News

The World Bank Group (WBG) has been preparing the Systematic Country Diagnostic (SCD) update for Albania. The first SCD for Albania was submitted to the WBG Board and published in 2015. The updated SCD is required as the evidence base to prepare the next Country Partnership Framework (CPF) that would define the engagement between the WBG and Albania in the next five years.

Over the last months, FIAA has circulated for consultation among its members the Draft Law on “Invoices and the System for Monitoring the Transactions”. The changes proposed in this draft law are expected to have a broader impact for business in Albania in the next year.

During the last months, FIAA has circulated among its members the Draft Unified Investment Law, which is open for consultation. As a follow up of the various comments and opinions, the Responsible Body for its Business Consultation, the Albania Investment Council in cooperation with the Ministry of Finance and Economy and presence of IFC Experts organized in June 25th a consultation round table.

Unfavorable Business Climate, Monopoly and Corruption continue to remain the most concerning issues. 

During a mid-year event in June, FIAA presented the outcomes of its Business Environment Survey 2019. The Survey was conducted among the Membership of FIAA which are the most important foreign businesses in the country, operating in various industries such as, energy, oil, mining, banking, telecommunications, manufacturing, etc, that represent the biggest part of the FDI-s in Albania.

FIAA representatives were invited for a business breakfast with UNDP Albania, an activity set up with the most important actors of the private sector in Albania. The UNDP was represented by the Country Resident Head and the representatives from Regional Centre in Istanbul who introduced their recent programs and focus on the private sector engagement and development of partnerships. On the other side, FIAA representatives introduced their initiatives on support of the Economy and Communities they work with. They also emphasized the importance that business has given to Social Responsibility during the recent years and the vision they have to further play a role on the development of the social and economic growth of the country.

During its May Meeting, Albania Investment Council (IC) discussed on “ Investments and Legal Security on Property”, a meeting chaired by the Minister of Finance and Economy, Mrs. Anila Denaj but with presence of the Key Relevant Stakeholder, Mr. Artan Lame as Head of the Newly created State Agency of Cadastre. In support of this meeting, the Investment Council hold a series of Consultation Meetings with Business Organizations, with FIAA as was one of the Contributors with presented Concerns and Recommendations on the property issues.

In this meeting, FIAA was represented by its official appointed Member in the Council, FIAA’s Chairman Mr. Tom Larsen.

For more information please visit: https://www.investment.com.al/investment-council-meeting-on-investments-and-legal-security-on-property/

The Property Issues were at the focus of a discussion Meeting during a round table with several Members of FIAA and Investment Council Secretariat. The discussions intended to address property-related issues from the investors’ point of view and the respective legal certainty that the investors should have in Albania. Most of the identified concerns were related to:

• High Opportunity of Social Conflicts and Overlapping of Ownership Titles;
• Failure to develop a structured agricultural market and the lack of an insurance scheme;
• No access to Financing (Grants / Credits) by the owners;
• Very Low Property tax related to income;
• Reduced opportunity for land consolidation and agro-business development;
• High unemployment at the regional and national level due to lack of investment;
• Very low level of Foreign Direct Investments in the property/land sector.

Ministry of Finance and Economy in cooperation with the Secretariat of Albania Investment Council held an open discussion with businesses from the sectors of agri-processing,  active inward processing regime (fason regime) and export with regard to the 2019 VAT Reimbursement Strategy and the Fight against Informality. The meeting was chaired by the Minister of Finance Mrs. Denaj and attended by the General Tax Director, Mr Enton Duro.

The Extractive Industries Transparency Initiative – EITI, is an international initiative with main object to develop and implement a mechanism for declaring revenues earned from the use of Natural Resources through Extractive Industries, publishing of these data in an understandable format by everyone and their oversight by providing to the general public information on public revenue and expenditure, thus, contributing to a public debate and the establishment of mechanisms for the good governance of these revenues to the benefit of communities.

The Extractive Industries Transparency Initiative – EITI, is an international initiative with main object to develop and implement a mechanism for declaring revenues earned from the use of Natural Resources through Extractive Industries, publishing of these data in an readable format by everyone and their oversight by providing to the general public information on public revenue and expenditure, thus, contributing to a public debate and the establishment of mechanisms for the good governance of these revenues to the benefit of communities.  This is accomplished through the establishment and functioning of a Multi Stakeholders Group (MSG), which includes government representatives, companies operating in this sector, and full, independent, active and effective participation of civil society, who are committed to work together in order to develop and promote the transparency and good governance of this sector.