Despite its relatively modest size, Montenegro boasts a wealth of undiscovered investment potential across a range of diverse sectors. From its stunning natural landscapes to its strategic geographic location, Montenegro presents a compelling case for those looking to capitalise on emerging markets.
However, the question of how to tap into Montenegro’s investment potential requires a strategic approach that involves understanding the local market dynamics, navigating regulatory frameworks and building strong partnerships with local stakeholders. This is where the Montenegrin Foreign Investors Council (MFIC) steps in to help.
What is the Montenegrin Foreign Investors Council?
The Montenegrin Foreign Investors Council (MFIC) is a prominent organisation dedicated to promoting and supporting foreign investment in Montenegro. Established as a non-profit association, the MFIC serves as a crucial bridge between the Montenegrin government and the international business community.
The 15th anniversary celebration of the MFIC marks a significant milestone in Montenegro’s investment landscape. Established in 2009 by leading companies such as Crnogorski Telekom, NLB Montenegro Banka, Montenegro Stars Hotel Group, KAP and Daido Metal, this council has evolved into a powerhouse of economic influence. Its members span across an array of industries including banking and financial services, telecommunications, metallurgy and mining, energy, tourism and hospitality, consumer goods, manufacturing, transport and auditing.
Over the past decade and a half, the MFIC has grown in both scope and impact. Today, it boasts a robust membership of more than 40 companies, collectively responsible for generating over 30% of Montenegro’s GDP. This impressive collective of businesses not only represents substantial investment interests but also serves as a unified voice advocating for progressive policies that drive economic growth and development in the country.
Aims and objectives for the MFIC
The primary objective of the MFIC is to advocate for the interests of foreign investors operating in Montenegro and to facilitate a conducive business environment within the country. It functions as a platform for dialogue and collaboration between its member companies and relevant government authorities, aiming to address investment-related challenges and enhance the overall investment climate.
Alongside meeting its aims and objectives the Council’s primary project is their White Book, released every year to inform the public and stakeholders about the state of the business climate in Montenegro. This highly recognised publication highlights challenges faced by foreign investors and offers recommendations to address these obstacles, with the goal of enhancing Montenegro’s attractiveness and competitiveness in the global economy.
What is the MFIC’s strategy for 2024-2025?
In 2024-2025, the Montenegro Foreign Investors Council (MFIC) will continue to execute its mission of catalysing economic development by focusing on initiatives that enhance the country’s business environment to attract investors. The strategy will revolve around several key pillars. Firstly, MFIC will advocate for policies that strengthen the rule of law and transparency, crucial for building investor confidence. Secondly, efforts will be directed towards reducing bureaucratic hurdles and streamlining procedures to create a more efficient and investor-friendly landscape. Thirdly, MFIC will collaborate closely with policymakers to develop strategic plans that align with the needs of both investors and the local workforce, fostering sustainable growth and innovation.
Additionally, the MFIC will support initiatives that bridge the gap between education and the demands of the labour market. Through these strategic actions, MFIC aims to foster an environment that not only attracts investments but also nurtures local talents, ultimately driving Montenegro’s economic prosperity.
Furthermore, as part of their forward thinking strategies for the years to come, the MFIC has recently restructured its operations by establishing several specialised committees. These committees are dedicated to developing priority areas critical for the development of both the Montenegrin economy and society at large.
- Talent and Human Resources Committee
- Committee for IT, Economic and Infrastructure Development
- Committee for the rule of law, tax policy and public administration
- Committee for Transition to Green Economy (ESG)
Investing in Montenegro
The opportunities
Montenegro is bursting with untapped investment potential that has the capacity to fuel economic growth and elevate the quality of life across the region. MIFC’s members strongly believe in this promise and recognise the abundant opportunities available here, as evidenced by the majority choosing to establish operations in Montenegro.
Member companies have played a pivotal role in shaping Montenegro’s economy and setting the gold standard for corporate practices, vital in the most advanced markets. Their impact extends beyond profits, reshaping the local labour landscape and inspiring the wider business community to adopt proven, effective strategies.
Opportunities also arise from Montenegro’s location. Within the central Mediterranean region, Montenegro stands out as a captivating destination with its diverse climate and landscapes. The identified investment potential primarily lies within key sectors such as tourism, energy, infrastructure and agriculture, with tourism and energy emerging as particularly prominent areas of growth over the past year.
The challenges
While Montenegro undoubtedly possesses investment potential, this alone is insufficient without a strong, investor-friendly environment. This means having laws that are attractive and reliable, promoting transparency and predictability. To boost Montenegro’s investment reputation and make the most of its clear potential, it’s essential to swiftly make reforms that remove current business obstacles.
When addressing business barriers, it’s important to take specific actions to strengthen key priority areas. These areas include enhancing the rule of law, reducing informal economic activities, improving strategic planning and decision-making processes, and ensuring a transparent and predictable tax policy. Throughout this process, maintaining a flow of communication and cooperation between business representatives and policymakers is crucial.
Furthermore, the development and enhancement of human capital deserve significant attention. The Montenegrin Foreign Investors Council (MFIC) possesses a wealth of knowledge and best practices from its members, which can be leveraged to enhance this critical resource for overall economic and societal progress.
Montenegro’s undiscovered investment potential holds promise for both local and foreign investors seeking new opportunities in a dynamic market. The Montenegrin Foreign Investors Council (MFIC) plays a vital role in fostering an attractive business environment by advocating for investor-friendly policies, addressing barriers, and promoting collaboration between stakeholders. With MFIC’s guidance and strategic initiatives, Montenegro is ready to emerge as a top destination for investment, driving sustainable economic growth and prosperity for years to come.
