Serbia is attractive to investors, especially those from Germany, but a green agenda and a ‘common political agenda’ are also needed, as emphasized at the event in Belgrade organized by the German-Serbian Chamber of Commerce.
The German-Serbian Chamber of Commerce (AHK) organized the second edition of the gala event titled “Green is the new art.” The focus of the collaboration between Germany and Serbia is on implementing the green agenda, specifically in the development of renewable energy sources and increasing energy efficiency. In this regard, Germany has established a strategic partnership on climate action with Serbia and the Western Balkans region.
All German companies aim to become climate-neutral by 2045. Therefore, it is crucial for them to ensure a supply of renewable energy in the coming decades when considering investments in Serbia.
Serbia – attractive for investments
As emphasized by the President of the Board of Directors of the German-Serbian Chamber of Commerce, Milan Grujić, Serbia aims to be an attractive destination for investments, and Germany is an important partner in that regard. Germany is the largest foreign trade partner and one of the main investors. The green agenda is not only a trend but also an existential necessity in this context.
Milan Grujić states that AHK has been a reliable partner for over 20 years, providing not only information but also practical support to its member companies and new prospects from Germany. AHK currently has 440 member companies with over 100,000 employees.
Grujić observes that general geopolitical circumstances now more than ever impact business worldwide. However, he notes that even in such economic conditions, Serbia is increasingly and successfully working on strengthening its image.
The German Ambassador to Serbia, Anke Konrad, emphasizes that investments in Serbia amounted to 650 million euros last year, with the total trade exchange reaching nine billion euros. This is a record and double the amount compared to 2018. Since the year 2000, Germany has invested two billion euros in bilateral cooperation.
Ambassador Konrad adds that the green agenda is not just a slogan, but in addition to that, there is a need for a common political agenda. Therefore, in part of her speech delivered in Serbian, she mentions that the number of realized German investments is, however, decreasing.
“After Russia’s attack on Ukraine, a new reality has been created in which political risks carry much greater weight when making investment decisions—not only for German companies. Internal political developments and a lack of clear foreign policy direction directly impact economic indicators,” said Anke Konrad.
“If, in addition to that, we have very negative media coverage of Germany and the European Union as a whole, it also plays a significant role in considering new investment destinations,” points out the German Ambassador in Serbia.
The German support for the green agenda
“German investments have a significant impact on the growth of our economy and the standard of living for the citizens of Serbia. Over 100,000 people are employed in German companies operating in our country. The overall trade exchange is increasing year by year and has significantly grown in the past few years, reaching as much as 8.3 billion euros in 2022,” stated Dubravka Đedović Handanović, the Minister of Mining and Energy of Serbia.
“We are grateful to Germany for the support it provides to Serbia in the process of energy transition. Serbia and Germany have established a climate partnership to assist our country in implementing the European Union’s green agenda,” added the minister, emphasizing that “without sufficient green energy, we will not be able to continue attracting foreign investments to the extent we desire. Therefore, energy is a crucial segment of our future investments.”
Minister Đedović also shared that since 2001, Germany has provided almost one and a half billion euros for the development and transformation of the energy sector in Serbia towards clean energy sources, benefiting the local population and economy. She highlighted that one of the larger donations, amounting to 30 million euros, will be signed on Monday with Germany for the construction of a wind park in Kostolac.
