Macedonia, with its geographic location on the main route connecting Western and Central Europe with Greece and Turkey and with its stable economy and political climate, has become a very attractive investment destination. Macedonia is an EU and NATO candidate country, which, together with several free trade agreements, allows the Macedonian economy free access to a market of 650 million consumers. GDP growth of 4% on average since 2004 has been accompanied by low inflation of 2-3% and growing exports. Disciplined fiscal policy is positively reflected in monetary policy, resulting in significant reductions in interest rates from 8% at the end of 2005 to 5.5% at the end of 2006. A corporate tax rate of 10% is among the lowest in Europe. The Macedonian Denar is informally pegged to the Euro.

Raiffeisen Investment AG has been closely monitoring the Macedonian market ever since the opening of its Serbian office five years ago, and won its first mandate agreement for an assignment in Macedonia in 2007. Our first project in this market is a buy-side mandate for a large European-American energy company with ambitious plans for expansion in the region.

Aside from the aforementioned mandate in energy sector, Raiffeisen Investment is also advising a client on the acquisition of a large Macedonian electronics retail chain. Opportunities for Raiffeisen Investment in Macedonia are spread across various sectors, such as energy and utilities, transportation, and banking.

The Macedonian operations of Raiffeisen Investment are currently organized and executed by our team in Serbia, but the opening of an office in Macedonia is planned for the very near future.