Monthly Macedonian Business EKONOMSKI VODIC/MBM-141.… · I nv ES tm E nt cl I mat E macEDonIan BuSInESS montHly 3 M acedonia has introduced a ONE-STOP-SHOP SYSTEM that en-ables

The favorable business climate, quality labour force and opportunities for swift productions and delivery are some of the reasons why the international

multinational company “Weibo Group” chose Macedonia as a country to invest in. Chairman of the Board of “Weibo Group” Selcuk Alperen stated that the zone that will be set up in Macedonia will be the largest integrated textile zone in Europe.

“The initial investment will stand at around 180 million and it will reach 400 million dollars. Around 4,000 to 5,000 jobs will be opened in five years and we expect the export to reach from 600 to 800 million dollars,” Alperen said.

The construction of the objects is planned to kick off in the second half of this year and the first export is planned to be realized next year. According to Deputy PM for Economic Affairs Vladimir Pesevski, the effects from the investment will be many-sided because not only will the unemployment in this region drop, but according to the company’s plans, raw materials that textile factories in Macedonia import, will now be produced.

Viktor Mizo, Director of the Directorate for Technological Industrial Development Zones, informed that the zone will be in the vicinity of Rankovce but the exact parameters are still being defined. “Weibo Group” is an international multinational company which produces shirts, suits, coats, jackets and pants.

FREE MARKET ACCESS Duty-free access to a market of over 650 million customers through three multilateral (SAA, EFTA and CEFTA) and two bilateral (Turkey and Ukraine) Free Trade AgreementsLOW TAXES Flat corporate and personal income tax rates at 10%; 0% tax on retained earnings LOW OPERATIONAL COSTS One of the most cost-competitive locations in EuropeEXCELLENT GEO-STRATEGIC POSITION Goods delivered within a day to Central and Eastern Europe and Turkey, and maximum two days to Western Europe FAST COMPANY REGISTRATION One-stop-shop system for company registration within 4 hoursEXCELLENT INFRASTRUCTURE Wireless national backbone infrastructure, digital telecommunications system, extensive highway network, two

international airports with regular connections to main European transportation centersRESPONSIVE EDUCATIONAL SYSTEM Universities willing to collaborate with incoming investors in meeting the required skillsEXCELLENT FOREIGN LANGUAGE SKILLS English widely spoken, French and German embedded in the education system, regional languages in wide use AVAILABLE SKILLED WORKFORCE A young (42% under the age of 30) and educated workforce with a strong work ethic and excellent industrial relations recordHIGH QUALITY OF LIFE Highly attractive living and working conditionsPOLITICAL, MONETARY AND MACROECONOMIC STABILITYEU AND NATO CANDIDATE COUNTRY

MonthlyMacedonian BusinessMacedonian BusinessEstablishEd 2001

With support of the Macedonian Ministry of Foreign Affairs

No. 141 - Vol. XiV, 2014

Published monthly by MIC

FAVORABLE BUSINESS CLIMATE DECISIVE FOR THE INVESTMENT OF “WEIBO GROUP” IN MACEDONIA

REASONS TO INVEST IN MACEDONIA

INVEST IN MACEDONIA – NEW BUSINESS HEAVEN IN EUROPE400,000 EURO INVESTMENT - THE ROAD TO OBTAINING MACEDONIAN CITIZENSHIP

Foreign investors who will invest 400,000 euro in

Macedonia (except in the catering and trade sector) and employ 10 persons will immediately obtain a Macedonian citizenship and passport. This measure applies for all nationals of foreign countries and there is no limitation and it is part of the modifications to the Law on Citizenship.

Page 2>

2 Macedonian Business MontHly

No. 141, Vol. XIV, April 2014

Macedonian Information Centre

Director Dragan Antonov

2001-2014 © MIC, All rights reserved

No parts of this publication may be reproduced in any form without permission form the Macedonian Information Centre. The content published in the Macedonian Business Monthly do not necessarily represent the views of the publisher. The publisher is not liable for errors.

Macedonian Business Monthly Founded in 2001

Editor

Sonja Kiridzievska

Chief translator

Marina Efremovska

Contributor

Sonja Efremova

Published monthly in the

Republic of Macedonia

Address Naum Naumovski Borce 731000 SkopjeRepublic of Macedonia

Phone/Fax+389 2 311-78-76+389 2 311-78-34

www.micnews.com.mk

[email protected] [email protected]

page 3 A FIRM IN MACEDONIA CAN BE REGISTERED IN FOUR HOURS

page 4 FINANCIAL DISCIPLINE LAW ENTERS INTO EFFECT ON 1 MAY

page 6 CENTRAL REGISTER IMPROVES CONDITIONS FOR RUNNING A BUSINESS

page 8 ABANDONED OBJECTS BECOME MODERN PRODUCTION PLANTS

page 13 TRANSPORTERS CIRCUMVENT UKRAINE

INSIDE

This decision is supported by foreign experts and it has a significant importance in alleviating certain

procedures for the investors aimed at attracting foreign investments. In addition, under the changes to the Law on Foreigners, foreign nationals who are residents of the EU and OECD countries and have purchased real-estate (house or flat) in Macedonia in an amount of over 40,000 euro will get the chance to be immediately granted one-year stay in the Republic of Macedonia. “The two measures aim towards attracting foreign capital and facilitating the realization of foreign investments”, said Government Spokesman Aleksandar Gjorgjiev.According to him, data have shown the purchase of property in Macedonia by foreigners is exceptionally low.“It is estimated that changes to the laws would increase the attractiveness of the offer, whereas presentation of information through economic promoters and road shows at foreign real estate markets would result in entry of capital in this sector”, added Gjorgjiev.

400,000 Euro InvEstmEnt - thE road to obtaInIng macEdonIan cItIzEnshIp

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Macedonian Business MontHly 3

Macedonia has introduced a ONE-STOP-SHOP SYSTEM that en-

ables investors to register their businesses after 4 hours of submitting on application (in practice, it might take 1-2 business days). One can register a company in Macedonia by visiting one office, obtain-ing the information from a single place, and addressing one employee. This signifi-cantly reduces administrative barriers and start-up costs.

As all foreign investors are granted the same rights and privileges as Macedonian nationals, they are entitled to establish and operate all types of self-owned private companies or joint-stock companies. For-eign investors are not required to obtain special permission from state-authorized institutions, other than what is customar-ily required by law.

Under the Company Law, companies are formed as separate legal entities that operate independently and are distinct from their founders, shareholders and managers. Depending on the type, com-panies have their own rights, liabilities, names and registered offices. The law defines five forms of companies: Gen-eral Partnership, Limited Partnership, Limited Liability Company, Joint Stock Company and Limited Partnership by Shares. For example general partnership is an association of two or more legal entities or individuals who are person-

ally and jointly liable without limit to the creditors. This liability includes their entire property.

Potential investors can also establish limited partnership which is a partnership of two or more entities or individuals in which at least one of the partners shall be jointly liable without limit and with his entire property for the obligations of the company (“general partner”) and at least one partner (“limited partner”) who is liable for the obligations of the company up to its recorded contribution in the company.

Limited Liability Company (DOO or DOOEL) is companies in which the shareholders participate with one share each (basic contribution) in the com-pany’s predetermined basic capital. The basic contribution may differ in value, but the contribution cannot be in the form of labor or services. A minimum of 1 and a maximum of 50 shareholders can establish a limited liability company. The Limited Liability Company is, in prac-tice, the most common form of business entity. A single founder (i.e. one person) may establish a limited liability compa-ny. The company may have a maximum of 50 founders. The company’s capital assets are deposited by the founders. The founders shall not be liable for the obli-gations of the limited liability company. The basic capital assets shall be at least

€5,000 in MKD coun-ter value, in either cash or assets. If the capital is invested in assets, a quali-fied appraiser must perform the appraisal. The amount

of each separate deposit may not be less than €100 in MKD counter value.

Joint- Stock Company (AD) is a com-pany that has, by its Charter, a defined capital (basic capital) divided in equal parts (shares). Shareholders participate with one or more shares and their liabili-ties are secured with the entire capital of the company. A joint-stock company may be founded by one or more legal entities or individuals. The lowest nominal value of basic capital assets required for found-ing a joint stock company are €50,000 in MKD counter value – by a public invita-tion, €25,000 in MKD counter value – without a public invitation, the minimum nominal value of the share shall not be lower than €1 in MKD counter value. The joint-stock company is considered founded once it has been registered in the trade register.

Limited Partnership by Stock is a com-pany in which one or more general part-ners, who are liable jointly without limit for the company’s obligations, incorporate the basic capital. Limited partners have the status of stockholders and are not li-able for the obligations of the company.

Sole Proprietors –individuals that con-duct business operations are required to register as sole proprietors.The individual is fully and unlimitedly liable with all his assets to the creditors.

A foreign company can establish a branch office in Macedonia if it is regis-tered in the Trade Register of its domicile country. The branch can perform the same activities as the foreign-domiciled company. The branch may perform activi-ties in the name, and on behalf of, the foreign-domiciled company, including use of its name and address. Consequently, the foreign-domiciled company would incur full liability over the branch opera-tions. If a foreign-domiciled company establishes several branches in Macedonia, it must designate a main branch (central branch office) in the Trade Registry. The trade name of the other branches must include the trade name of the Macedo-nian central branch, as well as the refer-ence numbers of the other branch offices, according to their order of entry in the register. A foreign sole proprietor has the right to establish only one branch. The foreign company or sole proprietor must apply to the Trade Register within the Central Register for registration.

A FIRM IN MACEDONIA CAN BE REGISTERED IN FOUR HOURSUnder the Company Law, companies are formed as separate legal entities that operate independently and are distinct from their founders, shareholders and managers. Depending on the type, companies have their own rights, liabilities, names and registered offices. The law defines five forms of companies: General Partnership, Limited Partnership, Limited Liability Company, Joint Stock Company and Limited Partnership by Shares

Costs for registering a Company

Procedure

Notarization of the company deeds and otherdocuments

Registration with the Central Register

Making a company seal

Registering with the social security office

Time to complete

1 day

1 – 2 days

1 day

1 day

Limited Liability Company

MKD 800 (€13)

MKD 2399 (€39)

MKD 800-2500 (€13 – 41)

MKD 100 (€2)

Joint–Stock Company

MKD 1200 (€20)

MKD 3852 (€63)

MKD 800-2500(€13 – 41)

MKD 100 (€2)

Other

MKD 800(€13)

MKD 2452 (€40)

MKD 800-2500(€13 – 41)

MKD 100(€2)

Source: Invest Macedonia

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Firms will have to settle liabilities on time to avoid the draconic sanctions

stipulated in the financial discipline law that starts taking effect on 1 May 2014.

From now on firms will have to pay their debts within 60 days at the most or 120 days provided they receive a written consent from their creditor. Unless they comply, they will be liable to fines of be-tween 1,000 and 10,000 euros. The same

rules also apply to state firms and agen-cies having liabilities to private firms.

Expectations are that the law would be conducive to timely settlement of liabili-ties and would improve corporate liquid-ity. The internal debt, being a result of a long-standing lack of financial discipline, totals more than a billion euros. It is for this reason that the law was hailed by the business community, which also argues

for eliminating insolvent firms from the market to keep the number of debtors from rising.

“The law is going to improve corporate liquidity and the discipline of settling debts between private companies as well as between private and state-run com-panies. We also called for urgent adop-tion of a fast bankruptcy law in order to eliminate insolvent firms,” says Mirce Ckredzi from the Macedonian Chambers of Commerce.

Mile Boskov from the Business Con-federation of Macedonia says this law would put an end to the companies’ un-ethical operations.

Professor Marija Zarezankova-Potevska argues that the financial discipline legisla-tion should be put into practice gradually as its provisions should aim to teach first and then sanction.

The Law on Fiscal Discipline is ex-pected to significantly improve the

liquidity of Macedonia’s economy, ac-cording to Deputy PM and Finance Min-ister Zoran Stavreski.

“It involves a request by local firms in Macedonia envisaging the introduc-tion of deadlines for paying obligations

between firms in the private sectors and in cases when private subjects cooperate with the state,” Stavreski said.

“By introducing strict deadlines, a commitment to pay within a defined deadline, payment of penalty and an in-terest rate if these deadlines are breached, the practice of not paying liabilities

implemented by some firms with solid liquidity will be abolished,” according to Stavreski.

“In a way a culture of not paying li-abilities has been created, which is unfa-vorable for a market economy and for a functional domestic economy. Numerous firms have been urging instruments to be found to tackle the situation. The Law on Fiscal Discipline will meet these de-mands,” Stavreski stated.

Stavreski stressed that the practice is applied in many EU countries, saying he hoped that all subjects committed to conducting legal businesses and all those willing to pay liabilities would be pro-tected under this law.

FINANCIAL DISCIPLINE LAW ENTERS INTO EFFECT ON 1 MAYFrom now on firms will have to pay their debts within 60 days at the most or 120 days provided they receive a written consent from their creditor. Unless they comply, they will be liable to fines of between 1,000 and 10,000 euros. The same rules also apply to state firms and agencies having liabilities to private firms

STAVRESkI: FINANCIAL DISCIPLINE TO BOOST FIRMS’ lIqUIDITYFinance Minister Zoran Stavreski stressed that the practice is applied in many EU countries, saying he hoped that all subjects committed to conducting legal businesses and all those willing to pay liabilities would be protected under this law

Resolving Insolvency

DB 2014 RANK 52 DB 2013 RANK*** 59 CHANGE IN RANK 7

DB 2014 DTF** (% POINTS) 46.36 DB 2013 DTF** (% POINTS) 44.68 CHANGE IN DTF** (% POINTS) 1.68

Indicator Macedonia Europe & Central Asia OECD

1.8 2.3 1.7

10 13 9

00 1

43.8 37.1 70.6

Time (years)

Cost (% of estate)

Outcome (0 as piecemeal sale and 1 as going concern)

Recovery rate (cents on the dollar)

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier.

*** Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.Source: Doing Business, http://www.doingbusiness.org

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High economic growth and low infla-tion will mark this year, assessed the

National Bank of Macedonia (NBM). According to Governor Dimitar Bogov, the price stability will be maintained even after the elections, the inflation will move around 1% while the biggest risks come from the announcements for double sanctions connected to the situ-ation in Ukraine. Namely, the pressure on the prices of wheat and gas could deal the greatest blow on Macedonia’s big-gest trade partners from the European Union. NBM plans to present the latest projections on the country’s economic growth in two weeks but the Governor announced that there will be no drastic changes from the previous projection. According to Bogov, peaceful ambient following the elections is the best way to implement economic policies and growth. He assures that the National Bank will maintain the price stability.

“NBM is here in any kind of cir-cumstances to maintain stability of our economy and that’s what we are going to do,” said Bogov. He pointed out that the initial signals were suggesting that GDP’s growth would be approximately 3.7%. Unlike this institution, the Government

and the International Monetary Fund projected a growth of 3.2%.

“The new projection will be certainly affected by some risks involving the Ukraine crisis and probable international sanctions but the entire effect cannot be predicted at this moment,” Bogov said.

Some experts say that the projections for growth of over 3% are high but not unattainable. They suggest more mea-sures and mechanisms to be introduced through fiscal and monetary policy in or-der for the Macedonian economy to reach this growth in conditions of credit growth of around 1%.

“The small economies are very sensitive in a situation of political instability. This is reflected in the attracting of foreign direct investments and on certain ventures in the internal investment capacities. I assume that this will burden the business-ambience for new ventures, cycles. Especially that the macroeconomic situation, primarily the fiscal policy, is quite sensitive in this period because we engaged and wasted almost all potentials that were predicted in the fiscal plan for this year,” said academician Abdul-menaf Bexheti. In his view, in such condi-tions, it is completely certain that rebalanc-ing of the state budget is necessary.

According to the latest statistical data, in March 2014, compared to the same pe-riod of last year, the industrial production registered a minimal growth of 0.6%. This is a lot less compared to February 2014, when compared to the same month of 2013, the industry made a jump of 4.1%.

A drop of 3.2% was registered in March 2014 in the mining and quarrying sector, growth of 4.9% was registered in the man-ufacturing industry while there is a drop of 18.2% compared to the same month of last year in the sector for electrical energy, gas, steam and air conditioning supply . The statistics calculated that in the period from January to March 2014, the indus-trial production, compared to the same period of last year, increased by 3%.

In February, same as in March, the industrial production registered the big-gest drop in the sector–electrical energy, gas steam and air conditioning supply, by 21.5%, as well as in the manufacturing industry, by 10%, whereas the biggest growth was registered in the production of motor vehicles, trailers and semi-trail-ers, by as much as 500%.

According to the data of the State Sta-tistical Office, the managers assessed the business situation in March 2014 as more satisfactory than in February 2014, but less satisfactory compared to March 2013. The situation with the present volume of production orders is more satisfactory compared to the previous month. The production volume of the business entities in March 2014 is less satisfactory com-pared to the previous month; the expecta-tions for the production volume are more favourable for the next three months, while the expectations for the number of employees are unfavourable. The stocks of raw materials and intermediate goods and the purchases of raw materials and inter-mediate goods in March 2014 are below and around the normal level. The stocks of finished products decreased compared to February 2014. The average capacity utilization level of the business entities in March 2014, compared to the previous month, increased to 59.8% of normal utilization. The factors that had the great-est influence on limiting the production volume in March 2014 were: insufficient foreign demand with 25.7%, insufficient domestic demand with 18.3%, financial problems with 9.7% and uncertainty of the economic environment with 7.4%.

NBM: HIGH ECONOMIC GROWTH AND lOW INFlATION BY YEAR-ENDSome experts say that the projections for growth of over 3 percent are high but not unattainable. They suggest more measures and mechanisms to be introduced through fiscal and monetary policy in order for the Macedonian economy to reach this growth in conditions of credit growth of around 1 percent.

industrial produCtion volume indiCes Source: State Statistical Office

60

70

80

90

100

110

120

I2012

II III IV V VI VII VIII IX X XI XII II III II IIIIV V VI VII VIII IX X XI XII

2010=100

I2013

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E6 Macedonian Business MontHly

The improvement of the business climate and conditions for running

a business in Macedonia, reduction of the expenses for clients, saving time and accelerated procedures for greater efficiency in the operation, as well as reducing the administrative procedures, are only part of the measures for improving the standard of citizens and firms.

With the implementation of the measures for registration agent, the ac-countants, with a personally submitted application with electronic signature, will be able to register a firm without a fee.

“With the project for introducing a registration agent, the administrative burden of clients will be reduced and paperwork for such procedures in the one-stop-shop system of the Central

Register will be removed. The goal is to increase the use of the data through this system and an opportunity for obtaining more information in connection to the accessible electronic services we offer,” said Vanco Kostadinovski, Director of the Central Register.

The Central Register will enable more efficient management of the bankruptcy procedures. Namely, an electronic auc-tion, that is to say, sale of the property of legal entities in bankruptcy is enabled with the system. The Register will contin-ue to erase the inactive firms in the future and the firms will avoid the payment of a municipal and broadcasting fee. Kosta-dinovski informed that the number of users of the system for issuing electronic certificated is increasing daily. Since June of 2013 when the system started, thus far, more than 100,000 certificates have been issued.

Creating 64,000 new jobs, reducing the unemployment to 22 percent as well as

creating opportunities for employment of young people are only part of the government’s measures for creating a favorable economic de-velopment.

Companies that will employ young people less than 29 years will be exempted from pay-ing contributions for one year and they will be obliged to keep the employees for two years.

“The state has an interest in creating jobs for young people because this is an essential element in creating a stronger economy and building an ambience of opportunities and democratic values. We offer a concrete program with concrete measures and deadline,” said Minister of Labour and Social Policy Dime Spasov.

The program also encompasses new calls for grants for self-employment, training and in-ternship.

“With such measures included in the opera-tive plan, 55,000 citizens have been covered since 2007, 30,500 of whom are already em-ployed,” Spasov said.

CENTRAL REGISTER IMPROVES CONDITIONS FOR RUNNING A BUSINESSWith the implementation of the measures for registration agent, the accountants with a personally submitted application with electronic signature will be able to register a firm without a fee. The Central Register will enable more efficient management of the bankruptcy procedures. Namely, an electronic auction, that is to say, sale of the property of legal entities in bankruptcy is enabled with the system

SPASOV: STRATEGIC OBJECTIVE IS TO REDUCE UNEMPlOYMENT AND EMPlOY YOUNG PEOPlECompanies that will employ young people less than 29 years will be exempted from paying contributions for one year and they will be obliged to keep the employees for two years

aCtivity rates of the population by age groups and genderEmployment rate1) Unemployment rate

2012/IV 2013/IV 2012/IV

Total 56.7 57.3 39.3 40.9 30.6 28.6

15-24 34.3 35.2 16.1 17.5 53.0 50.3

25-49 79.6 80.1 55.8 58.1 29.9 27.4

50-64 56.6 58.3 43.5 45.1 23.2 22.7

65 years and over 4.5 3.0 4.1 2.7 : :

15-64 64.1 65.2 44.3 46.4 30.8 28.8

Men

Total 68.6 69.3 48.0 49.9 30.0 28.1

15-24 41.0 42.9 20.1 21.9 50.9 48.9

25-49 91.9 92.9 64.5 67.6 29.8 27.2

50-64 73.6 74.2 57.1 58.3 22.5 21.4

65 years and over 6.1 (4.3) 6.0 (3.6) : :

15-64 76.5 77.8 53.3 55.9 30.3 28.2

Women

Total 44.8 45.3 30.7 31.9 31.6 29.5

15-24 27.1 27.0 11.8 12.7 56.3 52.8

25-49 66.8 66.9 46.7 48.3 30.1 27.8

50-64 39.8 42.6 30.1 32.0 24.4 24.9

65 years and over (3.1) (2.0) (2.5) (2.0) : -

15-64 51.4 52.3 35.1 36.8 31.7 29.7

Source: State Statistical Office

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With 32 percent of women in mana-gerial positions, Macedonia is at

the highest level in Europe according to the number of entrepreneurs. Research shows that in the United States, only 24.2 percent of women run the compa-nies while the average is far lower in the European Union, only 16 percent.

Yet, the high percent of women in managerial positions is only registered in the Central Registry while in the firms, men run the companies. Meanwhile, the positions in kindergartens, schools and

health and social institutions are con-sidered to be secure female managerial positions. As a consolation, the situation is the same in Europe, Dutch consultants stressed, who recently participated in a forum dedicated to this topic.

Not only do they have a hard time reaching the top, women are unable to be paid the same as men, although statistics show that in Macedonia at least, they are more educated than the men. There are no data on the differences in the salaries of female and male managers.

However, according to the report on the human development, women in Macedonia receive 49 percent of men’s salaries while in Serbia - 59 percent. As a comparison, in the textile industry, where the majority of employees are women, one third of the salaries in the automobile industry, dominated by men, are earned.

Efforts to overcome these differences are made in Europe, and one of the ways is by introducing quotas that will provide guaranteed percent of women in manage-rial positions.

Norway, Ireland, the Netherlands and France have already introduced an obligatory quota of 40 percent of women in managerial positions but there is no information what the success rate is. The United States of America, Canada and Austria are also thinking about imple-menting this solution.

Employees in the country earned an average of 20,941 denars, namely

340 euro, in February. According to data of the State Statistical Office (SSO), the average salary per employee increased by 0.1% in one year.

The increase is primarily a result of the increased salary of employees in three sec-tors. The biggest growth of salaries in the past one-year period was registered in the mining and quarrying sector, by 16.5%. Next on the list are construction workers, administrative workers and those in the service sector, where 4% increase of the average net salary was registered.

These statistical data do not include 1.3% of the workers, who did not receive a salary in February, and employees in sectors in which the salaries remained at the same level or even dropped. In the industry, for instance, the one-year jump of the earnings totaled 4.8% and only 0.3% in the service sectors. At the same time, there is a drop of salaries by 3.2% in the agriculture and forestry while in the sector – supply with electrical energy, gas and steam – by 0.2%. The salaries in the information and communication sector dropped by 3.3% and by 2.1% in other service sectors. The leather and

fishery sector remains the most unprofit-able sector. The salaries of the workers in the leather sector increased by 7.5% in February and reached the average 10,088 denars which is the lowest salary in the country. Fishermen, on the other hand, had a great decrease of salaries, by 27.5%, and received 10,783 denars in February. The statistics has not changed greatly in the most paid sectors. The Statistical Of-fice registered the highest average salary of 49,041 denars in the financial service

sector. The trend of high average salaries in the legal and accountant services re-main where 46,067 denars are paid out, with a decline of 6.7% in a period of one year. The salaries in the telecommunica-tion sector have also dropped by 3.5% and an average of 45,753 denars was paid out in February.

According to SSO, the average gross salary in February 2014 totaled 30,662 denars and compared to February of 2013, it was higher by 0.1%.

WOMEN IN MACEDONIA WITH lOWER SAlARIES THAN MENNot only do they have a hard time reaching the top, women are unable to be paid the same as men, although statistics show that in Macedonia at least, they are more educated than the men. There are no data on the differences in the salaries of female and male managers

AVERAGE NET SALARY REACHED 20,941 DENARS


A – Agriculture, forestry and fishing; B – Mining and quarrying; C – Manufacturing; D – Electricity, gas, steam and air conditioning supply; E – Water sup-ply; sewerage, waste management and remediation activities; F – Construction; G – Wholesale and retail trade; repair of motor vehicles and motorcycles; H – Transportation and storage; I – Accommodation and food service activities; J – Information and communication; K – Financial and insurance activities; L – Real estate activities; M – Professional, scientific and technical activities; N – Administrative and support service activities; O – Public administration and defence; compulsory social security; P – Education; Q – Human health and social work activities; R – Arts, entertainment and recreation; S – Other service activities.

average monthly net wage paid per employee, february 2014

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

A B C D E F G H I J K L M N O P Q R S

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Representatives of US Company “Key Safety Systems” chose the hall of for-

mer textile company “Kikoteks” in Kicevo as a temporary solution for an object where its production of airbag cushions for the automotive industry will begin. The company’s management decided to readapt and use the hall of “Kikoteks” for launch of the production.

“Initially, 100 workers, who will be trained in Romania, will be employed. During this period, the hall will be fully adapted and equipped for production. The production will kick off in Septem-ber,” said Igor Sokoleski, President of the Regional Economic Chamber of Kicevo.

Twenty million dollars is the amount of the initial investment by Key Safety Systems and the entire production will be intended for the foreign market for renowned world automotive brands. Domestic company “Mebel Ackovski” also bought a ruined object in village Bardovci for the price of 200,000 euro for manufacturing of windows and doors. The object was owned by Komercijalna Banka that took it from the former owner due to debts. In the recent few months, the banks are intensively cooperating with the Agency for Foreign Investments and the old business objects that banks offer for sale are part of the Government’s proj-ect for so-called brownfield investments

which includes 400 objects offered to foreign investors.

The list includes more than 400 ob-jects, with entire complexes or parts of companies of former production facili-ties, such as factories, halls, warehouses, office buildings and tourist accommo-dation facilities like hotels and resorts. There are orangeries, parts of combines, production areas etc. among agricultural facilities. These facilities are built on over 1,700,000 m2, and considering yards, agricultural areas, construction land etc. the total area is over 4,500,000 m2.

Among the facilities listed are the Bat-tery Factory Probishtip, Jaka Tabak Radovish, Frotirka Delcevo, Make-donka Stip, Factory Macedonia Negotino, Hemteks, Zastava Ohrid, Ezerka Ohrid, ADG Ma-vrovo, Porcelanka Veles, Kiro Kucuk Veles, Otex, EMO, Metalka Kicevo, Karposh Kriva Palanka, hotel Macedonia Berovo, Star Dojran Resort, hotel Flamengo Ohrid, MZT Pumps Berovo, Ogražden, cable factory Negotino, Lesnina, Bu-joto etc.

The database cooperates with all state institutions, also with the chambers of commerce, commercial banks, the Cham-ber of executors and Chamber of trustees, to which a form, in which the subjects note the existing capacities that are in their possession or in the possession of their members, is submitted.

The database is placed on the Agency for Foreign Investments and Export Pro-motion website, so potential stakehold-ers can learn about it and gain an initial impression of the capabilities and data. The data is also sent to the diplomatic and consular representative offices and eco-nomic promoters, to promote capacity to foreign investors. The potential investor of a brownfield investment will be able to choose the business venture that it wishes to realize in the capacities from the list by observing the legal regulations and urban planning, as well as the environmental standards. This concept offers new oppor-tunities for foreign and domestic investors and the acceleration of the bankruptcy procedures is also beneficial.

ABANDONED OBJECTS BECOME MODERN PRODUCTION PlANTSThe list includes more than 400 objects, with entire complexes or parts of companies of former production facilities, such as factories, halls, warehouses, office buildings and tourist accommodation facilities like hotels and resorts. There are orangeries, parts of combines, production areas etc. among agricultural facilities

MACEDONIA WITH THE MOST ATTRACTIVE TAX PACkAGE IN EUROPE

“igm3” - igm-trade, KavadarCi

Source: Brownfields Database, Invest Macedonia

taX taX RatE

Corporate Income Tax 10%

Personal Income Tax 10%

Value Added Tax General Tax Rate: 18% *Preferential Tax Rate: 5%

Property Taxes

Property Tax 0.1–0.2%

Inheritance and Gift Tax **2–3% or 4–5%

Sales Tax on Real Estate and Rights 2–4%

* includes computer software and hardware** 2-3% for the taxpayer in the 2nd order of

succession and 4-5% for the taxpayer in the 3rd order of succession or not related to the testator

InD

uSt

ry


According to the preliminary data of the State Statistical Office, the export

value of goods in the Republic of Mace-donia in the period January-March 2014 was 1,112,587 thousand US dollars, and the import value was 1,696,617 thousand US dollars. Import coverage by export was 65.6 percent. The trade deficit in the period January-March 2014 was 584,031 thousand US dollars.

The trade exchange ac-cording to products shows that in the exports the most significant products are supported catalysts with precious metal or precious metal compounds as the ac-tive substance, ferro-silicon, ferro-nickel, iron and steel products (flat-rolled prod-ucts) and clothes. In the im-ports, the most significant products are the platinum and platinum alloys, un-

wrought or in powder form, electricity and other metals of the platinum group and alloys thereof, unwrought or in pow-der form.

In the period January-March 2014, the most important export partners were the EU-28 countries (80.1percent) and the West Balkan countries (12.4 percent), while the most important import part-

ners were the EU-28 countries (63.2 per-cent) and Miscellaneous - countries not specified extra (11.5 percent). According to the total volume of international com-modity trade, the most important trade partners of the Republic of Macedonia are Germany, Great Britain, Greece, Ser-bia and Italy (52.1 percent of the total international commodity trade).

A total of 332 concessions for exploita-tion and around 100 concessions for

detailed geological researches of mineral raw materials have thus far been allocated in accordance to the Law on Mineral Raw Materials. According to the law, the concessionaires pay 22 percent of the fee in the state budget while 78 percent are proceeds of the municipalities.

Nevertheless, compared to the same period of last year, growth of 6.7 percent has been registered in the sector mining and quarrying. This sector is one of the leading sectors in the industrial produc-tion, with participation of 1.5 percent in the gross domestic product.

“The municipalities where exploitation of mineral raw materials is carried out, have significant revenues on the basis of concession compensation. As a reminder, last year, the total amount of funds paid on the basis of concession compensation totaled around 450 million denars,” said Economy Minister Valon Saraqini.

In the last couple of years, there is a constant increase of funds from conces-sion compensations from exploitation of mineral raw materials while the Ministry of Economy will continue to promote this sector which offers serious oppor-tunity for development of the economy. In context to the new investments in the

mining sector is also the announcement for the new mine for antimony in Ku-manovo’s village of Lojane.

“The mine in Lojane is expected to start operating in 2017, hiring at least 300 workers. The investment amounts to EUR 30 million and besides the direct flows of the concessions, the mine will offer an opportunity for many local small and medium companies from this region to profit,” said Minister Saraqini.

THE STATE PROFITS FROM GEOlOGICAl RESEARCHESIn the last couple of years, there is a constant increase of funds from concession compensations from exploitation of mineral raw materials while the Ministry of Economy will continue to promote this sector which offers serious opportunity for development of the economy. In context to the new investments in the mining sector is also the announcement for the new mine for antimony in Kumanovo’s village of Lojane

GERMANY REMAINS MACEDONIA’S BIGGEST TRADE PARTNER


000 US $ Indices

II 2014 III 2014 I-III 2014III 2014 ------------- Ø 2013

III 2014 ------------- II 2014

III 2014 ------------- III 2013

I-III 2014 -------------- I-III 2013

Trade volume

Further processing volume

Export

Export - further processing

Import

Import - further processing

954,562 1,021,593 2,809,204 112.8 107.0 119.6 114.6

161,113 171,735 453,578 112.6 106.6 121.8 102.5

383,618 408,619 1,112,587 114.9 106.5 121.4 117.0

103,027 103,603 284,218 112.4 100.6 119.3 104.8

570,944 612,975 1,696,617 111.5 107.4 118.5 113.0

58,087 68,133 169,360 112.9 117.3 125.7 98.9

67.2 66.7 65.6 - - - -Import coverage by export

ExtErnal tradE volumE, January-march 2014 (Preliminary data)

EnEr

Gy


Lower expenses and improving the competitiveness are the assets for

the eight domestic companies that in-troduced systems for monitoring and managing electricity consumption. With USAID’s project for industrial manage-ment, which covers 50 percent of the expenses, with an amount that reaches 20,000 dollars, firms that buy electricity on the liberalized market will benefit the most. Those companies that use these systems in the production expect savings from 15 to 30 percent.

“We will be able to control what is happening in the production plants in terms of the electricity consumption at

any time which is a necessary prerequisite for us to even be able to think about sav-ings. We will need the system also from an aspect of liberalization of the electric-ity market,” said Danco Vidov from dairy firm “Zdravje-Radovo”.

“These systems will help companies to be able to plan, balance and have a better insight into the electricity consumption and in this way to solve the situations positive and profitably. This refers to those that are already on the free elec-tricity market and all other that, as of 1 January 2015, will become part of the free market,” said Dragan Blazev, expert on energy efficiency.

In order to raise awareness with com-panies to spend less electricity, USAID has thus far trained 30 companies while financial support is planned for 17 companies. Except for smaller expenses for companies, USAID expects that the saving will lead to lower prices of prod-ucts. Alkaloid, Special Product, Knauf Radika, Promes, Makprogres, Zdravje Radovo, Vivaks and Hi Tech Corporation are the first eight companies that, as part of the USAID project, have introduced an electronic system for monitoring and managing electricity consumption.

In February 2014, the total consump-tion by types of energy sources in the

Republic of Macedonia totaled: 749,141 MWh electrical energy, 14,885 million cubic meters natural gas, 618,696 tons of coal and 58,214 tons of oil products.

According to analyses of the State Sta-tistical Office, the gross-domestic produc-tion of electrical energy participated with 59.1 percent in the gross-domestic con-sumption of electrical energy while 96.3 percent of the total consumption of coal is used for production of electrical energy.

Statisticians determined that in Feb-ruary 2014, the biggest production of electrical energy was from thermal power plants – 84 percent, 17.7 percent from hydro power plants, 2 percent from combined and industrial plants and 0.2 percent from solar plants.

As regards the total consumption of oil products in the country in February, diesel was mostly used for transport (42.2

percent) while the consumption of crude oil reached 18.6 percent, motor gaso-line – 11.9 percent and heating oil - 8.3 percent.

Most of the consumption of natural gas, as much as 75.9 percent, was realized with the producers of heating energy.

UP TO 30 PERCENT SAVING BY MONITORING ElECTRICITY CONSUMPTIONEight domestic companies that introduced systems for monitoring and managing electricity consumption through a project of USAID expect to increase their saving and improve the competitiveness

84% OF MACEDONIA’S ELECTRICITY FROM THERMAl POWER PlANTSMost of the consumption of natural gas, as much as 75.9 percent, was realized with the producers of heating energy

total gross ElEctricity production, FEbruary 20141

Thermal power plants84.1%

CHP plants and Autoprod. thermal

power stations2.0%

Hydro power plants13.7%

Solar plants0.2%


Eco

loG

y


Climate changes are one of the main threats to sustainable development.

They are correlated with economic growth and huge energy consumption. Energy consumption from fossil fuels is becoming unsustainable, so its replace-ment with clean energy produced from renewable sources is urgent.

Gradual change of the unsustainable production and consumption pattern is the main challenge. Energy is considered as an input into production processes, while households spend huge amounts of energy. Producers have a serious responsi-bility to produce eco-labelled products in order to help save energy.

Energy consumption is closely related to transport; in particular, the demand for passenger and freight transport leads to high energy consumption and green-

house gas emissions, says statistical review “Sustainable development, 2013”.

According to the European sustainable development strategy, 12 percent of the energy consumption and 21 percent of the electricity consumption are to be cov-ered by renewable sources by 2010. At the same time, about 5.7 percent of transport fuel should be covered by bio-fuels by 2010, or about 8 percent by 2015.

Greenhouse gas emissions are the cause of global warming. They are directly influenced by the quantity and combina-tion of fuels, which in turn are dependent on the structure of industrial production processes and the use of own sources. These emissions will cause changes in agriculture, land use, water supply, as well as an increased risk from natural di-sasters, which may potentially have great

economic and social consequences. With-out further action climate change is also expected to damage natural resources and affect global biodiversity.

Among the challenges defined in the Kyoto Protocol are the global reductions of greenhouse gas emissions by 8 percent, compared to the 1990 level, and limiting the increase of global average temperatures to within 2°C from pre-industrial levels.

Analysis of existing data shows a con-sistency in greenhouse emissions. Split by sectors, the biggest source of greenhouse gas emissions is the energy sector with almost 77 percent in total emissions. The Industrial processes sector shows a decreasing trend, most likely due to the declining activities within the industrial capacities. The situation in the waste sec-tor remains almost unchanged.

THE BIGGEST SOURCE OF GREENHOUSE GAS EMISSIONS IS THE ENERGY SECTORAnalysis of existing data shows a consistency in greenhouse emissions. Split by sectors, the biggest source of greenhouse gas emissions is the energy sector with almost 77 percent in total emissions

16,000 SIGNATURES COLLECTED FOR SAVING MAvROvO NATIONAl PARk Environmentalists said that serious scientific researches are needed for projects “Lukovo Pole” and “Boskov Most” to see what will be gained and what will be lost

A total of 16,000 citizens in Macedonia signed the petition for saving “Mavrovo” National Park. They fear that the protect-

ed region will lose its status with the construction of the hydro power plants and that an inestimable damage to the environment will be additionally caused.

Environmentalists said that serious scientific researches are needed for projects “Lukovo Pole” and “Boskov Most” to see what will be gained and what will be lost. The foreign and do-mestic expert public from the sphere of ecology stood united in defense of the Mavrovo national park as they consider that these hydro power plans have no economic advantage.

The entire region of Debar is also against the construction of the hydro power plants. Residents of Debar fear that river Radika will run dry.

The Government’s stance is that the construction of the hydro power plants will be realized but results from the studies that will confirm whether the construction works will have an impact on the environment are waited on.

Lukovo Pole, according to the plan, was supposed to be built with funds from the World Bank and the investment is worth 62 million euro whereas Boskov Most is supposed to be financed by the European Bank for Reconstruction and Development.


land area Covered by forests

2005

39.0%

38.5%

38.0%

37.5%

37.0%

36.5%

36.0%

2006 2007 2008 2009 2010 2011 2012

tra

nsp

ort


The three most frequent border-crossings in Macedonia will be mod-

ernized and logistics centers at all other crossings will be built in order to provide faster movement of goods and concentra-tion of vehicles at one place.

Border-crossing to Greece, Bogoro-dica is the first to be modernized. The construction works are ongoing and the modern object, which 12 million de-nars will be invested in, is planned to be finished at the beginning of 2014. The realization of the project is expected to contribute to the increase of the quality of the services for passengers that use this border crossing and funds for maintenance of the ob-jects will be saved. 110 mil-lion denars will be the cost of the overhaul of the ob-jects for customs clearance at the road section from the border-crossing Tabanovce.

The project encompasses enlargement of the existent import and export termi-nal as well as construction of accompanying objects.

The project will kick off in 2015 and last one year. Border-crossing Kafasan towards Albania will also be overhauled. The objects for customs clearance will be reconstructed as well as the objects of the inspection organs at the border-crossing and construction of a new import-export customs terminal on a surface of 9,500 square meters is also planned. An amount of 90 million denars is projected for this project whereas its realization is planned to kick off in two years.

The border-crossings will grow into logistics centers in the future. The Gov-ernment is looking for private investors that would want to build logistics centers where trans-shipment of goods will be carried out from freight trucks to smaller freight carriers which will afterwards dis-tribute the goods to bigger cities.

To this effect, a parking lot, storage space for perishable and non-perishable goods, technical services, banks, postal offices, restaurant, motel, gas station, car wash, insurance companies, offices of the associations for training of drivers and managers, as well as premises for meet-ings and presentations are planned to be built within the logistics centre. Such logistics centers are planned to be built at the entries of the larger cities across the country in order to preserve the road infrastructure from destruction from freight carriers and to protect the envi-ronment from pollution and noise.

PROJECTS FOR DEVELOPMENT of THE BoRDER INfRASTRUCTUREThree border-crossings will be completely modernized and logistics centers at all other crossings towards neighboring countries will be built, aiming to provide a faster movement of goods and concentration of vehicles at one place. The Government is looking for private investors that would want to build logistics centers where trans-shipment of goods will be carried out from freight trucks to smaller freight carriers which will afterwards distribute the goods to bigger cities

Raising trade to one billion euros, cre-ating a common product and captur-

ing third markets are the basic goals that the members of the Macedonia-Bulgarian Economic Chamber are striving to attain. They say a prerequisite to achieve this is having better infrastructure.

“The infrastructure is in a terrible condition and based on current projec-tions it is not likely to get any better by

2022, which gives our competition great advantage. The highway through Greece cuts travel time of freight vehicles from Turkey to Durres by a whole day,” says Branko Azeski, President of the Econom-ic Chamber of Macedonia.

According to the President of the Macedonian-Bulgarian Economic Cham-ber, Zore Temelkovski, the construction and reconstruction of the Kumanovo-

Guesevo railroad is a good move which however takes longer than the construc-tion of a highway.

“We believe building a highway to So-fia is faster and more effective. It is a joint venture that would be economically sus-tainable and feasible and would contrib-ute to the invigoration of the economic growth and trade,” Temelkovski said.

BUSINESSMEN WANT HIGHWAY RATHER THAN RAILRoAD To BULGARIA

AVERAGE TIME* OF TRANSIT PROCEDURE IN 2013

D H М D H М D H М D H М

Blace 1.52 0 0 47 1.60 0 0 55 1.64 0 0 51 4.76 0 0 51

Tabanovce Motorway 22.31 0 1 18 25.13 0 1 24 24.67 0 1 12 72.10 0 1 18

Deve Bair 3.36 0 1 13 3.88 0 1 10 3.67 0 1 1 10.90 0 1 8

Delchevo 1.49 0 0 12 1.54 0 0 13 1.84 0 0 10 4.86 0 0 12

Novo Selo 1.03 0 0 58 1.03 0 0 52 1.11 0 0 51 3.18 0 0 54

Dojran 2.78 0 0 6 4.27 0 0 5 3.94 0 0 2 11.00 0 0 4

Bogorodica 19.21 0 0 35 13.69 0 0 52 11.93 0 0 50 44.82 0 0 44

Medzitlija 0.89 0 0 19 0.97 0 0 20 0.59 0 0 23 2.45 0 0 20

Kjafasan 3.47 0 0 40 3.25 0 1 2 3.66 0 0 41 10.38 0 0 47

Blato 0.01 0 0 0** 0.01 0 0 0** 0.03 0 0 0** 0.05 0 0 0**

Total 0 0 53 55.39 0 0 63 53.06 0 0 55 164.51 0 0 57

Q 2

Customs OfficeNo. of

SAD

(in 000)

Q3

Time of

processing

TotalQ 1

No. of

SAD

(in 000)

Time of

processing

Time of

processing

Time of

processing

No. of

SAD

(in 000)

No. of

SAD

(in 000)

Source: Customs Administration of the Republic of Macedonia

TRAN

SPORT


Over two million euros a year into the Macedonian budget, increased

air traffic and lower prices of airplane tickets are some of the benefits for Mace-donia from reopening Kosovo’s air space set to occur on 3 April. Kosovo’s air space has been closed for civil flights since the NATO bombing of Serbia in 1999.

The Macedonian flight control and aviation authorities are also to be credited for the project of opening Kosovo’s sky. In the period to follow, they are to pro-vide technical assistance and radar images for the flights in Kosovo. Flight control in the air space above Kosovo has been performed by the Hungarian air navi-

gation service, HungaroControl, since 2011 and this authority will hereafter be assisted by their Macedonian colleagues from M-NAV.

The Macedonian Civil Aviation Agency (CAA) expects the opening of Kosovo’s sky to increase the number of Macedonian overflights which also means higher profit. According to the estimates that the CAA made in cooperation with Eurocontrol, the air space opening is go-ing to cut airliners’ routes and drive up air traffic flow in the region.

The Macedonian air navigation author-ities handle 130,000 overflights in Mace-donia’s air space a year and additional 26,000 overflights are expected once the sky of Kosovo opens.

Since the Ukrainian crisis started, the transport of goods to and from Russia has been decimated. This does not only refer to

the Macedonian transporters that circumvent Ukraine and travel through Poland and Belarus but other transport companies from the Balkan face this problem too.

The Association of Macedonian Transporters – MAKAM-TRANS said that the transport firms are the first to feel the repercussions from the political, economic and trade crisis or weather changes. Biljana Muratovska, Secretary General at MAKAMTRANS, said that the main indicator that there is a problem is the decreased volume of Russian transport permits.

“Macedonian transporters annually have 50 Russian permits for transportation from third countries but so far only 15 have been used which indicates that there is a problem,” Muratovska said.

In her view, nearly 80 percent of Macedonian transporters are looking for alternative roads for delivery of the goods, most fre-quently through Belarus. Serbian and Bulgarian transport firms face the same problem.

Statistical data show reduced volume of trade exchange be-tween Macedonia and Russia. Last year, the exchange stood at 181 million dollars, of which the Macedonian export to the Russian market is worth 30 million. Nearly 90 percent of the exported goods are medicaments, agricultural and food products and wine.

The Macedonian-Russian Economic Chamber said that the trade exchange between the two countries has greatly declined in the past few years. Russia was, until few years ago, Macedonia’s fourth trade partner (in 1990 the export from Macedonia to Rus-sia totaled 325 million dollars) while now it holds the tenth spot.

MACEDONIA TO EARN EUR 2 MN FROM OPENING OF kOSOVO’S SkYThe Macedonian Civil Aviation Agency (CAA) expects the opening of Kosovo’s sky to increase the number of Macedonian overflights which also means higher profit. According to the estimates that the CAA made in cooperation with Eurocontrol, the air space opening is going to cut airliners’ routes and drive up air traffic flow in the region

TRANSPORTERS CIRCUMVENT UkRAINEThe Association of Macedonian Transporters – MAKAMTRANS said that the transport firms are the first to feel the repercussions from the political, economic and trade crisis or weather changes. Biljana Muratovska, Secretary General at MAKAMTRANS, said that the main indicator that there is a problem is the decreased volume of Russian transport permits

TransporT of goods by kind of TransporT

Unit ofmeasurement

X-XII 2012 X-XII 2013 I -XII 2013

Indices

X-XII 2013-------------- X-XII 2012

X-XII 2013 -------------- VII-IX 2013

GOODS CARRIED

000 tonnes 7 463 6 900 29 757 92.5 95.9 Freight road transport - total2)3)

000 tonnes 2 997 3 600 16 480 120.1 86.9 - for own account

000 tonnes 4 466 3 300 13 277 73.9 108.1 - for hire and reward

000 tonnes 585 581 2 283 99.3 107.8 Railway transport - total1)

000 tonnes 7 2 26 28.6 28.6 - national

000 tonnes 578 579 2 257 100.2 108.8 - international

000 tonnes 594 613 2 266 103.2 116.5 Air transport - total2)

departed

000 tonnes 172 95 362 55.2 121.8 - regular

000 tonnes 9 258 504 2866.7 260.6 - charter

arrived

000 tonnes 400 118 907 29.5 50.9 - regular

000 tonnes 13 142 493 1092.3 121.4 - charter

000 tonnes 62 71 247 114.5 126.8 Mail carried - total

000 tonnes 62 69 245 111.3 123.2 - regular

000 tonnes 0 2 2 0.0 0.0 - charter

TONNE-KILOMETRES

mil. 1 267 1 500 5 359 118.4 113.4 Freight road transport - total2)3)

mil. 215 400 1 025 186.0 171.7 - for own account

mil. 1 052 1 100 4 334 104.6 100.9 - for hire and reward

mil. 103 105 421 101.9 100.0 Railway transport - total1)

mil. 1 1 6 100.0 100.0 - national

mil. 102 104 415 102.0 100.0 - international

1) Transit is included 2) Transit is excluded 3) Estimated data


tou

rISm


Macedonia’s capital is one of the most visited destina-tions by tourists and almost half of those who come

to the country visit Skopje. As regards the countries where most guests come from, they are mainly from Greece, Bul-garia, Serbia, Albania, Kosovo and lately from Turkey. It is interesting that Macedonia is becoming interesting for visitors from distant countries such as Japan, whose number of tourists (218) in February almost reaches the number of tourists from Montenegro (264).

According to the data of the State Statistical Office, the number of tourists in February 2014 was 27,278 and the number of nights spent by tourists was 60,619.

The number of tourists in February 2014, compared to February 2013, increased by 6.6 percent, and the number of nights spent increased by 3.9 percent.

The number of domestic tourists in February 2014, com-pared to February 2013, increased by 10.3 percent, whiles the number of foreign tourists increased by 4.1 percent.

The number of nights spent by domestic tourists in Feb-ruary 2014, compared to February 2013, increased by 3.6 percent, and the number of nights spent by foreign tourists increased by 4.2 percent.

The number of tourists in the period January-February 2014, compared to the same period last year, increased by 1.3 percent: the number of domestic tourists increased by 0.6 percent, while that of foreign tourists increased by 1.9 percent.

The number of nights spent in the period January-Febru-ary 2014, compared to the same period last year, increased by 0.3 percent: the number of nights spent by domestic tourists decreased by 2.1 percent, whereas those by foreign tourists increased by 2.6 percent.

SkOPJE BECOMES MORE INTERESTING TO FOREIGNERSThe number of tourists in February 2014, compared to February 2013, increased by 6.6 percent, and the number of nights spent increased by 3.9 percent

Renowned Czech magazine for tour-ism and travel “Travel Digest” in its

latest edition presents Macedonia and its tourist potentials. In the article which consists of five pages, titled “Macedonia –the wild beauty that waits to be dis-covered” our country’s natural beauties and the cultural-historical heritage are presented.

“The small mountainous country is the home of Alexander the Great, enlighteners Cyril and Methodius and almost 1,000 years later, Mother Teresa.

Discover the rich history, wild nature and Slavic hospitality of this country ahead of others,” reads the leading article of the extensive reportage that presented the characteristic tourist destinations as Ohrid, Lake Ohrid, Mavrovo and Skopje.

Optional trips for visiting the mega-lithic observatory Kokino and ancient city of Stobi are recommended as well as the manifestation “Krusevo Ethno City” when the figures and events of the Ilin-den Uprising and the Krusevo Republic come to life.

The possibilities and potentials for mountain and environmental tourism, which the Czech are greatly interested in, are presented in the tourist magazine through the villages of Galicnik, Lazaro-pole and Gari and Saint Jovan Bigorski Monastery on mountain Bistra. The arti-cle includes numerous photographs with the specialties from the national cuisine and local gastronomy.

MACEDONIA PRESENTED AS A TOURIST DESTINATION IN THE CZECH REPUBlIC

number of tourists and nights spent by types of tourist resorts and by types of aCCommodation establishments

Tourists Nights spent

total domestic foreign total domestic foreign

27 278 11 257 16 021 60 619 27 610 33 009Total

Types of tourist resorts

8 458 1 386 7 072 14 966 2 083 12 883Skopje

847 709 138 7 147 6 738 409Spa resorts

4 657 3 102 1 555 10 153 7 003 3 150Mountain resorts

5 124 2 709 2 415 12 566 6 497 6 069Other tourist resorts

8 192 3 351 4 841 15 787 5 289 10 498Other resorts

Types of accommodation establishments

22 602 7 914 14 688 44 493 15 634 28 859Hotels - total

6 339 1 004 5 335 11 867 1 842 10 025Hotels*****

6 005 2 445 3 560 11 543 4 277 7 266Hotels****

5 628 2 447 3 181 9 530 3 788 5 742Hotels***

2 965 1 357 1 608 7 536 3 497 4 039Hotels**

1 665 661 1 004 4 017 2 230 1 787Hotels*

111 55 56 188 110 78Boarding houses

479 277 202 1 113 439 674Motels

463 330 133 798 619 179Overnight lodging houses

789 702 87 7 048 6 731 317Spas

34 18 16 38 22 16Mountain lodges and houses

584 545 39 1 459 1 382 77Workers' vacation facilities

255 133 122 1 160 282 878Children and youth vacation facilities

255 118 137 388 199 189Youth hotels

676 580 96 1 481 1 050 431Houses, vacation apartments and rooms for rent - total

154 115 39 154 115 39Sleeping cars

876 470 406 2 299 1 027 1 272Uncategorized accommodation establishments


aG

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ltu

rE


The results from the project for trial production of Turkish types of rice

in Kocani region are above the expecta-tions. The project is realized by the Min-istry of Agriculture, Forestry and Water Management and Turkish International Co-operation Agency (TIKA) and in-cludes 80 producers.

Experts’ trials at the Kocani Institute were conducted on 9 Turkish types and “San Andrea” domesticated rice.

“Almost all types showed higher yield than “San Andrea” and it ranges from 9,400 to 11,00 kg/ha. The lowest yield of white rice per unit had “San Andrea” and the highest the “Kiziltan” type,” said Dobre Andov from the Institute of Agri-culture.

By introducing the “Drop by Drop” irrigation system, the average corn

crops in the country have increased from 8 to 12 tons per hectare. The good results are the basic motive why the USAID project, except in Pelagonija and Polog, will this year expand in the Vardar region as well.

The high crops are the motive for investing in this technology while the water saving is even bigger. According

to calculations of the current 50 liters of water used for irrigation of one hectare of planted surface, only 10 liters, namely five time smaller quantities, will be neces-sary with the new system.

Unlike last year when there were 44 corn producers, 80 will this year be in-cluded who are to receive 2,000 euro for procurement of the equipments for the “Drop by Drop” system.

The legalized tractors can be registered until the end of June 2014. Nearly

20,000 farmers, mostly in Tetovo, Bitola and Strumica realized this within the legal deadline. A total of 20,000 farmers sub-mitted a demand for verifying the owner-ship of the tractors and mechanization by the final deadline (October 2013).

For experts the number is big and shows that more than one third of trac-tors were illegally included in the traffic.

According to the Ministry of Economy, the farmers must pass the technical ex-amination by July 2014. After this date, the alleviated registration procedure will not apply. The safety of farmers and other

traffic participants will improve with the registration of tractors.

Except for registration of tractors, the procurement of agriculture machinery is an integral part of the Instrument for Pre-Accession Assistance in Rural Devel-opment (IPARD) programme as of 2013, with EUR 14 million projected for this purpose.

„We are aware of the necessity over additional assistance for procurement of machinery, which was in the focus of talks with EU officials. As of this year, farmers are able to procure machinery by way of co-financing and through the IPARD programmet”, experts say.

INCREASED INTEREST IN THE

“DROP BY DROP” SYSTEM

TRIAL PRODUCTION OF TURkISH RICE TYPES GIVES EXCELLENT RESULTS

TRACTORS MUST BE

REGISTERED


share of agriCultural holdings by type of farming in generation

of total standard output

0.3%

0 5 10 15 20 25

19.0%

5.5%

13.2%

4.0%

12.6%

15.8%

7.8%

21.9%

21.4%

7.1%

11.5%

6.9%

0.0%

6.7%

14.2%

11.2%

20.9%

Non-classified holdings

Mixed crops-livestock

Mixed livestock holdings

Mixed cropping

Specialist granivores

Specialist grazing livestock

Specialist permanent crops

Specialist horticulture

Specialist field crops

Agricultural holdings Standard output

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ltu

rE16 Macedonian Business MontHly

The Israeli company Ben Dor which develops new fruit varieties is inter-

ested in making investments in Mace-donia. Its representatives assessed that Macedonia has a good location and a climate that is highly auspicious. They also said their initial investment would be in opening a center for packaging and freezing in cooperation with companies from Macedonia.

In the first stage, the company would set up logistic centers and probe the op-

portunities with the aim of identifying the best model and the potential markets whereupon they would continue with their own production of unique sorts of fruit (plums, pears, peaches, apples and apricots). In the beginning, the company is expected to offer the market 10,000 tons of these fruits a year. The company has many certificates for international quality standards, including Globalgap, BRC and ISO 9001, as well as packaging and freezing facilities and transit stations.

Agriculture Minister Ljupco Dimovski said that the Ministry of Agriculture had already established good cooperation with the Israeli Ministry of Agriculture and that it would help the company find partners in Macedonia.

Ben Dor informed that in the course of the week they planned on visiting Demir Kapija, Gevgelija, Valandovo and Rosoman, whose climate is favorable for growing fruit.

Experts agree that the subsidies that have thus far been paid for tobacco

and winegrowing have played an impor-tant role in increasing and maintaining the level of production and simultaneous-ly securing greater revenues for tobacco production and winegrowers.

“Tobaco is an important culture for the country in terms of the socio-economy, especially because up to 40,000 families live from the tobacco production and this is a significant number of the population. Although the European Union is join-ing the measures of the World Health Organization (WHO) and reduces and makes the criteria for tobacco production stricter, it still supported the tobacco pro-duction,” said Dragi Dimitrievski, Dean at the Faculty of Agricultural Sciences and Food.

In his view, the increase of the surfaces under vine plantations, the export of grapes and wine are of crucial importance for Macedonia.

In relation to the wine industry, Ag-riculture Minister Ljupco Dimovski stressed that the fact that Macedonia is breaking records with the export of wine on foreign markets points out that the subsidies in this sector yield results. Ac-cording to him, the analyses of the Min-

istry show that the wine export in the EU has increased by 45 percent and the average price has increased by 10 euro per hectoliter compared to last year.

“It is good news that the primary ob-jective of all programmes and measures

of the Government and the Ministry of Agriculture for increased promotion and recognition of the Macedonian wine has been realized. As result, over the past few years, the most significant increased is registered with the export of wine in bottles,” explained Dimovski.

In accordance to the five-year national program for subsidizing, 60 percent of the money for direct payments in agriculture is intended for support of products that are export-oriented, such as tobacco, gardening, winegrowing and pomi-culture, sheep farming and goat farming.

OVER $180 MN FROM EXPORT OF CIGARRETES AND TOBACCOThe total achieved financial results in the export of tobacco and tobacco products in 2013 amounts 180,876,036 USD, which is by 22 percent higher than in 2012 (147,382,245 USD), i.e., 18 percent higher reference the 2011 (152,714,784 USD)

ISRAELI COMPANY WANTS TO INvEST IN MACEDONIA

Year Number of contracts

Planted ha Purchase/tons Average price

MkD/kg Subsidies

1991 37 543 20 818 -

1997 33 000 16 890 25 452

1998 54 661 21 657 20 880

1999 43 622 19 947 32 398

2000 34 254 22 785 28 122

2001 33 906 20 074 20 097

2002 26 971 20 615 22 500

2003 27 343 15 017 23 000

2004 38 493 15 204 19 839

2005 39 028 15 808 23 196

2006 29 230 15 072 23 083 118,1 295.215.000,00

2007 29 771 16 870 19 680 140,6 488.700.000,00

2008 30 519 17 185 16 280 167,4 725.670.000,00

2009 38 710 16 212 23 196 191,9 1.393.300.440,00

2010 40 743 18 846 26 393 136,6 1.583.580.000,00

2011 33 234 15 677 21 024 164,8 1.261.440.000,00

2012 29 090 14 609 27 993 180,2 1.679.580.000,00

2013 42 367 19 806 30 997 152,6 1.859.820.000,00

Source: Ministry of Agriculture, Forestry and Water Economy

Documents

Monthly Macedonian Business EKONOMSKI VODIC/MBM-141.… · I nv ES tm E nt cl I mat E macEDonIan BuSInESS montHly 3 M acedonia has introduced a ONE-STOP-SHOP SYSTEM that en-ables