Albania overview

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View list of EBRD projects in Albania

In Albania we focus on:

Promoting Sustainable Energy Policies and Environmentally Sound Investments. The EBRD will work closely with the Albanian authorities and the independent regulators to enhance the regulatory and administrative framework for private sector investments, particularly in the renewable energy sector. The EBRD, through its dedicated facilities, will finance energy efficiency and renewable energy projects and, in cooperation with other IFIs and commercial banks, will support the upgrading and financial viability of energy generation and distribution. Interconnection lines and gas pipeline will also be of key importance for improving competitiveness and regional integration.

Enhancing commercialisation, competition and private sector involvement in infrastructure, alongside targeted public projects. We will assist the Albanian authorities, both at the national and local level, to increase private sector involvement in transport and municipal services, including in road maintenance. Financial assistance will be complemented by technical advice, capitalizing on the EBRD's experience to successfully structure and implement PPP and concession financing. We will also work closely with the Government on advancing transition in the seaport and railways sectors.

Supporting the development of a more competitive private sector. The EBRD will continue to be a strong partner for foreign investors and for local corporates, both directly and through the Local Enterprise Facility (LEF). We will pursue an active investment policy in sectors such as agribusiness, manufacturing and services, ITC and tourism, all of which have the potential to modernise and increase value creation in the Albanian economy, which is still too reliant on imports and labour-intensive textile subcontracting.

Strengthening the financial sector and deepening intermediation. The EBRD will support the banking system in a difficult market environment with credit lines and other facilities such as the Medium Size Co-Financing Facility (MCFF). The EBRD, through a close consultation with the Bank of Albania, will respond in a timely way to emerging needs of the local financial sector.

As well as being a country where the EBRD works, Albania is also an EBRD donor. It  contributes a total of €36 million in grant funding for first-loss risk cover as part of the EBRD €100 million Albanian Agribusiness Support Facility. The Facility was approved in 2015 to promote and enhance access to finance for agribusinesses in Albania.

The EBRD’s latest Albania strategy was adopted on 12 February 2020

Albania's policy response to the coronavirus crisis

The EBRD is monitoring Albania's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more 

EBRD forecast for Albania’s Real GDP Growth in 2020 -9.0%

EBRD forecast for Albania's Real GDP Growth in 2021 12.0%

The economy of Albania expanded by 2.2 per cent in 2019, down from 4.1 per cent in 2018. The slowdown came mainly as a consequence of weaker power generation, combined with the high base effect from the previous year, but also as a consequence of a decline in construction output, visible especially in the last quarter. On the other hand, services, especially tourism, remained an important contributor to growth.
 
On the expenditure side, investment recorded a mild decline year-on-year in the first three quarters, which deepened to 12 per cent year-on-year in the fourth quarter due to the November 2019 earthquake.  Amid continued low inflation, in March 2020 the central bank cut the key policy rate to a record low of 0.5 per cent (from 1.0 per cent) to help alleviate the impact of the coronavirus crisis.
 
Nevertheless, the economy is likely to be strongly affected by the epidemic due to its high reliance on tourism and exports of low value-
added intermediate goods to Italy’s fashion industry. A likely reduction in remittances will also act as a drag on growth. The economy is expected to contract by 9.0 per cent in 2020 but rebound by 12.0 per cent in 2021 on the assumption that virus containments measures are short-lived, with recovery from the earthquake providing a further boost to the economy.
 

albania in the ebrd's 2019-20 transition report

 

 

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