EU Chapter 20 Enterprise and industrial policy focuses on creating a supportive environment for business, competition and innovation. Alignment in Chapter 20 should bring Albania significant benefits, such as increased competitiveness, a better business environment and higher foreign investment. It is expected to modernize the industrial sector, foster innovation, and support SMEs, driving sustainable growth and job creation.

To enhance Albania’s industrial policy, UNOPS has provided technical expertise to Albania’s authorities responsible for Chapter 20 negotiations. Work has involved the Ministry of Economy, Culture and Innovation, the Prime Minister’s Office, as well as other related actors, such as the Ministry of Finance and Economy, the General Directorate of Patents and Trademarks, the Albanian Competition Authority and the Albanian Financial Supervision Authority.

UNOPS experts started with an Inception Report outlining the key goals and activities towards developing a new Industrial Strategy tailored to Albania’s needs, which was presented to and discussed with stakeholders. Next, UNOPS identified points for alignment with the new Industrial Strategy for Europe, analyzed EC recommendations related to industrial policy, and compared performance with other WB6 and EU countries in the region. To this end, the K4R programme analyzed recommendations from reports, identified best practices from advanced European countries and proposed key policy actions for Albania.

In this regard, UNOPS advisers formulated policy-making proposals to Albania’s development in the area of industrial policy and provided capacity-building support related to industrial policy in Albania through the organisation of three workshops involving government officials, and industry representatives on aligning Albania’s industrial policies with EU requirements. Participants received an introduction to industrial development in the context of Albania’s EU accession, resulting in an initial proposal on how to promote industrial growth. This fostered stakeholder buy-in and setting of aligned, strategic goals. Furthermore, the workshops analyzed the performance of Albania’s manufacturing sector across economic, social and environmental dimensions and completed an inventory of relevant industrial policy instruments deployed by EU Member States.

Through this feedback, the K4R experts created a comprehensive policy paper that supports economic growth, encourages trade and attracts investment and developed a roadmap that includes all analytical, policy design and consultation steps required to draft the first Industrial Policy Strategy in Albania. The participatory approach fostered collaboration and dialogue, ensuring that a broad range of perspectives are considered in policy development.

The work of UNOPS helps Albania modernize its industrial policies to align with EU standards. The policy paper tailored to Albania’s needs has been shaped by learning from best practices of more advanced European countries and identifying areas where Albania can boost its industrial competitiveness. For citizens and businesses, this preparatory analysis for a future Industrial Strategy will translate into enhanced competitiveness of local industries, improved business environment and increased foreign investment. It should boost innovation and productivity, and support integration into the European market, fostering sustainable economic growth and job creation.

In addition, the K4R advisers contributed to a shared understanding of objectives, critical deliverables and timelines to streamline the development of industrial policy.

This assignment supports SDG 8: Decent Work and Economic Growth by fostering business development and enhancing industrial competitiveness – thus contributing to economic growth and decent employment opportunities.

It also advances SDG 9: Industry, Innovation and Infrastructure by encouraging industrial modernization, digital transformation and innovation.

Finally, it promotes SDG 17: Partnerships for the Goals by facilitating cooperation between public and private sectors and aligning Albania’s policies with EU standards – thus strengthening global partnerships and collaborative efforts for sustainable development.