REPUBLIC OF MACEDONIA MINISTRY OF ECONOMY

1
REPUBLIC OF MACEDONIAMINISTRY OF ECONOMY
2
The challenges for Macedonia

• When small countries like Macedonia capture
  significant investment from attractive sources,
  it is usually because they target specific
  investors and meet the specific needs of that
  investor, based on careful analysis.
• They rarely succeed solely on the basis of low
  costs and financial incentives
  

3
Guiding Principles

• Commitment to modern, open and competitive
  economy
  
• Equal treatment of domestic and foreign
  investors
  
• Commitment to stable democratic and macroeconomic
  environment
  
• Recognition that a wider regional, European and
  global perspective is a precondition (SAA, etc.)
  
• Commitment to fight corruption, bribery, etc.
• Commitment to develop incentives consistent with
  international regulation and commitments
  

4
Policy Priorities Reducing Barriers to Business

• 5 Priority Areas
• Company registration
• Labour legislation
• Access to land
• Construction permits
• Customs and administration
• This is not enough, therefore...

5
Republic of Macedonia a good place to invest
Other Areas of Permanent Action

• Bribery, corruption, informal economy
• Transparency of state administration
• Communication with the private sector
• Corporate governance
• Court, finance, tax, inspectorates, regulation
• Labor markets, etc

6
Major Reasons to Invest
Market Access Challenge Macedonia has a small l
ocal market its access to regional markets is
not superior to neighboring countries
Action Targeting investors whose principal
interest is NOT gaining access to large local
markets Access to Cheap Raw Materials and Labor
Challenge Macedonias labor costs are low comp
ared to Western Europe, but not low compared to
Bulgaria or Romania attracting and maintaining
investors that value cheap labor requires that
Macedonia keep wages low Action Macedonia needs
to demonstrate to investors that its
productivity is better than competitors there is
commitment to investing in the right worker
training programs Take Advantage of Man-made and
Human Infrastructure Challenge Macedonia has a
relatively well-educated population, but
additional training will improve specialized
skills that investors are seeking
Action Specialized technical training programs
are being increased in critical clusters the
existance of these programs will be communicated
to selected potential investors commitment to
build specialized infrastructure that meets the
needs of most attractive investors
7
What Macedonia Has to Offer

• Skilled and young workers
• Clustering - growth potential
• Commitment to improve infrastructure
• Strategic position in the region
• Unspoiled environment
• Generous financial incentives
• 11 FTAs including SSA with EU

8
The Forthcoming Big Ones

• The privatization of the Electrical Power Company
  of Macedonia
  
• The combined gas heating and power plant a PPP
  project
  
• The Bunardzik Free Economic Zone

9
Thank you for your attention Contact us Tel.
389 (2) 30 93 403, 30 93 463
Fax [phone] www.economy.gov.mk www.
mpa.org.mk