KOSOVO
faces up to the challenges of the future








Mr. Ismajl Kastrati


Interview with :

Mr. Ismajl Kastrati
President of Kosova Chamber of Commerce

June 20th 2002
Could you give us a brief historical background of the Kosova Chamber of Commerce?

Kosova Chamber of Commerce (KCC) was established in 1962 in Prishtina and continuously developed its activities until suppression of Kosova's autonomy in 1989. Kosova Chamber of Commerce was re-established in 1994 by initial step of private business and supported by political structures of that time. After a month of functioning, the Serbian regime imprisoned our managing staff and halted the Chamber's activities. KCC re-started its activities right after liberation, respectively on June 24, 1999. KCC is organized based on continental European traditions as a common Chamber of all business entities of Kosova. There were some other forms of organized businesses earlier such as the association of craftsmen, agriculture, trade, etc.
What are the current services and main activities of the Chamber?

The Chamber organizes missions in both directions: Kosovar businesses to other countries and vice-versa; assists the members to participate in fairs, exhibitions and presentations organized inside and outside Kosova;

Organizes trade fairs in Kosova; Supports its members to participate in any partnership in Balkans, Europe or wider.

Assists the members to participate in local and international conferences, meetings and seminars acquainting them with legislation, economic situation and local and foreign market practices;

Offers consulting service as well as other services to ease their movement outside Kosova; cooperates with Chambers and other employers' organizations from different countries for the interest of Kosova's economy;

Provides information to foreign businesses regarding the legal framework and potential possibilities to invest in Kosova;

What is presently the structure of the Chamber?

KCC at present has 57 employees organized in ten branch associations, three professional councils and six regional offices. Key staff of the Chamber includes the President, Vice-President, Secretary General whilst the Executive Board (Managing Council) has 19 members representing the business community.

Based on the Law on KCC (Kosova Official Gazette No. 41/79) and on UNMIK Regulation 24/99 (Article 1) the membership in the Chamber is compulsory for all enterprises (juridical persons), banks, financial organizations and insurance companies. But, for the lack of enforcement mechanisms, we operate on voluntary basis membership at present. Therefore we count about 1500 voluntary members.

What about the regional/international cooperation that the Chamber carries out and what results have you obtained?

KCC aims at developing relations with counterpart institutions from other countries as a natural and effective way to perform members' interests as well as economic interest of the country. KCC cooperates with many regional and European chambers. We have agreements with the following institutions:
The Union of the Chambers of Commerce and Industry of Albania;

Chamber of Economy of Croatia;
Chamber of Economy of Bosnia and Herzegovina;
Chamber of Economy of Slovenia;
BAO Berlin;
The Federation of Egyptian Chambers;
AGEF- Nongovernmental Association from Germany;
The Federation of Austrian Chambers;
Chamber of Economy of Macedonia;
Many other agreements on cooperation are in the process to be signed.

What are the latest developments in the private business sector, and how do you see the interest of foreign investors towards the local market?

After the reconstruction phase, major developments took place in what regards trade business and services hotelier services (restaurants, café bars, etc.), investments in Petrol Stations, private business. Agriculture has reached pre war levels. At present, there are some investments in processing capacities of agricultural and animal products (milk factories, butcheries, fruit processing, vineries, breweries, sparkling water, etc). Considerable capacities of constructing materials have been put into operation such as: producers of bricks, roof tails, doors, windows, concrete, stone crashers, asphalt base, etc. There are some investments in other industries as well, mainly in processing industry in SMEs.

Kosova relies mainly on import at the present. The development of processing industry, agribusiness, constructing and services is very important for Kosova's economy and very attractive for foreign investors, too. Our strategic goal is substitution of import products consuming and stimulation of exports to regional countries and wider. The fulfilment of these goals depends on the overall trends in the region as well as on the future political status of Kosova. But, first and foremost, UNMIK and the Provisional Government must find a way to stimulate investments from the Diaspora as well as from locals investors. The manners and forms to stimulate these investments are already well known, such as: to favour tax treatments, industrial zones, grants, and even discharge of profit dedicated for reinvestments
Kosova is situated at the heart of Balkans; it has young population, intuition and courage for entrepreneurship. These are preconditions that lead to success.

Could you elaborate on the latest projects the Chamber has carried out in order to project Kosovo to the world? I believe that there is a database of companies that is currently being created?

Actually KCC is completing a database of the most important businesses in Kosovo. This is a very difficult task because businesses in Kosova aren't registered based on Regulation on Commercial Enterprises but they are simply evidenced on tax collections. Parallel to this database, KCC will also be producing MMP-EKO1, a (Multimedia Presentation of the Kosovar Economy) project in order to present the economy of Kosova in a very professional and cutting-edge manner for the region, Europe and to the world.

This project will consist of:
Business Directory (in printed format);
Business Directory (CD- Presentation format);
Business Directory (Web/Internet presentation);

Monographic presentation of Kosova will also be available in the form of a promotional video including social and economic profiles the territory, its resources, etc.

As the President of the Chamber of Commerce, what would you say is needed from the private sector to put Kosovo on the investor's map?

The private business community must create the appropriate terrain for application of new technologies. They also need to apply modern methods of marketing and financial standards, and make greater efforts into transforming the logic of thinking on market economy, and first of all they must be ready for partnerships in joint ventures even if it means they will have to allow other people to manage the business. The fear from foreign capital is absolutely unstable as long as we lack that capital. Foreign investors must be treated as partners, who aim at obtaining a profit, but also create employment possibilities, pay taxes towards Kosova's budget and incites consumption. Businesses must propagate as well as must enhance Kosovar entrepreneurs. The establishment of Euro Info Correspondence Centre at KCC enables such bilateral communication.

Can you tell our readers about your professional background, in what positions have you been working before and what do you consider your biggest achievement since you became President of the Chamber?

I graduated in Economic at the Prishtina faculty and later specialized on investment planning. I've had mainly professional jobs. I have worked in the printing house "Rilindja" Newspaper as a head planner, financial manager, commercial manager and director (coordinator) of professional services. Since 1992 (after abolition of Kosova's autonomy) I worked in the Central Financial Council of Kosova as a Head of Financial Commissioner and from 1994 on until the end of the war, I was President of this Council. I became President of Kosova Chamber of Commerce in June 1999. I was elected to this post in 1994 from votes from private business, but my activity was stopped and I was sentenced to two years and half of jail, from the Serbian regime of that time. Thankfully I was imprisoned only five months. Therefore I came back in previous post in 1999 whereas in 2001 I was re-elected in this post for another four years.

What message would you address to the international business community?

Kosova has a young population and is being tremendously helped by international community, which is healing the wounds of the war while entering the new millennium free from any painful baggage of the past and with new ideas. We are actually creating a modern legislative and institutional framework. The international support we are receiving helps us to advance much quicker through this transition and to integrate our market into free world market economy. We are open for economic cooperation with all countries of the region as it is stated on principles of Stability Pact, as well as with countries of EU, USA or Asia. Better regional cooperation and exchange of goods, costumes duty liberalization, exclusion of double taxation, exchange of experiences, and particularly on fighting organized crime is a precondition for Kosova's integration within the EU and the region.

Note: World Investment News Ltd cannot be held responsible for the content of unedited transcriptions.

 Read on 

© World INvestment NEws, 2002.
This is the electronic edition of the special country report on Kosovo published in Far Eastern Economic REVIEW. September, 2002 Issue. Developed by AgenciaE.Tv