Marko Kubatlija, Acting Director of the Agency for the Promotion of Foreign Investments of Bosnia and Herzegovina (FIPA), said in an interview with Anadolu Agency that Bosnia and Herzegovina is experiencing constant growth in terms of direct foreign investments and that as many as 80 percent of investors return to the country to reinvest.
According to FIPA data, direct foreign investments in the period January-September 2023 amounted to 1.442 billion convertible marks (BAM), which is an increase of 23.9 percent, since the investments the year before amounted to 1.16 billion BAM. It is mainly about reinvestments of existing foreign investors in Bosnia and Herzegovina.
“What is interesting information and what is very important is that FIPA has recorded a constant growth of direct foreign investments in all fields for the past three to five years, and we will continue to do so in the future,” Kubatlija said.
In the first six months of 2023, the countries with the largest registered amounts of capital in BiH are Russia (284.2 million BAM), the Netherlands (124.6 million BAM), Great Britain (112 million BAM) and Croatia (104.9 million BAM).
“We also have the countries of the region, Serbia and Albania. It is interesting that Russian investments surprised us with this increase, but in some period we will also know which companies are from the Russian Federation. Most of the investments are in the fields of production and tourism, but we are waiting for them to tell us officially from the Central Bank of Bosnia and Herzegovina which sectors these are, given that we currently only have investment statistics, we have not yet received information about which companies are in which areas.” Kubatlija said.
One of FIPA’s responsibilities is attracting and increasing the inflow of foreign investments into Bosnia and Herzegovina and encouraging existing investors in the country to further invest and expand their business. Kubatlija points out that in the coming year FIPA will additionally work in the field of improving the image of BiH as an investment destination through participation in international business forums and conferences where they will represent sectors and projects for investment in BiH.
“We will try to make as many contacts as possible with potential foreign investors, both in our country and abroad. FIPA is an agency that deals with attracting foreign investments, and our task is to act outside the framework of Bosnia and Herzegovina, but we also, through our consular departments, through our embassies, the diplomatic relations we have, also work to attract foreign investments, we get in touch with potential foreign investors located in Bosnia and Herzegovina”, said Kubatlija.
In 2024, Kubatlija expects the growth of direct foreign investments in BiH and that FIPA will be the only agency through which the state will have direct foreign investments.
In addition, FIPA will work more intensively on animating and connecting all competent institutions in BiH in order to work together on the presentation of potential.
“Through this, I want to invite foreign investors, especially from the Republic of Turkey, to contact FIPA and somehow get all possible information and what is needed to invest in our country,” he added.
BiH is a favorable destination for export-oriented production programs
FIPA pointed out that Bosnia and Herzegovina offers a wide range of investment opportunities in various aspects and that it is a very favorable destination for all export-oriented production programs considering the very favorable geo-economic position of the country, easy and fast access to large markets, the existence of duty-free agreements trade with almost all major countries, which enables the duty-free export of everything produced in Bosnia and Herzegovina around the world.
“For example, 80 percent of foreign investors who have already invested in BiH and opened certain businesses, return to reinvest, which is a very good indicator considering how BiH is presented in the world. In the difficult times that Europe and the world are currently in, we are very satisfied with the influx of foreign investments, regardless of all the political disagreements and everything that is presented in the media,” said Kubatlija and added:
“What is problematic as far as foreign investments in Bosnia and Herzegovina are concerned are obstacles in the administration, that is, administrative barriers, in terms of opening companies, collecting papers, data. This is something that really bothers foreign investors, and we as FIPA have the main task and goal to get into a situation as soon as possible to make it easier for potential investors to work in BiH”.
He added that foreign investors are equal to domestic investors and that they also have all the rights that domestic investors have.
“I think it’s a great story for foreign investors, for foreign capital, with the fact that we still need to work a lot to overcome administrative barriers and to open the BiH market to foreign investments as soon as possible, efficiently and quickly, so that we don’t lose investors due to some minor obstacles. “, said Kubatlija.
Realization of started investments
He added that FIPA is in constant contact with foreign investors, both those who already do business in BiH and those abroad, to whom it offers opportunities for investment and investment projects.
There is the realization of investments that started last year or earlier, and continue to be implemented in 2024. Also, Studen Agrana and the Brčko District Government marked the beginning of the construction of a free zone in Brčko. The foundation stone was laid for the future zone, which will cover 35 hectares and be built in four phases.
Also in the process is the realization of the “Lidl” project, while Adriadic Metals Limited from Great Britain is realizing the project in Vares. The German MAHLE Electric has started the construction of a new production hall in Laktaši. He added that Natron-Hayat continues with reinvestments this year as well as the Lactalis group. At the same time, the German Mubea is in negotiations with the City of Prnjavor about starting production.
On the basis of the Memorandum of Cooperation with the Agency for the Promotion of Exports HEPA, FIPA provided support to the company Lugos Renewables, which is investing in the project in Trebinje, which is the construction of the largest solar park in the Balkans, AA writes.