently Voltalia Albanie as the Country Manager in an important phase such the Project Construction. Could you tell us about this experience of yours in Albania?

Mr. Alvensleben: I started as Country Manager for Voltalia in Albania in November, have now been on the job for half a year and must say that I really enjoy having joined the energy field. Compared with air transport it is a much more competitive sector, and the current situation where Albania is moving to diversifying its energy mix, introducing more solar and more wind energy sources, presents a lot of opportunities.

“The Law on Income Tax is a fundamental law, and a new improved law will provide a more solid framework for the business environment”

FIAA: Mrs. Paparisto, in addition of representing FIAA to the National Tax Committee in the Ministry of Finance, you have been recently elected also the Chairwoman of the FIAA Tax & Financial Committee. Can you tell us what motivated you to further contribute to FIAA and how do you plan your engagement in this journey?

Mrs. Paparisto: KPMG Albania is a long-time member of FIAA and has contributed to increase the awareness of the public authorities on the tax issues faced by taxpayers in Albania. The experience gained through the years working for KPMG Albania and management of different complex engagements, strongly motivates me to lead the Tax & Financial Committee of FIAA in the future.

“Trying to improve the quality of the life in all the sectors is our due for the future of Albania”

FIAA: Teleperformance Group enjoys a long and successful history in the industry of Outsourcing and Offshoring Consulting, with global presence around the world and in Albania. In our country, Teleperformance is present since 2008, clearly high standing with Teleperformance Group´s world-class standards and tools.  Could you tell more about your group’s experience in Albania?

Mr. Pisa: If we wanted to summarize in one word the experience that Teleperformance Group in Albania has had in Albania, I would say: outstanding.

Teleperformance is the largest and more successful Group in the world in the CRM/BPO sector, we are present in 82 countries with approximately 500,000 employees worldwide.

FIAA: The Italian Network company is called “a 360-degree consulting Firm” and it is present in the Albanian market for a long time. Could you tell us a bit more about the services of your company and your experience in Albania?

Mr. Laera: Italian Network is a consulting firm for internationalization, tax and labor consultancy, HR Management, which since 2006 has been promoting and offering a 360-degree service to foreign entrepreneurs who want to invest in Albania.

It is a bridge between the Balkans and Europe, having offices in Tirana in Albania and Bari in Italy.