For the ninth consecutive year (excluding 2022), the electrical industry remains the largest contributor to Bulgaria's exports, as reported by the Bulgarian Association of Electrical Engineering and Electronics (BASEL), referencing Eurostat data. By the end of October 2024, the sector generated approximately 4 billion euros in export revenue, representing 11% of the total exports from the Bulgarian processing industry. This is despite a slight 3.2% decline in exports compared to the same period in 2023, a trend also observed in the overall goods exports from Bulgaria. According to experts, one of the primary reasons for this decline is the economic climate in key European countries, notably Germany and Italy, which account for a significant portion of Bulgaria's exports.

The electrical industry is considered a cornerstone of the Bulgarian economy. Eng. Orlin Dimitrov, Executive Director of BASEL, emphasized that the sector has a dynamic portfolio and a vital role in advancing both technological progress and Bulgaria's export potential. Over 1,250 companies in Bulgaria employ around 57,000 people in the production and repair of electronic appliances and electrical equipment. The most prominent exports include components for voltage apparatus over 1000V, electrical apparatus under 1000V, transformers, cables for cars, electrical panels, batteries, refrigerators, and boilers. Notably, about 70% of the sector's exports are directed toward EU countries, with Germany, Italy, and the Czech Republic as major recipients.

Despite the positive export performance, the industry faces three significant challenges. The first is that more than 60% of public procurement tenders are awarded to companies from non-EU countries, such as China and Turkey. BASEL has called on the Bulgarian government to adopt the practices of countries like Germany, Romania, and France, which exclude non-CEFTA countries from such tenders. This would enhance the competitiveness of Bulgarian companies and boost local production.

The second challenge is a severe labor shortage at all levels of the industry. Dr. Eng. Dimitar Beleliev, Chairman of the BASEL Board, pointed out that the issues stem from two main factors. One is the inflated staff levels and high salaries in state-owned energy companies, while the second is the cumbersome process and lengthy timelines for hiring labor from third countries. The industry has resorted to hiring workers from countries like Uzbekistan, Nepal, the Philippines, and even Italy. However, without state intervention to ease the labor market distortions and facilitate the hiring process for foreign workers, the industry faces a looming personnel crisis.

Lastly, the absence of a clear state policy supporting the industry's development and the stagnation of European programs pose significant hurdles. BASEL has raised concerns about the uncertainty surrounding taxes and regulations, which deter potential investors. Dr. Beleliev compared Bulgaria's complicated and time-consuming procedures for photovoltaic installations with Romania's straightforward online application process, where citizens can easily access state-supported vouchers for solar projects. In Bulgaria, however, individuals face high upfront costs and lengthy approval processes, with no guarantee of reimbursement. Without a cohesive state policy and a clear vision for the industry and labor market, BASEL warns that the challenges facing Bulgaria's electrical and electronics sector will only worsen.

Founded in 1994, BASEL is the national representative organization for the electrical engineering and electronics industry in Bulgaria. It includes 115 member companies, both domestic and foreign, involved in manufacturing, engineering, consulting, and development activities. BASEL members contribute to an annual turnover of approximately 1 billion euros.