The Minister of Finance and the Prime Minister of North Macedonia recently presented the Plan for Accelerated Economic Development (“Plan”), intended to boost the economic development in the country and provide recovery of the economy for the period between 2022 and 2026.
The Plan envisages private sector investments of up to EUR 8 billion, as well as the creation of 156,000 new workplaces. The Plan puts the spotlight on several areas which are considered as a priority, including, among others, green economy, digitalization, innovation and technological development. The funds for accomplishing the purposes of the Plan would be obtained mainly through the Budget of North Macedonia, international financial institutions, private investors and commercial banks.
Several financing mechanisms and instruments are envisioned for fulfilling the purposes of the Plan, which would provide easier access to capital. One of these financing mechanisms is the Strategic Green Investment Fund for Investment Support (“SGIF”) intended for the support of investments in Technological Industrial Development Zones (“TDIZ”). The SGIF targets both foreign and domestic investors, mainly focusing on medium and large companies, encouraging investments of up to EUR 750 million in the following four years. This would result in the creation of at least 15,000 new workplaces and would significantly increase the export activities.
The decisions for what would be considered as investment projects would be adopted by a panel of experts. The government would participate only 10% in the SGIF, whereas the rest would be financed through private capital, mainly invested by domestic and foreign banks, intended for projects and investments in green infrastructure and technologies. Return of the financing would be done through leases, royalties and other manners, and the generated income would be geared towards the TDIZ and the investors.
Currently, two large projects which will be financed through the SGIF are in the pipeline, and a sustainability study for the creation of a special technological green development zone, possibly in Gevgelija, is being prepared.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
By Veton Qoku, Attorney at Law in cooperation with Karanovic & Partners