Within the framework of the visit and participation of businesses from Kosovo at the Hannover Messe 2024 fair, under the organization of the Agency for Investments and Enterprise Support in Kosovo (KIESA), the Prime Minister of the Republic of Kosovo, Albin Kurti together with the Minister of Industry, Entrepreneurship and Trade, Rozeta Hajdari participated in the presentation and discussion with businesses (Business to Business).
In his speech to the audience, the Prime Minister listed and elaborated four main factors that make Kosovo a special destination for foreign investments from Germany.
The first was the strong trust and historical ties between Kosovo and Germany, reinforced by our diaspora. Second, the geopolitical and economic changes that make Kosovo a suitable place for near shoring and our commitment to democracy and economic freedom. Economic dynamism, readiness for investments, growth of the Gross Domestic Product and large infrastructure projects, including those in the field of energy, he emphasized as the third factor. And the technology and production sector, together with competitive advantage and innovative spirit, as the fourth factor.
He invited the companies to explore the opportunities that Kosovo offers and to visit it so that they can see them up close.
Prime Minister Kurti’s complete speech in English:
Dear ladies and gentlemen,
The esteemed members of the Kosovar delegation and our cherished diaspora community here at Hannover Messe – it is a pleasure to be here with you today,
First off, I would like to extend my gratitude to Chairman Jochen Köckler of Deutsche Messe and the esteemed Managing Board for inviting me to attend Hannover Messe – as someone told me: the Champions League of manufacturing fairs.
My main reason being here is that I’d like to invite you to invest in and outsource to my country Kosova. There are many good reasons for that, but I’ll focus today on four main ones:
First is trust! Germany and Kosova share deep ties, emotionally, historically and professionally. We’re very grateful for Germany’s role in liberating our country in 1999 and in helping with our reconstruction and development efforts. The trust between our two countries has been strengthened robustly by dedicated 575,000 strong diaspora in Germany, who are diligently contributing to various sectors, showcasing the reliability and hard work that Kosova offers. We are proud of our Diaspora; they represent well the positive image of our country. Entrepreneurs, students and workers who contribute here and benefit from here. Our Diaspora has also helped bring about the positive political changes in Kosova. So, there was a spill-over effect by people who get to experience quality governance and public services here and wanting to see the same back home in Kosova.
Second, is the geopolitical & health considerations. There’s an ever-growing need for not just nearshoring but also friendly-shoring, due to Covid-induced supply-chain disruptions and increased transportation costs from far Asia, and the Russian aggression in Ukraine. These unfortunate events have prompted many Multi-National Companies, including German ones serving the Europe Middle East and North Africa (EMENA) region to seek relocation to friendlier and closer BPO destinations. Now, you may say: all of Western Balkans is in the center of EMENA. Why Kosova as the investment or BPO destination?
This brings me to my third point, our homework back home! Beyond just relying on the good emotional deposit and trust build by our Diaspora, we realize we must do our own homework back home as well, and we’re doing it! We’re already delivering with solid improvements in rule of law, freedom, and democracy. Kosova boasts a democratic, stable, and open-market economy, supported by partnerships with Germany, the European Union, and the United States. For our rapid advancements in rule of law, political rights, political pluralism, civil liberties, and electoral democracy, our country is being recognized as the most democratic country in the Western Balkans. Kosova is a proud example of how freedom and strong democracy becomes development, and the anti-corruption becomes growth. It is also becoming an example of a top investment destination for the region.
Our streamlined regulatory framework facilitates the creation of businesses, earning Kosova a notable 12th ranking globally by the World Bank for “Starting a Business.” Taxation regulations in Kosova are most favorable in Western Balkans for businesses, with no custom duty on exports, the second-lowest corporate tax rate in Europe at 10%, and exemptions on customs duty for imports of machinery and raw materials intended for further processing by manufacturing companies. Moreover, Kosova has signed double-taxation treaties with various European countries, such as Germany and Austria, ensuring tax efficiency for cross-border operations.
Kosova leads the Western Balkans in Real Economic Growth with an extraordinary economic growth of 6.2% on average in the years 2021-2023 according to the World Bank.
Kosova leads the Western Balkans in both GDP growth and investment as a percentage of GDP, registering the highest average GDP growth in the region over the past eight years, surpassing its neighboring countries. Additionally, Kosova has maintained the highest rate of investment relative to its GDP in the region for the last eight years. We also boast the lowest public debt level in the region, resulting in stable interest rates and providing us with significant capacity for investment in public infrastructure.
Current investment requirements for public infrastructure exceed EUR 7 billion. These needs span various sectors including transportation (roads, railways, tunnels), then environment (water supply, wastewater, waste management), and energy (1.2 GW of renewables and refurbishment of existing coal power plants). We recently concluded a successful auction for 100 MW of solar energy, which attracted five international companies. A consortium led by a Swiss company emerged as the winner.
The fourth and last factor I’ll mention today is our successes in the economy and private sector development. I am proud that there are ten Kosovar ICT and light manufacturing companies that are exhibiting for the first time here in Hannover Messe, and they’re here with us today. Kosova stands particularly competitive in these two sectors, with an over 70 years of tradition and over 40% of our country’s exports in the manufacturing sector, and a fantastic boom of over 14,000 experts in the ICT sector. We have the largest youth in Europe, and they are dynamic & tech savvy, speak fluent English, and very often also German.
In summary, I underscored four key factors that make Kosova stands out as a prime investment destination:
1. The strong trust and historical ties between Kosova and Germany, reinforced by our vibrant diaspora;
2. The geopolitical and economic shifts that encourage German businesses to consider Kosova as a strategic nearshoring location; our commitment to democracy and economic freedom, which has made Kosova a beacon of progress in the Western Balkans;
3. Our leading position in GDP growth and investment readiness, combined with extensive public infrastructure projects, showcasing our economic dynamism; and
4. Kosova’s blooming tech sector and manufacturing sectors, highlighting our competitive edge and innovative spirit.
Together, these factors make Kosova not just a feasible, but an attractive destination for your investments and business operations.
We welcome the opportunity to discuss how your business can thrive in Kosova. Our team is ready to provide the necessary support and information to facilitate your investment journey in Kosova.
Thank you very much for your attention and see you soon in Kosova!
Vielen dank!
Last modified: April 26, 2024