Tamás Kamarási, MFIC President (CEO of Crnogorska Komercijalna Banka (CKB))

MFIC can play a key role in preparing Montenegro to navigate both current and future global challenges, turning them into opportunities

Many international and domestic factors have been impacting Montenegro’s business climate, influencing foreign investment inflows and economic growth generally. At the international level, factors like geopolitical risks, fluctuations in commodity prices and global financial trends impact investor sentiment and appetite. Despite this, Mediterranean growth prospects continue to be positive.

Indeed, the drop in FDI inflows in 2023, followed by stagnation in 2024, reflects growing concerns among foreign investors, says MFIC President Tamás Kamarási, who is also CEO of Crnogorska Komercijalna Banka (CKB). However, he notes, “while the Mediterranean region is still seen as a promising area for growth, geopolitical instability remains a significant challenge”.

Domestically, Montenegro faces several structural challenges, including underdeveloped physical and IT infrastructure, a still-complex regulatory framework and public administration inefficiencies. Frequent political changes can slow down necessary reforms, thus hindering long-term progress. However, Montenegro’s small size can also be an advantage—provided there is strong political will, changes can be implemented quickly, adds Kamarási.

Positive developments, like the prospects of EU integration, offer encouraging steps forward. Stability, predictability and transparency remain critical to attracting FDI. “The Government and the business community must work closely to address these challenges and unlock Montenegro’s full potential. MFIC remains – as it has for the past 15 years – a committed partner in these efforts, supporting the harmonising of business interests and policy reforms,” concludes our interlocutor.

How capable is the Government of Montenegro when it comes to responding to these challenges, and how successfully is it doing so?

— The Government of Montenegro has made visible progress in responding to these challenges, and I have no doubt about the good intentions behind their efforts. However, a sustainable and consistent strategic approach remains a significant challenge. We recognise signs of the development of a merit-based culture in key positions. However, the most important question is how this can cascade down to the operational levels of public administration, because that determines the capability at the end of the day. So, the Government must focus on adopting a long-term and sustainable approach that ensures sufficient dialogue with the private sector. No matter the circumstances at the local level, straightforward and transparent dialogue with the private sector must remain the priority.

Our MFIC vision is for Montenegro to become the most advanced and competitive economy in the SEE region, where investors and talented people achieve their goals together. Achieving this vision is only possible through strong collaboration between the Government, the business community and other stakeholders. It’s essential that we work together to overcome these challenges and create an environment that’s predictable and supportive of sustainable growth.

The Ease of Doing Business Index in Montenegro has shown a deterioration in the business climate across various sectors over the past two years. From the perspective of the business community represented by MFIC, what are the most important prerequisites for the continued successful operation of the Montenegrin economy?

— The Ease of Doing Business Index is a valuable indicator of a country’s business environment. From MFIC’s perspective, several key priorities must be addressed to improve the business climate. While infrastructure development (airports, ports, roads, railways etc.) is already a Government priority, we see other pressing areas. First of all, businesses require clear and transparent regulations, so it is essential to enhance the efficiency and predictability of the legal and regulatory framework.

Moreover, we expect significant progress in the digital transformation of public services, which can reduce existing bureaucratic barriers. Streamlining administrative procedures through digital solutions is a crucial step towards creating a more efficient and investor-friendly environment. Workforce development is a critical area that cannot be overlooked. Aligning educational programmes with the needs of the market and investing in skill development will help create a competitive labour force that can attract and retain foreign investors.

Finally, the inclusion of foreign investors and the broader business community in the decision-making process is crucial. We’ve embedded this principle into our methodology, which was implemented in the 2023 White Book for the very first time. This ensures that the voices of key stakeholders are heard and reflected in the recommendations provided.

How open to suggestions from the business community is the Government of Montenegro?

— Many longstanding challenges in Montenegro’s business environment have taken on new dimensions due to current global and domestic circumstances. I must say that the Government is receptive to feedback from the business community, though there is always room for improvement. The challenge remains in the practical implementation of these recommendations among investors. We still have a lot of work to do together to ensure that the developments proposed by investors receive the appropriate attention and that concrete resources are allocated for their implementation.

I would use this opportunity to note that we are aware that MFIC plays a vital role in facilitating essential dialogue between decision makers and foreign investors. That’s why we launched the MFIC Talks platform, where we engage in discussions with representatives of the Government and other institutions on the most important issues for the entire business community. We are pleased that this concept has been accepted and recognised as useful by both sides.

Starting this year, the White Book will be published in November. This enables the Government to consider recommendations in a timely manner and to incorporate them and the analyses of foreign investors into its work programme. What progress can be realistically expected?

— The shift in timing for the release of the White Book is an important advance. It allows the Government to take a more proactive and strategic approach, which will improve alignment between policy planning and the needs of the business community. We expect incremental improvements; small steps and progress, particularly in areas like the digitalisation of public services, regulatory simplification and labour market reform. The success of these initiatives depends largely on the Government’s capacity to prioritise these issues and ensure their implementation within a realistic timeframe. As I mentioned, these are small developments, but ones that would send very positive and strong feedback to the business community, confirming that our suggestions are taken seriously.

Along with expected changes to the business environment, you have also initiated the development of a strategy to contribute to improving the efficiency of the work of your association. In practical terms, what does this mean for MFIC’s daily operations?

— The development of our Strategy is aimed at strengthening our ability to serve our member companies and contribute to the broader business environment. MFIC is committed to supporting Montenegro’s economic progress by leveraging our members’ significant corporate governance experience and global business practices. Through our advocacy and initiatives, this Strategy provides guidelines for MFIC to be a vital partner to both the public administration and the private sector in advancing the country’s growth and EU integration.

In practical terms, this Strategy reinforces our role in supporting structural reforms through key initiatives like the White Book, which outlines necessary improvements to the business environment. We are launching four new committees focused on critical areas of Montenegro’s development (Talent and Human Capital Committee; IT, Economic and Infrastructural Development Committee; Rule of Law and Taxation Committee; Green Economy Transition (ESG) Committee), where industry leaders collaborate to offer expert insights and solutions.

We are consciously expanding our value proposition, moving from a purely lobbyist organisation to becoming a real investment catalyst for the country, as well as a networker and thought leader. We are additionally enhancing our digital presence with a new website and organising collaboration events (MIFC Talks) to strengthen ties between our members and foster relationships with the private, public and non-profit sectors. We also plan to build stronger relations with EU mission representatives and other diplomatic corps, while energising our community.

What is your vision for a Montenegro that’s able to cope with growing international challenges, and how can the resources at MFIC’s disposal prove useful in creating public policies?

— I’m confident that Montenegro has the potential to navigate growing international challenges successfully. At MFIC, our mission is to catalyse the economic development of Montenegro by creating a business environment that’s attractive for both investors and talented people. This aligns with my personal vision: of Montenegro becoming a resilient, innovative and sustainable economy capable of adapting to global changes. I believe the country has the potential to be a model of long-term economic stability, provided decision-makers focus on critical advancements in infrastructure, digital transformation and the green transition. These are essential to maintaining competitiveness on the international stage.

MFIC can play a key role in preparing Montenegro to navigate both current and future global challenges, turning them into opportunities. Let me emphasise that our members bring international governance practices and proven innovations from other countries, offering these resources in two key ways: consultation and active participation. The challenges we encounter often highlight opportunities for improvement, which we communicate to the Government consistently. I am quite convinced that these recommendations are perceived as constructive input for growth. Moreover, we are ready to participate actively in the creation of public policies by employing our best experts across various economic sectors. These experts can contribute directly to policy development, offering valuable insights and solutions for the country’s future.