BRINGEUS: Ikea to invest 1bn EUR in Serbia

(Krister Bringeus)

- Swedish company Ikea will invest 1bn EUR in Serbia within next 7 to 10 years - the Ambassador of Sweden to Belgrade, Krister Bringeus, announced.

In the interview for Belgrade's monthly magazine Magazin Biznis, which comes out tomorrow, he said that Ikea had long-term plans for Serbian market and added that that Swedish furniture factory had been successfully cooperating with the suppliers from Serbia from few years ago.

- I am not directly involved in the negotiations, but it is not my job to negotiate on behalf of a private company. What I know is that Ikea's management plans not only to sell goods and open a shopping center in Serbia, but also to manufacture furniture here - said Bringeus.

As the Swedish Ambassador explained, the opening of a shopping center in any country where Ikea is present is always connected to the commencement of production.

Regardles of the difficulties that Ikea experiences in finding an appropriate location for construction of a shopping center, Bringeus expressed the hope that the company would manage to find suitable solution in the talks with the Government of Serbia.

The Ambassador of Sweden pointed out that the creators of economic policy in Serbia must continue working on the improvement of business climate, as well as to stay on the path of reforms and admission to the European Union.

According to his words, viewed from the perspective of potential Swedish investors and companies that have already invested in Serbia, this country is a very important market.

- Geostrategic position in the region is excellent since Serbia is, practically, situated in the center of the region. Also, Serbia offer numerous advantages such as quality, educated and cheap manpower. Another advantage for development of economic relations lies in the fact that Serbian Diaspora in Sweden is very large - said he.

Bringeus pointed out that Serbia "must not forget that the competition in the region is very tough when it comes to attracting investments".

He said that one of the biggest obstacles to doing business in Serbia was corruption and pointed out that it was serious problem that Serbian authorities must cope with more energetically.

When asked what recipe for coming out of the crisis Serbia should apply, Swedish Ambassador said that Serbia must continue the process of privatization and end it in the near future, encourage potential investors and improve the investment climate.

- In addition to the arrival of large companies, which will enable higher employment rate, it is also important that the creators of the economic policy encourage the entrepreneurs to start small and mid-sized businesses because that is the engine of development - said the Ambassador of Sweden to Serbia, Krister Bringeus.