New legislation would introduce financial incentives for local manufacturers and help integrate domestic products into military procurement programmes.
North Macedonia is preparing legislation to strengthen its domestic defence industry through subsidies, research and development support, and strategic agreements with local companies. Defence Minister Vlado Misajlovski outlined the initiative in parliament, identifying industrial development as part of the country’s long-term military modernisation plans, agency KOHA reports.
The proposed framework would enable companies to use designated facilities where the state holds usage rights and receive financial assistance to develop defence-related products. The government also aims to help domestic manufacturers overcome barriers to entering international markets.
Unmanned aerial systems are among the technologies attracting interest from local businesses. Misajlovski said he had met with young entrepreneurs already producing drones in North Macedonia, while the government is considering ways to support further development and enable the Army to evaluate domestically manufactured equipment.
The minister said around 30 companies had registered in the defence industry and were submitting bids for opportunities in the sector. He also indicated that North Macedonia could allocate nearly €1 billion to military modernisation over the next decade, potentially creating opportunities for domestic suppliers. This figure relates to planned modernisation spending rather than a dedicated fund for local manufacturers.
The proposed legislation is intended to connect domestic industrial capabilities with the Army’s procurement needs and help local products progress towards certification and export markets. The framework remains under preparation, with further steps required before the proposed support measures can be implemented.
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