site.btaAHK Bulgarien New Head Sonja Miekley: Bulgaria Is Increasingly Positioning Itself as Business Destination for Products and Services with Added Value

Sonja Miekley, the new head of AHK Bulgarien (German-Bulgarian Chamber of Industry and Commerce), said in a BTA interview that Bulgaria offers suitable conditions for the development of the manufacturing industry and the automotive industry. Interest in sectors such as mechanics, mechatronics, IT and robotics has also been high among investors in recent years. 

Miekley explained that innovation plays a key role in the development of these sectors, startup communities are also an important factor in this process. By incorporating  digital transformation and the use of new technologies in the work process, Bulgaria is increasingly positioning itself as a business destination for products and services with high added value, she said.

At the moment, the German-Bulgarian Chamber of Industry and Commerce provides assistance and support to a potential German investor from the automotive sector. A large part of the current inquiries are related to the search for partners and sub-suppliers in the field of mechanical engineering and construction. "We are also observing an increased interest of Bulgarian companies in expanding the German market," said Sonia Miekley.

The slowdown in economic growth in Germany will most likely affect the development of the Bulgarian economy due to the strong trade and investment ties between the two countries, Miekley said, noting the possible impact on Bulgaria's exports to Germany, as well as a decrease in direct German investments in Bulgaria, which would affect the growth of the Bulgarian economy and the creation of new jobs.

"Bulgaria has established itself as an important player in the global automotive industry, specializing in the production of components and electronic modules, and is a preferred partner of leading German car manufacturers. Geopolitical risks, high electricity prices and processes related to technological transformation remain challenges for the automotive industry, especially for suppliers of automotive parts and components," commented Miekley. 

Latest data show the trade between Germany and Bulgaria in 2023 was worth EUR 11.8 billion. Despite best efforts made, it did not manage to reach the record of EUR 12 billion set in 2022, which means a drop of 2.2%, said Miekley, adding that this puts Bulgaria in 39th place in the world as a commercial partner to Germany. As for imports and exports, Bulgaria exported goods worth EUR 6 billion to Germany, where a decrease of 10.8% was noted. At the same time, the value of goods imported from Germany has increased by 8.5% compared to 2022, reaching EUR 5.9 billion, said Miekley. According to BNB data, direct net foreign investments in Bulgaria from Germany amounted to EUR 126.5 million in 2023.

The complex and unpredictable regulatory environment and the rule of law are among the most common negatives, according to German business representatives, commented Miekley. She pointed out a 2023 survey on the business environment in Bulgaria, which the Chamber has conducted annually among its members since 2005, which shows that businesses in Bulgaria outline the lack of qualified personnel and the problems related to the fight against corruption, as main challenges. The results of this year's survey will be announced in June, Miekley said.

One of the first and most urgent topics to focus on is the full accession of Bulgaria to the Schengen area, so that companies can travel freely within the European Union, as this is one of the most important issues for German companies, said Miekley. Another very important topic for Chamber members, along with the shortage of qualified personnel, is the accession of Bulgaria to the Eurozone

"When I travel in Germany, I never get tired of talking about Bulgaria and its potential. I myself am an example of this, since I returned to Bulgaria again and chose to work here," Miekley added.