The President of the American Chamber of Commerce, Enio Jaço, has reacted after the publication of the US State Department’s report on the Investment Climate. 

In his reaction, Jaço emphasizes that widespread corruption in public procurement has become the norm, while the DOS (US State Department) report reflects all the concerns raised by the American Chamber of Commerce. 

“With a strategic location in Southern Europe and high security as a member of NATO, Albania radiates with its potential for foreign investments. The hospitable people, the mild climate and the European perspective make Albania very attractive for foreign investors. It promises the vibrancy of a new market, the excitement of a modern beginning, and the possibility of economic prosperity. 

But unfortunately, a maze of challenges continues to hinder the promised progress. This harsh reality is underlined in the report of the US State Department – which is considered the most important strategic partner for Albania. The report is a stark testimony to the concerns that AmCham, along with other European and local business chambers, have long expressed. The consensus is clear: foreign investors perceive Albania as an inhospitable place to do business! 

One of the main issues facing the business community as well as the nation is the spread of corruption and organized crime, especially drug trafficking, which has broken fair competition in the market. Furthermore, widespread corruption with public procurement has become the norm, leading to the deterrence and alienation of serious investors. 

Transparency International’s global corruption ranking index paints an even more disturbing trend. While the candidate countries to join the EU have a tendency to improve, Albania has fallen 18 places from its initial position of 83rd in 2016, while today it is in the 101st place in the global ranking. Extreme inequality, exacerbated by widespread corruption and money laundering, is adding to population challenges, resulting in mass emigration, a demographic problem and a labour force shortage. 

But the situation does not have to be like this. Albania has all the opportunities – and as an aspiring member of the EU, the obligation – to improve exactly these indicators. However, the country has seen a worrying deterioration in recent years. 

The American Chamber of Commerce (AmCham) has repeatedly called for alarm, warning that the current trend will bring negative effects on the country’s economy and may jeopardize EU membership. In response to growing concerns, AmCham submitted a comprehensive 40-point reform recommendation to the government and main opposition parties two years ago in 2021. The proposal included significant anti-corruption measures, a stimulus package for investors, comprehensive restructuring of the public procurement system, modernization of the tax system and many other measures. The recommendations were well received, and AmCham even received promises of speedy implementation of the reform. 

But by 2023, the situation has only worsened, leaving the business community deeply frustrated. A joint statement earlier this year, of AmCham in partnership between the German, French and Italian chambers of business has once again called for the urgency of starting the reform as soon as possible. 

But reform can only be achieved with political will and government commitment. While discussions have been civil and constructive at high levels, concrete actions have been rare and ineffective. 

The time has come for progress and tangible results, as the cup of frustration in the community is pouring, and the consequences of inaction can be irreversible. Albania’s potential as a vital business center in the Balkans is inevitable. By actively addressing corruption, improving the investment climate, and implementing reforms, Albania can begin a safe journey towards economic growth and prosperity. On the contrary, there is a risk of missing a train that has started, but it is not known when it can stop again”, emphasizes Jaço. /ADN