Locations
UNDP Albania
Business Partnerships and Solutions for SDGs
Summary
Albania’s private sector has been a pivotal force in driving the country’s economic growth and has witnessed considerable expansion in recent years. Despite this, the sector’s role and impact on fostering inclusive growth in Albania has not been fully utilized. This is evident in the limited awareness and implementation of sustainable business practices among companies.
As the country moves towards European Union accession and strives to align with EU standards and the EU aquis, Albania finds itself at a crucial moment in time. The importance of upgrading business practices and the national business legislation to more sustainable models has become paramount.
The United Nations Joint Project “Business Partnerships & Solutions for SDGs”, building on the success of its pilot phase, aims to address these issues through a multifaceted approach. It focuses on enhancing the private sector’s capabilities for a successful transition to sustainable and SDG-aligned practices. Additionally, the project complements technical capacity building with interventions in awareness raising, trade facilitation and policy support to create an enabling environment for companies to thrive.
The project is funded by the Swedish International Development Agency (SIDA) and implemented by UNDP (lead), FAO, ILO and UNIDO in Albania.
Background
Albania's economy is dominated by micro, small and medium enterprises, which represent nearly all active businesses, employ the majority of the workforce and account for a significant share of total value added. Despite their central role, enterprises – particularly SMEs – continue to face structural constraints, including low productivity, limited access to finance, skills gaps and insufficient adoption of sustainable practices.
At the same time, Albania’s EU accession process is accelerating the need for alignment with EU standards and expectations. Businesses are increasingly required to improve resource efficiency, reduce environmental impact and strengthen compliance with evolving market and regulatory requirements.
Building on the results of its pilot phase, the project focuses on the agro-processing and textile sectors, supporting companies to improve productivity, adopt sustainable practices and strengthen their position in local and international value chains. The project combines enterprise-level support with ecosystem initiatives – to raise awareness, foster partnerships and promote sustainable and inclusive private sector development.
Major Achievements
- Scaled business support for SMEs: Through the Growing with Your Business (GyB) methodology, UNDP strengthened agro-processing SMEs in Lushnjë and expanded support to new value chains in Belsh, improving business performance and market readiness to a total of 24 business beneficiaries so far.
- Delivered measurable business growth: GyB-supported enterprises increased sales, expanded their customer base, improved compliance with Good Manufacturing Practices and mobilized significant private co-investment.
- Enhanced market access and international exposure: Beneficiary businesses participated in national and international trade fairs, including leading European agri-food expos, strengthening buyer linkages and export readiness.
- Integrated sustainability into SME development: A sustainability curriculum was embedded within business support services, enabling companies to align with EU standards and adopt more resource-efficient and responsible practices.
- Strengthened private sector engagement and awareness on SDGs: UNDP delivered flagship initiatives such as the Business #2030 Conference and the annual SDG Business Pioneers Award, championing sustainable companies in Albania.
- Produced knowledge products for policy and business: UNDP produced analytical reports and publications on sustainable business practices, SME performance and consumer behaviour, supporting evidence-based policymaking and the green transition.
Outcome
Outcome 1: Technical Capacity: Companies are equipped with technical capacities to implement sustainable practices and contribute to local value chains
Outcome 2: Enabling Ecosystem: Companies are aware of the importance of sustainability, are connected to the national and international business community and advocate for enabling policies with policymakers
Impact
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