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Focus Areas

Albania has made steady progress with structural reform over the past two decades, despite having to overcome serious institutional weaknesses and one of the most difficult starting points for transition.

Key transition challenges that can be addressed with the support of EBRD financing and assistance include:

  • Moving towards a more balanced energy sector. Albania has the potential to become a regional player in the renewable energy market, but achieving this goal will require improved efficiency and viability of distribution and generation, a substantial increase in private sector participation in power generation, and an improved regulatory framework.
  • Upgrading infrastructure including through increased participation of the private sector. The implementation of PPP projects and other concession financing will be critical for addressing this transition challenge. The development of railways and port infrastructure will also be a key factor in advancing Albania’s regional integration and sustainable transport.
  • Developing a more vibrant corporate and agribusiness sector. In a difficult international economic environment the Albanian private sector will need financial and technical support to promote greater vertical integration, innovation, competitiveness and improved corporate governance. Further challenges include the reduction of the administrative burden facing businesses, the completion of privatisation and greater enforcement of the rule of law.
  • Deepening financial intermediation. Financial intermediation is still low by regional standards and its development was slowed down by the negative impact of the crisis. Challenges ahead include enhancing the flow of credit to the real economy in the face of more stringent capital requirements and boosting the development of non-bank financial services.


Last updated 4 February 2013

Publications

  • Albania factsheet

    Albania factsheet

    This document provides an overview of the EBRD's work in Albania.