Investments outside Kosovo increase by 55% - Cause: bureaucracy, lack of digitalization and high energy prices
Kosovar businesses are increasingly expanding their activities abroad, seeing more secure and profitable opportunities in the regional markets. This trend is clearly reflected in the statistics of the Central Bank of Kosovo (CBK), which show a significant increase in direct investments abroad.
According to the CBK, during the first half of this year, direct investments of Kosovars outside Kosovo reached 166.6 million euros - an increase of 55% compared to the same period last year, when the amount was 107 million euros.
For comparison, the value of these investments was 59.1 million euros in 2020, increased to 100.3 million euros in 2021 and continued to climb to 224.3 million euros in 2024.
According to the Institute for Advanced Studies - GAP in Pristina, last year alone, Kosovars invested over 80 million euros in Albania, while in 2023 over 95 million euros. In Montenegro, meanwhile, such investments in 2024 reached the value of 18.2 million euros.
Experts and business representatives see the increase in investments outside Kosovo as worrying. They warn that this trend could intensify if urgent measures are not taken. According to them, bureaucracy, lack of digitalization and high energy prices are pushing businesses towards other markets.
They also recall the entry of large companies into the open energy market earlier this year. This has caused the price of electricity for them to increase and make them less competitive in the market, compared to countries in the region.
In addition to the outflow of financial capital, Kosovo also loses out on customs revenues, Value Added Tax, corporate profit tax, as well as taxes and pension contributions, which end up in the countries where the companies operate.
Furthermore, these businesses often also become direct competitors in the local market.
Kosovo's dependence on imports, meanwhile, continues to grow. According to the Kosovo Agency of Statistics, last year imports amounted to over 6 billion euros, while exports amounted to around 900 million euros.
Experts call for direct support for the private sector, especially for the manufacturing industry, as well as digitalization of services through a "one stop shop" model.
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