Growing Sustainable Businesses

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Growing Sustainable Businesses Macedonia
27 June 2007, Brussels, Belgium
United Nations Development Programme
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In the heart of Balkans, land of culture,
cradle of nature
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Macedonia Country Facts

• Basic information
• Total population 2.02 million (60 urban)
• Surface area 25,713 m2

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Why Macedonia?

• Excellent Infrastructure
• Highway system linked to EU
• Sites and Buildings
• Green customschannel
• 99 Wireless
• Country!
• 3 mobile and 2 fixed telephone operators
• 100 digital telecommunication network

Investor - friendly Government Agency Invest
Macedonia 2 Ministers for FDI Minimizedinsti
tutionalrisks Access to top decision makers
FiscalBenefits 10 Flat tax rate Free
Economic Zones
CompetitiveWorkforce Young, Dynamic Workforce
(45 of population under 30) 3 state owned and 2
private Universities Excellent language skills

Tailor-made training programs through Vocational
Schools or Universities 370/month Average
gross salary
CompetitiveLocation Free trade to 650mil
market Competitive labor costs Competitive
utilities Training facilities
Higher Profits Increased Competitiveness
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FDI Statistics
WHO IS IN THE COUNTRY?

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Country Priority Sectors - Macedonia

• Energy
• Agribusiness and food-processing
• ICT
• Automotive Parts
• Tourism
• Textile and apparel
• Healthcare

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Plenty of Energy Potential

• 1440 MW Power Generation Capacity
• 30-39 Hydro, up to 80 Thermal with Cold Reserve
  plant for peak power
• 20 Electricity is imported, no black-outs in at
  least 40 years
• Liberalized energy market
• Investments in process over next 6 years
• 500M in HEPs, 300MW thermal expansion, 200MW
  CHPP near Skopje, wind study
• Increase in transmission line capacity to Serbia
  and Albania
• Existing EBRD projects to grow transmission
  capacity to Bulgaria and Greece

Existing HEPs 504MW, up to 39 of total
Planned HEPs gt450MW 90 increase in next 5-10
years
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Agribusiness Food Processing

• Traditionally one of the strongest in Macedonia
  (fruit vegetables)
• The countrys EU accession process will involve
  substantial technical assistance and investment
  support funds dedicated to the sector
• Unique combination of Continental and
  Sub-Mediterranean climates, highly qualified
  labor, very good access to regional markets and a
  reputation for quality food products.
• Dynamic wine sector, reflecting a radical
  transition from predominantly cheap bulk wine
  export, to high quality more expensive bottled
  and branded wines.

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Automotive Industry (Components)

• History of auto component manufacturing and
  existing manufacturers supply to the European,
  Russian, Turkish and African markets.
• Over the last ten years, global players have
  invested over 20 billion in car manufacturing in
  Central and Eastern Europe alone.
• Example is Johnson Controls - constructing a 40
  million facility outside Macedonias capital
  Skopje to manufacture electronic automotive
  components.

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Tourism

• Treasury of culture and art and numerous
  historical monuments can be found throughout the
  country.
• The cultural heritage, combined with a temperate
  climate and beautiful landscape, makes Macedonia
  an attractive area for the development of both
  summer and winter tourism.
• With over 1,000 churches and monasteries and more
  then 4,200 archaeological sites, Macedonia could
  be among the leaders in cultural tourism in
  Europe.

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Useful Links and Websites

• www.macinvest.org.mk
• www.economy.gov.mk
• www.stat.gov.mk
• www.exploringmacedonia.com.mk
• www.heritage.org/research/features/index/country.c
  fm?idMacedonia
• www.eiu.com/schedule

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Growing Sustainable Business forPoverty
Reduction in Macedonia

• Thank you for your interest!
•  
• Irena Jakimova
• Investment Broker
• Growing Sustainable Business
• for Poverty Reduction Programme
• Tel [phone]
• Fax [phone]
• irena.jakimova_at_undp.org
• www.undp.org/business/gsb
• www.undp.org.mk
•  
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• UNDP Macedonia
• Osma Udarna Brigada, 2
• 1000 Skopje, Macedonia

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AGENCY FOR FOREIGN INVESTMENTS OF THE REPUBLIC
OF MACEDONIA
Nikola Vapcarov 7 1000 Skopje Republic of
Macedonia
Tel [phone] Fax [phone]
e-mail fdi_at_investinmacedonia.com web
www.investinmacedonia.com