Albania Economia
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After eight years at the helm of Confindustria Albania, Sergio Fontana reflects on the journey that has seen the association grow, strengthen, and become a key point of reference for Italian businesses in the country. From 2017 to today, the Albanian economic landscape has undergone significant changes: investments in infrastructure, tax reforms, and digitalization have contributed to making Albania increasingly attractive to Italian entrepreneurs. In this interview, we retrace the challenges faced and the successes achieved through the words of someone who has played a key role in this transformation.
When you assumed the presidency of Confindustria Albania, what were the main challenges facing Italian companies wanting to invest in the country? And today, how would you describe the progress made?
The first task as President, in collaboration with the member companies, was to map out the needs and challenges faced by Italian businesses. Based on the document that resulted from this exercise, we were able to prioritize the most pressing issues and request targeted interventions. Among the biggest challenges were fiscal instability, corruption, infrastructure deficits – both in road networks and energy distribution – as well as insufficient efforts in digitalization, which were necessary to ensure greater efficiency, speed, and transparency in dealings with public authorities.
In recent years, Albania has made significant strides in various key areas. The government has implemented measures to improve tax transparency and reduce corruption. However, the informal economy remains a major challenge, with a high percentage of unreported activities negatively impacting fiscal revenues and market competitiveness. The fight against corruption and the need for collaboration to improve trust in public institutions remain top priorities.
As for infrastructure, there have been substantial investments in road networks and energy distribution. These efforts aim to enhance internal connectivity and ensure a more reliable energy supply, which are essential for economic development and attracting foreign investments. Additionally, the government has initiated a process of digitizing public services, such as the introduction of electronic invoicing and online platforms for service delivery. These efforts aim to reduce bureaucracy and opportunities for corruption while facilitating interactions between citizens, businesses, and public administration.
Could you tell us about an initiative or agreement that marked a significant turning point for the Albanian business landscape?
The first General Assembly in March 2018 focused on judicial reform in Albania. It was a landmark event because it brought together entrepreneurs and public administration representatives to discuss the impact of the reform on the business climate and foreign investments in the country. This initiative represented a significant turning point for the Albanian business landscape: perhaps for the first time, there was a clear emphasis on the direct relationship between a transparent and efficient judicial system and the ability to attract foreign investments. The judicial reform was seen as a key element for promoting the country’s economic development.
Over time, there have been many other initiatives organized to support and develop the Albanian entrepreneurial fabric. For example, numerous business missions led to international partnerships; events related to training and skill development, such as participation in Interreg programs (European Regional Development Fund programs for cooperation), aimed at matching labor demand and supply; or, to name just a few, meetings in collaboration with government representatives, such as the State Labor Inspectorate, the Ministry of Tourism, and the National Employment Agency, all focused on promoting dialogue between the public and private sectors.
During your tenure, have you noticed a change in the profile of associated entrepreneurs, with the emergence of a new generation? What challenges and opportunities does this generational shift present?
Yes, in recent years there has been a significant shift in the profile of Italian entrepreneurs in Albania. While in the past most Italian investments were concentrated in the textile and footwear manufacturing sectors (façon), today we are seeing an increasing presence of Italian entrepreneurs in innovative, technological, and sustainable sectors. In recent years, there has been growing interest from Italian entrepreneurs in technology and digitalization. Many Italian investors are focusing on tech startups, digital solutions, and IT services, which are gaining traction in Albania thanks to the growing digital infrastructure. With increasing attention to sustainability and renewable energy, many Italian entrepreneurs are directing their investments towards the green sector, such as solar and wind energy, waste management, and eco-friendly solutions.
This change in the profile of Italian entrepreneurs in Albania represents a great opportunity for the country but also brings a series of complex challenges that require adaptation and innovation from both businesses and Albanian institutions. One of the main challenges is the need to comply with new regulations in a country like Albania, where regulations are still evolving, especially in sectors like technology and sustainability.
I would also add that, despite Albania’s efforts to develop its educational and training system, there is still a shortage of highly specialized skills in innovative sectors like technology and sustainability. Italian entrepreneurs might face difficulties in finding local talent with the necessary expertise to support their innovative ventures. Lastly, human resources training becomes a crucial challenge for both Italian entrepreneurs and local institutions. Companies need to invest in training and updating their workforce to keep up with technological changes and new market demands.
Which sectors of the Albanian economy, compared to the early years of your mandate, have shown significant growth? What has contributed to this development, and which sectors do you see as having great potential?
In recent years, the Albanian economy has experienced significant growth in several sectors compared to the early years of Confindustria Albania’s mandate. This development is the result of a combination of economic policies, investments, structural reforms, and the introduction of new technologies. Sectors showing significant growth include tourism, energy, infrastructure, and construction.
Albania has become an increasingly popular destination thanks to its natural beauty, historical and cultural heritage, and relatively low costs compared to other countries in the region. Of course, this has been driven by private investments, incentives for hotel and tourism infrastructure development, and targeted marketing strategies.
The infrastructure and construction sectors have also seen strong development, particularly in the building of roads, bridges, and the modernization of port and airport facilities. This has further enhanced Albania’s tourism offering.
Albania has also seen growth in energy production, particularly in renewables, thanks to its abundant water resources. The construction of hydroelectric plants and policies to attract investment in this field have contributed significantly to strengthening the sector, which will continue to grow exponentially if Albania adopts a long-term energy policy with clear and stable rules regarding the transfer of assets from private to public hands, as well as energy pricing.
Great potential can be seen in the green and sustainable technologies sector, as well as in smart infrastructure and mobility. The innovation and research sectors also hold promise, particularly in fields like biotechnology, digital health, and robotics. Lastly, I believe that with an aging population and increasing demand for healthcare services, Albania has the potential to develop a modern healthcare market, including the biomedical industry, advanced medical technologies, and telemedicine. The integration of digital solutions in healthcare could be a key to future success.
As your presidency comes to an end, what results are you most proud of?
There are several results I am particularly proud of.
During my tenure, I worked tirelessly to strengthen the relationship between Italian businesses and the Albanian government. We focused on improving business conditions for Italian companies, addressing major challenges such as fiscal instability and corruption. This not only reinforced bilateral relations but also increased the Italian presence in Albania.
As President, I paid great attention to innovation and sustainability as keys to the future of Italian businesses in Albania. I am particularly proud that Confindustria Albania has contributed to raising awareness within both the government and businesses about the need for a shift toward a more sustainable economy.
Under my presidency, Confindustria Albania became a reference point for Italian companies operating in the country. We managed to gain greater visibility at the institutional level and foster a constructive dialogue with the government and other business associations.
Additionally, I had the opportunity to work on strengthening our network with other international organizations, promoting Albania as an increasingly attractive destination for foreign investments.
In summary, my mandate focused on strengthening Italy-Albania relations, simplifying regulations, securing strategic agreements, and fostering the growth of innovative sectors. Looking to the future, I believe Albania still has enormous potential to unlock, and I am confident that the solid foundations we have built will lead to further success for both Italian businesses and the Albanian economy. The current Confindustria is more authoritative than it was when I started, but it is still less authoritative than it will be in the future.
In your view, where has Albania made the greatest progress, and where does it still need to work in order to align with a European business climate?
Albania has made significant progress in several areas, but there are still some sectors where further work is needed to fully align with a European business climate. As we have already discussed, although steps have been taken to reduce corruption, it remains one of the main challenges in Albania. The country must continue to strengthen the judicial system, improve the independence of judges, and make legal procedures faster and more transparent, creating a context of greater legal certainty for investors.
I would also add that in the area of education, while there is great potential among the new generations of entrepreneurs, Albania still needs to invest more in professional training, particularly in technical and digital skills. The demand for highly skilled labor, especially in IT and advanced technologies, is growing, but the preparation of the workforce is not yet fully up to the challenge.
What have you most appreciated about Albanian culture and spirit during these years, and how has this experience enriched you personally?
The generosity and hospitality of the Albanian people are among the qualities that have most impressed me. No matter where you’re from or how long you stay, Albania has a tradition of welcoming guests that reminds me of my own region, as Southern Italy shares a similar spirit.
The resilience of the Albanian people is another characteristic I have admired. Albania has gone through periods of great historical and political difficulty, yet the Albanian people have always managed to bounce back and look ahead with optimism. The young Albanians, for instance, are excited about the opportunities the world offers them, especially with Albania’s integration into international contexts like the EU. I have always believed that a positive attitude and the willingness to move forward are key to overcoming difficulties, and the Albanian people embody this belief perfectly.
The importance of family and social ties is another extraordinary aspect I have found in Albania. In this country, familial and community relationships are incredibly strong and deeply influence daily life and the social and economic dynamics. This focus on cohesion and mutual support has taught me the importance of having a solid support system, not only in work but also in personal life and interpersonal relationships.
