Local businesses lack motivation to invest

On March 31^st, 2017, the National Agency for Investments and Privatization published a collection of “Investment Projects in Belarus”, which included 38 investment projects in various sectors of the economy. Some projects lack indication of the financial model, which is an obstacle for large investors. Foreign investors are unlikely to show interest in most of the listed projects. Foreign investors prefer to invest in already operating businesses in Belarus. New investors are likely to be interested in quick-paying projects with the return of investments within 3-5 years and with state guarantees. Large foreign companies are not interested in investing in countries with high business risks and the lack of private property rights guarantees. Local businesses could implement some of the listed projects, but the risks of joint activities with state enterprises prevail over possible benefits, due to possible state interference with the project implementation at any stage, or distribution of profits upon the project completion.