The US Department of State (DOS) has updated the data on foreign investments in Albania for 2023, where it lists some of the problems encountered in the country. 

One of the main problems according to DOS, which affects the investment climate in the country, is corruption. According to it, there is still work to be done in this direction, as Albania is considered by foreign investors to be a difficult place to do business. 

Cases of corruption in Albania, according to DOS, are starting from the public sector, public procurement, unfair competition, and even high government corruption. 

“Foreign investors describe Albania as a difficult place to do business. They cite ongoing corruption including the public sector, the judiciary, public procurement, unfair and distorted competition, the large informal economy, money laundering, frequent changes to fiscal legislation as well as poor contract enforcement as ongoing challenges to business in Albania. 

Reports of corruption in government procurement are common. Investors often report cases of government corruption that delays and prevents investments in Albania. The continued use of public private partnership (PPP) contracts has reduced opportunities for competition, including from foreign investors, in infrastructure and other sectors. Weak cost-benefit analyses and lack of technical expertise in designing and monitoring PPP contracts are persistent concerns. 

American investors are challenged by corruption and the perpetuation of informal business practices. Some US investors have faced contentious commercial disputes with public and private entities, including some that have gone to international arbitration. In 2019 and 2020, the investment attempt of a US company was allegedly hindered by several court decisions and questionable actions of interested parties involved in an investment dispute. The case ended in international arbitration”, says the DOS report. 

The report also states that Albania has great economic potential, a sound legal framework and has made progress in limiting petty corruption by digitizing public services for both citizens and businesses. 

“As a developing country, Albania offers huge untapped potential for foreign investment in many sectors including energy, tourism, healthcare, agriculture, oil and mining, and information and communication technology (ICT). In the last decade, Albania has attracted greater levels of foreign direct investment”, the DASH report further states. 

Investments are concentrated in extractive and processing industries, real estate, the energy sector, banking and insurance, and ICT. Switzerland, the Netherlands, Canada, Italy, Turkey, Austria, Bulgaria, and France are the largest sources of FDI. FDI shares from the United States account for a small but growing share, the report further states.