Falling foreign investment due to political instability, Government to prepare concrete plans

Foreign direct investments from year to year are suffering decline, which has caused political instability in the country that has made investors not feel sure that their capital will invest in Kosovo.

Foreign investors navigate in countries where rule order and law -- in countries where there is no corruption and economic crime -- until in Kosovo the law envisions customs relief since 2015 has not yet been functional.

The chairman of the American Chamber of Economics in Kosovo (OEAK), Arian Zeka, told Online Economy that Kosovo is stuck in reforms, which is the cause of the political factor that has affected attracting foreign direct investment.

Zeka asked the Kurti Government to act as neighbouring states and make the investment route.

The foreign direct investment trend is declining year-on-year. We have dedicated this decline to political instability, reforms to facilitate doing business in the country. In the past two years, it has been reported in the World Bank report, Kosovo is stuck in reforms, we've marked aggressor on good issues for investors and businesses”.

Kosovo must certainly start to risk external and internal stability in relation to its neighbours to become an attractive country for foreign direct investment. Political factors are important factors in attracting foreign direct investment”.

“in 2015 has envisioned customs relief for foreign investors, and they have not been functional because secondary legislation and administrative guidelines have never been issued. In such a situation, we are not serious in front of foreign and domestic investors”, Zeka said.

The chairman of the Kosovo Economic Ode (OEK), Berat Rukiqi, also blames political stability and no judicial security.

Among other things, he asks the Government to make concrete plans and stimulus mechanisms to promote foreign investment.

We don't have 2019 numbers, we're waiting for the Central Bank balance and other institutions. But in recent reports we have a steady decline that is particularly affecting us in these six years of blockades and a lack of reforms”.

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The “has had an impact on all elements related to the predictability of doing business in Kosovo. These are all political processes that have conveyed the country these years. The government must see a reform plan and specific stimulus mechanisms to promote foreign investment”, Rukiqi said.

According to Kosovo Central Bank data, 213m euros was the value of foreign investments during 2018, and in 2017 their value was 287m euros.

But for 2019 there are still no figures on the value of investments in Kosovo.