The Chamber of Economy of Montenegro is a business association with a rich tradition that represents the interests of the economic entities, including business entities, financial organizations, insurance companies and start-ups. The chamber represents and pursues the common interests of the entire economy, encourages business activities and entrepreneurship, and contributes to the prosperity of the country. The institution has 13 associations boards, each representing different sectors of the economy. Representatives from public authorities and institutions participate in the boards’ meetings and have the opportunity to hear directly the views of the business community regarding the challenges they currently face. In the following interview, Ms. Nina Drakic, President of the Chamber of Economy of Montenegro, sheds light on the mission of this institution and focuses on priorities such as entrepreneurship, employability, investment opportunities, sustainable transition or business ethics and practices.
What is the main mission of the Chamber of Economy of Montenegro?
Through independent and professional work, the chamber represents and pursues the common interests of the entire economy, encourages business activities, entrepreneurship freedom and contributes to the economic prosperity and competitiveness of business entities. In partnership with public authorities and institutions, the chamber continuously works on improving the business environment, defining economic policy measures and regulations of importance to the economy. Our association affirms Montenegrin economic potentials by promoting them at fairs and business forums and connects companies with international partners. It plays a significant role in implementing international projects, achieving sustainable and green development goals, improving the education system and lifelong learning.
In your opinion, what is the impact of your chamber on the country’s economic growth?
The Chamber of Economy of Montenegro is an institutional partner for decision-makers at both the state and local levels, resulting in numerous benefits for the economy, primarily through the creation of a high-quality business environment, as a prerequisite for strengthening the competitiveness of domestic enterprises. Considering the numerous activities aimed at defining economic policy measures, analyzing business conditions and opportunities, adopting and amending economic regulations and enhancing the overall competitiveness of the economy, it can be said with certainty that our institution has a very significant impact on the growth and competitiveness of the economy.
How does your chamber contribute to promote entrepreneurship a-particularly women entrepreneurs- and to improve employability -above all, young people-?
The affirmation and promotion of entrepreneurship, as well as training young people to successfully adapt to the rapid changes occurring in the labour market, represent important and ongoing activities conducted by the chamber. In addition to organizing numerous seminars in various fields to make the latest knowledge available to our members, we continuously promote entrepreneurship and provide support to the Union of Youth Entrepreneurs and partner organizations. The chamber also plays active role in international projects aimed at increasing the entrepreneurial capabilities of young people and women, such as INTERVET WB, Mobilise SME and others. It is a member of the European Enterprise Network (EEN) as well, thus offering the possibility of connecting with partners from abroad. Apart from this, our institution implements various activities to support the economic empowerment of women. For years, the Coordination Board for Women’s Entrepreneurship has been operating within the chamber. Its members are successful women entrepreneurs, representatives of the Government and numerous institutions, as well as the NGO sector. The Board addresses current business topics such as financing women entrepreneurship, opportunities to participate in open calls in the EU and other donors for projects.
The Chamber of Economy of Montenegro implements various activities to support the economic development of women. The Coordination Board for Women's Entrepreneurship, which has been operating with our institution, addresses current topics such as financing women entrepreneurship, opportunities to participate in open calls in the EU and other donors projects
Why this region is more than ever a good destination to invest for foreign companies?
Foreign direct investments, as a generator of economic growth and development, have a significant impact on employment, the balance of payments, foreign trade, increasing productivity and the transfer of new technologies. Since 2006 to today, the total inflow of FDIs into Montenegro amounted to EUR 14 billion, coming from over 126 countries. The average annual inflow was EUR 771 million, amounting to around EUR 1,200 per capita annually. The strong impact of investments, both domestic and foreign, on GDP was particularly emphasized during the construction of tourism infrastructure and highway. It was also reflected in the engagement of domestic construction industry, growth of employment, salaries, higher tax collection, etc. In addition, membership in NATO and the WTO, as well as frequent announcements that Montenegro will be the next EU member, send a strong message to foreign investors that our country is a safe investment destination, where international business rules are respected and the business environment improves year by year.
What are the sectors with more economic potential?
Sectors with significant economic potential include tourism, energy, agriculture and the manufacturing industry, while the adequate application of digital technologies in all spheres of socio-economic development can strengthen the competitiveness of the Montenegrin economy and provide conditions for long-term development. An increasing number of development projects are aimed at realizing the tourism potentials of the northern part of our country through investments in the construction of ski centres, cable cars and hotel complexes. Montenegro has significant potential in the energy sector, particularly in the production of energy from renewable sources such as water, wind and sun. An important boost for investments in this area is the energy submarine cable between Montenegro and Italy, which also impacts the electricity market throughout the region. Finally, the ICT sector can become a strategic branch of the economy and it is necessary to support the further process of digital transformation of the Montenegrin economy.
Within the business forums that you organize, what are the main demands that usually share the local companies? What are their main obstacles to enhance their competitiveness and to internationalize themselves?
The most common challenges and obstacles affecting their competitiveness and internationalization, as stated by local companies, include the lack of financing and favourable credit conditions for investments in innovations, modernizing and expanding their business, as well as the lack of qualified labour. They point to administrative barriers and complicated procedures regarding exports, often emphasizing the need for education and training to improve skills and competencies crucial for market competitiveness. These are challenges which require joint efforts from the government and the business community, with an active role of the Chamber of Economy of Montenegro, so as to create more favourable conditions for the development and growth of local enterprises.
Sectors with significant economic potential include tourism, energy, agriculture and the manufacturing industry, while the adequate application of digital technologies in all spheres of socio-economic development can strengthen the competitiveness of the Montenegrin economy
What do you understand for cooperation? Is it about developing economic cooperation with foreign countries or is it about public and private partnerships both at regional and international level?
From the perspective of the Chamber of Economy of Montenegro, cooperation encompasses both aspects. On one hand, developing economic cooperation with foreign countries is crucial for opening new markets, exchanging technologies, and increasing the export of local products. On the other hand, public-private partnerships, both regionally and internationally, play an important role in improving infrastructure, encouraging innovation and creating a more favourable business environment.
In your opinion, what is the key role of Mediterranean chambers of commerce in dealing with current challenges in the region?
The main role of the Association of the Mediterranean Chambers of Commerce and Industry, also recognized by the Chamber of Economy of Montenegro as the advantage of membership in this association, lies in the promotion and strengthening of economic ties and cooperation between the business communities of Mediterranean countries. The aim is to strengthen cooperation, form joint ventures, expand contact networks and keep up with the latest economic and sectorial trends. Since their inception, chambers of commerce have been representing the interests of the private sector and worked to find solutions to challenges related to green and blue growth, environmental protection and sustainability in the region.
How does your chamber foster ethics practices in business?
The Chamber of Economy of Montenegro adopted a Code of Business Ethics, outlining the fundamental principles of ethical conduct for Montenegrin business entities. This contributes to more transparent and efficient business operations and enhances the quality of relationships between business entities in Montenegro and environment in which they operate.
What is needed to advance in issues related to green and blue economy and circular economy in your country/region?
In the framework of the Green Agenda for the Western Balkans, the Chamber of Economy of Montenegro has taken significant steps to support SMEs in their sustainable transition, particularly focusing on the circular economy and decarbonization. SMEs play a pivotal role in overall ecological transition of Montenegro and are recognized as accelerators of green growth. Our institution is making targeted efforts to support decarbonization of private sector, overall energy transition in the country and promote circular business models. By establishing a hub for circular economy as one stop shop for circular initiatives and solutions we provided platform for SMEs to connect with larger business, governmental and local institutions, international organizations and academia in order to share knowledge and enhance partnerships.