Entrepreneurs in the agrotourism sector in Kuçovë, who are beneficiaries of the agricultural support scheme, met today with Prime Minister Edi Rama in an informational meeting about two new financing lines for rural development: soft loans and sovereign guarantees. With the government acting as the guarantor, investments in greenhouses, agri-processing, fishing, aquaculture, agrotourism, and technological innovation for rural development will be supported.
The meeting, which was also attended by the Minister of Agriculture and Rural Development, Anila Denaj, and the Mayor of Berat, Ervin Demo, provided entrepreneurs with information about the two new financing lines the Albanian government is offering to those interested in investing in the agrotourism sector or expanding their existing businesses.
The Soft Loan, with a financing line of 250 million euros and an interest rate of 3.5%, combined with the Sovereign Guarantee, lowers the interest rate to 2% and covers up to 70% of the collateral.
The meeting was held at the agrotourism “Hani i Qerosit,” a model investment for sustainable rural development. This business blends traditional architecture with modern hospitality, offering an authentic experience while contributing to the preservation of local knowledge and heritage. “Hani i Qerosit” is one of the gems of the new agrotourism network in the Berat region, where vision, passion, and tireless work have transformed a once ordinary piece of land into one of the most beautiful destinations.
Prime Minister Edi Rama:
Thank you very much, and I truly say this with great sincerity and pleasure. I want to thank whoever thought of this surprise that brought me here to meet some of the key figures in this new industry. Today, I want to share something with you. I know very well that many of you have ambitions to expand your businesses, and perhaps some of you are already planning to open a second one elsewhere. The reality in agrotourism is that businesses that grow into brands often start to network. Just as you can find Chestnut Hill in Tropojë, you might soon find it in Nikolicë in Korça or Buni of Bajraktari.
The need for financing is ongoing, and that’s why I wholeheartedly agree with the Minister and the Director of the Agency for Rural Development (AZHBR) to share with you the two new financing lines. I will begin with the main one, the new financing line from the Bank of Albania.
This is a completely new instrument from the Bank of Albania—something they’ve never done before. They’ve allocated 250 million euros to support small and medium-sized businesses, with a particular focus on agriculture. Naturally, agrotourism is one of the key components of this initiative. Greenhouses, livestock farming, and agri-processing are essential, but I also encourage you to think beyond that. Consider agri-processing not just as part of agrotourism, but as an opportunity to grow your business and introduce your products to the market.
As Anila mentioned, the loan is fantastic—a 2% interest rate is truly excellent, with 70% collateral coverage, which is incredibly beneficial. We also already have the land package available, and we will provide a comprehensive presentation. We have also passed through the legal process to address challenges, particularly for those in emigration who want to invest but don’t have ownership papers, as in many areas—especially in the north of Albania—Law 7501 has not been fully implemented, and people have remained on ancestral lands. These individuals typically don’t have conflicts with each other but face difficulties securing their land under their own legal rights.
We’ve achieved very good results in reducing the trade deficit. When we took office, it was 1 to 8—meaning for every 1 unit of food we exported, we imported 8. Today, we are at 1 to 3, and the ambition is to reach 1 to 2. We can definitely achieve 1 to 2. The 1 to 3 ratio shows that much more is being produced for the domestic market. In other words, more is being produced for export, more for the local market, and a significant portion of what was previously imported is now covered by the local market.
I am hopeful and confident that we will achieve the historic goal of the Albanian people to close negotiations with the European Union by 2027.
Yesterday, as every Monday, our two ministers were in Brussels, and every Monday they go there to report—not on what Albania did last year, but on what Albania did last week, right here, right now. There are 40 teams working on 40 different areas because it reflects the entire state framework, and the moment we close negotiations is when we pass an exam related to the state.
The European Union is essential to us, just like the light we see here. Because only by entering the European Union will this people be able to permanently escape the persecution of history, the shadows of the past, and the constant risk of moving backwards. And only by joining the European Union will every Albanian be sure that their individual freedom is not threatened. Only by joining the EU will equality before the law not be threatened, but, on the contrary, it will be further strengthened.
Countries like Albania, when they join the EU, become net beneficiaries—they receive more from the common budget than they contribute, especially in agriculture. Over all these years, we’ve received less than 200 million euros in support from the EU. In fact, the actual support has been even less. The disbursements made amount to just over 100 million euros in total over all these years. Once we join, we’ll receive 300 million euros per year.
This is the overall picture. And as I mentioned for agriculture, consider this other figure: In the last 10 years, the EU has given us just over 1 billion euros. With EU membership, we’ll receive over 1 billion euros every year. It’s exponential! Thank you.
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Later, the entrepreneurs attending the meeting presented their work in their businesses and discussed with the Prime Minister the innovations and measures taken by the government to support rural development in the country.
Regarding the Mountain Package, the Prime Minister explained: “To be clear, the concept of the Mountain Package is land availability. You need to have the land because if it’s state land, that’s a different issue. But in the case of the mountains, the problem is that what is called state land is often not really state land, but land owned by someone else. For example, the land of Gëzimi, in the area that Gëzimi owns, when you look at the papers, it’s listed as state land. However, it’s not state land because Gëzimi is there. The Mountain Package addresses this issue. You have land that is not registered as your own, or you go to someone who owns the land and say, ‘Give me the land with an agreement,’ and the municipal council just needs to confirm that this land belongs to that person, and then you immediately get the building permit for your project, of course.
In the case where you already have an agrotourism business and want to add a vineyard, this works as part of the property you already own. It’s the same thing, but the most important aspect is that this is combined with the new financing line. Another point to note in the Mountain Package is that the first 500 beneficiaries will receive 10 years without taxes. Only a 6% VAT, but 10 years without taxes. However, you must be among the first 500. So, for those of you following us and who are considering it, you should start applying now because the 501st person will definitely benefit from the Mountain Package, but will not benefit from the 10 years without taxes.”
Chestnut Hill Entrepreneur:
Regarding the chestnuts of Tropoja. Can these be benefited through the Mountain Package?
Prime Minister Edi Rama:
Despite the investment, it’s not just about saying, “Let’s go get the chestnuts.” If the municipal council gives you the certificate, and you own it as a legacy from your ancestors, you can create the processing line project, receive support, and, in fact, both you and the banks will support you, as if it were your own property. The transaction is made with a symbolic 1 euro, meaning you just pay a symbolic 1 euro to acquire it, and then you continue the process with a 20-20 agreement until you fully own it. But in fact, it becomes yours, and it gives you the opportunity to access bank financing because the state guarantees it.
Chestnut Hill Entrepreneur: Tropoja has nothing to wait now!
Prime Minister Edi Rama: Tropoja has come a long way and is now embracing its future. From now on, Tropoja will continue to progress, without a doubt.
I want to repeat something I’ve said before, which some people thought I was joking about: In all 28,000 square kilometers of Albania, there is no place where what you have done isn’t possible. Albania has overcome its challenges; it has emerged from its difficulties, and now it is thriving. Today, many visitors come for the sea, while others come for the mountains. Although the full potential of our mountains hasn’t been realized yet, it will be. I’ve said this many times before: when Albania’s mountains are fully discovered, they will become the cornerstone of our tourism industry and a key source of revenue.
And I want to assure you, after a year and a half, I can only imagine the hardships you’ve faced. But I am confident that in five years, today will feel like the first day of your journey. This is why we have worked so hard on these initiatives. I also want to publicly thank the governor because this is a new and innovative instrument from the Bank of Albania, inspired by examples from two or three other countries.
As Gëzimi mentioned, I met a shepherd in Greece. The difference between being a shepherd in Greece for 800 euros and being one in Malësi for 1,000 euros is substantial. In Greece, 800 euros might not cover all the expenses, while here, despite similar costs, the situation is different. Agrotourism, however, is undeniably a winning formula. You are living proof that having your own agrotourism business at the end of the month is more rewarding than working for someone else.
