Explore the Balkans -Business Opportunities

KOSOVOPia Stjernvall, Ambassador, Embassy of Finland in PristinaJehona Ademaj, Coordinator, Embassy of Finland in Pristina

KOSOVO

Independent since 2008

Recognized by 115 out of 193 United Nations members and by 23 out of 28 EU members.

Potential candidate for EU membership

Signed the Stabilization Association Agreement with the EU in October 2015, in force since April 2016.

The current Government controls a slim majority, only 61 out of 120 parliamentary seats.

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KOSOVO

• Strategic location• Land area 10 908 km2• Terrain Low flood plains in central

Kosovo, surrounded by mountains to the north west and south

• Land use 52% agriculture, 39% forests• Population 1,8 million• Ethnicity 90% Albanians, 5% Serbs, 2%

Bosniaks, Gorani, 2% RAE communities and 1% Turks

• Languages Albanian, Serbian (official) English

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KOSOVO POLITICS

Kosovo has a high political risk. Lack of transparency, corruption and a weak judicial system are the main risks in Kosovo business environment.

However:

Kosovo has a population that more than 60 % are under 30.

Young people that are hungry for a change.

Strong interest in IT and innovation!

Kosovo is 10th easiest country to start a business.

Transparency International Report - this year Kosovo improved its ranking of three points with a score of 39.

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KOSOVO

WB Doing Business (2018) – 40th in overall rank

10th in starting a business

Expected GDP growth in 2018 4.8% (in 2017 – 4,4%)

Currency Euro

Stable financial sector Sound banking sector (largely foreign-owned 90%)

Youngest population in Kosovo 53 % of its people under the age of 25

Average salary 350 EUR

Foreign Investments Law Support and protection of FDI

Strategic Investments Law Direct negotiations and fast track admin. procedures

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WORLD BANK DOING BUSINESS 2018

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• 77 rank improvements in the past seven years

• 2018 overall rank 40

• Starting a business 10

• Registering property 34

• Getting credit 12

• Paying taxes 45

• Trading across borders 48

• Enforcing contracts 49

Chart1

2011

2012

2013

2014

2015

2016

2017

2018

Rank

117

126

96

81

64

64

60

40

Sheet1

YearRank

2011117

2012126

201396

201481

201564

201664

201760-57

201840-77

Sheet1

Rank

WB DB Kosovo rank

LIBERAL TRADE REGIME

• CEFTA 2007• Central European Free Trade Agreement

Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Moldova, Montenegro, Serbia

• Population: 21 million• GDP (2012): EUR 150 billion

• Association and Stabilization Agreement singed April, 2016• Unlimited duty-free access to the EU market, October 2015

• Trade Preferences with: Japan & Norway and Free Trade Agreement with Turkey

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EXPLORE THE BALKANS – BUSINESS OPPORTUNITIES SEMINAR• Corporate profit tax: 10%• Income tax 0 - 10 % (Progressive)

• €0 – 80 = 0%• €80 – 240 = 4%• €240 – 450 = 8%• €450+ = 10%

• Mandatory pension contribution: 5% • VAT: 18 %, except for utilities and food basket which is set at 8%• Tax on Dividends: 0%• Average Wage: 350-450 EUR/month (3,103 EUR in Western Europe)

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Kosovo – Finland TRADE

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2015 2016 2017

Trade between Kosovo and Finland 1,204,958.76 1,411,898.40 2,874,787.04

Imports from Finland to Kosovo 1,182,270.44 1,411,896.40 2,785,125.58

Exports to Finland from Kosovo 22,688.32 - 89,661.46

KOSOVO - MAIN ECONOMIC SECTORS

• Agriculture and food packaging

• IT & Telecommunications

• Textile and leather processing

• Mining

• Energy

• Construction and Infrastructure

• Wood processing

• Tourism

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KOSOVO - Agriculture and food packaging

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• Out of total surface area of 1.1 million hectares approximately 588,000 hectares is

agricultural land with fertility, nutrient –rich soils.

• Contributing 13% of total GDP

• Making up 18% of exports

• A strong tradition in agribusiness• Dairy Products

• Fruits and Vegetables

• Meat Products

• Winemaking

• Other Beverages

• Packaging

KOSOVO ICT- Ready for you to connect

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• Internet penetration based on users is 76.6%,

and based on households is 84.8%. This is the

highest rate in the region and is comparable

to the most development countries in Europe.

• Youngest population in Europe average age

27

• Workforce both skilled and multilingual

• English being only just short of an official

language

TEXTILES

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• Government is working to revitalize textile sector

• Imports in 2015 were EUR 122M; exports EUR 12M

• Important advantages for investors

• A cheap, well-skilled, and experienced work force

• A solid base of technology that can be acquired through the ongoing

privatization process

• Different opportunities on business process outsourcing

HOW CAN KIESA HELP YOU?

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• Provide comprehensive advice and support to help you obtain all necessary approvals to enable a

fast start-up

• Registering your business

• Getting licenses and permits necessary to start your operation

• Arrange meetings with all local and central institutions

• Arrange visits and meetings with any business of your interest

• Help you to identify suitable property options to accommodate your operation

• We have several business parks and business incubators where you can start your operations

• Provide information on different projects and partners with whom you can collaborate

• Provide industry specific information

KOSOVO

• The Western Balkans Investment Framework (WBIF) supports socio-economic development and EU accession across the Western Balkans through the provision of finance and technical assistance for strategic investments, particularly in infrastructure, energy efficiency, and private sector development. For more information please visit: https://wbif.eu/home

• The Millenium Challenge Corporation (MCC) program in Kosovo financed by United States amounts to USD 49 million for Kosovo. The Kosovo Threshold Program addresses two key constraints to Kosovo’s economic growth: an unreliable supply of electricity; and real and perceived weakness in rule of law, government accountability and transparency. More info: https://www.mcc.gov/where-we-work/program/kosovo-threshold-program

• European Commission: https://webgate.ec.europa.eu/europeaid/online-services/index.cfm?do=publi.welcome&nbPubliList=15&orderby=upd&orderbyad=Desc&searchtype=AS&pgm=&finpub=&ZGEO=35484&debpub=

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https://wbif.eu/homehttps://www.mcc.gov/where-we-work/program/kosovo-threshold-programhttps://webgate.ec.europa.eu/europeaid/online-services/index.cfm?do=publi.welcome&nbPubliList=15&orderby=upd&orderbyad=Desc&searchtype=AS&pgm=&finpub=&ZGEO=35484&debpub

27.3.2018 17Photo: Kosovo Minerals

27.3.2018 18Photo: Artana Castle

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