Zeka: Political crisis threatens foreign investment in Kosovo

The President of the American Chamber of Commerce in Kosovo, Arian Zeka, warned that the political crisis and delays in the formation of institutions are directly jeopardizing foreign investment and economic growth, Ekonomia Online reported.

Zeka pointed out that experiences from previous years show that every political stalemate has had a negative impact on the economy.

“Whenever we had political deadlocks, that is, delays in the formation of institutions—mostly in post-election periods, referring here to 2014, 2017, and 2019—it was always reflected in the economic growth rate. Last year as well, when the deadlock lasted for almost a year, until the elections on December 28, the growth rate was lower than projected for 2025. I hope that will not be the case, but a low growth rate is still expected this year due to the political crisis and the lack of consensus on the election of a new president,” Zeka told Ekonomia Online.

He therefore emphasized that institutional stability is a key prerequisite for attracting foreign investment, as political uncertainty discourages investors.

“Foreign investors need stable institutions, a stable environment, and representatives of state institutions they can engage with and who can assume their responsibilities, while at the same time feeling that their investments will be secure and will not be affected by any crisis or political uncertainty that characterizes our country,” Zeka said.

He added that it is also important for the central level not to block municipalities.

“It is important that institutions at the central level no longer block municipalities, specifically Pristina, so that it can continue with capital projects. I say this based on past problems, as many times during this decade the government—not only the current one but previous ones as well—has blocked capital projects in Pristina and other municipalities,” Zeka noted.

However, he stated that despite the global crisis, Kosovo and the region have the potential to attract investment.

“Conflicts in different parts of the world may affect growth and lead to a certain restraint among foreign investors when it comes to expansion, but it should be emphasized that regions that are peaceful, such as the Western Balkans, can use this opportunity to attract foreign investment. Kosovo has a young, well-educated workforce and can seize this opportunity—similar to the COVID-19 pandemic period—to promote its potential for attracting foreign investment and to draw in American and other investments from Western European countries, which are also allied states of the Republic of Kosovo,” Zeka said.