Press conference of Minister Ivanovski: the role of ICT industry in Macedonian economy

Skopje, January 05th 2010     

Allow me to inform you about the IDC Adriatic report, prepared for ICT market analyses in Macedonia for 2008.
Firstly I would like to welcome the representatives of MASIT-ICT chamber (who order an annual report preparation by IDC Adriatic; the Ministry of information society helped them to get all necessary information), Mister Goran Mitrevski, President of MASIT and Mister Ivan Mitrevski, Executive Director of MASIT.

The ICT industry in 2008 consisted in 898 companies which was 1, 6% of the total number of non financial companies, with 2, 3% of the Macedonian’s workforce. With this potential, the ICT industry generated 5, 0% from total revenues and 9, 0% from the value added taxes.

Macedonian IT industry in 2008 generated $50.12 millions in computers and information service export, which represents an amazing jump of 51, 17% in 2007. This is a figure that very few economies can be proud of.

Beginning from 2006, when Macedonian Government, for the first time, seriously started the development of information society, 420 companies with 1885 employees were registered in the IT sector in Macedonia. In 2008, the number of registered companies was 786, with 3515 employees, which is a 87, 14% growth of registered companies in period of 3 years, and 86, 42% growth of employments for the same period. Compared to 2007, there is a 14, 1% growth of registered companies and 26, 6% employments’ growth. For the first time in Macedonia, the number of employees in the IT sector is bigger then the number of employees in the communication sector.

The revenue of the IT sector in Macedonia in 2006 amounted to 7, 8 billion denars and in 2008 to 16, 3 billion. There is a growth of 108% form 2006 – 2008 and a growth of 26, 4 from 2007 – 2008. 
The IT sector in 2006 contributed to the value added tax with a total of 2, 4 billion denars, while in 2008, the contribution to VAT reached the 4, 6 billion denars. That is a growth of 84, 6% (63% from 2007 till 2008). 

The Macedonian IT industry had its biggest successes in the export sector. Form a total of 76. 45 million American dollars, 65, 6% were export, which is a larger amount, compared with other countries in the region.
These are just most significant facts about the increase of domestic ICT industry.

For the first time, the IT industry had a grater number of employees than the communication sector, which includes mobile, fixed and cable operators and traders, whose business is communication’s equipment sale. 

This report confirms the effort of Macedonian Government in developing information society. Macedonia has the potential to become a country of information technologist. Macedonian companies have the capacity to conquer foreign markets. That is supported by the fact that the IT export in 2008 was over $50 million. 

The commitment of the Macedonian Government and the Ministry of information society is to stimulate small and medium size enterprises to refocus their activities in software and service development, because of the fact that value added taxes from the market segment are largest. The competitiveness of small and medium size enterprises in the ICT trade is increasingly threatened by the merging of big ICT companies, which are present in Macedonia. Small margins in resale of hardware and high interest rates are contributing to a further complication in the work of small and medium size enterprises.
Precisely for this purpose, the Ministry of information society, in its working program for 2010 predicted a large number of projects from the e-Government and e- Education filed, in which numerous domestic companies could be involved. The aim is to make 2010 more successful year for the IT industry, than the 2008. 

Thank you for your attention.