Belarus is a country of small lovely towns, which investment opportunities are really huge. However, potential investors often know little about the country as a whole, and its small towns in particular, their competitive potential and tax benefits granted to investors. But still small towns of Belarus are really of great potential. This is not only advantageous geographical location, proximity to large industrial centers and European capitals, modern telecommunications, transport and banking infrastructure, but also this are educated, hard-working people who are able to work effectively and create a competitive product. Moreover, in small towns there are invaluable benefits as clean air, lack of traffic congestion and other negative features of modern cities.
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“In search of funds for the creation and expansion of production facilities, today it is necessary to actively attract investment. Regions should demonstrate their investment potential, promote themselves. After all, much depends on the correct positioning of the city, you need to learn to look at your cities with investor’s eyes,” said director of the National Agency of Investment and Privatization Natalia Nikandrova.
As international experience shows, some of the world's largest companies have been created in small towns, which eventually turned from the places that young people strive to leave in search of a better life into vigorously developing cities and towns that attract workers from across the country.
A lot of profitable companies operate in small towns of Belarus. For example, in the area of Pukhovichi an investment project of August-Bel JSC has been successfully implemented, namely it is construction of the plant for the crop protection products production. Today, it is the most modern plant for the production of plant protection chemicals in the country. The industrial complex of the August-Bel plant includes the best achievements of advanced technologies. The company uses high-tech equipment from leading European manufacturers. The factory laboratory, analogues of which do not exist in Belarus, is equipped with best-in-class devices. Production is aimed at import substitution in the agrochemical sector. The preparations protect all major crops such as corn, flax, potatoes, beets and other.
Morozprodukt JV with production facilities in Marina Gorka holds a leading position in the market of ice cream and frozen semi-finished products in Belarus. The statutory fund is 90% of Lithuanian capital, it employs more than 750 people, has a wide distribution network – more than 13 thousand points of sale. Starting the production of ice cream with three species in one year the enterprise produced 17 kinds of goodies. To date, the commercial network receives about 60 kinds of ice cream of various flavors, types and packaging. In June 2013, Morozprodukt introduced a new plant, designed according to the latest global trends in the production of ice cream.
It is worth noting one of the GDP-forming companies of Dzerzhinsky district FLLC Unomedical, founded by the Danish company Unomedical. The company specializes in manufacturing disposable medical products. Total product range includes 1 500 items. The Company is part of a global group ConvaTec company whose innovative medicines and medical technology are represented in 91 countries. All products are exported to Slovakia for sterilization and further sales around the world, including Germany, Denmark, France, and Norway.
“Belarus is constantly trying to improve the investment attractiveness of small towns by offering new growth and development opportunities for the private sector. Since 2012 the country has a Decree #6 “On stimulating entrepreneurial activity in medium, small towns and rural areas”, according to which all commercial organizations that provide services or launch production in the region receive unprecedented tax reliefs, allowing to work more actively and safe,” said director of NAIP.
In particular, within 7 calendar years from the date of the state registration such companies are exempt from profit tax, income tax with regard to sales of own-produced goods, paying the state fee for licenses, other taxes and fees, as well as the mandatory sale of foreign currency received by transactions with non-residents of Belarus from sales of own-produced goods, including the lease of property.
Many foreign entrepreneurs have already benefited from the granting of preferences. The largest agricultural holding in Belarus Agricultural farm Machulishchy, which is part of the Presidential Administration of Belarus, has attracteda Lithuanian investor to the creation of a network of biogas stations. With the participation of the Lithuanian company Modus energija it is planned to build biogas plants based on farms Otechestvo (Pruzhany district), Parohonskoe (Pinsk district) and Vasilishki (Shchuchyn district). During 2017-2018 years, eight plants with installed capacity of 8 MW will be built on their territory. According to experts, the investment cost of the installation with a capacity of 1 MW is 2 million Euros.
In 2014, Modus Group, BPS-Sberbank and the Minsk Oblast Executive Committee signed a memorandum on the implementation of the investment project for the construction and operation of solar power plants in Myadel area. Its estimated cost is 10.2 million Euros. According to the investor, this project is now in the final stage, all construction and installation work has been performed.
Foreign investors are going to build an oil-extraction plant in the value of at least 100 million US dollars in the Grodno region. The company is associated with high technology and high-level processing. The company Praymmilk for whey fat concentrate production will be soon opened in Shchuchyn.
“There are many types of businesses that can be started and be successful in it, even in a small town. The most important thing is to clearly define the scope of your interest. In turn, the Agency is ready to assist investors in solving any problem, and I should say that our services are completely free for foreign businesses,” summed up director of NAIP Natalia Nikandrova.