Stefan Klotzli, Embassy of Switzerland to Belgrade: Association of Swiss Entrepreneurs in Serbia would like to introduce new investments

(Embassy building in Belgrade)

Although the exchange of goods between Serbia and Switzerland registers constant growth, and in spite of the fact that it reached the value of 286.5m EUR after the first ten months of year 2008, the entrepreneurs from Switzerland are still insufficiently interested in business in Serbia. Namely, Switzerland has invested about 200m USD in Serbian economy sector since 2000, but the number of greenfield investments is very small because the enterprises have been bought mainly on tender or auction.

Investments of Swiss economy sector

One of the first and the largest investors in the privatization process in Serbia was company “Holcim”, which bought the cement factory in Popovac.

Swiss companies have also bought Factory of copper pipes-Majdanpek and “Dušan Dugalić”-Batočina on auctions. Certain number of branch offices of Swiss companies is registered in Serbia – Roche, Novartis, Nestle, 3M, ABB, Swiss Airlines and others, while some of the rare greenfield investments concern the founding and successful positioning of companies, such as insurance company Basler and pharmaceutical company PharmaSwiss.

The editors of eKapija talked with Stefan Klotzli, the Deputy Ambassador of Switzerland to Belgrade who is in charge of economic issues, about overall business cooperation, future plans and, especially, about missed opportunities. We present some details from this exceptionally interesting interview.

- There are about 150 branch offices of Swiss companies in Serbia, most of which are relatively small offices, while the number of “large players” amounts to 15-20. The interest of the companies would be significantly increased if there was some club or association of Swiss entrepreneurs in Serbia, because they would be presenting their experiences and impressions to the potential investors – said Stefan Klotzli at the beginning of the interview for eKapija.

What is praised and what is criticized by Swiss entrepreneurs

Klotzli points out that Serbia has great potentials for development, but Swiss entrepreneurs are of the opinion that the market is not mature enough and that some time is needed for its full stabilization. When it comes to the region of Southeast Europe, their companies mainly invest in Romania and Croatia.

- The entrepreneurs who operate in Serbia are mainly satisfied, especially those largest companies that cooperate very well with the Embassy. Our Department of Economy provides services for the economy sector and information for potential investors – Mr Klotzli explained.

Also, the Government of Switzerland has an instrument that is intended for the entrepreneurs from the developing countries who want to export their goods to Switzerland and EU. Thanks to SIPPO (Swiss Import Promotion Programme), the products of seven Serbian companies appeared in foreign markets.

- If Serbian Government wants to attract foreign investors, it must create legal framework that really functions and prevents corruption. Potential foreign partners are aware of that, and they are bothered by voluminous bureaucracy and complicated procedures for issuing of licenses – says Klotzli and points out that Serbia is on its way to overcome these obstacles.

Trade, donations, support to development...

Development of bilateral exchange of goods was dynamic. The proof of that is the growth of export by 57.4% during the first ten months of year 2008 against the same period in 2007. In that period, Serbia exported goods worth 84m USD, while the value of import amounted to 202.05m USD. According to the data provided by the Chamber of Commerce of Serbia, the registered growth of export to Switzerland in that period was the largest of all.

Switzerland is one of the greatest donors in Serbia, and the aid provided by this country has reached the amount of 115m EUR.

- We have been implementing the programme of technical and financial support to Serbia for 17 years, starting from year 1991. Donations were mainly intended for energy sector, reforms and modernization of state administration and local self-government, as well as for education and development of SME sector.

Serbia became a member of Swiss constituency within international finance institutions in 2000 when Switzerland supported activation of our membership in IMF and European Bank for Reconstruction and Development and backed write-off of two thirds of our debt to the Paris Club.

Stefan Klotzli – citizen of Belgrade for year and half

Like most diplomats, Stefan Klotzli lives on Senjak with his family. He says that, after he spent year and half in Belgrade, he really fell in love with the capital city of Serbia. The dear guest from Switzerland admits that he misses mountains and snow, but he also says that he is very satisfied with the cultural climate and events in Belgrade, while the Karađorđe stake and Šopska salad are something he could eat during the whole year.

- I hardly miss any concert in Belgrade Arena and Kolarac. I got used to the crowd and, when I want to escape from the city, I go to Ada Ciganlija.

When he describes his new fellow citizens of Belgrade, he says that they are hospitable, imaginative, impulsive, sensible and – very clever.