Good economic governance for improving the investment climate
Title: Good economic governance for improving the investment climate in Albania (ProINVEST)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Prime Minister’s Office
Overall term: 2015 to 2017
For over a decade, prior to the onset of the global financial crisis, Albania had the fastest growing economy in Europe. Even between 2009 and 2011, the country still recorded further expansion, with its gross domestic product (GDP) growing by an average of 3.4 per cent each year. Since then, however, the recession in Italy and Greece, Albania’s most important economic partner countries, has taken its toll on the Albanian economy. Exports, investments and remittances have all fallen sharply. The current government, which took office in September 2013, has started to create the conditions for more growth, competition and productivity. Reforms being pursued in preparation for the country’s EU accession are intended to make Albania more attractive to international investors. This should generate income and employment opportunities for the Albanian people.
Processes and mechanisms of state support for investment activities have improved, especially with respect to transparency.
GIZ is supporting the efforts of the Albanian Government to improve the investment climate in the country by establishing good practices of economic governance. To this end, GIZ is working with the Prime Minister’s Office, in collaboration with Ministry of Economic Development, Tourism, Trade and Entrepreneurship (MEDTTE) and the Albanian Investment Development Agency (AIDA).
By encouraging strategic investments, the partners expect to generate income and employment opportunities for the people of Albania. This, in turn, will enhance tax revenues and have a positive effect on the country’s strained budget situation.
The programme focuses on the following activities:
- Supporting the design of the legal and policy framework
- Elaborating sector analyses and best practices for investment
- Inter-institutional coordination
- Improving communications between investors and the government
- Strengthening the capacities of the actors involved
The consulting firm GFA supports the implementation of the project.