Podgorica, (MINA-BUSINESS) – Northern Montenegro has significant development potential, but without a stable and predictable business environment, stronger public investment and the completion of key infrastructure projects, it will not become a major investment destination, participants at an event in Bijelo Polje said.

The assessment was made during the first regional TBM Business Talks, organised by the Top Business Montenegro platform, at a panel on the role of institutions in the economic development of northern Montenegro.

TBM chief analyst and BI Consulting founder Ratko Nikolic said the region's potential was unquestionable, but investors also required favourable business conditions and strong institutional support. He stressed the need for a more strategic approach to narrowing the economic gap between the north and the rest of the country.

Bijelo Polje Mayor Petar Smolovic said the municipality had established six business zones, obtained a business-friendly certificate and introduced some of Montenegro's lowest local taxes and fees, but argued that this alone was insufficient to attract major investment. He said large investors needed stability, predictability and completed infrastructure, pointing to Kolasin as an example where motorway and cable car projects had attracted investment, while delays to supporting infrastructure created difficulties.

Plav Mayor Nihad Canovic said the north had seen improvements in public infrastructure, private-sector employment and new business creation, but continued to lag behind the rest of Montenegro due to insufficient public investment and poor planning. He called on the government to direct a larger share of capital spending to northern municipalities, saying local authorities lacked the resources to drive development independently.

Canovic identified better transport links, the opening of the Murino–Cakor–Pec border crossing, the revitalisation of Plav Lake and improvements to energy infrastructure among Plav's priorities. 

Both mayors said northern municipalities were working together through the Union of Municipalities to advocate decentralisation and protect local interests, expressing hope that the region would see stronger investment, higher employment and improved economic and demographic indicators in the coming years.

The next regional TBM Business Talks event, focusing on southern Montenegro, is scheduled for September.