Bulgaria Investment in key sectors

Bulgaria’s Growing Technology Sector: A Hub for Innovation and Investment

Bulgaria has been steadily increasing both public and private investments in its technology sector, particularly in cloud technology, artificial intelligence (AI), cybersecurity, and software development. Known for its rich IT tradition, the country has become a leading player in the ICT sector, which is a crucial driver of its economy. In 2023, over 126,000 specialists were employed in the sector, reflecting the expanding demand for skilled professionals and the growing significance of technology in Bulgaria’s overall economic development.

Bulgaria: The Silicon Valley of Eastern Europe

Bulgaria is often referred to as the “Silicon Valley of Eastern Europe” due to its rapidly growing IT sector and favourable conditions for technology companies. These conditions include low corporate tax rates, a skilled workforce, and an increasing number of international investments. These factors contribute to a thriving ecosystem for technology startups, as well as established companies looking to expand their operations in the region.

The country’s strategic location, well-developed infrastructure, and access to European Union (EU) markets have further enhanced its appeal to foreign investors and tech giants looking to tap into Eastern European talent and innovation.

Key Investments and Expanding Companies

Recent investments in Bulgaria’s tech industry highlight its potential for growth and innovation. Notable examples include:

• Infosys, a global leader in next-generation digital services and consulting, expanded its European footprint by opening a new centre in Sofia. The new facility will focus on AI and cloud solutions, helping to drive Bulgaria’s presence in these rapidly growing tech fields.
• Evrotrust, a Bulgarian digital identity provider, secured €3.3 million in private funding to expand into new markets. This investment will support the company’s mission to offer secure digital identity services across Europe, strengthening Bulgaria’s role in the digital transformation sector.

These investments not only bolster Bulgaria’s position in the tech industry but also attract further interest from both public and private investors in the country.

A Bright Future for Bulgaria’s Tech Sector

Bulgaria’s technology sector is on an upward trajectory, benefiting from both domestic and international investments. With a skilled workforce, low tax rates, and strong growth in sectors like cloud technology, AI, and cybersecurity, Bulgaria is well-positioned to continue its rise as a leading hub for innovation in Eastern Europe. As more global companies and investors recognize the potential of Bulgaria’s technology ecosystem, the country is set to remain a key player in the global tech landscape.

This blog article highlights the growing importance of Bulgaria’s technology sector and the increasing public and private investments driving its development.

Bulgaria’s Commitment to Education and Technology: Investing in the Future

Bulgaria is steadily advancing in its efforts to enhance its education sector, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields. Public investments, supported by EU funding, are focused on improving digital infrastructure and enhancing digital literacy to equip the workforce with the skills required for a competitive global economy. While public investments in education continue to grow, private investment in educational technologies remains relatively underdeveloped compared to other sectors. However, progress is being made, particularly in the area of digital education, as part of Bulgaria’s broader push for digital transformation.

Strategic Investments in Education and Technology

In 2024, the Bulgarian government allocated €2.2 billion, which constitutes about 2.3% of GDP, to achieve the EU’s Digital Decade objectives. This funding will focus on enhancing digital skills, improving infrastructure, and providing better digital services to students and educators. These initiatives are designed to create a more robust and adaptable education system, one that can support innovation and equip the next generation with the skills needed for success in an increasingly digital world.

Increased Funding for Education: A Focus on Quality and Accessibility

Looking forward, Bulgaria’s education sector is set to receive even greater attention. The draft budget for 2025 proposes an increase in education funding from 4.1% to 4.8% of GDP, a move that underscores the government’s commitment to improving educational quality and accessibility for all students. This increase will help ensure that Bulgaria’s education system is better equipped to meet the challenges of the 21st century, including the rapid advancements in technology.

Supporting Digitalization and Innovation through EU and NRRP Funding

In addition to the national budget, Bulgaria’s National Recovery and Resilience Plan (NRRP) allocates funds to support key areas such as green energy, digitalization, and the private sector, with a portion dedicated to improving the education system. These investments are part of Bulgaria’s broader strategy to build a more sustainable, innovative, and digitally-enabled economy.

A Vision for a Digital Future

Bulgaria’s strategic investments in education and technology are a testament to the country’s commitment to fostering a skilled and digitally literate workforce. 

With increased public funding for education and a focus on digital transformation, Bulgaria is well-positioned to enhance its economic competitiveness and continue growing as a leader in technology and innovation in Eastern Europe. As the country invests in its educational infrastructure, it will pave the way for a brighter, more prosperous future driven by innovation and digital skills.

Sources:

• Bulgaria ICT Market Size & Share Analysis – Growth Trends & Forecasts
  International Trade Administration
• Digital Strategy
• BTA
• U.S. Department of State