North Macedonia is inviting foreign investors to join the country in its plans for long-term and expanded economic growth. It has a lot to offer from low taxes to a strong labor force, and opportunities in a variety of industries.
—By William Bell

The global business environment is in a constant state of flux. Take the Republic of North Macedonia, for example. Formed in 1991 when it gained independence from Yugoslavia, the country just recently settled a name dispute with Greece. Now that everyone agrees on the name, the former Yugoslav republic can seriously pursue joining the European Union, NATO and foreign investors. With its strategic location, a reform-oriented government, and a desire to attract foreign investments, North Macedonia should be on the list of potential locations for global investing.

In fact, this is an opportunity to take advantage of the country's success in making itself an investment destination with its low flat tax on profits, ease of setting up a business, strong labor force, and excellent infrastructure. North Macedonia is ranked 10th on the World Bank's "Ease of Doing Business 2019" report, outranking all the other countries in the region. This is a country with grand plans supported with measurable effort.

The Republic of North Macedonia has a lot to offer foreign investors. One of the issues that has deterred the growth of foreign investments is corruption, something that has plagued other countries with enormous economic potential. However, the government is diligently working to end corruption, and success is evidenced by its top 10 ranking among 190 economies in the “Ease of Doing Business” report issued annually by the World Bank.

Investor confidence is rapidly growing higher in recognition of the country's efforts and due to its plans to join the European Union and NATO.

What's in a Name? Plenty!
Juliet asks in Shakespeare's play “Romeo and Juliet,” "What's in a name?" For North Macedonia, the answer was "plenty."

For decades, North Macedonia and Greece have argued over the name "Macedonia" because Macedonia is the name of a long-existing Greek province. Greece had multiple concerns, including a fear of territorial ambitions, international confusion over regions, and questions about historical issues like which country can claim Alexander the Great.

What is in a name for the Republic of Macedonia? For what is now called the Republic of North Macedonia, it is the ability to pursue membership in the European Union and NATO. Adding the word "North" finally settled the issue. In January 2019, Greece ratified the name change, a major event that was a long time coming – 27 years to be exact.

Now the Republic of North Macedonia can focus on economic advancement without distraction. Rated as an emerging market, it is small and land-locked, but it borders multiple Balkan countries – Serbia, Kosovo, Bulgaria, Albania, and Greece. It has a small population of approximately 2 million people, but it also has a long list of features that make it an attractive investment target for international companies.

North Macedonia has an open upper-middle-income economy that encourages foreign direct investment and trade. The currency is stable and pegged to the euro. There is low inflation, over 2 percent GDP annual growth, competitive wages, and an English-speaking workforce.

The U.S. is the country's 13th largest trading partner. The largest trading partners for exports are Germany, Bulgaria, Serbia, Belgium, Greece and Italy. For imports, the countries are Germany, the United Kingdom, Greece, China, Serbia and Italy.

Let's Do Business Together
North Macedonia is a member of the European Free Trade Agreement, the Central European Free Trade Agreement, and the Stabilization and Associate Agreement with European Union member states. It also has bilateral Free Trade Agreements with the Ukraine and Turkey and is a member of the World Trade Organization.

The country is considered a transport hub, and the government has been modernizing the roads and railways to support the economic integration of North Macedonia. In fact, the Corridor VIII connects North Macedonia, Italy, Albania and Bulgaria. The E-5 highway lead to the Aegean and Near East. There is also an international railway line and several major road construction projects in the works that will further open access to European countries.

Another important feature is the 15 technological industrial development zones, with three of them close to the capital city of Skopje. These zones have attracted foreign investments in factories by global companies like Adient (automotive seating), Condevo (heat cells for boilers), and Technical Textiles (fiberglass used in products in multiple industries). Manufacturing produces a range of goods, including clothing, food, basic metals, beverages, refined petroleum, pharmaceuticals, chemicals, rubber products, plastics, textiles and leather.

Many new investors are foreign auto parts companies, but there are commercial opportunities in a variety of industries. The thriving industries include wholesale and retail trade, mining, manufacturing, electricity, construction, agriculture, information and communication, financial and insurance activities, and a host of professional and technical services.

Adding Up to Opportunity
North Macedonia is open for business. The leading sectors for U.S. exports and investments are energy, transportation, computers, information technology equipment, construction and building materials, agriculture, hotel and restaurant equipment, and tourism.

A good organization to contact first to get the most current information is the American Chamber of Commerce in North Macedonia. The chamber is also one of the best sources for identifying a reliable agent. Though use of an agent is not required, it is recommended. Another good contact is the U.S. Embassy in North Macedonia. Export.gov is yet another excellent organization, which offers a variety of services to U.S. companies that are interested as exporters or as doing business in North Macedonia; these services include market intelligence, trade counseling, business matchmaking and commercial diplomacy.

One of the concerns that investors have had is corruption. However, the North Macedonian government has instituted strong reforms to protect businesses and fight corruption. The reforms also simplified procedures for obtaining construction permits and reduced the cost of the construction permits, and strengthened access to credit, minority investor protections, and much more.

The World Bank has recognized the success of North Macedonia's reform efforts. Add the fact that North Macedonia has a 10 percent corporate income tax and a 0 percent tax rate on reinvested profit, and it all adds up to opportunity.

The Republic of North Macedonia is a country determined to develop a strong sustainable economic future and is inviting the world to participate in the opportunities.