Article written by Milica Marković, Director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA)
In the article she wrote for InFocus Bosnia and Herzegovina, Milica Marković, the director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA), highlighted the most important activities of the agency, the potential of Bosnia and Herzegovina as an investment location, as well as most important economic sectors in the country. She also spoke about FIPA’s readiness to help every investor.
The Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA) is the main address that foreign investors who want to invest in Bosnia and Herzegovina turn to. I would first like to highlight the Agency’s most important activities, which include:
– Attracting and increasing the influx of foreign investments in Bosnia and Herzegovina and promoting existing investors in the country to make more investments and expand their business
– Improving the cooperation between the private and public sector, proposing measures to improve the business environment, and thus facilitate economic development
– Presenting Bosnia and Herzegovina as a country attractive to foreign investors.
Also, FIPA provides information, analyses and advice to potential investors on the business and investment environment, legislation relating to foreign direct investments, available investment projects, economic and business developments in the country, etc.
For all those who are interested in investing in Bosnia and Herzegovina, FIPA will help find a suitable investment project in our country and implement it as soon as possible
When promoting the opportunities and potential of Bosnia and Herzegovina as an investment location, we first highlight its good geographical location, availability of natural resources and attractions, a long tradition of industrial production, a large number of available industrial zones, attractive locations and production facilities, favourable legislation for foreign investors, the currency tied to the euro, regional and bilateral trade agreements, and the prospect of joining the European Union.
Bosnia and Herzegovina offers a wide range of investment opportunities in various economic sectors. The country is quite a favourable destination for all export-oriented production companies, given its excellent geo-economic position, easy and fast access to large markets, and duty-free trade agreements or having preferential status with almost all major countries which allows duty-free export of everything produced in Bosnia and Herzegovina to anywhere in the world. At the same time, we have a substantial offer of very affordable production and business spaces, adequate operating costs, availability of an affordable workforce, and existing incentives related to foreign investment and exports.
Bosnia and Herzegovina has great potential in the segment of energy production, both renewable (water, wind, solar, biomass) and thermal energy based on its coal reserves. The country could easily attract investments worth up to 10 billion euros in the coming period.
Bosnia and Herzegovina also has a long tradition and abundant experience in the automotive industry. For decades, the world’s leading vehicle manufacturers have relied on skilled labour in Bosnia and Herzegovina in terms of assembling cars for Western markets.
Thanks to the existing process of assembly of vehicles and production of auto parts, a strong, diverse supply chain of auto parts and supporting infrastructure has been established, which also includes an accompanying training system, development and research institutions, as well as specialized and skilled workforce with experience in the metal processing industry, and electrical and automotive engineering.
In the last ten years, this industry has experienced dynamic development and has become very export-oriented, exporting an average of 90% of the total products to 30 countries around the world.
Today, automotive companies from Bosnia and Herzegovina produce a wide range of parts and components, such as engines, gears and their parts, metal precision parts, drive axles, braking systems, couplings, control systems, pumps, filters, electric auto parts, textile and leather products, aluminium rims, batteries and various small parts such as springs, screws, pipes and components made of metal, rubber or plastic.
The IT sector is one of the most attractive and profitable branches globally, hence, it has huge potential and good prospects for stronger development in Bosnia and Herzegovina
Domestic companies produce for brands such as MERCEDES, AUDI, BMW, VOLKSWAGEN, TOYOTA, MAZDA, OPEL, FORD and FERRARI.
Bosnia and Herzegovina’s agricultural sector provides great opportunities for potential investors, including a lot of uncultivated land, a good climate conducive to the cultivation of various crops – from fruits and vegetables to cereals, medicinal and aromatic plants, as well as livestock, meat and meat products, milk and dairy products.
In terms of growing berries, our country is becoming renowned with international raspberry producers. According to the USDA’s National Agricultural Statistics Service Report, Bosnia and Herzegovina ranks 10th in the world in terms of raspberry production and export and 16th in the world in plum production.
The great natural potential and attractions in our country are untapped, so the tourism segment is still developing. Winter and mountain tourism, eco-tourism, spa tourism, cultural and religious tourism and partly coastal tourism are the most promising branches of Bosnia and Herzegovina’s overall tourism.
I would also like to single out the metal processing sector in Bosnia and Herzegovina as a sector appealing to foreign investors, due to its long tradition, great potential, having a natural competitive advantage mainly due to the existing resources of raw materials, labour, and the like.
I also have to mention the wood processing sector. Wood is a natural resource that Bosnia and Herzegovina is famous for. 53% of the land is covered with forest which is used for wood processing and furniture production.
The information technology (IT) sector has grown in the past few years. Given that the IT sector is one of the most attractive and profitable branches globally, hence, it has huge potential and good prospects for stronger development in Bosnia and Herzegovina. This economic branch has been growing daily and has all the prerequisites to become a driving force behind economic development, as well as to contribute to the development of Bosnia and Herzegovina’s economy and reduction of currently the biggest weakness of our economy, which is youth unemployment.
For all those who are interested in investing in Bosnia and Herzegovina, FIPA will help find a suitable investment project in our country and implement it as soon as possible.
Our services are free!
6, Dubrovačka Street, 71000 Sarajevo, tel: +387 33 278 080, fax: +387 33 278 081, website www.fipa.gov.ba