Prime Minister Edi Rama was in Kavaja and visited two businesses which, thanks to the fiscal incentive policies, are increasing their production capacity and the number of employees.
One toll manufacturing enterprise, only after a few months of activity in the shoe production, is expected to employ 600 workers for one shift only. The entrepreneur Alfred Doraci says that the Fund for the Promotion of Employment and the Job Office in Kavaje have been a great help for him, because he has employed 34 workers within a day. “The Employment Fund has been of great help, because we employed 34 people only on this day. This is a very big investment. The perspective is to employ 600 workers for one shift only. The perspective is for many people to be employed. Nobody has shown interest in Kavaje in 25 years”, the entrepreneur said.
The Mayor of Kavaje, Elvis Roshi, considers the development of local enterprise to be strictly connected to the overall economic development of Kavaje, and he guarantees support. “This is a modern factory that will hire 600 workers. It is a great pleasure for us to notice that business in Kavaje is moving forward, because it will grow the economy of the city.”
Roshi informed that another factory for clothing manufacturing in Kavaje will open soon. “200 workers will be employed. The agreement was entered a month ago, and the factory will start work next month. This way, the relation between foreign investors and the city of Kavaje will go on.”
Prime Minister Rama guarantees full support for all projects of the municipality and of the enterprise for increasing real employment. “This has been the right direction since the very beginning, because we started this cooperation together in order to define areas where we will support the construction of these enterprises. The aim is to have a full cycle of production. We will strongly support the municipality, because the municipality of Kavaje has very clear ideas in this regard. It has always seen the creation of jobs connected to the promotion of direct investments. We are very grateful for this, because taking into account our reality here, 600 new jobs do not mean only that 600 households will be given more chances, but it means also that mentality will change, in the sense that since the time of the glass factory this facility had become a factory only for pumpkin seeds and two fingers in the air.”
Another concern for the entrepreneur is the lack of skilled workers. According to him, the new initiatives of the government to promote vocational education are very helpful for the domestic manufacturing business. “We have had a lot of problems with regard to skilled labor force, but the law has been very helpful. We provide 3-month trainings, and this makes everything much easier for us. There are zero vocational schools, and this is what we need because they help us by reducing costs. For any kind of business, the beginning has very high costs.”
The Prime Minister assured that vocational education is a priority and the new approach of the government guarantees success in the labor market. “Vocational education is our priority, and we are following the German model. Half of the learning time will be spent in class, and the other half in the factory. So, it won’t be only theory. In addition, this helps you and all other factories to hire people and train them while they are attending school, so when they graduate they are ready for work.”
***
The entrepreneur Aqif Çaça, who has been working for years in the field of milk processing and dairy products, says that the fiscal package has been of great help. He confirmed to the Prime Minister that the VAT removal on machineries and equipment has allowed him to buy for the first time after many years new equipment of European standards. Çaça said that he has been forced for many years to import second-hand machineries and equipment from other entrepreneurs across Europe. Now, thanks to the new legislation of the government, he can import new machineries for his factory. In addition to reducing costs, this enables the entrepreneur to make plans about growing his business with new products for the market. “I am waiting for to machineries coming from Vienna. I have prepared the documents. This is of great help, because we used to work with second-hand machineries coming from Europe. Now, I am investing on new machineries. This is the first time, the first year I am investing on new machineries following the VAT removal. This is not a small thing, because it means 60 thousand Euros of VAT removal. Soon we will open a new department for the cheese production.”
In addition to what the entrepreneur said, the Prime Minister noted that statistical indicators have shown that the fiscal policies of government are an incentive to real production and employment. The Prime Minister assured the entrepreneur that the new program of the government will be an additional incentive for the agro processing industry. “From January to May 2015 imports of machineries have increased by 38% compared to last year. Along with the European Bank for Reconstruction and Development, with second-level banks and with the help provided by AARD, the state will guarantee the risk in order to drastically lower interests. The investment will be 50% the state and 50% the entrepreneur, but the state warranty and the minimal interest will be thoroughly focused on collection and agro processing.”
The Prime Minister noted that these two enterprises are another example of how the fiscal policies and supporting schemes of the government are a real support for the enterprise.
