site.btaUPDATED Sofia-Skopje Trade to Top EUR 1 Bln in 2022

A forum between business representatives from Bulgaria and the Republic of North Macedonia, planned during the meeting of the foreign ministers of the two countries within the Bulgarian presidency of the Central European Initiative, will take place in early December in Skopje. 

Data on bilateral trade shows that in 2022 it will exceed EUR 1 billion, said Bulgarian caretaker Prime Minister Galab Donev at the formal launch of construction work on North Macedonia's eastern railway segment (linking Kumanovo, Beljakovce and Kriva Palanka) of Pan-European Corridor 8 in late October.

Data from the State Statistical Office of the Republic of North Macedonia shows that in 2021 trade between the two countries reached EUR 747 million, and in the first 8 months of 2022 alone, bilateral trade amounted to EUR 711 million. This gives reason to expect this year to end with a record-high trade. Bulgaria is currently North Macedonia's fifth trading partner after Germany, the UK, Greece, and Serbia.

Bulgaria is present in North Macedonia's economy both through trade in goods and services and through legal entities that occupy significant positions in particular business sectors. 

Of the 13 operating banks in the country, three are Bulgarian-owned and had a significant presence in North Macedonia in 2021. Universal Investment Bank is in eighth place, Central Cooperative Bank is in tenth place and Capital Bank is in thirteenth place. Out of 16 insurance companies in North Macedonia, the Bulgarian insurance company Euroins is ranked 6th in terms of efficiency for 2021.

For the past five years Minstroy Holding AD has been the concessionaire of the lead-zinc deposits in Zletovo and Toranitsa through its local company Bulmak 2016; Bulgarian ownership also includes the only paper recycling plant in North Macedonia in the town of Zletovo. The investment in the plant exceeds EUR 10 million.

There are several Bulgarian software companies in the country, a significant share of the country's energy sector is also occupied by Bulgarian companies, and there are numerous Bulgarian-owned distribution, trading, and various other businesses in the construction, import and sale of building materials.

For 2021, electricity imports from Bulgaria to North Macedonia amounted to EUR 85.8 million, and for the first 8 months of 2022, Bulgarian electricity imports amounted to EUR 132.5 million.

For its part, North Macedonia is a traditional exporter of fruit and vegetables to Bulgaria and is present in the country with 16 outlets of its KAM Market chain. Almost the entire amount of extracted lead-zinc and copper ore is exported for processing in Bulgarian non-ferrous metal mills.

The structure of the trade and the mechanism of linking the two economies give reason to believe that with increasing infrastructure connectivity between Sofia and Skopje - the construction of the railway, roads and border checkpoints, there is potential for the volume of trade and business initiatives to double.

The upcoming forum will focus on infrastructure and energy, agriculture, and the IT sector, Bulgarian Ambassador in Skopje Angel Angelov said at a meeting of Bulgarian business representatives in the Republic of North Macedonia. The aim is to create sustainable business contacts and to get acquainted with the specifics and market opportunities of the region, which is expected to further stimulate joint investments.

Earlier in November, North Macedonia's Foreign Minister Bujar Osmani said in Sofia that the upcoming forum would discuss the potential for increasing and improving business cooperation between the two neighbouring countries.