A Partner for GROWTH ANNUAL REPORT 2020 December 2020 FOREIGN INVESTORS COUNCIL / Annual Report 2019 CONTENT 3 Foreword 16 Fefa - Long Term Partner 4 Partner for Growth 16 International Financial Institutions 5 Organization & Management 16 Embassies 16 Public Policy Secretariat 7 Key Projects & Communication Tools 8 Main Activities 17 Public Promotion 8 White Book 19 Committees 12 Covid 19 - Fic Support in Difficult Times 19 Anti Illicit Trade & FOOD 13 FIC Insight - New Event 20 Financial Services 14 Online Conference on Digitalization 21 Human Resources 14 Online Conference on Data Protection 22 Infrastructure& Real Estate 14 Serbian Blockchain Initiative 23 Legal - Presentation For FIC 25 Pharmaceutical Industry 15 Cooperation with Stakeholders - Stronger Together 26 Taxation 15 European Union 27 Telecommunications& Digital Economy 16 Business Associations 29 FIC Members 2 FOREIGN INVESTORS COUNCIL / Annual Report 2020 FOREWORD for regulatory improvements in times of crisis. Various working groups have been identifying issues which impede the business operations of FIC members and initiating ways to resolve them, with public consultations, or proactive outreach. At the same time we have continued developing a dialogue with all relevant stakeholders, including the Government, the European Union, international financial organizations, the diplomatic corps, and other similar associations. All meetings and presentations were held online. Our flag- ship project, the White Book, dropped the score card system, instead reflecting the impact of COVID-19 on all relevant reg- ulatory areas, together with proposed priorities for adoption of the White Book recommendations. The publication was suc- cessfully presented just few weeks ago at an event gathering key stakeholders – the Prime Minister and Deputy Prime Minis- ter (Minister for Mining and Energy) along with the EU Ambas- sador to Serbia. An audience of almost 400 participants, who were able to follow the conference online. In the course of the year, we have been rolling out as many online activities as pos- sible in order to enable interaction between our members and Mike Michel important stakeholders. Let me mention just a few: high-level FIC President and Telenor CEO conferences on the Digitization and Data Protection Law, spe- cial online expert meetings of FIC committees, and various reg- ulatory presentations. The White Book Task Force, which we formed with the Gov- ernment on their initiative, has achieved limited results this year because of the COVID-19 pandemic, although there has been moderate but steady progress in improving the business Dear reader, climate. Fully aware of the challenges, we do welcome this achievement but our expectations remain the same - further We’re proud to present the FIC Annual Report, which focuses acceleration of reforms. on our key activities and achievements in 2020. The past eleven months have proven to be anything but businesses as usual. It’s Last, but not least, in order to fully embrace the era of digitali- been a tough year and the pandemic has forced us to adapt to a zation, as well as being environment-friendly, we again opted new reality, quickly, responsibly and efficiently. against printing the White Book. If I were to describe how the FIC responded to the crisis, I would We invite you to browse through the Report, hoping it will use those words, adding solidarity and compassion. Our work inspire you and motivate you to take an even more active has been done with the active and unselfish engagement of role in our work, attract other companies to join our commu- expert FIC members, and I would like to use this opportunity to nity, and encourage our stakeholders to build synergies and thank you once more for your incredible effort. together make Serbia a better place to do business. There has never been a greater need for a properly functioning and pre- The way we do business has been adjusted, modified and aligned dictable business climate. with the new situation. In the new form of eight restructured working committees, we have been giving concrete proposals Stay safe and healthy. 3 FOREIGN INVESTORS COUNCIL / Annual Report 2020 PARTNER FOR GROWTH FIC turned 18 in a difficult year when the pandemic struck, 100 entities - within its committees, FIC defines its standpoints with impact on the societies and economies worldwide. FIC through active debate between the members so that to pro- role proved to be equally important in the years of crisis as in mote reforms which are in the interest of the wider business the years of flourishment. In community, rather than spe- 2020 our first priority was to cific company or a business protect the health and safety group. FIC is also proud to be of our members, employees among organizations whose and society as a whole. Partner for growth, even more opinions and proposals are fully public and easily acces- We are proud to say that in difficult times. sible, notably via the annual a high level of solidarity White Book project. between FIC and members, and between members Since its establishment in themselves, helped us all 2002 by 14 foreign com- overcome the very difficult circumstances. FIC provided selfless panies that operated in Serbia, FIC grew significantly both support to members to maintain business and employment as in terms of number of member companies and their size of much as possible, and members showed both gratitude and investments and workforce. This led to creation of large base high level of engagement. FIC is an independent business asso- of knowledge and experience, which FIC has been using to ciation of foreign investors dedicated to the promotion of pre- provide concrete recommendations on how to improve busi- dictable and competitive business climate and better regulatory ness climate. framework, which provides equal opportunities for all that do business in Serbia. FINANCES FIC is also firmly devoted to the solid business ethics and high FIC holds on to its financial independence, which it preserves by corporate governance principles, which it promotes equally financing operations and activities through membership fees, within the organization and towards local companies, Govern- without sponsorships. Minor part of finances comes from the ment, and other external stakeholders. FIC strongly supports the interests on deposited funds. Financial Report is agreed in prin- economic integration of Serbia with the EU and meeting of eco- ciple by membership at the Annual Assembly, and is adopted by nomic accession criteria to make Serbia a functional open mar- the Board of Directors. Financial report can be accessed at the ket economy that is able to sustain competitive pressure. Business Registry Agency, more specifically at the link http://pre- traga3.apr.gov.rs/pretragaObveznikaFI, by entering FIC tax num- FIC distinguishes itself by being a unified voice of more than ber (PIB) 102443513 in the appropriate field. KEY FIGURES 18 Geo > €36 bil. years since 8% of investments coverage USA establishment by FIC members in Serbia 4% Rest of the world 2% Local companies 124 members >100,000 80% 6% directly employed from 23 sectors EU Law oces by FIC members in Serbia 4 FOREIGN INVESTORS COUNCIL / Annual Report 2020 ORGANIZATION & MANAGEMENT The FIC is established as a non-profit business association of for- President acting as substitute to President, and Roche General eign investors. The bodies of the Council are the Assembly of Manager Ana Govedarica as FIC Vice President spokesperson. For the Council, the Board of Directors, the President of the Board of info on the current BoD after the elections in December 2019 and Directors and the Executive Director. following changes, see at the FIC website. As the highest body of the Council, the Assembly gathers all FIC Committees are the very cornerstone of FIC. They gather represent- members and has regular yearly meetings to decide on ques- atives of member companies to discuss specific regulatory fields tions on strategic importance and shape broadly FIC future and formulate joint proposals to improve the current framework involvement. The Assembly – tackling both the regulations elects the Board of Directors on and their implementation. In a two years mandate. Board of 2020 the committees were reor- Directors holds monthly meet- The FIC is established as a non- ganized in order to align Com- ings to discuss and decide on mittees topics with White Book issues related to the FIC further profit business association of Task Force established in coop- development, as well as on cur- eration with the Government, rent advocacy efforts and stake- foreign investors. The bodies of as well as to increase efficiency. holders’ initiatives relevant to As a result, their number was the membership. Starting from the Council are the Assembly reduced to 8, however scope April 2020, BoD switched to of certain committees was online sessions due to the epi- of the Council, the Board of extended. The decision to reor- demiological situation. ganize them was taken in 2019. Directors, the President and It was also an election year for On March 10th, Board of FIC committees. Directors held a strategic ses- the Executive Director. sion to discuss FIC Strategy The Executive Director is 2020, past and future activi- appointed by the Board of ties. The overall plan and time- Directors and is responsible line of activities was agreed in principle. Due to the COVID-19 for the organisation of the daily activities of the Council, its bod- pandemic, all FIC activities planned for 2020 were adjusted to ies, committees and documentation. Aleksandar Ljubic holds the new circumstances. Our committees started organizing this position of high importance for FIC since June 2019. virtual meetings very quickly, and other useful and engaging events were held online, including conferences, webinar and The Executive Director directs the work of the Executive Office, White Book Launch. in charge of the implementation of the BoD and committee decisions, creating dynamic network within FIC and taking care The BoD President acts as FIC President, providing leadership of of the needs of the members.