Trade in Kosovo dominates production

Even during this period of economic activity, the business of 772 companies remains the favourite economic activity for business, followed by production 316 and construction of 266 new companies.

The largest number of registered companies at the level of municipalities is in Pristina and Ferizaj.

Government officials, meanwhile, show commitments that aside from the Kosovo business, Kosovo businessmans will have the opportunity to be guided by other production and sectors.

The owner of several major trade companies in the country -- currently Kosovo Prime Minister Gazmend Abrashi's economy adviser -- has told Radio Free Europe that Kosovo's economy is lagging behind compared to the countries of the region, due to the recent war in Kosovo.

And then it follows, businesspeople are oriented because of easier operating conditions and benefits.

For the production sector, as the main problem, he cites the high price of electricity, but also the free trade agreements Kosovo has signed with the countries of the region.

Until Kosovo, after the war, has dealt with the recovery of households and homes, others have moved forward and as a result, production in Kosovo is lagging behind, because it has been uncompetitive. And, [production] continues to be uncompetitive, because electricity is the main energy source, which is much more expensive in contrast with countries in the region that are locked in gas supply, which today is 54 percent cheaper”.

And the Free Trade Agreement itself, CEFTA, which liberalizes free trade, has allowed the countries of the region access and opportunity to use the state of Kosovo as a market where they can crack their products”, Abrashi said.

Meanwhile, business community representatives stress that the Kosovo market should dominate the production sector rather than trade.

The chairman of the German Economic Ode Board in Kosovo, Fadil Hoxha, says that given that Kosovo has the highest population rate of youth, simultaneously unemployed, competent authorities in the country must create environments for young people to focus on the production sector.

The time has come for the production sector in Kosovo. Access to technology and access to the European market through a Stabilisation and Association Agreement (MSA) is very easy and I believe this is the best perspective for our country. This is because trade is a very short utility value, while production creates chain effects on the country's overall economy and is considered the necessity of our country”, Hoxha has estimated.

But, Gazmend Abrashi, who is also co-ordinator for the Western Balkans in the Government of Kosovo, has indicated the measures the executive is taking in order to create opportunities to invest in production capacities.

Kosovo's “government will soon come with a package that provides opportunities for foreign and local investors to invest in production capacities, considering the possibility of providing land for exploitation up to 99 years without compensation. If they always have a project that will convince us that this product will burst into the Kosovo market and abroad, at once employ large numbers of citizens, Abrashi explained.

Otherwise, due to Kosovo's poor production industry, the export of products “Made in Kosova” in different countries of Europe and the world amounts to over 300m euros, while import of foreign products in the country totals about 3 billion euros annually.