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Investment Council Main News, October – December 2024

Survey Findings: Perspective of the Banking System on MSME Financing

1 October 2024

The survey, conducted by the Secretariat with the participation of nine banks, examines the banking sector’s approach to financing micro, small, and medium-sized enterprises (MSMEs). Findings reveal that banks prioritise MSMEs, with lending mainly directed towards the tourism, energy, and services sectors. However, challenges such as informality and the inability to register unregistered collateral continue to restrict broader access to financing for these enterprises.

Survey Findings: Perspective of the Microfinance on MSME Financing

1 October 2024

The survey, conducted by the Secretariat with the participation of eight microfinance institutions, underscores the significant role non-bank entities play in financing MSMEs underserved by traditional banks. These institutions provide fast and flexible loans while addressing challenges such as low financial literacy and the burdensome documentation requirements imposed by banks.

Survey Findings: Business Perspective on Access to Finance

1 October 2024

A survey conducted by the Secretariat involving 221 businesses reveals that one in two businesses face significant challenges in accessing finance, particularly MSMEs in the tourism and agriculture sectors. Key obstacles include what are often perceived as “unreasonable” requirements, such as the ability to meet extensive documentation demands, including the provision of collateral.

Focus Group: “On Improving Business Financing Instruments”

18 October 2024

The Secretariat of the Investment Council organised a focus group with members of the Women’s Economic Chamber (WECA) to discuss preliminary findings from the survey on MSMEs’ access to finance (with 221 companies). Representatives from the financial sector also participated in the meeting. During the session, women entrepreneurs from diverse sectors—including tourism, services, real estate, healthcare, and consulting—shared practical proposals for enhancing financial products tailored to women. Key recommendations included reducing administrative costs, simplifying financing procedures, and promoting innovative financing alternatives.

Open Consultation of Durana Tech Park Development Plan

30 October 2024

The Secretariat of the Investment Council, in collaboration with the Albanian Investment Corporation (AIC), hosted an open consultation on the Detailed Development Plan for Durana Tech Park. The event was attended by over 40 stakeholders, including representatives from the business community, international technology companies, local innovative firms, and startups. Businesses that become involved in the park are expected to form a cooperative network and take advantage of the numerous opportunities it will offer.

The Investment Council Meeting: Improving Access to Finance for MSMEs

12 November 2024

The Investment Council (IC) held its third meeting of 2024 under the leadership of the Minister of Economy, Culture, and Innovation, Mr Blendi Gonxhja. The discussions focused on addressing the challenges that prevent Albanian enterprises from gaining better access to finance. In his opening remarks, Minister Gonxhja emphasised the essential role of MSMEs in the country’s economic development and outlined several government initiatives, including grant programs through AIDA, sovereign guarantee schemes, a new law aimed at facilitating access to basic payment accounts, and Albania’s integration into SEPA (Single Euro Payments Area).


Business representatives underscored the need for financial products tailored to specific sectors, including those designed for women entrepreneurs. They also highlighted challenges such as high interest rates, strict collateral requirements, and the lack of formalisation in key sectors like tourism and agriculture.

Technical Note: On the Improvement of Financing Instruments

17 December 2024

The document outlines some of the main challenges and opportunities related to increasing access to finance for businesses in Albania, with a particular focus on MSMEs. The analysis covers key areas such as business awareness and interest in accessing finance, challenges faced during the lending process, the main factors influencing entrepreneurs’ financing decisions, and the expectations regarding the impact of digitalisation on the banking sector.

Contribution to the Global Entrepreneurship Week

18-21 November 2024

During the Global Entrepreneurship Week, the IC Secretariat contributed to several key events.

  • 18 November: At the workshop organised by MEKI/CEI/SEECP, the Secretariat presented key findings and recommendations from the Investment Council regarding key public reforms, such as the legal security of property, cadastre issues, investment potential optimisation, and the alignment of the legal framework with foreign investment policies.
  • 19 November: During the presentation of the Business Environment Survey 2024, organised by several business associations in the country (FIAA, Confindustria Albania, CCIA, HBAA), the Secretariat highlighted the importance of systemic and comprehensive recommendations from the private sector to enhance the business climate.
  • 20 November: At the event organised by Epoka University on Circular Economy, the Secretariat emphasised the significance of educational practices in this field and the role of the local private sector in aligning green, smart, and digital solutions with EU reforms. As part of the discussion, the Secretariat presented real-life examples of local businesses adapting to these changes based on productivity and EU market access analyses conducted by the Secretariat.
  • 21 November: During a panel organised by the World Bank and IFC on innovative financing for startups and MSMEs, the Secretariat shared business perspectives and evidence regarding local competition in financial markets, financial product innovation, and the strengthening of MSME capacities.

Participation in other events

December 2024

The 2024 Business Forum, “Raise the Challenge,” organised by the Albanian Investment Corporation on 5 December, provided a platform for cooperation among policymakers, investors, businesses, and experts to discuss economic development through investment, innovation, and public-private partnerships. At this event, the Secretariat of the Investment Council emphasised the importance of an inclusive dialogue and the acceleration of reforms related to the cadastre and registration of state property, considering these as vital for boosting investor confidence. Additionally, the Secretariat highlighted the significance of aligning new projects with the objectives of a green and digital economy.

 

On 13 December, during the Closing Ceremony of Integrity Week, organised by the Minister of State for Public Administration and Anti-Corruption, the Secretariat underscored the importance of building trust by creating strong institutions and offering transparent, sustainable services to businesses. This was in reference to the IC analyses, particularly regarding important services such as inspections, taxes, and customs.

 

Furthermore, on 19 December, during the event on initiating the monitoring of integration progress and the Growth Plan, organised by CDI in cooperation with the Dutch Embassy, the Secretariat emphasised the importance of civic engagement in this unique process. The Secretariat also highlighted IC’s role in fostering cooperation with the private sector, based on the experience from 2015-2025, as well as strengthening the collaboration between the government and civil society to ensure an efficient process with clear objectives.

Assessment from the Investment Council Members and Associates 2024

30 December 2024

The report presents an assessment by some members and associates of the Investment Council regarding its role in enhancing the business climate and promoting good governance. Based on the responses from the participants, the report highlights that the Investment Council continues to be recognised as a credible and efficient platform for political dialogue. Notably, 88% of respondents believe that the Council has played an important role in encouraging public institutions to address the needs and concerns of the private sector.

SECRETARIAT'S RECENT PUBLICATIONS

Minutes e IC Meeting XXXV

Assessment from the Investment Council Members and Associates 2024

INVESTMENT COUNCIL’S MENTIONING IN THE MEDIA

ABC News, 24 December 2024

Banks Increase Lending: Investment Council Reports Businesses Are Taking Out Loans to Expand Operations

ABOUT ALBANIA INVESTMENT COUNCIL

The Investment Council is a platform set up by the Albanian authorities with support from the EBRD and the Swiss State Secretariat for Economic Affairs (SECO) to intensify dialogue between the government and the private sector, improve the business climate, and promote good governance.