Together with our member, Partners Albania for Change and Development, we present the 2023 annual report on the civil society environment in Albania.
The enabling environment for CSOs in Albania faces challenges, particularly with delays in operationalizing the mandated electronic registry, which impacts transparency and data accuracy. The introduction of complex VAT exemption procedures for foreign-funded projects has significantly increased administrative burdens, complicating implementation. Limited progress on the Government Policy Road Map 2019–2023 reflects weak coordination and a lack of systematic dialogue with CSOs. Additionally, the Partnership Platform for European Integration remains incomplete, with only 26 out of 33 consultation tables established, reducing the effectiveness of civil society engagement in the EU accession process.
Below, we present you the key findings and key recommendations:
KEY FINDINGS:
- The electronic registry, intended to be operational by December 30, 2023, as mandated by Law 80/2021 and the decision of the High Judicial Council, is not yet functional. This delay in establishing the NPO registry has become a significant hindrance and poses a major obstacle to NPOs’ operations, as sector-specific processes depend on access to the registry.
- The introduction of Instruction No. 27/2023, which establishes a zero per cent VAT rate for projects funded by foreign donations or grants in Albania, has inadvertently created significant operational and administrative challenges for NPOs. Despite the intention, the new requirements, such as VAT registration for NPOs, extensive procedures for every purchase, and logistical complications, are increasing administrative. This has made it difficult for NPOs to benefit from the zero per cent VAT rate, leading to higher costs and hindering the sector’s operations.
- In 2023, no progress was reported by public institutions regarding the implementation of The Road Map for the Government Policy towards a More Enabling Environment for Civil Society Development 2019-2023. The absence of a central policy coordination institution has led to insufficient systematic monitoring, reporting, and limited dialogue with NPOs.
- The Partnership Platform for European Integration has not yet fulfilled its intended role of informing, consulting, and engaging civil society in the EU accession negotiation The platform remains incomplete, with only 26 of the 33 required discussion and consultation tables established. Without the full establishment of all 33 tables, the platform cannot function as intended, and the Governing Board cannot be formed.
KEY RECOMMENDATIONS:
- Acceleration of the establishment of the Electronic Register to serve as a comprehensive tool for clarifying essential details about the sector. This register should provide up-to-date information on sector size, typology, areas of activity, geographical coverage, number of employees, and annual turnover. Establishing this electronic register will enhance transparency, improve data accuracy, and support better-informed policy decisions impacting the sector.
- To address the challenges posed by the new VAT exemption procedures, clarification on VAT exemption is needed, to alleviate the financial burden on NPOs by implementing a zero percent VAT rate by 2024, addressing the current complexities in VAT exemption procedures.
- The drafting of the new Road Map for the Government Policy towards a more Enabling Environment for Civil Society 2024-2027 must be developed with extensive consultations with NPOs from the very beginning of the process, based on realistic and clear priorities, measures and indicators aligning with developments of NPO sector and country strategic documents and adhering to the Guidelines for EU Support to Civil Society in the Enlargement Region 2021-2027.
- The Partnership Platform for European Integration must strengthen its role in serving as a convening power and enabling full participation of civil society in the discussion and consultation tables for all chapters of the EU. There is a need for transparency in the process, including how the tables and discussions are going, the feedback from the groups of interest, and how that is reflected in the final laws, regulations, and documents drafted in the roundtables and intersectoral working groups.
This report is part of a series of country reports covering six countries in the Westerns Balkans: Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia. A Regional Report provided by BCSDN will soon be available.
This report has been produced with the support of the Swedish International Development Cooperation Agency (Sida).
Interested in reading more? Find the full report HERE.