Energy, defense, and digital innovation are sectors where Kosovo-US cooperation can bring mutual benefits, but only when Kosovo streamlines its internal processes.
Economic experts explain that a stable legal and economic environment, free from bureaucracy and irresponsibility, is essential to attract American investors and guarantee their protection.
This approach also seems to coincide with a new orientation for Kosovo - at least according to the statements of President Vjosa Osmani.
During a visit to the United States last week, she said that Kosovo is very interested in a new type of relationship with the US, one that will be based more on economic interests, and she singled out energy, defense, and information technology as key areas for joint development.
Upon her return, she said she received confirmation that the United States sees Kosovo as a strategic ally.
The US Embassy in Pristina did not respond to Radio Free Europe's request to explain where the US sees the greatest potential for increasing economic cooperation with Kosovo.
But, according to Arian Zeka, president of the American Chamber of Commerce in Kosovo, the main opportunities are in defense and security, in building gas infrastructure to reduce energy costs, and in developing the digital economy, including cybersecurity and artificial intelligence.
Between potential and obstacles
He lists several reasons that, he says, make Kosovo an important strategic partner for the US and an attractive destination for investment - among them: Kosovo's geographical position, its young and educated workforce, and competitive fiscal policies.
But, despite this potential, there are also serious obstacles that could deter the interest of American investors.
Zeka emphasizes that reforms must continue, as the country's institutions are still young and the legal framework remains fragile.
This, he says, often causes inaccurate or slow decision-making, while the global environment is changing rapidly.
"Kosovo should further engage in strengthening the rule of law, in avoiding actions that could increase legal unpredictability, as well as in increasing investor protection, through improving the efficiency of the courts," Zeka tells Radio Free Europe.
Along similar lines, the president of the Kosovo Chamber of Commerce, Lulzim Rafuna, expresses concern that without deep reforms - in the rule of law, education, healthcare and other areas - the confidence of American investors will remain lukewarm.
He also emphasizes that economic diplomacy - as the active promotion of Kosovo's interests in the international arena - is essential to attract investment and gain the trust of foreign partners.
"Politics must cooperate with the US State Department and the White House, we must fix the country's image, prove that Kosovo is not a problematic state in the Balkans, but a state of stability," Rafuna tells Radio Free Europe.
Clash of narratives
This month, two important financial institutions, the World Bank and the International Monetary Fund, removed Kosovo from the List of States in Situations of Fragility and Conflict.
Kosovo's acting Prime Minister, Albin Kurti, described this as the result of his government's "continuous and dedicated work" over the last four years.
Experts disagree with this narrative.
They point out that, in some cases, the authorities themselves have increased insecurity and tense the internal climate - "with reckless statements that we will be attacked by Serbia," as Rafuna puts it.
Economic expert Lekë Musa recalls that Kurti's government - currently in office - rejected a gas infrastructure project in 2021, financed by the US government, on the grounds that it was not economically advantageous.
He says Kosovo needs to have a more dynamic government and a more open market, with less bureaucracy and more pragmatism in its approach to investors - "without illusions that they will come on their own."
"Kosovo cannot offer much to the US. What it can do is that, whenever there is a certain proposal - as was the case with the gas pipeline project - it should not be dismissed, but should be materialized," Musa tells Radio Free Europe.
With Kosovo's removal from the List of States in Situations of Fragility and Conflict, the country's Central Bank (CBK) anticipates increased investor confidence and improved perceptions of its institutional and economic stability.
Foreign investments in Kosovo have increased, reaching over 856 million euros last year, up from 840 million euros the previous year, according to the Investment and Enterprise Support Agency.
Within this total, investments from the United States have been around 87 million euros.
But, according to experts, the vast majority of them are concentrated in the real estate sector, and not in branches that create new jobs or promote sustainable economic development.
This is also evidenced by data from the Agency for Investment and Enterprise Support, according to which, last year, over 647 million euros were invested in real estate, while only 21 million in the manufacturing sector.
Between American commitment and political obligations
With the United States, Kosovo has a trade exchange of millions of euros per year.
According to Kosovo Customs, during 2024, imports from this country amounted to over 106 million euros, while exports were significantly lower - around 39 million euros.
Despite this trade imbalance, the US remains one of Kosovo's most important partners since the late 1990s - committed to strengthening the rule of law, economic development, building security institutions, and Euro-Atlantic integration.
To date, American aid to Kosovo has exceeded $2 billion.
Experts emphasize the importance of Kosovo being in harmony with the US global strategy, considering every step towards cooperation as an investment in security, economic development, and strengthening the country's international subjectivity.
In this context, Zeka says that the lack of full normalization of relations with Serbia continues to weigh on Kosovo's image and hinder the attraction of foreign investments, so he emphasizes that serious treatment of the dialogue and implementation of agreements should be a priority - as is constantly requested by the US.
"The American Chamber of Commerce, on more than a few occasions, has called for negotiations with the northern neighbor to be treated as a priority, so that full normalization can be achieved - as soon as possible," he says.
American diplomat Daniel Fried sees the challenge of normalization the same way, but says that Kosovo should not wait for the conclusion of this process to strengthen economic cooperation with the US - progress can and should be made in parallel in other areas, according to him.
"I don't know what business deals there might be, but I think an aggressive approach on the part of Kosovo to develop business opportunities could work. And then, when you have some results, you promote them and show that Kosovo is a good place to do business," Fried tells Radio Free Europe.
With the mediation of the United States, Kosovo and Serbia reached an agreement in 2020 to normalize economic relations, known as the Washington Agreement.
Many points of this agreement have not yet been implemented, and Zeka emphasizes that ignoring the provisions for financing strategic projects by American financial institutions is a missed opportunity.
He adds that he would like to see a more dynamic approach from the Kosovo Government, starting with the removal of customs duties on American products and continuing with a more creative and attractive offer for US investors.
Likewise, unwavering commitment to the rule of law should be the highest priority of any government.
"This would be the best message the country could send to investors," Zeka concludes./ REL (A2 Televizion)
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