Albania

Tirana scene

Photo by UNDP Albania

Albania
Country
Albania
Europe & Central Asia

Albania is implementing important structural reforms that will support equitable growth, raise productivity and competitiveness in the economy, create more jobs, and improve governance and public service delivery. Enhanced regional connectivity and access to regional and global markets, coupled with export and market diversification, can also help promote faster growth. 

After weathering the consequences of the 2019 earthquake, COVID-19 pandemic, and cost-of-living crisis, the Government’s focus is now on full recovery with special focus on tourism, agriculture, and digitization as well as increased attention to climate change and the environment. 

In 2023, growth reached 3.3% as private consumption, exports, and investment increased despite rising energy and food prices. Despite another year of exceptional growth in tourism, growth is likely to remain at similar levels in 2024. Poverty is expected to continue to decline as employment and wages rise. The country’s medium-term prospects hinge on global recovery, structural reforms, and fiscal consolidation. 

Source: World Bank, Albania Country Overview

Investment OpportunitiesDescribes the number of investment opportunities in the country.
15
Most Affected SDGsDescribes the three priority SDGs the investment opportunities address in the country.
Responsible Consumption and Production (SDG 12) Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8)
Priority Target SectorsDescribes the three priority sectors the investment opportunities address in the country, based on the SASB Sustainable Industry Classification System®️ (SICS®️) classification.
Food and Beverage, Renewable Resources and Alternative Energy, Transportation
Ease of Doing Business ScoreDeveloped by the World Bank, the Ease of Doing Business Score helps assess the absolute level of regulatory performance over time. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance.
See the World Bank Ease of Doing Business site for more information.
67.7
Human Development IndexDeveloped by the United Nations Development Programme (UNDP), the Human Development Index is a summary measure for assessing a country’s long-term progress in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living.
See the UNDP Human Development Index site for more information.
0.789
How is this information gathered?
Updated: 11 Jul, 2024

Opportunity

Opportunities 15 Investment Opportunity Areas
Solar photovoltaic panels in solar farm used to produce mill in a flour mill in Tirana, Albania. Sustainable energy, electric power generation, decarbonization, renewable green energy

Utility-Scale Solar PV Farms

Renewable Resources and Alternative Energy

Solar Technology and Project Developers
Albania

Expected Impact

Enhance the proportion of renewable energy sources in the domestic energy mix, concurrently lowering CO2 emissions stemming from energy production while promoting energy security and lowering utility prices.

Indicative Return

15% – 20% (in IRR)

Timeframe

Medium Term

Estimated Market

Solar insolation levels average over 1,500 kWh/m2, technical potential at 2,378 MW and production of 3,706 GWh annually; 22 MW of solar PV installed as of 2021.

Koman Lake canions during sunset

Floating Solar PV Projects

Renewable Resources and Alternative Energy

Solar Technology and Project Developers
Albania

Expected Impact

Bolster the availability of green energy sources as an alternative to hydropower and imported fossil fuels for power generation enhancing energy security and reducing the country’s carbon footprint.

Indicative Return

15% – 20% (in IRR)

Timeframe

Long Term

Estimated Market

Albania's solar insolation levels are averaging over 1,500 kWh/m2 annually, with peaks at 1,753 kWh/m2; utilization of hydropower reservoirs (130 km2 in total) can generate 4 GW of additional solar capacity.

Solar photovoltaic panels built on the roof of an insulated factory building

Rooftop Solar PV Installations

Renewable Resources and Alternative Energy

Solar Technology and Project Developers
Albania

Expected Impact

Catalyse sustainable development by reducing emissions, enhancing energy security, fostering economic growth, improving energy access, stimulating technological advancement, and enhancing grid resilience.

Indicative Return

15% – 20% (in IRR)

Timeframe

Short Term

Estimated Market

5% - 10% (CAGR)

Shala river scenery with steep mountains and lush forests in northern Albania.

Ecotourism Including Blue & Cultural Tourism

Services

Hotels and Lodging
Albania

Expected Impact

Safeguard national heritage and improves visitor experience, thereby generating higher tourism yield and repeated guest rates while enhancing employments for the locals.

Indicative Return

< 5% (in IRR)

Timeframe

Short Term

Estimated Market

< USD 50 million

Exciting spring view of Castle of Kruja. Attractive morning landscape of Albania, Europe. Traveling concept background.

Agro-Tourism

Services

Hotels and Lodging
Albania

Expected Impact

Invigorate rural economies, preserve traditional agricultural practices, and promote sustainable tourism, thereby fostering economic growth, cultural preservation, and environmental stewardship in the region.

Indicative Return

< 5% (in IRR)

Timeframe

Short Term

Estimated Market

< USD 50 million

drone shoot of a field full of olive trees near the road. olive oil production is one of the top farming sectors in Albania

Agricultural Processing Including Medicinal Herbs & Olive Oil

Food and Beverage

Agricultural Products
Albania

Expected Impact

Render goods more competitive and increase exports to alleviate emigration, informality in the job market while improving rural conditions.

Indicative Return

5% – 10% (in IRR)

Timeframe

Short Term

Estimated Market

USD 100 million - USD 1 billion

Albania, Farmer near Tomorri mountain, Roshnik

Agricultural Software Solutions

Food and Beverage

Agricultural Products
Albania

Expected Impact

Result in increased crop yields, optimized resource usage, and access to market information enabling better decision-making.

Indicative Return

< 5% (in IRR)

Timeframe

Short Term

Estimated Market

< USD 50 million

"greenhouses under the mountains in Sarande region of Albania,Balkan, aerial panorama landscape view "

Greenhouse Developments

Food and Beverage

Agricultural Products
Albania

Expected Impact

Reform local agriculture, enhance food security, and promote sustainable farming practices, thereby driving economic growth, reducing import dependency, and mitigating environmental pressures.

Indicative Return

> 25% (in IRR)

Timeframe

Medium Term

Estimated Market

5% - 10% (CAGR)

Aerial drone top view of sea fish farm cages and fishing nets, farming dorado, sea bream and sea bass, feeding the fish a forage, with marine landscape and mountains in the background, Adriatic sea

Blue Economy Investments Including Fisheries and Aquaculture 

Food and Beverage

Agricultural Products
Albania

Expected Impact

Drive economic growth, enhance food security, and promote environmental sustainability by fostering job creation, improving nutritional access, and supporting responsible resource management practices in the sector.

Indicative Return

5% – 10% (in GPM)

Timeframe

Medium Term

Estimated Market

USD 100 million - USD 1 billion

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