Prishtina, 15 May, 2024
The Prime Minister of the Republic of Kosovo, Albin Kurti, participated today in the opening ceremony of the 23rd edition of the International Fair “EXPOKOS”, where he was also the main speaker.
In his opening speech of this ceremony, Prime Minister Kurti emphasized that Fairs like this are important to recognize innovations in business, to create new connections and to build business partnerships. He added that fairs provide a valuable opportunity for businesses to assess the competition and gather knowledge, as this helps businesses move forward faster and further in the market. Speaking about the features that make Kosovo an attractive place for investment, he singled out the geographical position that offers very convenient access to European markets, the Middle East, and North Africa, but also the tax rules in Kosovo. Regarding the latter, the prime minister emphasized that they are the most favorable in the Western Balkans in terms of businesses.
“Benefits include 0% customs duty on exports, the second lowest corporate tax rate in Europe at only 10%, and exemptions from customs duties on imports of machinery and raw materials used for further processing. Also, Kosovo has signed treaties for the avoidance of double taxation with various European countries”, he said.
He also mentions emigration, especially to Germany, Switzerland, the United States of America, the United Kingdom and Turkey, as an important factor for the increase of foreign direct investment in Kosovo.
“Most of the foreign direct investments that have come and continue to come to Kosovo have a close connection with our businessmen in the diaspora. So, our entrepreneurs in the diaspora are a bridge for foreign direct investments, but the data show that they are also a bridge for tourism in Kosovo. Since a large part of the tourists who come to us are actually friends, well-known well-wishers of our compatriots in Western Europe and elsewhere. Our country is always grateful for the contribution that our emigrants have made and continue to make to this day,” said the Prime Minister.
At the end of his speech, he expressed gratitude for the warm hospitality, wished the participants fruitful exchanges and offered them the cooperation of the Government of the Republic of Kosovo for projects they will have in the future.
After the ceremony, Prime Minister Kurti visited the participating companies that presented their products and services at this fair.
Prime Minister Kurti’s complete speech:
When I saw the name EXPOKOS, my mind immediately went to EXPO how to explore Kosovo, so that this represents a call to discover, to research our beautiful and rich country with wonderful and hardworking people, to discover also territories and businesses. Although we know that in fact the word EXPO has to do with the exhibition of products and services, for which this 23rd edition is undoubtedly a chance for all of us, but also for entrepreneurs to get to know each other and establish communication bridges and cooperation with each other.
Dear Deputy Prime Minister of the Republic of Kosovo, Mrs. Emilija Rexhepi,
Dear Mr. Bekim Xhafa, organizer of the EXPOKOS International Fair,
The honorable Mr. Mentor Arifaj, Deputy Minister in the Ministry of Industry, Entrepreneurship and Trade,
The honorable, Luan Dalipi, Chief of Staff at the Prime Minister,
Dear representatives of friendly countries accredited in the Republic of Kosovo,
Honorable Deputy British Ambassador,
Dear attendees,
Ladies and gentleman,
Fairs like this are important to recognize innovations in business, create new connections and build business partnerships. They provide a valuable opportunity for businesses to assess the competition and gather knowledge, or as it is called ‘business intelligence’, that helps businesses move faster, further in the market.
Kosovo, in its journey towards the development and modernization of the private sector, is marking fast and stable steps. Positioned at a strategic point in Southeast Europe, our country offers very convenient access to European markets, the Middle East, and North Africa.
At this time, it is not enough to be just a convenient location, let’s take it for near shoring, but you must also be for friendly shoring, that is, a coordination of values with western democracies. We are proving that genuine democracy both enables and supports economic development. Among the main achievements are the improvements in Kosovo in the rule of law and civil liberties. This is a reflection of a clear and unwavering commitment to democracy and progress.
According to World Bank data, Kosovo leads with its economic growth in the Western Balkans for the period 2023-2025, appearing as a model of success and transformation. The extraordinary growth of our economy, with an annual average of 6.2% of the gross domestic product in the last three years, has been supported by the double growth of foreign direct investments, the doubling of exports, the marked increase in turnover in the private sector, as and an increase in employment by 20% compared to the spring of 2021. These developments have contributed to a stronger and more inclusive economy, without even creating new debt and realizing record capital expenditures in 2023.
Kosovo plans ambitious projects in public infrastructure, exceeding the figure of 7 billion euros, including renewable energy and infrastructure projects that affect the lives of citizens every day such as projects in transport (roads, railways, and tunnels), the environment (water supply, wastewater treatment, waste management) and in energy, with the aim of producing 1.2 GW of energy from renewable sources and reconstructing existing coal-fired power plants.
The recent success in the auction of 100 MW of solar power in Kramovik in Rahovec, won by a consortium led by a Swiss company with members from our Diaspora in Switzerland, shows that we are on the right track to build a prosperous future.
Also, at the end of last month we inaugurated the Compact Program from the Millennium Challenge Corporation (MCC), a historic initiative worth more than 230 million euros, mainly financed by a grant from the US Government where this project will make the country with the largest battery capacity per capita in the world.
And with the support of another American government institution, USAID, Kosovo has also recently managed to get its first sovereign credit rating from FitchRatings, the World Bank – which is not bad for the first time. This achievement is expected to increase foreign investment, lower borrowing costs, improve access to global capital markets and boost economic growth.
Dear business representatives,
You who bear the main burden of both filling the state budget and reducing the social burden through employment of the population, especially the youth, we welcome the opportunity to discuss the ways in which you can expand your businesses and increase your investments in Kosovo.
Kosovo has shown remarkable progress in sectors such as light processing industry, agriculture and food, and the information and communication technology or (ICT) sector as it is otherwise known, which constitute an important part of the country’s economy and also offer opportunities to new for investment.
In 2023, the light manufacturing industry, including exports in electrical equipment, plastic, wood and metal, accounted for over 43% of Kosovo’s total exports. The wood and metal processing industry offers promising investment opportunities thanks to rich local resources and consolidated industry experience. In Kosovo, there are factories that get the raw material of wood for the light wood processing industry from Austria, while the kitchens as a final product are exported to Switzerland. While Austria and Switzerland are neighboring countries. This shows that the entrepreneurial spirit of Kosovo, knowledge of production and workers and other opportunities for businesses are very great when we have these examples that illustrate our progress.
The sectors where there is a marked rise are Agriculture and Food which contribute 17% to total exports and benefit from competitive labor costs, suitable climate and a thriving wine industry.
Taking advantage of the global boom in Information and Communication Technology, Kosovo shows significant growth in Business Process Outsourcing services enabled by companies that are supported by a qualified and multilingual workforce of approximately 14,000 professionals.
Dear attendees,
Tax rules in Kosovo are the most favorable in the Western Balkans as far as businesses are concerned. Benefits include 0% customs duty on exports, the second lowest corporate tax rate in Europe at only 10%, and exemptions from customs duties on imports of machinery and raw materials used for further processing. Also, Kosovo has signed treaties for the avoidance of double taxation with various European countries.
And on this occasion, I want to mention an important factor for the growth of foreign direct investments in Kosovo: It is the diaspora, our precious, successful and integrated diaspora around the world, especially in Germany, Switzerland, the United States of America, United Kingdom and Turkey. Most of the foreign direct investments that have come and continue to come to Kosovo have a close connection with our businessmen in the diaspora. So, our entrepreneurs in the diaspora are a bridge for foreign direct investments, but the data show that they are also a bridge for tourism in Kosovo. Since a large part of the tourists who come to us are actually friends, well-known well-wishers of our compatriots in Western Europe and elsewhere. Our country is always grateful for the contribution that our emigrants have made and continue to make to this day.
They positively represent Kosovo abroad, but they have also created strong connections with businesses and business networks that are essential to attract investment and build a strong economy.
The American-Kosovar, German-Kosovar, Swiss-Austrian-Kosovar Economic Chambers know and testify to this best. As you visit the stands here, in Hall 1 October, and participate in various discussions today, remember that every dialogue can open doors to new opportunities in your businesses.
In terms of opening doors, Kosovo is a bright example of opening doors to all its citizens, to foreign businesses, regardless of their nationality or faith. We want businesses to win in Kosovo, and the Republic of Kosovo to benefit from them. We have opened the doors to a unique international presence, with which we have built for 25 years and especially in the last 3, one of the most progressive new democracies in the world and the most stable in our Western Balkans region. Our doors are open just like any developed Western democracy!
They remain open, not only in fostering international partnerships, but also in pioneering a future where economic prosperity and democratic progress go hand in hand. Not development at the expense of freedom, or freedom at the expense of development, not democratic progress without economic well-being, but also not the other way around. Both together help each other and make us an example of success for others. So, let’s embrace these opportunities together and let’s shape a better future for everyone that leaves no one behind.
I thank you very much for your attention today, for this warm hospitality and I wish you fruitful exchanges and above all I offer you the cooperation of the Government of the Republic of Kosovo for inspiring projects that you will have in the future.
Thank you.
Last modified: May 16, 2024