Ms. Ivana Jovanovska

1. June 2012

2. Invest Macedonia
• Mission:
- to win new investment projects into Macedonia and support the expansion of
the existing base of overseas companies in the country. To deliver value to
investors by using our broad knowledge of the Macedonian business
environment and market segments, country-wide connections and a broad
network of partners.
• Vision:
- to become the best and most professional IPA in Europe and to contribute a
significant percentage of Macedonia’s FDI inflows. To be recognized not as a
government organization but as a pro business service provider
• 4 Main functions:
1. Country promotion
2. Investor Servicing
3. Aftercare
4. Export promotion

3. Promotion of Macedonia
One of the core activities of Invest Macedonia is to widely promote
the business climate of the country, its political, monetary and
macroeconomic stability by:
• Media campaign (global TV-networks and newspapers)
• Specialized editions and brochures
• Network of economic promoters (direct marketing)
• Business forums, fairs and road shows

4. Our Services – Investment Process
• Business opportunity analysis
• Identification of supplier base
• Identification of project-specific location factors
• Cost analysis
Evaluation • Site pre-selection
& Strategy • Organization of meetings with state and local authorities
• Organization of meetings with legal advisors and financial partners
• Site visit organization
• Final site decision support
Decision & • Incentives negotiations and establishment of formalities
Investment
• Support with relevant tax and legal issues
• Coordination and support of negotiations with other state and local
authorities
Aftercare • Support with your future expansion or reinvestment needs

5. Our Services – Export Promotion
4 main sectors identified with greatest export potential
Metal and Precise machinery industry inc. automotive components
ICT
Textile industry
Agribusiness/Food industry
Main activities include:
include:
• Support and assistance for attendance on international fairs
• Organization of B2B events
• Organization of trade missions
• Country and market analysis
• Creation of data bases of Macedonian companies from different
industries
goal: INCREASING THE VALUE OF EXPORTS

6. Economic promoters
• 26 economic promoters in 22 countries
• Europe: Sweden, Italy, UK, Germany, France, Austria, The
Netherlands, Belgium, Turkey, Poland, Russia, Croatia, Serbia,
Albania
• Asia: China, Japan, India, Qatar, Kazakhstan
• Americas: USA, Canada, Argentina

7. INVESTMENT
OPPORTUNITIES

8. Investment Opportunities
Target Sectors
Machine and Automotive components
ICT
Medical Devices and Pharmaceuticals
Agribusiness and Food Processing
Energy sector
Mineral Resources
Textile
Tourism

9. Investment Opportunities
Machine and Automotive Components Industry
• Existing engineering and manufacturing
tradition
• Legacy of skills available to new investors
• Component production started in the 1960’s to
supply Zastava, Serbia
• Companies primarily supply the aftermarket
• Johnson Controls, Johnson Matthey, Kemet,
Teknohose, SMR, (Free Economic Zones)
Kromberg & Schubert, Hi-Tech to supply OEM’s
• Markets are Europe, Russia, Turkey, Africa
• Most companies have ISO 9001 / TS 16949
quality certification

10. Investment Opportunities
Agribusiness and Food Processing Industry
• Agribusiness is one of the fastest growing
sectors with more than 10% increase over the
past three years
• More than 400.000 people make whole or
part of their income from agriculture
activities
• Sector comprises 16% of national GDP
• 18.4% increase of exports in 2010
• Excellent supply
• 297 agricultural enterprises
• 192,378 family owned agricultural holdings
• EU Standards applied

11. Investment Opportunities
Agribusiness and Food Processing Industry
Wine Production
• Winegrowing and wine production accounts
for ~20% of total agricultural GDP
• More than 80 existing wineries
– Total capacity: 2,338,476hl
– Production: 100,000,000l
• Domestic cellars purchased 115,542,000kg
wine grapes in 2010
• Domestic consumption of ~15l per
inhabitant
• Major export markets: Germany, Slovenia,
Serbia, USA, Russia, China

12. Investment Opportunities
Textile sector
• Esteemed reputation of Macedonian textile
producers on the European Union market
• High flexibility and readiness to adapt to the
demands of foreign markets
• Exceptional relation between product quality
and costs
• Modern equipment
• 1-2 days distance to European Union markets
• Foreign investment welcomed in the ready-
made clothing and knit production industries

13. Investment Opportunities
Healthcare Sector, Medical Devices and Pharmaceuticals
• Existing pharmaceutical industry exports to
over 30 countries worldwide
• Strong educational system, with an
abundance of medical and pharmacy
graduates
• Supportive regulatory environment
• Licensing arrangements in place with many
of world’s leading pharmaceutical
companies
• Availability of serviced industrial sites
• Manufacturing tradition

14. Investment Opportunities
ICT Sector
• Best telecommunication networks in the
region – the system is 100% digital
• Leading multinational hardware and
software suppliers (Microsoft, HP, IBM)
have local sales and support services in
Macedonia
• 100,000 PCs for every school child; free
internet sessions provided by the
government
• IT skills shortage in Western economies
and growing demand for outsourcing
services – Macedonia can be your
solution!
• Availability of well-educated staff at
competitive costs
• Quality assurance and standardization
procedure intitialized

15. Investment Opportunities
Mineral Resources
• Wide range of mineral resources
– Metals: Iron, Copper, Lead, Zinc, Gold,
Silver Ferronickel, Ferrosilicon,
– Non-metalic resources: Marble, Granite,
Onyx, Gypsum, Limestone, Quartz, Silica,
Marl, Bentonite, Feldspar, Clay
• 7.4% sector growth in 2011
• 18.5% of Macedonian industrial output
• Sector employs 6% of total employees in
Macedonia
• Strong mining tradition

16. Investment Opportunities
Tourism
Summer Destinations
• Numerous tectonic, glacial and man-
made lakes, 50 in total
• Large Ohrid, Dojran and Prespa lakes
• Wartersports, archeological, wine,
eco and rural tourism
• In 2011, increase in foreign tourists
from EU of 38%
Winter Destinations
• Over 45 mountain peaks over 2.000m
• Around 70% of the territory is
mountainous, many locations have
more than 100 days of snow
• Opportunities for development and
enhancements of hotels and resorts
on many locations

17. TECHNOLOGICAL INDUSTRIAL
DEVELOPMENT ZONES
(TIDZs)

18. Investment Opportunities
Free Zones
Free Zone Rankovce
Area Size: 40 ha;
Corridor 8
Free Zones Skopje 1 & 2
Area Size: 145 + 95 ha;
E-75 Highway;
Next to the Int’l Airport
Free Zone Tetovo
Area Size: 95 ha; Free Zone Stip
Distance from Skopje - 35 km Area Size: 208 ha;
The largest Free Zone;
Excellent logistic support
Free Zone Radovis
Area Size: 10 ha;
Main Road M6
Free Zone Strumica
Area Size: 23 ha;
Free Zone Kicevo
Area Size: 30 ha
Free Zone Gevgelija
Area Size: 50 ha;
85 km from the port of
Free Zone Struga Thessaloniki
Area Size: 30 ha;
Next to the Int’l Airport; Free Zone Prilep
170 km from Durres port Area Size: 68 ha;
Between Prilep and Bitola
(4th and 2nd largest city)

19. Investment Opportunities
Technological Industrial Development Zones - TIDZs
Fiscal Benefits
TAX RATES CUSTOMS DUTY
TAX PRODUCT
TIDZs Outside TIDZs TIDZs Outside TIDZs
Corporate tax 0% 10%
for the first 10 years
Raw materials 0% Up to 15%
Personal income tax 0% 10%
for the first 10 years Equipment 0% 5% - 20%
Value added tax 0% 18%
Property tax 0.1% - 0.2% 0.1% - 0.2%
Excise taxes 0% 5% - 62%
• Connection to utilities
• Subsidy of up to €500,000 towards building costs
• Green Customs Channel available at border for rapid export
from Zone to EU countries
• Land in a TIDZ in Macedonia is available under long-term lease
for a period of up to 99 years

20. TIDZ “Skopje 1”
1”
• €55mn investment • $40mn automotive components plant;
• over 500 employees • 150 employees initially – increasing to 500;
• catalyst production • Integrated circuits
JOHNSON MATTHEY JOHNSON CONTROLS KEMET
SIGNING OF THE AGREEMENT
TEKNOHOSE PRODIS GROUP SAMVARDHANA MOTHERSON GROUP
ANNOUNCING BEGINNING OF ANNOUNCING BEGINNING OF ANNOUNCED BEGINNING OF CONSTRUCTION
CONSTRUCTION WORK IN TIDZ “SKOPJE 1”
1” CONSTRUCTION WORK IN TIDZ “SKOPJE 1”
1” WORK IN TIDZ “SKOPJE 1”
1”

21. Thank You
AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION
OF THE REPUBLIC OF MACEDONIA
Nikola Vapcarov 7
1000 Skopje
Republic of Macedonia
Tel.: + 389 2 3100 111
3100
Fax: + 389 2 3122 098
e-mail: fdi@investinmacedonia.com
web: www.investinmacedonia.com

22. International Office Sweden
Katerina Orovchanec
Head of International Office - Sweden
Agency for Foreign Investments and Export Promotion of
the Republic of Macedonia
Riddargatan 35 , 114 57 Stockholm
Kingdom of Sweden
T: + 46 8 661 18 30
F: + 46 8 661 03 25
M:+ 46 73 326 2968
E-mail: katerina.orovcanec@investinmacedonia.com
sweden@investinmacedonia.com