The speech of the Minister of Industry, Entrepreneurship and Trade Ms. Rozeta Hajdari, at today’s media conference, held after the adoption of the Strategy for Industrial Development and Business Support 2030 (SIDBS) and the Action Plan ‘Industrial Policy’ for the period 2023-2025 by the Government of the Republic of Kosovo at the last meeting of the government cabinet.
The Ministry of Industry, Entrepreneurship and Trade with the inter-institutional working group comprised of the Prime Minister's Office, the line Ministries and in cooperation with economic councils and industrial sector associations and external experts and other institutional representatives, has drawn up the Strategy for Industrial Development and Business Support 2030" – SZHIMB, as well as the Action Plan for the period 2023-2025.
The drafting of this strategic document expresses the importance that the Government of Kosovo attaches to the manufacturing sector in achieving a structural transformation of our country's economy, to a higher-income economy and improved socio-economic well-being of Kosovo's citizens.
During the drafting of the Strategy, other representatives of various specialized government entities were consulted, with many businesses from all municipalities as well as municipal representatives and international development partners, banks, the European Investors Council, the European Commission, embassies and international development and cooperation agencies. Moreover, the active involvement of the business community, through workshops during the drafting process, has better contextualized and validated the identified policy actions.
Strategy for Industrial Development and Business Support 2030 -SIDBS provides a strategic framework for policy makers, dialogue partnership with the business community and coordination with development partners in Kosovo, to facilitate the development of the manufacturing sector in our Republic.
Further, the Industrial Policy was designed using a methodology known as Improving the Quality of Industrial Policies, which is used to support countries in developing comprehensive industrial policies based on robust diagnostics. The logic of Industrial Policy intervention was developed
First, defining the relevant strategic objectives of the National Development Strategy (NDS 2030), which would be positively influenced by a growing industrial base.
- Second, based on those alignments with the NDS, the specific objectives of the Industrial Policy were drafted.
Third, understanding the fundamental gaps in the structure of Kosovo's industrial capacities, the specific changes (sub-objectives) which are required to achieve the objectives of the industrial policy were identified.
Fourth, the identified sub-objectives provided the basis to develop the main industrial policy measures and the general action plan for the period 2023-2025.
The objectives and sub-objectives of the Industrial Policy were identified based on a comprehensive diagnosis of the economic, social and environmental performance of the manufacturing sector.
In addition to the general analysis of industrial performance, 7 priority sectors for industrial development were also analyzed – the value chain for wood processing and carpentry, metal industry and non-metallic minerals, plastic, textile, food and beverage industry, chemical industry, and information and communication technology.
These general and sectoral analyses revealed that, although human resources have the manufacturing competence and our entrepreneurs are capable of producing, during the last decade the production sector has not managed to transform into a dominant driver of social, economic and environmental development of Kosovo. And, although production has not been the dominant driver of economic development, it has been observed that it grows as fast as the general economy of the country. Therefore, this policy is dedicated to support the manufacturing sector to tap unlock its potential to contribute in the most effective way to the overall development of the country.
And as we said, SIDBS is closely aligned with the National Development Strategy 2030, as a comprehensive strategic document for the national development of Kosovo, and is also linked to a wider set of sectoral policies.
So we have a good connection of the industrial policy with the NDS objectives for the development of the manufacturing sector, such as: 1. Digital, circular and competitive economy; 2. Inclusive labor market, increased decent employment, and 3. Clean environment and sustainable use of natural resources.
Due to various linkages with other sectors of the economy, industrial development can stimulate growth and development in sectors such as agriculture and mining in Kosovo and related service industries. In doing so, industrial development has the potential to become an important driving force for Kosovo's intended structural transformation towards a modern, growing economy that is well integrated into the global economy and can generate socio-economic welfare as described in the vision of the National Development Strategy 2030.
The vision of Kosovo's Industrial Policy is that by 2030, Kosovo's industry will transform into a more globally integrated industry that is able to produce high added value products and provide decent jobs.
To facilitate the unlocking of the development potential of the manufacturing sector in Kosovo and to contribute to the achievement of the NDS 2030 strategic goals, and the fulfillment of its vision, the strategy is focused on five objectives:
1. Expand industrial production;
2. Reduce industrial trade deficit;
3. Generate better and inclusive employment;
4. Facilitate green industry, and
5. Maximize the growth of domestic value.
Achieving these policy objectives depends on significant changes to be made in 16 sub-objectives, ranging from improving access to finance and product innovation, supporting manufacturers to expand into export markets, training the workforce on important skills for the industry, to the improvement of the circular economy with increased recycling in the industry, as well as increasing the share of local inputs in production.
While the action plan contains several important measures, which have been developed to ensure that the vision of creating a globally integrated industry, capable of producing high value-added products and providing sustainable employment, thus making the manufacturing sector a driver of development for the country.
The effectiveness of the Industrial Policy will require coordinated actions, sustained commitment and close cooperation between the Government of Kosovo, the private sector and Kosovo's international development partners.
Remaining committed to the general goal, for a sustainable economic development of the Republic of Kosovo, the Ministry of Industry, Entrepreneurship and Trade will continue to work and coordinate with partners, based on the priorities and measures derived from this important strategic document.
