Albania to relaunch defense industry in 2025
Albania is set to restart its domestic defense production, with the Ministry of Defense preparing to relaunch factories to produce munitions and uniforms. Defense Minister Pirro Vengu, in an interview with the public broadcaster RTSH, revealed that negotiations with interested companies would begin within weeks, aiming to sign co-ownership agreements that include fiscal incentives for private investors.
Why is this important: Reviving Albania’s defense industry marks a significant step toward increasing self-sufficiency and creating economic opportunities. By producing munitions and uniforms domestically, the government aims to reduce reliance on imports and generate revenue through partnerships with private companies. This initiative aligns with NATO practices and will allow Albania to modernize its defense infrastructure while addressing the longstanding issue of uniform production for its military and uniformed agencies.
Context: The reopening of key military production facilities, including the factories in Mjekës, Poliçan, Gramsh and the Pashaliman Naval Base, is expected to provide a boost to Albania’s strategic defense capabilities, but also to its economy. Minister Vengu is optimistic that the first contracts will be signed by the end of 2024, with production starting shortly afterward.
Albania’s armed forces are also undergoing expansion, with a goal to increase personnel from 8,000 to 10,000 within two years. Recruitment numbers have already risen, with 485 recruits joining in 2024 compared to 275 in 2023. Enhanced salaries—starting at 75,000 lekë per month for new recruits—are credited with making the armed forces more attractive to young Albanians.
The Ministry of Defense is simultaneously focused on establishing a Reserve Force to strengthen Albania’s cyber defense and civil protection capacities, ensuring the country is prepared for modern challenges.
Bigger picture: The initiative reflects Albania’s commitment to modernizing its defense capabilities while fostering economic growth. By tying fiscal benefits to co-ownership agreements with private investors, the government seeks to ensure state oversight and revenue generation. As part of this broader strategy, the Ministry of Defense is also renovating military facilities to meet NATO standards, emphasizing Albania’s role as a reliable ally within the alliance.
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