Meeting of the Investment Council: Addressing Challenges for Increasing Competitiveness and Market Access of Albanian Products with European Standards

The Investment Council held its second meeting of 2024 under the leadership of the Minister of Economy, Culture, and Innovation, Mr Blendi Gonxhja. The agenda focused on discussing the challenges facing Albanian enterprises, particularly in improving the competitiveness of Albanian products and enhancing access to markets that adhere to European standards. The meeting was attended by nearly all Council members, along with thirty observers from the public and private sectors, as well as development agencies.

During his speech, Minister Gonxhja underscored the importance of aligning production with European standards, highlighting it as crucial for successful integration into the EU market. He also emphasised the need for improving infrastructure, boosting expertise, and fostering better information exchange between the public and private sectors. The minister announced the creation of a unique portal for exporters and encouraged participants to contribute ideas to address pressing issues and collaborate in achieving shared objectives.

In line with the meeting’s agenda, the Secretariat presented the main findings of its analysis based on recent reports, consultations with key public and private sector actors (via focus groups), and a survey completed by 143 businesses. 

The analysis revealed several key challenges, including a lack of institutional data (particularly for non-food products) to support local economic operators with competitive advantages and export potential. There was also low awareness among businesses regarding the legal and regulatory framework that defines their rights and responsibilities within the supply chain. Other issues included insufficient institutional support in harmonising product quality requirements, limited expertise on standards, and the high costs associated with compliance. 

The recommendations proposed by the Secretariat addressed several areas, including the need to prioritise domestic (non-food) products with export potential and design supportive policies. They also stressed the importance of improving access to information through innovation in official communication channels, accelerating legal and regulatory alignment in the construction sector, and enhancing market surveillance and awareness of standards and best practices.

Business representatives, including the Diaspora Business Chamber, the Union of Chambers of Commerce and Industry, CCI Tirana, the Women’s Economic Chamber, Pro-Export Albania and the Hellenic Business Association of Albania, discussed the need for an in-depth analysis of Albanian products with export potential and the adoption of international certifications. They raised concerns about the unequal competition faced by Albanian businesses against imported products, which often benefit from financial support from their countries of origin. Additionally, they pointed to the lack of incentives for processing raw materials domestically, as well as the absence of subsidies and soft financing that are available in European countries. Business representatives also recommended focusing on personnel education, specialisation, and certification and urged the Albanian government to draft a clear and swift plan to invest in high-tech sectors such as energy and the export of services. They stressed the need to focus on sectors with competitive advantages, such as agriculture and energy.

Representatives of development partners in Albania emphasised the need for investment in national infrastructure, elimination of bureaucratic barriers, support for technology and encouragement of foreign investments. They proposed improving border crossing points and adapting regulations to reduce bureaucratic obstacles. They emphasised the importance of developing an export strategy, improving the competitiveness of local enterprises and managing the use of funds for financial support. Initiatives such as SEPA (Single Euro Payments Area) and the simplification of payments and border crossings were highlighted as important tools for increasing competitiveness.

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Full materials for this meeting will be published in the next few weeks in our dedicated section.