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Prizren’s Economic Development
(1980- 1999)
From 1980-1999, socially owned enterprises (SOEs) employed 80% of Prizren’s
workforce. Currently, SOEs are operating under very difficult conditions.
The only source of income for these enterprises is through leasing parts
of the premises to the private sector. Presently, the municipal bodies have
no authority to administer the SOEs. (From 2001 all SOEs are under UNMIK,
starting from 2002 are under KTA (Kosova Trust Agency).
Agriculture
More than 50% of the population of Prizren lives in the rural areas. Thus,
the agriculture sector remains one of the most important sources of employment
and income. Prizren was well known in the former Yugoslavia for its fruits,
vegetables and wine. In Prizren there are four dairy plants working with
limited production capacities. Dairy products, especially fresh cheese known
as “Sharr mountain cheese” is well known internationally. Wheat
Production in Prizren for the year 2001 was 12,565 tons and 15,040 tons
of maize was produced. Capacities for accumulation, placement and storage
of the cereals are good. Twenty-five percent of Prizren’s land is
arable with an irrigation system that covers 3,300 hectares of land. The
irrigation system is served by three hydro-systems: Dukagjin (providing
irrigation for 2,500 ha of land), Radoniq (400 ha) and a local irrigation
system (LIS – 400 ha).
| Description |
Hectare |
Structure (%) |
| Land in private property |
29,289 |
45.77 |
Land in social property
|
34,697 |
54.23 |
| Under irrigation system |
3.300 |
| Total: |
63,986 |
100.0 |
Agribusiness
Production of fruits and vegetables is growing, and offers great potential
for establishing profitable businesses. Revitalization of the agribusiness
capacities will rapidly generate employment and income.
‘Abi & Elif19’ is active in the food processing industry.
This company is under a 10 years lease agreement by a private investor and
so far the production and the sales have been very satisfactory.
Wine Production
Prizren has a long tradition of producing delicious wines. The Wine Processing
Plant ‘Kosova Vera’ has processing capacities of up to 2,240
thousand liters, this company was established in 1952. Before the 1999 conflict
this plant had 130 employees of which now only 75 remain. The social sector
currently uses about 1070 ha whereas the private sector owns about 550 ha.
The current production of wine including public and private sector is 2,430
tons.
Vineyards |
Hectare |
% |
| Land in private property |
550 |
34.0 |
| Land in social property |
1,070 |
66.0 |
| Total: |
1,620 |
100.0 |
Tourism
Numerous historical monuments make Prizren a very attractive location for
foreign visitors as well as for visitors from within Kosova. Prizren’s
cultural heritage attracts not only visitors from all over Kosova but it
offers possibilities for the development of tourism and for the preservation
of ancient craftwork traditional skills. Taking this into account, various
donor initiatives are focused on preserving the production of traditional
crafts such as embroidery, carpets, jewelry etc. by assisting locals to
establish private businesses in these areas.
The Private Sector and Business Community
The private sector is showing signs of growth. The office of business registration
shows that as of March 2003, some 5,000 businesses are registered with this
office. The table overleaf shows the number of business based on their type
of activity. The overwhelming numbers are import-export enterprises.
| Type of SMEs |
Number of Enterprises |
| Import-Export |
2,254 |
| Bars and Restaurants |
464 |
| Services |
357 |
| Transport |
325 |
| Total: |
5,000 |
The following table provides a breakdown of the Structure of Import-Export
Enterprises by category:
Nr. |
Type
of Activity |
Number
of Businesses |
Number
of Employees |
% |
| 1. |
Spare parts |
139 |
198 |
6.2 |
| 2. |
Vehicle parts shops |
63 |
108 |
2.8 |
| 3. |
Fuel |
23 |
79 |
1.0 |
| 4. |
Sale of other vehicle items |
8 |
40 |
0.4 |
| 5. |
Brokers |
59 |
189 |
2.6 |
| 6. |
Wholesale |
225 |
511 |
10.0 |
| 7. |
Retail |
324 |
488 |
14.4 |
| 8. |
Grocery shops |
109 |
99 |
4.8 |
| 9. |
Retail of textiles |
159 |
216 |
7.1 |
| 10. |
Retails of clothes |
158 |
174 |
7.0 |
| 11. |
Bars and restaurants |
137 |
158 |
6.1 |
| 12. |
Other export-import business |
850 |
819 |
37.7 |
Total: |
2,254 |
3,079 |
100.0 |
Of the roughly 5,000 registered businesses in Prizren there are 629 production
centers (including artisan goods), 357 service providers, 464 businesses
related to tourism and other services, 325 transportation-related businesses
and 2,254 businesses related to merchant activities etc. The SME sector
is facing many obstacles and difficulties and lack of support from the central
and local government. The authorities should focus their efforts and programs
towards: removing the current obstacles in SME development, establishing
a favorable business environment, capacity building and trainings. These
programs should support and cultivate the entrepreneurial spirit of the
Prizreni population, which is a well-known region for centuries for its
tradition in trade.
The establishment of an industrial and trade zone where businesses can set
up their processing and production operations as well as advertise their
products in trade centers and fairs would help to create a more suitable
environment for the local business community and attract foreign investments.
Business Associations
The business community in Prizren is active and has a long tradition of
engaging in a meaningful manner in the matters pertaining to municipal economic
development. The following organizations and associations are currently
active in Prizren:
Regional Agency for Small and Medium Enterprises (this is an association
that is from the Eurekna-UNMIK program)
ESNAF business Association
Association of Artisans (Business Association)
Prizren’s Businessmen Club established in 1991 (Business Association)
Regional Chamber of Commerce
20 professional NGOs active in the area of local economic development.
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