Prime Minister Edi Rama, Minister of Entrepreneurship Delina Ibrahimaj, Minister of Finance Ervin Mete, and Minister of Tourism, Innovation, and Culture Blendi Gonxhe met with representatives of the association of the made-to-order (outsourcing) industry and pledged to take intervention measures to assist this sector.

The meeting took place as representatives of the sector have been complaining for months that the made-to-order and textile footwear industry, one of the largest employers in the country, is in a difficult situation due to rising costs and the depreciation of the euro, leading to the bankruptcy of many factories.

Many foreign partners, mainly Italians, are relocating production to countries with lower costs, such as Tunisia or Egypt.

According to the official announcement, the meeting discussed the need for further transformation of the sector, following the example of leading companies in the sector; the supportive measures that will be taken to overcome the challenges of development; the necessity for all sector actors to understand that the era of cheap labor as a competitive advantage has ended for some time now and this fact can only be confronted with investments in technology and innovation, along with decent wages accordingly.

The agreed interventions will precisely stimulate transformation and investments in technology and innovation, supporting the need for liquidity, the need for easy credit, as well as for qualified human resources:

• Fast reimbursement of VAT through a dedicated channel for companies in this industry.
• Offering a facilitating mechanism (overdraft) for the quick availability of liquidity, according to contracts with the outsourcing companies that companies need to put into production.
• A sovereign guarantee for investments in technology and innovation.
• A financing scheme for the establishment of a professional academy for manufacturing and corresponding training in companies.

The Government promised to increase its commitment to further support this sector to close production cycles on its own and become more productive and competitive by strengthening the “Made in Albania” brand.

These measures were promised in fact in 2021, through a supportive package that was discussed at that time, but its implementation never became functional. Sector representatives argue that if this package had been implemented at that time, the sector’s situation would be more favorable.