Andreas Schäfer, Deputy Director, German-Bulgarian Chamber of Industry and Commerce

 

Dear Mr. Schäfer,

1. What are your main tasks as a Deputy Director of the German-Bulgarian Chamber of Industry and Commerce?
We help German companies who are looking for Bulgarian suppliers and distributors or who want to invest in Bulgaria. We work on a bilateral basis, so Bulgarian companies who want to forge business ties with Germany are just as welcome. At the same time we have a strong membership base – over 400 companies from both countries have joined us in order to network and to improve the business environment in Bulgaria.

2. In your opinion, what makes Bulgaria attractive for investors and for German investors in particular?
Bulgaria both has qualified engineers and multilingual service staff, making it an attractive place both for outsourcing and for production. German companies value the fact that Bulgaria has tremendous long-term growth potential. They are in for the long haul and don’t let a temporary downturn deter them.

3. What are positive things you would tell a potential foreign investor in Bulgaria?
Bulgarians have a great skill of turning obstacles into opportunities: In the nineties, inflation was getting out of control, and the Lev was becoming worthless. Then came the currency board, and now Bulgaria has one of the most stable currency regimes in the word. Or look at taxes: When the government needed more money in the past, they LOWERED the taxes. And it worked! Let’s hope this lesson won’t be forgotten in the throes of the current budgetary problems.

4. What are the most interesting sectors for German companies to invest in Bulgaria?
Germany is a world leader in the energy sector, both in renewables and traditional forms of energy generation. Bulgaria provides a great potential in this field, but needs a more predictable regulatory environment. Then you got car suppliers, who boost Bulgaria’s exports by producing parts for factories in the region. And you have a growing services industry, which includes IT programmers and call centers, but also the maintenance of entire airplanes. And of course there are the retailers who are counting that purchasing power will increase. I am confident that they are right as long as Bulgaria continues its integration into European structures and provides a modern environment.  

5. What are your recommendations for the improvement of the investment climate in Bulgaria?
I think a lot can be gained if the government succeeds in its fight against corruption, and at the same time manages to set up a dedicated efficient and well-trained public service. This also goes for the municipal level. Not an easy task when you look at the budget constraints the country is facing.
We have just prepared a document for Prime Minister Borissov. It contains recommendations for the legal framework based on best-practice examples from Germany.

6. Do you think the Bulgarian government provides enough support to companies and specifically to foreign companies?
The most important task is to make the business environment more transparent and fair. This will help both Bulgarian and international companies. When it comes to financial support, it should be focused rather on infrastructure, R&D and training than on grants to companies, because the latter risks creating rent-seeking behavior and distortions in the marketplace.

7. Finally, from your personal experience, what is your opinion about the relations between Germany and Bulgaria?

Let’s be realistic: While most Bulgarians are well-informed about Germany, the image Germans have of Bulgaria is a bit fuzzy. So our joint goal is to put Bulgaria on the map of investors. Because once decision-makers become aware of the opportunities Bulgaria has to offer, the country stands a good chance of attracting new investment projects.