Foreign investments in Bosnia and Herzegovina increased by 23.9 percent, the most investments came from Russia, the Netherlands and Great Britain, and this year investments have already been announced in the sectors of metal processing, tourism, mining, production of food products, and the wood sector.
With every new investment, new jobs are created, and Bosnia and Herzegovina ranks 3rd in terms of foreign investment in the region, after Serbia and Albania.
According to the published preliminary data of the Central Bank of Bosnia and Herzegovina, within the DSI Flows, with estimated retained earnings, for the period January – September 2023, direct foreign investments amounted to 1,442.8 million marks or 737.7 million euros.
Foreign investments in that period are higher by 23.9 percent compared to the same period a year earlier, when DSI amounted to 1,164.1 million marks, said Feni from the Agency for the Promotion of Foreign Investments of Bosnia and Herzegovina – FIPA.
Invested in mining, energy, paper
In the first nine months of 2023, the activities in which the most direct foreign investments were registered in BiH are: “financial service activities, except for insurance and pension funds” (315.3 million BAM), “production of coke and refined petroleum products” (311.9 million BAM) , and “production and supply of electricity, gas, steam and air conditioning (157.3 million BAM).
Significant increases were also registered for the activities of “wholesale trade, except trade in motor vehicles and motorcycles” (101.9 million BAM), then “production of chemicals and chemical products” (72.8), “production of base metals” (70.9 million BAM), “production of paper and paper products” (70.6), “retail trade, except trade in motor vehicles and motorcycles” and “production of motor vehicles, trailers and semi-trailers” (63.6 million BAM).
When it comes to the announced investments for this year, FIPA says that investments have already been announced in the sectors of metal processing, tourism, mining, production of food products, and the wood sector.
The biggest investments come from Russia, the Netherlands and Great Britain
In the first six months of 2023, the countries with the largest registered amounts of capital in Bosnia and Herzegovina are Russia (284.2 million BAM), the Netherlands (124.6), Great Britain (112.0) and Croatia (104.9 million BAM).
Improvement of the business environment in Bosnia and Herzegovina
Regarding complaints from investors, they are still mostly related to lengthy procedures related to the issuance of the necessary permits for the initiation and realization of investments.
In order to improve the business environment in BiH, FIPA provides specific recommendations for taking measures related to monetary and credit policy, tax policy, import and export policy, fiscal policy, labor and employment policy and property rights, which should be adopted by the competent state, entity, cantonal and local government institutions, all with the aim of attracting new foreign investments, which automatically mean new jobs, the agency says.
Furthermore, through the “Aftercare” post-investment support program, in cooperation with other competent institutions, FIPA strives to solve and is solving administrative obstacles for foreign investors, with the aim of retaining existing investments and motivating new investments.
“Cooperating with BiH institutions, entity institutions, the Council of Foreign Investors in BiH (FIC), as well as international institutions and organizations and directly with foreign investors on improving the business environment in the country, FIPA strives to point out to the competent authorities the key obstacles in this area and in the same time to give concrete recommendations for its improvement”, conclude from the Agency for the Promotion of Foreign Investments of Bosnia and Herzegovina, noting that some progress has been made, but much remains to be done.
