Context
For over a decade prior to the onset of the global financial crisis, the Albanian economy was the fastest-growing economy in Europe. Even between 2009 and 2011, the country continued to record real growth of its gross domestic product (GDP) amounting to an average of 3.4% per year. After this period, however, the recession in Italy and Greece – Albania’s most important economic partner countries – took a toll on the Albanian economy. Exports, investments and remittances fell sharply. The new government, which took office on 15 September 2013, has started to create conditions for more growth, competition and productivity. Reforms pursued preparation for EU accession aim to make Albania more attractive for international investments to generating income or employment opportunities for the Albanian population.
Objective
ProINVEST’s overall objective is improving processes and mechanisms of state support for investment activities, especially with respect to transparency.
Approach
The programme supports the efforts of the Albanian Government to improve Albania’s investment climate by promoting specific investment projects and to establish good economic governance practices. Promoting strategic investment creates income and employment opportunities for the Albanian population, as well as tax revenues that have a positive effect on the strained budget situation in Albania.
The GIZ intervention focuses on three fields of activity:
I. Strengthening the technical and process-related capacities of key actors;
II. Streamlining procedures and public services for investors;
III. Developing incentive mechanisms for the targeted promotion of strategic investments.