Economy of Kosovo

Economy of Kosovo

Currency	Euro (€)
Fiscal year	Calendar year
Trade organisations	CEFTA
Statistics
GDP	$12.777 billion (2011 est. PPP)
GDP growth	4.5% (2010 est.)
GDP per capita	$6,631 (2010 est. PPP) (
GDP by sector	agriculture: 12.9% industry: 22.6% services: 64.5% (2009 est.)
Inflation (CPI)	3.5% (2010 est.)
Population below poverty line	30% (2010 est.)
Main industries	mineral mining, construction materials, base metals, leather, machinery, appliances
External
Exports	€322 million (2011)
Export goods	mining and processed metal products, scrap metals, leather products, machinery, appliances
Imports	€2.41 billion (2011.) (2007 est.)
Import goods	foodstuffs, wood, petroleum, chemicals, machinery and electrical equipment
Public finances
Government debt	5.8% of GDP (2011 est.)
Revenues	$1.458 billion
Expenses	$1.581 billion (2010 est.)
All values, unless otherwise stated, are in US dollars.

The economy of Kosovo^[a] is a transition economy Despite substantial development subsidies, Kosovo was the poorest province of the former Yugoslavia. During the 1990s poor economic policies, international sanctions, little access to external trade and finance, and ethnic conflict severely damaged the already-weak economy. Since the declaration of independence of 2008 Kosovo's economy has grown each year, with relatively low effects from the global financial crisis; while there are many weaknesses for its potential in the future, many of them related to its internationally disputed status, there are also potential strengths, including its very low level of government debt and future liabilities and the strength of its banking system (despite remaining obstacles to using this for productive loans). Both unemployment and poverty rates are estimated at close to half the population.

Developments from 1999

After strong increases in 2000 and 2001, as a result of post-war reconstruction and foreign assistance, growth in GDP was negative in 2002. In the period from 2003 to 2011 it resumed its upward trajectory, despite declining foreign assistance, averaging over 5% a year. It is noteworthy that growth continued during the financial crisis of 2009, and returned to 5% in 2011 Inflation was low, while the budget posted a deficit for the first time in 2004. Kosovo has a negative balance of trade; in 2004, the deficit of the balance of goods and services was close to 70 percent of GDP, and was 39% of GDP in 2011. Remittances from the Kosovo diaspora accounted for an estimated 14 percent of GDP, little changed over the previous decade.

Most economic development since 1999 has taken place in the trade, retail and construction sectors. The private sector which has emerged since 1999 is mainly small-scale. The industrial sector remains weak.

The United Nations Interim Administration Mission in Kosovo (UNMIK) introduced an external trade office and customs administration on September 3, 1999, when it established border controls in Kosovo. All goods imported to Kosovo face a flat 10% duty. These taxes are collected at all Tax Collection Points at Kosovo's borders, including that between Kosovo and Serbia. UNMIK and Kosovo institutions have signed free-trade agreements with Croatia, Bosnia and Herzegovina, Albania and the Republic of Macedonia.

The euro is the official currency of Kosovo. Kosovo adopted the German mark in 1999 to replace the Serbian dinar, and later replaced it with the euro. The Serbian dinar is still used in some Serb-majority areas (mostly in the north).

Estimates of the Kosovo unemployment rate (as of 2010) range from 40% to 60%. of the labour force. Unemployment among the Roma minority is as high as 90%. The mean wage in 2009 was $2.98 per hour.

The economy has been seriously weakened by Kosovo's still-unresolved international status, which has made it difficult to attract investment and loans. The region's economic weakness has produced a thriving black market in which smuggled petrol, cigarettes and cement are major commodities. The prevalence of official corruption (and the pervasive influence of organised-crime gangs) has caused serious concern internationally.

Since 2002 the European Commission has compiled a yearly progress report on Kosovo, evaluating its political and economic situation. For 2008 the European Commission reported a GDP growth of 5.4% – essentially due to public investment (194% growth, compared to a 10.2% decline in private investment) – but the report also noted that the unsatisfactory state of the statistical system does not allow for a comprehensive assessment of the situation.

Because of the poor economic situation, Kosovo remains highly dependent on payments from the international community and the Kosovar diaspora. Donor-financed activities and international aid account for 7.5% of the GDP, and remittances from the diaspora (located mainly in Germany and Switzerland) for another 14%.

Kosovo became a member of the World Bank and the International Monetary Fund in July 2009. Membership in the World Bank, an initiative led by Ranjit Nayak (World Bank representative in Kosovo since February 2007), has resulted in Kosovo becoming part of the international financial system and the global market economy.

Investing in Kosovo

Young Population With an average age of 25 years, Kosovo has the youngest population in Europe. Albanian and Serbian are the official languages, English and German are widely used. With two public and numerous private universities (over 40,000 students), a high knowledge society is emerging from the young and dynamic population. Many Kosovars who have lived and studied abroad are acting as a bridge to Western cultures and guarantee business success for foreign operations in Kosovo.

High availability of skilled and cost effective labor The average monthly cost of labor in Kosovo is slightly over 250 Euro. Wages in Kosovo are unburdened by costly social contributions, unlike those in the countries of the region. With ca. 300,000 existing jobseekers and ca. 20,000 (8,000 graduates) new jobseekers entering the labor market every year, a sufficient stream of labor of all profiles is guaranteed. Any foreigner who has visited Kosovo will confirm the exceptional dynamic and entrepreneurial spirit of the Kosovars.

EURO as the official currency Euro is the official currency in Kosovo, thereby eliminating currency and exchange rate risks. The Euro gives Kosovo a considerable advantage over its competitors in the region by making it more attractive to foreign investment and by ensuring financial and macroeconomic stability. It also enables Kosovo to offer the lowest transaction costs in the region.

Free access to markets of EU, US and CEFTA Kosovo derives three major benefits from trade liberalization, namely improved export possibilities, a better investment environment, and stable relations with its neighbors. Exporters enjoy free access to a market of over 500 million consumers. Kosovo is a member of CEFTA and it benefits from non-reciprocal, customs-free access to the EU market based on the EU Autonomous Trade Preference (ATP) Regime. Kosovo goods also enjoy preferential treatment in the US market.

Low Taxes Kosovo has a simple and straightforward tax system. International Accounting Standards apply. The tax burden is very low: Personal Income Tax 0-10 % VAT 16 % Corporate Income Tax 10 % Mandatory contributions for employees only 5 % of gross salaries.

Stabilizing political environment Kosovo's independence marks the end to a long period of economic and political uncertainty. In addition to increased stability being created in the entire region, it presents a perspective of regional economic development and EU integration. So far, Kosovo has been recognized by the most powerful nations worldwide and has become a member of international institutions such as the International Monetary Fund and the World Bank. The international presence in Kosovo is strengthening the stabilization process and the rule of law and is bringing legal security to foreign investments.

EU-compatible legislation Since 1999, Kosovo's legal system has been re-built and is now completely compatible with the EU legislation. Foreign investors enjoy national treatment, protection against expropriation and nationalization. The repatriation of profits and transfer of invested capital is free and unrestricted. All laws and regulation in Kosovo are available online and in English, making Kosovo's legislation system the most transparent in the region.

Strategic location and developing infrastructure Located in the heart of the Balkans, Kosovo's capital Pristina is one hour driving time to any neighboring country. Ongoing infrastructure projects include modern highway connections to Albania, Serbia, and Macedonia. The driving time to the Albanian Sea Port of Durrës is three hours, and Thessaloniki Sea Port four hours. In addition, the recently concessioned Prishtina International Airport offers daily air connections to many major European cities.

Sound banking system Kosovo's financial sector has been built on completely new foundations. All financial institutions in Kosovo are private and have remained stable despite the financial crisis. There are eight licensed banks, two pension funds, 19 other financial intermediaries, 28 financial auxiliaries and ten insurance companies in Kosovo. Six out of eight banks in Kosovo are foreign-owned.

Great investment opportunities Kosovo is well endowed with natural resources and agricultural land. The sectors of agriculture, food and wood processing, construction, textile, IT, automotive components, energy, and mining offer the most opportunities for foreign investors. Bearing in mind the advantages of a young, skilled and multilingual population as well as the low taxes, IT-outsourcing is an interesting opportunity. [2]

Transportation

Road network: The road network consists of 630 km of main roads. A highway connecting Kosovo with Albania and Serbia currently under construction. Kosovo Railways: Combined length of 330 km. It covers the entire territory, connecting both the south with the north and east with west. Air transportation: Pristina International Airport Adem Jashari is, with over one million passengers per year, one of the most frequented airports of the region.

Energy in Kosovo

Kosovo Energy Corporation j.s.c (KEK) is the sole power corporation in Republic of Kosova. KEK j.s.c is vertically integrated and was legally incorporated in the end of 2005 year. In different periods of time KEK j.s.c went through a lot of changes. For a long period of time Kosovo’s power system was part of ex Yugoslavia power system. During this period of time energy production in Kosovo was concentrated in production of energy from a coal and small quantity from the water. During that period of time the supply with power was not only from Kosovo’s plants but also form the other sources of energy production in the other places of ex Yugoslavia. During 90’s after the autonomous status of Kosovo was annulled and beginning disintegration of ex Yugoslavia, the corporation was under wild use and there was no investment made in Kosovo’s energy system. The same situation continued until mid June 1999, when the war was finished and the employees were brought back to their working places. During 1989–1999 most of local experts were dismissed from the work. After this period the investments were made get the energy system of corporation function again, initially based on the international support and later also from local institution support. Now the core business of the Corporation is production of coal, energy production, and supply with energy, sales and customer care service. In accomplishing the above mentioned functions the KEK is organized into four main divisions: Mines, Generation, Distribution and Supply Divisions. There are two open-cast mines, namely the Mirash mine and Bardh mine, two power plants, PP “Kosova A” and PP” Kosova B”, around 18.898 km (from 0.4 kV voltage level to 35 kV) of distribution network covering the whole territory of Kosovo and the operation is finalized with supply activity, including the energy sale function . The functions of KEK are regulated according the politics of Energy Regulatory Office of Republic of Kosovo. Energy Generation Division is composed of PP “Kosova A", "Kosova B" and Chemical Separations that are lied in the around area of Kastriot that is about 8 km far from Prishtinë capital city of Republic of Kosovo. Power Plant “Kosova A” is composed from five generation units known as A1, A2, A3, A4 and A5. Unit A1 of this power plant is set in operation by 1962 year with generation capacity of 65MW; A2 by 1965 year with generation capacity 125MW; A3 by 1970 year by generation capacity of 200MW; A4 by 1971 year with generation capacity of 200MW and A5 by 1975 year with generation capacity of 210MW. Units A3, A4 and A5 are still in function. According actual plan there are in use two units while third one is reserve “hot” “because of their low readiness that is because of its seniority. Units A1 and A2 are out of operation without defined status and according actual plans this will stay like that till the end when is planned to be done its decommissioning together with other units. Quantity of generated energy from PP “Kosova A” per year is 1500GWh.

Generation Unit	Generation Capacity	Construction period	Set in operation
A1	65	1960–1962	21.10.1962
A2	125	1962–1965	20.05.1965
A3	200	1966–1970	18.04.1970
A4	200	1967–1971	15.05.1971
A5	210	1971–1975	08.07.1975

[3]

Power Plant "Kosova B" is composed by two generation units as there are B1 and B2. First unit B1 was set in operation by 1983 year with generation capacity of 340MW, while second unit (B2) by 1984 year with generation capacity of 339 MW. Both units are in generation and are in good condition. Based on finished investment and following investments there was improved evidently units situation that even these ate old about 25 years abovementioned units ate in high technical readiness. 2008 and 2009 are years when was achieved maximum generation in both units during its history since units were set in operation by 1984 year. Quantity of generated energy from PP “Kosova B” per year is 3650GWh.

Generation Unit	Generation Capacity	Construction period	Set in operation
B1	340	1977–1983	10.09.1983
B2	339	1977–1984	14.07.1984

Coral Division Underground coal mining in the Kosova Basin started in 1922 and continued until 1963 when the company changed to surface mining Initially the coal was excavated from mine KOSOVA and later from mines such as: Dardhishtë, Sibofc, Zgafella e Re and Babushi i Muhaxherëve. This form of coal excavation continued till 1956 year in MIrashi’s mine initially removing overburden during 1956 while first tones of coal from this mine were excavated in 1958. By increasing generation capacities there was necessary to open Bardhi’s mine. The works on opening Bardhi’s mine has started with remove of overburden in 1964 year while the first tons of excavated coal started in 1969. Since 1922 till December 2009 in all mines within KOSOVA Coal Basin was excavated 300.1 million tons of coal. The actual organisation of coal generation within KEK j.s.c is as follow: Coral Generation Division, there are three main working areas: Existing mines or eastern and western Sector -Sitnica’s Sector -Mine Sitnica South – West The coal reserves in existing mine are approximately: 7.1 million tons and there is accepted to be closed during 2012 year. Reserves in Sitnica’s sector are: 7.4 million tons. Reserves in Mien SWS are: 123.4 million tons. These reserves are foreseen to supply existing generation capacities till 2024 year. Yearly average generation in CGD is approximately 8.0 million tons of coal per year.[4] •KEK operates opencast lignite mines: Two mines, Mirash and Bardh opened in 1950s. In 2008, KEK opened a 3rd smaller mine nearby (Sitnica). •Estimated remaining Lignite reserves at above mines is about 10 million tons, and will be depleted in 2011. •2008 - KEK commenced implementation of the major capital project for opening a new mine, the Sibovc South-West Mine (SSW Mine), which is part of the larger Sibovc coal field. •Cost of opening the SSW Mine is estimated to be over 390 million Euros; the majority of funding is covered by several loans from Kosovo Budget to KEK. •Estimated reserves at SSW Mine is over 123 million tons of lignite, which is sufficient to supply the existing power plants until 2024. •Excavation of coal from SSW mine began this year (2010).[5]

Distribution Division owns 675 km of 35 kV network. Network 10(20) kV is about 445 km, 10 kV about 5863 km, 6 kV about 46 km and network about 0.4 kV is about 11.870 km. This division owns 6.200 substations of level 220 kV (from transformer) till 10(20)/ 0.4 kV. Supply Division is responsible for commercial part of the Company. It is responsible for collection of revenues of about 400000 customers and for the supply with electrical energy for entire territory of Kosovo.[6]

As the sole public supplier licensed by Energy Regulatory Office, KEK is responsible for regular energy supply. And based on the actual sales to the customers, it collects the bills from customers. The main purpose of this Company is to offer the required energy to customers. In the meantime, for used energy the customer ought to pay regularly the electricity bill. The Company would like to have reciprocal cooperation with customers. By offering enough and qualitative energy, customers are required to save and pay the used energy. This Division has four Departments and seven Districts:

• Customer Care Department,
• Analyses and Performances Department,
• Billing Department, and Business Support Department.

There are 2180 employees in this District, who that are further organised in 44 sub districts and in 54 cash offices. In this way, the entire territory of Kosovo is covered and high quality services are offered for customers.The purpose of Supply Division is to secure and high quality services to its customers aiming to fulfil customers’ requests. It is interested to invest in its assets of system and with high qualified staff.[7]

Generation

• Almost 100% of the KEK generation capacity is designed as base load and is fueled by coal, which limits unit load reduction capacity by about 25%. Therefore KEK has limited flexibility to reduce load during low load period at night.
• The generating units were designed for 30 year operating life. The KEK units are 24–46 years old. Plans are to retire A units by 2017 and B units by 2024.
• KEK refurbished A5 unit for reactivation in 2008 to reduce purchase power costs and provide better system reliability. Units A1 and A2 refurbishment has been stopped.
• New generation is planned to be operational about 2017 to replace the capacity of the retired A units.
• The A and B units (after planned repairs in 2010) will provide 960 MW of operating capacity, which is below needed capacity to meet Kosovo‘s demand until new generation capacity

KEK Today

• Kosovo Energy Corporation J.S.C (Joint stock company) is a publicly owned company under Kosovo law.
• 100% shares held by the Government of Kosovo, on behalf of the Republic of Kosovo.
• Vertically integrated utility, with operations covering open cast mining, thermal power plants, small HPP‘s, and the distribution and supply of electricity.
• KEK has over 7,800 employees and is the largest employer in Kosovo.
• Over 400,000 consumers, of which: About 340,000 residential, 60,000 commercial (mostly small commercial customers) Only around 250 large industrial customers.
• Wholesale tariff for electricity is 3.35 € Cents/kWh, and average end-use tariff is about 5.7 € Cents/kWh
• 1349 MW internal peak demand (13 December 2009)
• 5,074 GWh domestic electricity demand (2009)
• 114 GWh Export (2009)
• 103 GWh Transmission Losses (2009)
• Demand was met by Coal generation (4,656 GWh), Imports (611 GWh) and hydro (121 GWh) generation (2009)[8]

Natural Resources

Kosovo is rich in natural resources. In Kosovo there is substantially high reserves of lead, zinc, silver, nickel, cobalt, copper, iron and bauxite. There is also believed to be around 14,000 billion tonnes of lignite. Canadian company Avrupa Minerals Ltd has achieved the rights to a three year mining programme, which is expected to start in summer 2011. In 2005 the Directorate for Mines and Minerals and the World Bank estimated that Kosovo had €13.5 Billion worth of minerals.

Mineral deposits

LigniteLignite Lignite is of outstanding importance in Kosovo. It contributes 97% of the total electricity generation, with just 3% being based on hydropower. At 14,700 Mt, Kosovo possesses the world’s fifth-largest proven reserves of lignite[9]. The lignite is distributed across the Kosovo, Dukagjin and Drenica Basins, although mining has so far been restricted to the Kosovo Basin. The first systematic records of lignite exploitation date from 1922, when small-scale, shallow underground room-and-pillar mining commenced in the Kosovo Basin. Large-scale winning of lignite began with the first production from the Mirash (1958) and Bardh (1969) open-pit mines, using bucketwheel excavators. Cumulative exploitation from the commencement of mining in 1922 up to the end of 2004 has amounted to 265 Mt. Geologically, Kosovo’s lignite mines exploit one of the most favorable lignite deposits in Europe. The average stripping ratio is 1.7m3 of waste to one tonne of coal and the total estimated economically exploitable resource represents one of the richest in Europe, which would allow ambitious power generation and expansion schemes in forthcoming decades.

The lignite is of high quality for the generation of electricity and compares well with the lignite resources of neighbouring countries on a range of parameters. Kosovo’s lignite varies in net calorific value (NCV) from 6.28-9.21 MJ/kg, averaging 7.8 MJ/kg. The deposits (Pliocene in age) can be up to 100 m thick, but average 40 m, and possess an average strip ratio of 1.7:1. This combination has meant that the cost of lignite-fuelled electricity in Kosovo is the lowest in the region. Kosovo’s cost of €0.62/GJ compares favourably with €0.88/GJ in Bulgaria and €1.34/GJ in Serbia and Montenegro.

Further development of lignite mining in the medium term will continue with the exploitation of the Sibovc mining field in the northern part of the Kosovo Basin, and provides a great opportunity for private investors.

Lead Zinc-SilverSilver In what today is Kosovo, base-metal mining has been a mainstay of the economy, since pre-Roman times. Illyrians, Romans, Byzantines, Saxons, Turks, French and Britons have all conducted extensive mining in the region. These activities have been based on a series of nine mines, of which five comprise today’s Trepca Complex. Modern mining began in the 1930s, when the British company Selection Trust Ltd revamped the Trepca Complex, including the development of a battery factory that utilised the lead. Active mining of the five mines ceased during the NATO bombing campaign. The locations of the Trepca mines define the Trepca Mineral Belt. There are three NNW-SSE trending zones of mineralisation within this belt that hosts the ore deposits.

Zone I includes the Artana (Novo Brdo) mine and follows the boundary between the Vardar Zone and the Kosovo sector of the Serbo-Macedonian Massif, which is characterised by extensive Neogene calc-alkaline volcanics and intrusives. Zone II includes the Belo Brdo, Stan Terg and Hajvalia mines. This zone follows the major fault that marks the eastern margin of the Miocene Pristina basin, and its extension to the NNW and the intrusive and volcanic complexes in northern Kosovo. Zone III includes the Crnac mine, and hosts a number of lead-zinc occurrences along the western border of the Vardar Zone, where it is in contact with the Dinaride Drina-Ivanjica (Drenica) structural block.

Current estimates for combined mineable reserves for the five mines have been undertaken, but all of the deposits are open at depth and their strike lengths are uncertain, owing to a lack of systematic exploration and definition drilling. During the lead-zinc-silver exploitation at Farbani Potok (Artana-Novo Brdo), about 3 Mt of high-grade halloysite (Al2Si2O5(OH)4) was discovered. This is only one of five known exploitable deposits of this very high-value (US$140–450/t) clay, the other four being in New Zealand, Turkey, China and Utah, US. Current world production is estimated at 150,000 t/y.

NickelNickel Former open-pit mining operations based on laterite were undertaken at Çikatova (Dushkaja and Suke) and Gllavica. Remaining mineable reserves have been calculated as 13.2 Mt averaging 1.42% Ni and 0.05% Co. Production stopped in 1999 and has resumed . The buyer of Ferronikeli, IMR/Alferon, paid 33 million euro ($38.76 million) for the plant. The company had to invest at least 20 million euro in the first three years and to employ 1,000 at the end of the first year. Ferronikeli ore mining and metallurgical complex was set up in 1984 to produce ferro-nickel for exports. It produced and exported 6,800 tonnes a year of nickel, in ferro-nickel ingots, before the 1990s but since 1998 it has been idle.Ferronikeli has three open pit mines: the Dushkaja mine with estimated reserves of 6.2 million tones; the Suka mine - 0.8 million tonnes and the Gllavica with 6.8 million tones. Ferronikeli now is one of the main exporters of Kosovo.

ChromeChromium A chain of Alpine-type chromite pods in southwestern Kosovo are part of a series of linear deposits that continue into Albania. These pods are small but of high grade and in Albania are known to possess enhanced levels of platinum group metals (PGM).

Chromit ore From the end of World War Two until 1956, the ores were worked, primarily from the Djakova mine by Deva holding company, and direct-shipping ore was sent to Albania for treatment. When the high-grade ore was depleted, Kosovo began importing 30,000- 50,000 t/y of chromite ore from Albania. This ceased when the plant was closed in 1991. No meaningful exploration for chrome has been undertaken for several decades.

Bauxite Kosovo’s bauxite deposits are hosted in karst limestone and have been exploited in a series of pits that comprise the Grebnik mine. The host limestone was worked as a construction material and a sizeable stockpile of broken limestone remains on site. Mining began in 1966 and ceased in 1990, owing to the deteriorating political climate in Kosovo. Total production was 2.85 Mt. The traditional markets for bauxite from Grebnik were Romania, Germany and Russia. The mine had a fines mixing and bagging facility to produce wall plaster; production was 5,000 t/y, for the domestic market, and Montenegro and Macedonia.

Magnesite Kosovo possesses two magnesite (MgCO3) mines at Golesh and Strezovc. Both were originally worked as quarries and both moved to underground operations prior to their closure in 1999. Before 1990, the Golesh operation produced 110,000 t of magnesite, 22,000 t of sintered magnesia and 10,000 t of caustic calcined magnesia per annum. Golesh mine is accessed via a shaft, whereas Strezovc is accessed via a horizontal adit in the hillside. Both mines have recently been put up for privatisation. For further information on the privatisation process, visit: www.pak-ks.org/

Kosovo is rich in high quality construction minerals, such as andesite, basalt, diabas, gabbro, granite, limestone and marble. [10]

Wines

Wine has always historically produced in Kosovo, both red and white. Currently the wine industry is successful and growing after the war in the 1990s. The main heartland of Kosovo's wine industry is in Orahovac (Rahoveci) where millions of litres of wine is produced. The main wines produced in Kosovo include Pinot Noir, Merlot and Chardonnay. Kosovo has recently been exporting wines to Germany and the United States.

Trade

The Republic of Macedonia is Kosovo's largest import and export market (averaging € 220 million and € 9 million respectively), followed by Serbia (€ 111 million and € 5 million), Germany and Turkey.

Initial figures for Kosovo’s foreign trade show a net deficit of € 143.1 million for December 2007, compared with a deficit of € 133.0 million for the same period in 2006. Exports and imports for December 2007 were valued at € 13.7 million and € 156.8 million, respectively. This is a 155.8% increase for exports and 13.3% for imports compared with the same period in 2006.

Kosovo's principal export partners in December 2007 were Sweden (23.9%), Belgium (17.6%), Albania (8.1%), Serbia (8.1%), Macedonia (6.2%) and Bulgaria (4.7%). Imports came primarily from Macedonia (15.2%), Serbia (12.8%), Germany (10.6%), China (6.8%) and Turkey (5.5%). EU imports were 36.5% and exports 60.1%. The Kosovar budget is over € 1 billion.

Kosovo is a small open economy and imports significantly more than it exports. The resulting trade deficit indicates that Kosovo has been unable to develop an economy which is able to fill the needs of the domestic market with goods that would be more competitive than imports, and also it has very little capacity to export outside of its borders. This is a result of several factors. First, Kosovo’s trade integration through participation in trade and economic blocs is limited. Second, Kosovo’s trade promotion strategy focuses little on private sector development and the generation of foreign investment. Third, Kosovo lacks a strong institutionalist approach to coordinate its strategic trade policy from the standpoint of government; therefore there is no suitable enabling environment to facilitate an export-led growth. UNDP has formulated a comprehensive trade assistance project for the Ministry of Trade and Industry, which aims to address issues pertaining to Kosovo’s trade integration, trade promotion and trade coordination in an integrated manner. The project intends to establish an Aid for Trade Delivery Mechanism in Kosovo through capacity development interventions for the Ministry of Trade and Industry, support evidence-based and human-centered trade policy making and analysis and enhance the capacity of communities and the private sector along trade corridors, integrating gender and environmental dimensions. Moreover, it is anticipated the project will assist in trade integration efforts through developing trade policymaking capacity; improving the ability of Kosovo trade officials to negotiate bilateral trade agreements; assist in the WTO accession process; and fulfill EU-related trade requirements. [11]

List of companies

Banks

Banks in Kosovo profit 37 million Euros in 2011 Commercial banks operating in Kosovo marked their highest profit since their establishment. During 2011, the eight commercial banks operating in the country's financial markets have recorded together a profit of over 37 million Euros.

"ProCredit Bank" and "Raiffeisen Bank" marked the greater percentage from the total profit. The first recorded a profit of 16.8 million Euros, while the "Raiffeisen" has recorded a profit of over 12 million Euros. This information was provided by the commercial banks to the Central Bank of Kosovo. Compared with 2010, the commercial banks had around 5 million Euros more profit in 2011. The total net value of loans granted by commercial banks listed on 31 December 2011 amounted to 1.562 billion Euros. Meanwhile in 2010, the net value of loans granted by commercial banks was 1.335 billion Euros. During 2011, lending increased by 227 million Euros. The value of deposits during 2011 has increased by 100 million Euros, reaching a total of 2.097 billion Euros. [12]

Commercial Banks of Kosovo

• Raiffeisen Bank Kosovo J.S.C.
• Procredit Bank Kosova
• TEB Kosovo
• NLB Prishtina
• Banka Ekonomike
• BPB Banka per Biznes
• BKT Kosove

[13]

Telecommunications

In 2010, 74 percent of the population was subscribed to mobile phone services, or a total number of 1,537,164[2] In 2007, PTK reported growth of subscribers from 300,000 to 800,000 in less than a year.[3] In 2006, the number was 562,0000.[4]

There need for showing your ID to get a Sim card and they can be bought prepaid for 5 Euros with credit. There are a large number of shops for buying used mobile phones, they are sold on the street. Also SIM unlocking shops are numerous. You can buy credit for your mobile phone for the nominal price of 5 Euros, but the handlers charge more for the credit, from 1 Euro more.

Talking about mobile networks, Kosovo has two GSM 900 MHz networks, both of them with "foreign" international prefix, making it quite a unique case in the GSM World market. Because of the still unclear political situation, Kosovo does not have its own international prefix code. So landline numbers still use the +381 Serbian code, while the two mobile operators use +377 Monaco prefix (Vala) and +386 Slovenian one (IPKO). Telenor and Telekom Srbija (Serbian operators) used to have coverage in Prishtinë and some other little areas of Kosovo, but their towers have been dismantled in the independentist territory, so that GSM coverage is now offered only by the two local operators. In 2009 also the first MVNO appeared in Kosovo. It's called D3 and uses IPKO's Slovenian network. The secondo MVNO, Z Mobile, uses Vala's network and Monaco prefix.[14] There are two virtual operators : D3 Mobile (virtual operator)-043 prefix Z Mobile (virtual operator)-045 prefix [15] GSM-services in Kosovo are provided currently by Vala, a subsidiary of PTK, and IPKO, a company owned by Slovenian Telecom, which has acquired the second mobile operator license in Kosovo and has started operations in late 2007. Vala has over 850.000 subscribers, mostly using the pre-paid system, whereas IPKO has gained over 300,000 subscribers within just a few months.

Market share Based on the report of the TRA, VALA remains the leader in mobile telephony market in Kosovo, taking over 67% of the total, if included Z-mobile virtual operator, which uses the infrastructure VALA network.

Infrastructure	Network	Market Share Operator
VALA	VALA	67%
Z-Mobile(Virtual Operator)[16]	Vala	4%
IPKO	IPKO	29%

Internet in Kosovo KV - 1,825,635 population (2011) - Territorial Area: 10,908 km² Capital city: Pristina - population 500,000 (Est.) 560.00 Internet users as of Dec./11, 40.7% penetration, per GfK. Facebook users, 700.000(Est.) .

[17]

• IPKO
• Post and Telecom of Kosovo (PTK)
• Kujtesa

Industry

• Kosova Steel
• Eco Trade

See also

• Central Bank of Kosovo
• History of Kosovo
• List of banks in Kosovo
• Ranjit Nayak
• List of companies of Serbia#Kosovo

External links

• http://www.dmoz.org/Regional/Europe/Serbia/Kosovo/Business_and_Economy/

Notes and references

Notes:

a.	^ Template:Kosovo-note

References: