Investor Presentaiton
Opportunities to Foreign Investment in Kosovo
economic growth itself, whereas on the other hand from the high level of Diaspora
remittances, which cover the high trade deficit. Also, economy of Kosovo is
characterized with a high presence of foreign donors, but in the last few years, their
gradual withdrawal has slowed the pace of economic growth.
Kosovo is characterized with poor infrastructure and, consequently, a low productivity.
The existing energy capacities and the poor road infrastructure are identified as the main
barriers for a sustainable economic development. However, difficulties are not only of
physical nature, but in other areas such as rule of law and the developing financial sector.
Natural resource potentials of Kosovo represent a good basis for future development.
Plenty quantities of mineral and energy resources (at 14.7 million tones, Kosovo
possesses the world's fifth-largest proven reserves of lignite), agricultural land (out of a
total surface of 1.1 million ha app. 588,000 ha or 53 % is cultivable land) and tourist
potentials (the natural wealth of Kosovo represents good tourism resource), are not being
used sufficiently. Therefore, in order to overcome such problems, higher levels of
investments are needed. Countries that invest higher proportion of their GDP tend to
grow faster. However, as lack of the domestic capital and financial investments, i.e.
Kosovo, foreign investments represent the most effective way to create new jobs and to
create the preconditions for a sustainable economic growth in the future.
It is well known that foreign investments play a potential role in encouraging and
supporting a successful transition. Foreign investments in transition economies appears to
be an effective tool for several reasons such as: investment growth potential, transfer of
knowledge, increased productivity, upgrading of managerial and labor force skills,
improving the state balance, balancing deficits, accelerating privatization of state-owned
enterprises (SOE) and quickly restructuring of them. Although all countries in transition
had more or less the same final goal, the results of their efforts diverged. This was due to
the diverse and/or adverse internal as well as external conditions each country initially
faced and to the different strategies, policies, and paths they undertook to ensure smooth
and successful transitions.
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