Prishtina, 30 December 2024
The Prime Minister of the Republic of Kosovo, Albin Kurti, today participated in the 2024 Annual Conference on progress in supporting businesses during 2024 and plans for 2025, organized by the Ministry of Industry, Entrepreneurship and Trade.
The Prime Minister Kurti, on this occasion met with entrepreneurs with whom he held a conversation on the progress made so far, the challenges and the joint efforts of the private sector and the Government.
“We are based on the principles of good governance and our development vision, which implies sustainability, well-being, security and equality.” We have undertaken support measures for citizens and businesses during this mandate. “Most importantly, together with you, with your work and investments, we are strengthening the country’s economy,” said the Prime Minister.
He highlighted the trends of recent years of economic growth achieved as a joint effort, including an average economic growth of 6% in 4 years of governance, a doubling of exports, a doubling of Foreign Direct Investment, an increase in business turnover, a Gross Domestic Product of 10.3 billion euros, the lowest public debt in Europe (of 17%) and a reduction in the debt of unpaid invoices for goods and services, as well as an increase in capital expenditures, this year being the highest ever at over 600 million euros.
Over three years, the Government has redistributed around 1.3 billion euros to citizens and businesses through numerous measures, without creating new debts. Hundreds of micro, small and medium-sized businesses have been supported through targeted grants and economic development programs, while innovation and digitalization in the private sector have been promoted, providing support to startups and micro, small and medium-sized enterprises that bring new technological ideas.
Some of these support measures for businesses include:
Financial support to increase the competitiveness of 711 micro, small and medium-sized enterprises, worth over 20 million euros;
Financial support for 450 other businesses with a total of 12.4 million euros in investment loan subsidies as part of the economic recovery package;
Financial support worth 3.2 million euros for the internationalization of 392 local businesses, with participation in 51 international fairs for tourism goods, services and activities, promoting over 1,500 products of goods, services and tourism activities;
Kosovo with access to one of the largest European Union programs “Common Market” worth 4.2 billion euros to support businesses and organizations, for the 2021-2027 period;
Financial support also worth 36 million euros to the Kosovo Credit Guarantee Fund, during 2023 and 2024, guaranteeing 1,222 loans to 1,074 start-up, or micro, small and medium-sized enterprises, worth 82 million euros of loans disbursed from the guarantee by the Fund, where 2,230 new jobs have been generated from these loans;
Guaranteeing investments of up to 3 million euros by our diaspora, anywhere in the world through the “Diaspora Investment Window”.
“We have made effort to share this increase with the categories that are most in need in our country, children, mothers, pensioners, students, but also with businesses, especially with regard to subsidizing interest rates for investment loans, for the purchase of production machinery, then for the 6-month bonus for young people who are employed through the “SuperPuna” program from 19 to 29 years old, and so on,” the Prime Minister declared to those present. He also focused on the dual education process in 12 profiles, in 25 vocational schools and 15 municipalities, in which over 6,000 scholarships have been awarded to students in STEM fields.
While encouraging businesses to continue their commitment to an even brighter future for Kosovo, Prime Minister Kurti pledged that the Government will continue to support them and be an essential pillar in achieving our vision of a local industry that produces for the local and international market.
Full Speech of Prime Minister Kurti:
Honorable Mr. Zef Dedaj, Acting Director General of the Agency for Investment and Enterprise Support in Kosovo,
Honorable Mr. Agron Llugaliu, Director of Kosovo Customs,
Honorable Mr. Besnik Berisha, Director of the Kosovo Credit Guarantee Fund,
Honorable representatives of businesses,
Honorable media representatives,
Honorable guests,
Ladies and gentlemen,
Pleased to meet you at this end-of-year event. This joint meeting is for close conversation and reflection with you, entrepreneurs, with the aim of marking the progress to date, the challenges and our joint efforts from the private sector and the Government.
We are based on the principles of good governance and our development vision, which implies sustainability, well-being, security and equality. We have undertaken support measures for citizens and businesses during this mandate. Most importantly, together with you, with your work and investments, we are strengthening the country’s economy. Thus the present is, and the future will be, more stable and prosperous for all.
The trends of recent years of economic growth prove to us that with our joint efforts:
· Our country has shown an average economic growth of 6% of Gross Domestic Product in these 4 years;
· We have doubled exports and made a significant improvement in the export-import ratio from 1:9 4 years ago to around 1:6;
· We also witness a doubling of Foreign Direct Investment – in which case the average FDI during our government (2021-2023) is 664.3 million euros or 2.2 times higher than the annual average of the period 2007-2020;
· Business turnover during 2023 was 58% higher than in 2019 – and it is interesting that from January to September this year we had a 7.7% increase in business turnover compared to the same period last year;
In general, Kosovo’s economy, Gross Domestic Product has grown and this year will enter in Kosovo’s economic history as the year in which we reached the 10 billion mark of our economy, which represents an increase of 46%, close to 50%, compared to 2019 and over 50% or precisely 52% compared to 2020, and about 30% compared to 2021. So, this year 2024 compared to 2021, we have an increase in our country’s economy of about 30% and the word economy derives from the Greek “oikonomos” which means “housework”. So, the Gross Domestic Product is the economy, it has grown by 30% in four years and we have made effort to share this increase with the categories that are most in need in our country, children, mothers, pensioners, students, but also with businesses, especially with regard to subsidizing interest rates for investment loans, for the purchase of production machinery, then for the 6-month bonus for young people who are employed through the “SuperPuna” program from 19 to 29 years old, and so on.
In 2020, the unpaid invoices we found for goods and services from economic operators in our country amounted to 141.6 million euros. So the state owed you 141.6 million euros. At the end of last year, this debt was reduced to 33 million euros and continues to decrease. We will have the service for this year at the beginning of next year.
Then we have kept the public debt the lowest in Europe, 17%, and I believe that this has been good at this stage because we have created an autonomy of our government and institutions that are generally stable and solid, but we have also had more favorable negotiations with international financial institutions, because when you have low public debt, you can take on more debt at a cheaper rate. Meanwhile, when you have high public debt, more debt is increasingly expensive.
Capital expenditures in 2023 are the highest in the history of our country – 561 million euros spent. During the first nine months of this year, we have seen a 23% increase in capital expenditures compared to the previous year, and this year is the year when capital investments exceed 600 million. Tax revenues are exceeding 3 billion, capital investments are exceeding 600 million.
Another dimension that certainly helps in the business environment is our country’s Democratic and Economic indicators in international reports. They highlight progress in each of these indicators, from fighting corruption, to democratization, to competitiveness, we have the greatest advancement in the region. If we are not in first place, then we are in second place after Montenegro – this is how it is in the assessments of various prestigious international organizations.
Honorable guests,
In three years of governance, we have distributed 1.3 billion euros, when the balance for the four years is drawn up, it will certainly be even higher than that, both among citizens and businesses through numerous measures, without creating new debts.
Through targeted grants and economic development programs, we have supported hundreds of micro, small and medium-sized businesses to expand their activities, create new jobs and strengthen their competitiveness in local and international markets.
And you know very well that both my mind and my heart when it comes to business are in favor of medium, small, and micro businesses, not the oligarchs because they only take care of themselves. Meanwhile, we must help you, those of you who bear the greatest burden of employment in the country, but also of contributing to the state. It is often forgotten that of all employees in Kosovo, only ¼ are in the public sector, ¾ are in the private sector, and the vast majority are in micro, small, and medium-sized enterprises like yours. They bear the main burden of employment, and these people are employed, they are with you, therefore they are not with us on social assistance, and we never forget this. Our society is dynamic thanks to the private sector and small and medium-sized enterprises of our country.
We have also promoted innovation and digitalization in the private sector, providing support to startups and micro, small and medium-sized enterprises that bring new technological ideas.
Some of these support measures include:
Financial support to increase the competitiveness of 711 micro, small and medium-sized enterprises, worth over 20 million euros;
Financial support for 450 other businesses with a total of 12.4 million euros in investment loan subsidies as part of the economic recovery package;
Financial support worth 3.2 million euros for the internationalization of 392 local businesses, with participation in 51 international fairs for tourism goods, services and activities, promoting over 1,500 products of goods, services and tourism activities;
Clearly, with 1.6 million inhabitants, the economic growth that Kosovo is experiencing, with the increased turnover of businesses, it is not a sufficient market for you. Therefore, in the coming months and years, we will support you in exporting as much as possible, in accessing foreign markets.
Kosovo with access to one of the largest European Union programs “Common Market” worth 4.2 billion euros to support businesses and organizations, for the 2021-2027 period;
Financial support also worth 36 million euros to the Kosovo Credit Guarantee Fund, during 2023 and 2024, guaranteeing 1,222 loans to 1,074 start-up, or micro, small and medium-sized enterprises, worth 82 million euros of loans disbursed from the guarantee by the Fund, where 2,230 new jobs have been generated from these loans;
Guaranteeing investments of up to 3 million euros by our diaspora, anywhere in the world through the “Diaspora Investment Window” as well as at the Fund.
To support the manufacturing sector in the necessary profiles, through specific Government measures and economic growth in general, we have also supported the private sector through the SuperPuna platform. In less than two years, through SuperPuna, around 9,500 local businesses have enabled the employment of nearly 14,000 young people between the ages of 18-29 (51% girls).
Meanwhile, to connect education with the labor market, we have allocated over 6,000 scholarships for STEM students and have launched the dual education process in 12 profiles, in 23 vocational schools and 14 municipalities across Kosovo.
Dear entrepreneurs,
In our leadership, we have laid the foundations for a new approach: transparency and responsibility, that is, open and accountable. We have closed the chapter on abuses and informality in important sectors such as oil, tobacco, tenders and grant schemes.
The government will continue to support businesses and be an essential pillar in achieving our vision of a local industry that produces for both the local and international markets.
I thank you very much for your commitment, the work you have done, for your contribution to society and the state, and I encourage you to continue your commitment to an even brighter future for Kosovo.
Thank you very much, and consider the Government of the Republic as your development partner for your needs, for further growth. Your interest is expansion, your expansion is our interest.
Happy 2025 and all the best in the year coming after tomorrow!
Last modified: January 3, 2025