The U.S. State Department’s annual report on Montenegro’s investment climate notes that the country generally offers a favorable investment environment but highlights challenges regarding judicial efficiency and regulatory transparency. A key example is the revoked mining concession for the Brskovo mine near Mojkovac, which led to an international arbitration claim by Swiss company Tara Resources (TR) seeking at least $300 million in damages. The dispute stems from the previous government granting the concession, which the current government later canceled. Montenegro has initiated a public call for experienced law firms to represent the state in the arbitration under ICSID rules.
The report also notes that Montenegro has the largest government in its history, with 32 members across 24 ministries, which may complicate investment requiring inter-ministerial coordination. Despite this, Montenegro maintains a stable, liberal economy based on the euro, with full capital mobility and no restrictions on foreign investment. Economic growth was 3.2% last year, and public debt fell from 105% of GDP in 2020 to 61.3% last year.
The economy is concentrated in tourism, energy, and agriculture, with tourism officially contributing 25% of GDP, potentially over one-third when including the informal sector. Strategic investment opportunities are identified in these sectors, along with infrastructure development including new highways and expressways planned through 2030.
The report warns that political influence persists in state-owned enterprises, and corruption remains widespread in public procurement and the buying and selling of state assets, posing obstacles to foreign direct investment.
