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

(Stefan Klotzli)

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

Investments of Swiss economy sector

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

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

The editors of eKapija talked with Stefan Klotzli, the Deputy Ambassador ofSwitzerland to Belgrade who is in charge of economic issues, about overallbusiness 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 ofwhich are relatively small offices, while the number of “large players” amountsto 15-20. The interest of the companies would be significantly increased ifthere was some club or association of Swiss entrepreneurs in Serbia, becausethey would be presenting their experiences and impressions to the potentialinvestors – 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, butSwiss entrepreneurs are of the opinion that the market is not mature enough andthat some time is needed for its full stabilization. When it comes to theregion of Southeast Europe, their companies mainly invest in Romania andCroatia.

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

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

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

(Embassy building in Belgrade)

Trade, donations, support to development...

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

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

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

Serbia became a member of Swiss constituency within international financeinstitutions in 2000 when Switzerland supported activation of our membership inIMF and European Bank for Reconstruction and Development and backed write-offof 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 saysthat, after he spent year and half in Belgrade, he really fell in love with thecapital city of Serbia. The dear guest from Switzerland admits that he missesmountains and snow, but he also says that he is very satisfied with thecultural climate and events in Belgrade, while the Karađorđe stake and Šopska salad are something he couldeat during the whole year.

- I hardly miss any concert in Belgrade Arena and Kolarac. I got used to thecrowd 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 arehospitable, imaginative, impulsive, sensible and – very clever.