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Important points for agricultural businesses




Agriculture is a very important sector, and plays a key role in the economic development of the country. Through responsible financing and investments in modern technologies in farms and agro-processing businesses, the quality and quantity of products will increase, thus making these businesses more competitive.

Despite its importance, this sector is exposed to several risks, among them:

  • Environmental risks: weather conditions or other natural events may have a negative impact on production
  • High levels of informality: a lack of fixed and credible Information concerning prices results in difficulties in conducting a financial analysis
  • Lack of collateral: related to issues of land and property ownership in Albania

Because of the challenges facing this sector, agricultural businesses have not been appropriately served by the banking system. While it contributes 23% to Albania’s GDP, financing for agriculture accounts for barely 1.5% of all loans issued by the country’s banking sector. Yet the agricultural sector growing continuously, and bank loans could play a vital role in supporting this growth.

Farms – especially businesses that are focused on production, processing and harvesting – require a stable market where they can sell their produce and develop closer ties with other businesses in the sector.