Business Friendly Serbia - Povoljno poslovno okruženje

BUSINESS FRIENDLY SERBIA

Milica Stefanovic, Marketing ManagerNational Alliance for Local

Economic Development

Belgrade, October 5, 2011

• NALED – National Alliance for Local Economic Development

• Independent association of companies, municipalities and NGO all working together in order to create a better business environment in Serbia – unique concept!

• Established in 2006. Up to now: more than 150 members, and 20 institutional partners

• Key areas of activity: 1) Investment promotion and business support, 2) Business guided policy reforms, 3) Municipal capacity building

About NALED

www.naled-serbia.org

who we are & what we do

• In order to help the municipalities from Serbia to improve local business climate and attract more investments, NALED initiated the Business Friendly Certification Program in 2007, with the support of USAID

• 2007 was the year when the new Law on local governments was adopted, stipulating for the first time that municipalities were in charge for their local economic development, not only the state government

• The BFC was introduced as a tool that sets clear standards and targets for the municipalities, and at the same time – enables evaluation of the quality of services and information municipalities render to investors

Business Friendly Certification (BFC) the context


• Relying on the experiences of Czeckinvest and USAID, NALED developed a tailor made Certification program for municipalities in Serbia

• All the relevant stakeholders from the government and the business communitiy were involved into developing the BFC criteria - wide consensus on the methodology

• NALED obtained the support of Government institutions for the BF Program: Ministry of Economy Regional Development, Ministry of the Public Administration and Local Government, National Agency for Regional Development, SIEPA etc

• This was how the concept and brand of Business Friendly Municipality was introduced in Serbia!

Business Friendly Certification (BFC) how it all began


Roadmap for local governments

• 12 certification criteria and more than 80 sub-criteria provide clear guidelines to municipalities what investors expect of them in terms of services, information, infrastructure, security

• Through certification process municipalities strengthen their capacities to attract and serve investors

Evaluation tool

• Evidence based model of certification ensures stable and measurable business environment

• Assessment and diagnostics of local capacities go hand in hand with recommendations for improvement!

The purpose of BFC from the public and private perspective


Promotional tool • Promoting business enabling standards and the concept of a BF Municipality• Promoting best practice examples• Promoting Serbia as a good place for doing business• Attracting investments to BF municipalities!

Seal of quality for investors • The BF Certification sign is registered trademark, and it can

only be used by the municipalities who have fulfilled 80% of Certification requirements

• Serves as a guarantee for investors that certain municipality offers all the necessary conditions for starting or developing the business successfully

The purpose of BFC from the public and private perspective


1. Strategic planning of local economic development in partnership with businesses

2. Special department in charge of LED, FDI promotion and business support /LED Office

3. Business council for economic issues – advisory body to the mayor and LG

4. Efficient and transparent system for acquiring construction permits

5. Economic data and information relevant for starting and developing a business

6. Multilingual marketing materials and website

7. Balanced structure of budget revenues / debt management

8. Investing into the development of local workforce

9. Cooperation and joint projects with local business on fostering LED

10. Adequate infrastructure and reliable communal services

11. Transparent policies on local taxes and incentives for doing business

12. Electronic communication and on-line services

BFC criteria what differentiates BF municipality from others?


BF Municipalities ...on the map of Serbia


17 municipalities in Serbia are certified as business friendly

48 municipalities have entered the BFC Program

In sum: 1/3 of all municipalities in Serbia are included in the BFC Program!

The first 8 campaign at the Belgrade airport


Focus on: Idjija, Zrenjanin & Kragujevac Benchmark overview


INDJIJA ZRENJANIN KRAGUJEVAC

POSITION North Serbia North Serbia Central Serbia

BELGRADE DISTANCE

45 km 76 km 140 km

TERRITORY 384 km² 1,326 km² 835 km²

POPULATION 53,000 132,000 180,000

UNEMPLOYED 4,700 12,600 23,400

HIGH-SCHOOL & MORE

75% 59 % 65 %

GROSS SALARY €420 /month € 482 / month € 472 / month

BUDGET 2010 € 24.5 mil € 25.8 mil € 62 mil

Meet INDJIJA!www.indjija.net


Meet INDJIJA!


local economy overview

• The municipality with the highest level of attracted investments per capita in Serbia

• Number of businesses: around 2700 (85% small, 14% medium, 1% large)

• Dominant industries: auto parts, construction, machinery, agriculture, food

• Largest local company: IGB Automotive

• Foreign investors: Monus, Henkel, Thyssen Krupp, Tradeunique, Farmina, Embassy Group, Grundfos, Metalcinkara, Baurhein

INDJIJA industrial zone


Greenfield location

Location area: 650 ha

Purpose: construction land

Ownership: 95% private, 5% state owned

Distances from major markets: • City center: 2 km• Hungarian border: 145 km• Belgrade: 45 km

Main traffic connections: Highway E75, railway

line Istanbul – Thessaloniki

Infrastructure: high voltage electricity, gas,

water supply, sewerage, ICT, access road

Meet ZRENJANIN!www.zrenjanin.rs


Free Zone Zrenjanin: reduce your costs up to 40 %

Meet ZRENJANIN!local economy overview


• The municipality with the second largest territory in Serbia – 1,326 km2 with more than 80% of fertile land

• Number of businesses: around 4800

• Dominant industries: agriculture, food, textile, metal, chemical

• Largest domestic companies: Dijamant, Mlekoprodukt, Alpin, Bomex, Luxol, Žitoprodukt, Radijator, Beohemija Inhem

• Foreign investors: Pompea (textile), Draexlmaier (automotive), Fulgar (textile), Mehler-Baps (protective ballistic equipment), Geze (mechanics), Kolpa-San (chemical)

ZRENJANIN industrial zonegreenfield location


Location area: 72 ha• Purpose: construction land• Ownership: 100% municipal• Infrastructure: fully equipped• Purchasing price: 8.75-14€ / m² • Land development fee: 4.4-16€/ m²

• Duty and tax free zone

Distances from major markets: • City center: 3 km; Belgrade: 76 km• Romanian border: 43 km; Hungarian border: 130 km

Main traffic connections: Main road M25 with direct access to E75 highway; C class airport

Meet KRAGUJEVAC!www.kragujevac.rs


Automotives lives in Kragujevac: FIAT investing €950 mil!!

Meet KRAGUJEVAC!local economy overview


• Regional university center and leader in automotive industry

• Number of businesses: around 1298 (93,8% small, 5% medium, 1,2% large)

• Dominant industries: automotive, textile, wood processing, food

• Largest domestic companies: FAS (automotive), Forma Ideale (furniture), Road Enterprise Kragujevac, Zastava

• Foreign investors: FIAT (automotive), Megre (diary), Jonson Control (auto parts), Siget (auto parts), PLAZA (real estate)

KRAGUJEVAC industrial zonegreenfiled location


Location area: 10.5 ha • Purpose: construction land• Ownership: 100% state owned• Infrastructure: fully equipped• Lease price for 99 years: 30€ / m²• Land development fee: 45 € / m²• Local investment incentives: 2,500 to

7,000 € / employee

Distances from major markets: • City center: 5 km; Belgrade: 140 km• Bulgarian border: 250 km; Hungarian border: 321 km

Main traffic connections: E75 highway (5 km away)

Invest in Business Friendly Municipalities ...and enjoy additional benefits Serbia has to offer


European Union



European Union



Thank you


Milica Stefanović, Marketing manager

NALEDZetska 4a/2, 11000 Belgrade, Serbia

P: +381 11 3349 899, F:+ 381 11 3347614, M: + 381 63 1075 [email protected]

mailto:[email protected]

Date post:	25-Jan-2015
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