As part of our new series drawing on the original analysis and data collected by Emerging Europe as part of our Future of IT report, we look at an underperforming but quickly improving IT sector, Albania.
Despite being a smaller player in the region, Albania is making steady progress in its IT sector, with initiatives that aim to develop its talent, infrastructure, and business environment. The country’s development of digital public services also warrants credit.
Overall, the country placed 21st in Emerging Europe’s IT Competitiveness Index in both 2023 and 2024—a modest performance but with clear signs of improvement, there is every chance it can now begin to climb the ranking in coming years.
Talent: Nurturing the future of IT
Albania ranks 21st in the Talent category with a score of 10.06, reflecting the country’s challenges on improving IT education and workforce development. Initiatives such as the introduction of coding in schools and the expansion of digital literacy programmes are, however, helping build a foundation for future growth.
Albania’s educational system is increasingly focused on IT-related courses, and the number of students entering the field is rising steadily.
In 2022, Albania saw significant progress in IT education, with a peak of 8,293 IT students enrolled, and most of these students participating in bachelor’s and short-term programmes.
The government’s efforts to attract digital nomads with long-term visas are also aimed at enhancing the country’s talent pool and making it more competitive on the international stage.
IT infrastructure: Digital transformation in progress
Albania’s IT infrastructure ranks 15th, with a score of 8.52. The country has made substantial strides in expanding digital infrastructure, supported by various government initiatives aimed at improving internet connectivity and increasing access to digital services. Despite being relatively small compared to other nations in emerging Europe, Albania has ambitious plans to modernise its IT infrastructure.
Key projects include smart labs in schools, digital services expansion, and the promotion of e-governance.
By 2023, over 95 per cent of applications for public services were being submitted online through the e-Albania portal, showcasing the country’s commitment to embracing digital transformation.
Economic impact: Steady but growing
Albania ranks 19th in the Economic Impact category, with a score of 8.19.
While Albania’s IT sector is still emerging, the country has made notable progress in recent years, particularly in IT exports. T
The export of IT services, including computer services, has grown consistently, with the value of IT services exports increasing from 68.4 million euros in 2018 to 155.3 million euros in 2022. This represents a significant rise in the contribution of IT to the national economy.
Albania’s IT sector continues to attract foreign investment, especially from companies seeking cost-effective solutions in software development and IT services.
The government has introduced policies aimed at creating a favourable environment for foreign investors, particularly in the IT sector, which is expected to contribute more to the economy in the coming years.
Business environment: Support for start-ups and innovation
Albania ranks 19th in the Business Environment category, with a score of 9.60. While the country still faces challenges in attracting large-scale investments, its start-up ecosystem is rapidly evolving. Government programmes such as Albania Tech and various entrepreneurship initiatives are fostering innovation and supporting the growth of start-ups.
Albania has introduced several strategies to improve its business environment, including tax incentives for IT firms and increased support for technology-driven enterprises.
The national cybersecurity strategy (2020-25) further underscores the government’s commitment to ensuring a secure and supportive environment for IT businesses to thrive.
A look ahead
Albania’s IT sector is poised for growth, with a focus on talent development, infrastructure enhancement, and fostering a business environment that encourages innovation. The country’s ambition to become a more significant player in the regional IT landscape is clear.
As Albania continues to build on its digital infrastructure and attract foreign talent and investment, the outlook for its IT sector remains positive.
The government’s efforts to embrace digital transformation and create an environment conducive to innovation will be crucial in shaping the future of Albania’s IT industry.
While challenges remain, Albania is taking the right steps to ensure its place in the evolving world of technology.
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