Supporting Kosovo to Create a More Business-friendly Environment

Project Client

Government of Kosovo;



Origin Of Funding


Start Date


End Date



Eastern Europe and Balkans;

Project Description:


The aim of the project is to support the Government of Kosovo (GoK) to successfully implement its 2015-2018 program, which is being implemented under the USAID Partnership for Development (PFD) program and is focused on creating a business-friendly, regionally competitive business environment that will attract foreign investment to Kosovo.

USAID PFD works closely with a wide range of GoK institutions and other stakeholders to achieve this objective, by providing technical assistance for the development of key policies and legislation that encourage private sector led economic growth in Kosovo. One of the most important laws in this area is the Law on Business Organizations (LBO), first adopted in 2008 and amended in 2011, which regulates business forms, business registration, corporate governance, and other relevant aspects.

In light of the recent entry into force of the Stabilization and Association Agreement (SAA) between Kosovo and the EU on 1 April 2016, the GoK, through a working group led by the Ministry of Trade and Industry (MTI), is finalizing a review of the LBO to consolidate previous and future reforms, and confirm compliance with the SAA and the EU Acquis Communautaire.

The final draft LBO should unify the goals of EU approximation, as well as consolidate previous Doing Business gains. Therefore, the draft should be in compliance with the SAA, but should also be reflective of, or exceed, best practice examples from EU member states that are reported in the annual World Bank’s Doing Business report.

PMCG is implementing the following activities to assist Kosovo in this regard:

  • Evaluation of general compliance with the SAA and the EU Acquis
  • Identification of any additional improvements to further streamline requirements and processes within the broad EU framework, taking into account international best practices
  • Evaluation of current and possible further improvements in the World Bank’s Doing Business report for the Starting a Business and Protecting Minority Investors indicators, and reflecting it accordingly in the draft law


Background information:

The USAID-funded Partnership for Development Project in Kosovo is a four-year activity, with the purpose of supporting the institutions of the Government of Kosovo at central and local levels to create a business-friendly and regionally competitive business environment that will attract foreign investment to Kosovo, while at the same time maintaining macro-economic stability. The project is implemented by a consortium led by Chemonics Inc.

The project has three objectives which are as follows:

  • Business environment improvement
  • Improved implementation of construction reforms
  • Enhancing macro-economic stability and public financial management (PFM) at central and local levels

By achieving these objectives, PFD will enhance the enabling business environment for private sector growth and expansion of employment opportunities in Kosovo.

Follow the links below for related projects:

USAID Kosovo Partnership for Development (PFD) – Enhancing Macro-Economic Stability and PFM at the Central and Local Level
Advancing Kosovo Together
Support the Government of Kosovo in Growth and Fiscal Stability Initiatives
Sharing Experience of Georgian Reforms and Visegrad Countries’ EU Economic Integration for Albania and Kosovo
Supporting Kosovo to Develop Tourism Sector, USAID Kosovo PFD Program