EBRD Invests in VOLI to Expand Operations with New Logistics Center

The European Bank for Reconstruction and Development (EBRD) plans to invest in VOLI, a leading retail company in Montenegro, to facilitate the construction of a new logistics center. This announcement was made during the Consumer Rules Summit 2025, where business leaders gathered to discuss the pressing challenges facing their industries.

During the summit’s panel discussion titled “Tough Talks – Mission Report: Insights from the Top,” prominent figures from the regional business community shared their insights. Dragan Bokan, the Chairman of the Board and founder of VOLI, revealed that the new investment will allow the company to establish a logistics center spanning 20,000 square meters. Bokan emphasized that this development is part of a larger investment strategy, which includes ongoing projects valued at €75 million.

Voli is currently constructing five significant facilities, including a large complex in Podgorica measuring 25,000 square meters and new retail centers in Igalu, Nikšić, and Kolašin. Each year, VOLI allocates an additional €5 to €6 million for renovating existing stores to meet the rising demands of consumers.

Challenges Faced by Montenegro’s Economy

Bokan outlined the primary challenges confronting Montenegro’s economy: inflation, labor shortages, and declining productivity. He highlighted the imbalance between the private and public sectors, stating that 120,000 people are employed in the private sector compared to 80,000 in the public sector. Bokan described the current economic landscape as a “serious sandwich,” characterized by uncontrolled hiring in public administration, a continuous exodus of the workforce abroad, and narrow profit margins that companies cannot raise without losing competitiveness.

Despite VOLI offering the highest wages in the retail sector and providing private health insurance, Bokan stressed that productivity continues to decline due to labor shortages. He pointed out that while VOLI is the largest producer in the agricultural sector, its production heavily relies on workers from Albania, who arrive daily to support operations.

In addressing pressures in the retail sector, Bokan stated that retailers can no longer passively accept demands from suppliers. “We cannot continuously raise prices while watching customers leave the market,” he said. He anticipates a tumultuous 2026 and 2027, warning that many discussions and panels have failed to address the significant challenges ahead.

Strategic Planning and Future Investments

Mihailo Janković, CEO of MK Group, shared insights into his company’s long-term strategies, emphasizing that plans extend to 2029. He noted the unexpected magnitude of changes in the regional market and the resulting impact on overall consumption. Janković illustrated the business climate as unpredictable, likening preparations for the market to an athlete expecting a short sprint only to find themselves in a decathlon.

On the topic of investment decisions, Janković mentioned a significant investment of €42 million in an alcohol factory and indicated that MK Group is considering building a new factory for its subsidiary Carnex, which would entail an investment of around €90 million.

Emil Tedeschi, President and CEO of Atlantic Group, highlighted the importance of understanding consumer price limits. He noted that while the price of raw coffee has tripled in recent years due to adverse weather conditions, speculation, and geopolitical uncertainties, coffee remains a staple in everyday life. Tedeschi emphasized that while consumers may reduce their coffee intake if prices rise too much, it will continue to be a part of their daily routine.

The panel concluded with a sobering reflection on the global landscape, with leaders acknowledging that there is no clear direction in addressing crises. Tedeschi’s remarks underscored the need for stability and clear communication between producers and retailers to navigate the upcoming economic challenges.

As business leaders prepare for an uncertain future, the focus on strategic investments and adapting to changing market conditions remains vital for companies like VOLI and its counterparts in the region.