Kosovo - Market OpportunitiesKosovo - Market Opportunities
The World Bank estimated Kosovo’s Gross Domestic Product (GDP) growth rate at 4.4 percent in 2017, among the highest in the region. The World Bank attributes this growth to diaspora revenue and domestic consumption. The Central Bank of Kosovo estimated that diaspora contributions totaled €759.2 in 2017, which is over 12 percent of GDP.
Leading domestic industries include agriculture, metals and mining, and construction materials. The country’s narrow export base has resulted in a significant trade deficit requiring an increase in local manufacturing and investment. Kosovo’s largest exports are scrap metal, nickel, and lead.
Kosovo's highly pro-American population welcomes U.S. investment in various sectors, including:
Leading domestic industries include agriculture, metals and mining, and construction materials. The country’s narrow export base has resulted in a significant trade deficit requiring an increase in local manufacturing and investment. Kosovo’s largest exports are scrap metal, nickel, and lead.
Kosovo's highly pro-American population welcomes U.S. investment in various sectors, including:
- Energy: Kosovo’s vast lignite-coal resources and strategic regional location, along with the substantial power deficit in Southeastern Europe, provide opportunities for energy-generation projects.
- Mining: Historically an important contributor to Kosovo's economy, mining has declined in relevance due to a lack of investment in equipment, facilities, and development of new mines. The sector has significant foreign investment potential, and the Independent Commission of Mines and Minerals (ICMM) has issued over 500 exploration and mining licenses since 2007. In 2016, Kosovo Assembly passed a law which makes Government of Kosovo the main shareholder of Trepca – the biggest mining company in Kosovo. As a socially owned enterprise, Trepca had a complex legal structure which did not allow for private sector involvement. Currently the Government of Kosovo is in the process reorganizing Trepca and as ascribed in the Law on Trepca the government is creating possibilities for private investors.
- Telecommunications: Kosovo’s telecommunications operators are transitioning to 3G and 4G services. Opportunities to provide support services for 4G networks may exist in the near future. Opportunities to support Kosovo’s transition to its newly established country code may develop in the coming year. The Government of Kosovo is working to position the country as a regional hub for information technology (IT)-related products and services, building on the strong IT and English-language skills within the workforce. There are a growing number of IT companies focused on outsourcing for European and U.S. companies, and the number of inbound and outbound call centers is growing.
- Health: Kosovo has an urgent and growing need for quality basic and specialized health and medical services, facilities, and products. The sector is dominated by public-sector services, but private-sector investment has recently increased. Many Kosovo citizens travel to other countries to meet their health-care needs, and local solutions present a potentially lucrative opportunity for outside investors.
- Infrastructure Development: Kosovo is in vital need of infrastructure development, including modern roads, housing, healthcare, water, and sanitation projects. The GoK and the private sector are seeking project designers, engineers, and managers, as well as high-quality production inputs, machinery, and tools. Following the completion of the Route 7 (Pristina-Albania) Highway in 2013, construction of Route 6 connecting Pristina with the Macedonian border by an American-Turkish consortium began in 2014. Further improvements to road and railway infrastructure connecting Kosovo with its neighbors are planned as part of different Western Balkans 6 initiatives.
- Food Products: Considerable demand exists for U.S. food products, such as frozen meat, chicken, canned goods, cereals, and alcoholic and non-alcoholic beverages. Kosovo’s first American food franchise opened in 2016, and there is significant demand for other U.S. brands. Other food franchises followed soon with Domino’s opening in 2018 and Buger King is expected to open it’s first restaurant in October 2018. Demand for fresh and organic products from the region is also growing.
- Other Services: As Kosovo’s economy develops, the need for expert financial, legal, architectural, engineering, public relations, and graphic design services will grow.