Martin Knapp, the Executive Director of the German-Serbian Business Association – We Will be Serbia’s Partner so Economic Reforms are Fully Implemented

(Martin Knapp) The German-Serbian Business Association was set up in mid-April in Belgrade with the aim to further strengthen economic and business relations between the two countries. The Association’s founding is a message to the German business community that Serbia is a reliable economic partner as well as a signal that reform processes are nearing completion.

Along with being the centre of the network of German and Serbian businessmen, the Association will also be tasked with improving dual education in Serbia and strive to put Serbia’s industrial capacities in the service of the German industry which is constantly in search of good suppliers.

- The establishing of the German-Serbian Business Association is a sign that Serbia is a country which has achieved significant economic progress - German-Serbian Business Association executive director Martin Knapp said in an interview with eKapija.

Mr. Knapp notes that intensive cooperation between German and Serbian economies goes back a decade and a half and that the setting up of the Association has formally institutionalized the business and economic cooperation built for years through the Delegation of the German Economy in Serbia (AHK), the DEinternatioonal d.o.o. services company and the Deutsch-Serbische Wirtschaftsvereinigung (DSW).

eKapija: The German-Serbian Business Association is the first bilateral chamber set up under the new Law on Chambers of Commerce in Serbia. Compared with the other organizations that we have had, what is its additional importance and what will in mean in terms of the two countries’ relationship?

- The activities and the priorities defined within the existing Association and Delegation remain unchanged, however, with this new form and direct cooperation with Serbian institutions we will be able to communicate more efficiently, represent interests and be advocates of businessmen working in Serbia. The Association will focus on the realization of important projects linked with training in companies, dual education and programs ensuring that Serbian companies become suppliers for the German economy.

eKapija: Looking at the volume of trade, Germany is Serbia’s second largest partner and, for the time being, there are 350 German companies operating in Serbia. How do German businessmen view the founding of the Association, is it a sign that the investment climate has improved and that investing in Serbia has become less risky?

- We must not neglect the fact that, to a great extent, Germany has delegated the representing of its economic interests to German bilateral international economic chambers and Serbia is now a part of that network of chambers that operate in over 90 countries across the world. It is in this way that German international economic chambers are different from bilateral chambers of many other countries. This is precisely the message that was sent to the German business community by setting up the German-Serbian Business Association: Serbia is a reliable business partner and a country that has achieved major economic progress.

eKapija: How do you assess the ongoing economic reform process, do you think that these reforms will bring more investments to Serbia as some European officials believe?

- Serbia has launched important reforms and this work has to continue. The Association will be a partner in reforms and in the efforts to fully implement them. Regarding the economy in Serbia, Germany is in the focus of interest and, having in mind that over 5000 new jobs opened in the past three years in companies with German capital, we can draw a conclusion that interest is mutual and that, fortunately, there are more companies coming here that are interested in Serbia as a production location.

eKapija: You strongly advocated the adoption of the new Law on Chambers of Commerce in Serbia which envisages mandatory membership fees for Serbian Chamber of Commerce members as of January 2017. What will be the first effects of its implementation on companies in Serbia?

- The reform of chambers of commerce is one of the most important reforms in general. Efficient economy self-management can take over many competencies from the ministries which the economy will be able to regulate on its own in future.

eKapija: What would those competencies be?

- The business community can practically solve all issues at its own responsibility, without affecting the interests of other social groups. This, for example, applies to the registering of companies, solving disputes between companies, boosting foreign trade and professional education. A strong chamber that represents all companies can regulate these and other areas of interest much faster than the state. Under the new law, the economy gets an important say in legislation. Therefore, for the economy the parliament must be able to speak on behalf of companies much like a city council speaks on behalf of citizens.

eKapija: In an effort to connect the two countries’ economies, the Delegation of the German Economy in Serbia (AHK) has issued an invitation to Serbian businessmen to join the project entitled German Initiative for Finding Suppliers in the Western Balkans. On June 9 in Dortmund the project will assemble potential suppliers from this region. How interested are Serbian companies in participating in this event?

- The response is great, greater than last year. We have noticed increased interest on both sides. So far 125 Serbian companies have applied while last year we had a total of about a hundred applications. The number of German companies interested in cooperating with suppliers from our region has doubled: last year there were 20 but now a total of 54 companies have initially registered on the German side. At this time we are sending all registered company profiles to Germany, then follows the evaluation and assessment of companies from the Western Balkans and, by mid-May, we expect to get the information on what companies from Serbia are invited to attend the event in Dortmund.

eKapija: What are the local companies’ capacities in terms of meeting the required conditions and standards for cooperation with German partners and in what way will the newly established chamber assist them in achieving the required level?

- Last year we established that the capacities of the metals industry in Serbia are far greater than we had expected. If more jobs such as this one arrive through projects, capacities will continue to grow. As for reaching a certain level, the Serbian Chamber of Commerce is providing practical support, but we and the German Society for International Cooperation (GIZ) are also providing assistance. A nice example of successful cooperation between three institutions is the program for the training of managers which has twice been implemented in Belgrade and is also soon to start in Kragujevac.

Ivana Bezarevic

AHK Srbija

Delegacija Nemačke privrede u Srbiji AHK

AHK Srbija

DE INTERNATIONAL BEOGRAD

GIZ Beograd

Privredna komora Srbije

Martin Knapp

German investors in Serbia

cooperation between German and Serbian economies

dual education

chamber system reform