Milan Grujić, President Of The German-Serbian Chamber Of Commerce (AHK Serbia)

Along with excellent opportunities for German investments in Serbia, there is growing recognition that economic relations can be boosted significantly by the fostering of cooperation between Serbian start-ups and German companies

The German-Serbian Chamber of Commerce has announced that its focus in the period ahead will be on digitalisation, innovation and support for start-ups. According to Milan Grujić, president of the German-Serbian Chamber of Commerce, the Chamber’s support for these sectors is crucial to the long-term sustainability and competitiveness of both the Serbian and German markets.

“We are witnessing growing interest among German high-tech companies in expanding their operations in Serbia, not only through direct investments, but also by engaging with the local start-up ecosystem. In March of this year, Bavarian Minister-President Markus Söder paid a working visit to Serbia and relayed a key message about strengthening economic cooperation, particularly in the fields of artificial intelligence, robotics, digitalisation and the internationalisation of businesses,” says Grujić.

One of the main reasons for this interest lies in the flexibility and innovation of start-ups, which often operate faster and with more agility than large corporations. While larger companies like Bosch or Siemens have played a pivotal role in transforming technological innovations into global successes, today’s tech world challenges require collaboration with start-ups, explains our interlocutor. “Start-ups are a vital source of new ideas and technological solutions that are essential for addressing complex global challenges. We believe that the period ahead will offer increasing opportunities for German investors in the hightech sector to recognise Serbia’s potential as a growing innovation hub.”

How high is the interest among start-ups when it comes to participating in the “Start-up Germany Tour” and joining the Chamber?

— Interest in the “Start-up Germany Tour” project and start-up membership in the German-Serbian Chamber of Commerce reflects significant potential and we are confident that this upward trajectory will continue in the coming period. Innovations, technology and collaboration with key industries are crucial for the success and sustainability of start-ups.

The “Start-up Germany Tour” provides a unique opportunity for young tech companies from Serbia to connect with German business leaders, investors and potential partners, giving them access to markets and resources that are essential to their further growth and development.

Starting in late October, the German-Serbian Chamber of Commerce will launch an educational programme for training energy managers as part of the European Energy Manager project (EUREM)

We are aware of the great potential of the local start-up scene, which has already achieved impressive results in recent years, and we are working to provide them with a platform for further networking and growth through the Chamber.

The recent kick-off event that we organised in collaboration with the Science and Technology Park in May, under the tile “Serbian Innovation Meets German Excellence”, gave a strong boost to these efforts. The response and interest shown demonstrate great trust in what the Chamber can offer start-ups. We plan to continue these activities in order to provide even greater opportunities for Serbian start-up companies through Chamber membership and projects like the “Start-up Germany Tour”.

How have major shifts in global economic trends influenced the tempo and structure of the investments of German companies in Serbia, as well as the operations of your longstanding member companies?

— Changes to global economic trends have certainly impacted the investment dynamics of German companies in Serbia, but not necessarily in a negative direction. Trade between Serbia and Germany continues to grow, indicating a strong economic and investment connection between our countries. Bilateral trade increased by 13% in 2023 alone, reaching a new record of nearly nine billion euros. According to the results of our annual Business Climate Survey in Serbia, 86% of our member companies would invest in the country again. The high level of trust in the stability and predictability of Serbia’s business environment among German companies, along with the continuous growth of bilateral trade, are key indicators of the success of our economic relations.

According to your survey results, approximately 40% of companies plan to increase their investments in Serbia, which sounds encouraging, though only a small number of them plan to increase their workforce. What do these results tell you?

— The results of our economic survey showing that 40% of companies plan to increase their investments are indeed encouraging, especially in the context of current global economic challenges. This indicates that Serbia continues to offer stable and attractive conditions for investors. However, the lower percentage of companies planning to increase their workforce reflects changes in business priorities, particularly in industries that are highly technology-oriented.

Given the increasing automation and digitalisation of operations, many companies are focusing on efficiency and technological advancements, which don’t always require workforce expansion. This is a global trend that we are also witnessing in Serbia, where there is a focus on boosting productivity and driving innovation rather than growing the workforce significantly. This, nevertheless, doesn’t mean that there are fewer opportunities for skilled workers. On the contrary, we expect growing demand for specific profiles of experts, particularly in the fields of technology, engineering and digitalisation.

When it comes to flexible labour legislation, what exactly do German employers want?

— German employers recognise the importance of flexible labour legislation as a key factor for adapting effectively to shifting market conditions. Their expectations include more flexible working hours, tailored shifts and the ability to engage temporary workers more efficiently.

However, the introduction of the Supply Chain Due Diligence Act adds a new dimension. This law obliges German companies to ensure the protection of human rights and adherence to environmental standards within their supply chains. Its implementation requires harmonisation with local laws in the countries where these companies operate, including Serbia. Employers are thus seeking legal frameworks that enable a balance to be struck between operational efficiency and the observance of the highest worker protection standards, both domestically and internationally.

Dissatisfaction with dual education has been expressed for the first time. Is this due to a lack of workers with this educational profile or an inadequate level of knowledge?

— Dual education is one of the key systems contributing to the long-term improvement of young people’s qualifications in Serbia, facilitating their transition from school to the labour market. Although there have been comments highlighting certain challenges, it’s important to note that these are natural processes of adjustment and development for this educational model that’s still relatively new.

Given the dynamic changes in the economy and industry, the shortage of qualified labour is not necessarily a result of deficiencies in the education system, but rather a combination of complex factors like demographic and migration trends.

The strong trust German companies have in Serbia’s business environment, coupled with growing bilateral trade, highlights the success of our economic relations

A positive element is the fact that dual education provides an opportunity to overcome this challenge successfully, with close collaboration between schools and businesses enabling a more precise alignment between the needs of the market and the qualifications acquired by young people.

There is, of course, always room for improvement, particularly in terms of the continuous adaptation of curricula to meet the modern demands of the labour market. It’s important to emphasise that dual education still enjoys strong support from both companies and the government, and ongoing efforts to improve the quality and relevance of this educational model are a testament to the commitment to creating a stable and qualified workforce.

Germany provides strong support to the implementation of the Green Agenda in Serbia through bilateral investments. How does the German-Serbian Chamber of Commerce fit into this trend?

— One of the strategic priorities of the German- Serbian Chamber of Commerce is sustainable business practices and the green economy. In 2023, we established the Committee for Green Economy and Sustainable Development, which serves as a platform for connecting our members and facilitating exchanges of information.

We are implementing various initiatives in an effort to promote sustainability, such as paperless business operations, use of renewable energy sources, transition to electromobility and the installing of solar panels. We also organised our first “low carbon” event earlier this year, representing a pioneering step in measuring the environmental impact of our activities.

Starting in late October, the German-Serbian Chamber of Commerce will launch an educational programme for training energy managers as part of the European Energy Manager project (EUREM). This is a professional development programme aimed at identifying weaknesses in energy consumption, exploring energy-saving potentials and optimising energy efficiency in companies. The EUREM programme’s content is standardised internationally and the certification is recognised in more than 30 countries.

Photo: Stefan Simonović