Gjokutaj: Incentives across the entire economy are needed for emigrants to return

Economic expert and analyst at the "Altax" company in Tirana, Eduart Gjokutaj, tells Kosovo Online that a comprehensive government package of measures is needed to encourage emigrants to return to Albania, and emphasizes that the promotion of fiscal incentives should not be limited to agriculture and tourism but extended across the entire economy.

Regarding Albanian Prime Minister Edi Rama’s call for emigrants to return and invest in the country, as well as the announcement of a new financial support program for agritourism, Gjokutaj notes that such a program had existed during Rama’s third term. At that time, a promise was made to provide 5,000 euros to every emigrant who returned and invested in agritourism.

Gjokutaj says that the program was partially implemented and did help stimulate the establishment of agribusinesses or tourist farms to some extent. However, he believes that measures should not be solely focused on agritourism and must be diversified across the entire economy.

“To encourage the return of emigrants and their investment in the economy, a full government package is needed, addressing economic, fiscal, and budgetary aspects, as well as legal certainty and contract enforcement. These issues have hindered the full integration of emigrants, who have faced significant bureaucratic and corruption-related obstacles, lacking legal certainty for their investments. Furthermore, there has been inadequate coordination of fiscal initiatives with state subsidies. As experts, we advise prioritizing the promotion and revision of fiscal incentives. The national strategy should also be reviewed so that these incentives are not limited to agriculture and tourism. Albania, first and foremost, lacks technology to achieve greater economic capacity,” Gjokutaj stated.

He emphasizes that fiscal incentives should include corporate tax reductions for emigrants who establish start-up businesses. Additionally, subsidies should be more flexible, and tailored to the specific needs of emigrants, rather than being distributed in fixed amounts. New companies, according to Gjokutaj, require up to 50% financial support for initial operating and financial costs.

“Legal and judicial reforms must also be undertaken to ensure what investors need, particularly in terms of contract enforcement and the implementation of existing laws, complemented by bylaws. This would facilitate investments by emigrants, offering not only fiscal relief but also legal security for their investments. Stability in legislation is key, as frequent changes deter investors. Furthermore, better promotion is needed to guide emigrants on where and how to invest,” Gjokutaj added.

He points out that although there is a "Diaspora Chamber" and several other related organizations, these structures appear to lack the necessary capacity to address the issue of emigrant return effectively.

“There is another issue that needs to be resolved, which concerns housing, as emigrants do not always have the means to secure accommodation. This is what constitutes a ‘full package’ of support,” Gjokutaj concluded.