Corruption is the main obstacle to foreign investments in Bosnia and Herzegovina. Although we are open to foreign investments, investors also face complicated legislation and government structure. This was stated in the report of the State Department on the Investment Climate in Bosnia and Herzegovina. Although it has all the prerequisites for much more investments, BiH seems to be paying back itself.
Bosnia and Herzegovina is open to foreign investment. However, for this to happen, investors must overcome significant challenges such as endemic corruption. Non-transparent business procedures, insufficient protection of property rights and a weak judiciary that is under the influence of ethno-nationalist parties are also a problem. He warned the State Department.
“BiH has a relatively low level of foreign direct investment (FDI). The fragmented government in BiH has neither the capacity nor the political will to commit to providing adequate incentives or a good environment for investors. The complex institutional, political and territorial structures of BiH complicate the country’s economic climate and deter foreign investors.”
On the other hand, data from the Central Bank of Bosnia and Herzegovina show a slightly different picture. Last year, we recorded the highest amount of direct foreign investments – 1.44 billion BAM. Great Britain, Austria, Germany and Serbia invest the most.
JASMINA PENAVA, Agency for the Promotion of Foreign Investments
“In general, we are not satisfied with the dynamics of the adoption of those measures that we propose for the improvement of the investment space, considering the high unemployment rate and considering the economic underdevelopment of our country.”
BiH is attractive to foreign investors due to its geographical location, still low energy prices, solid infrastructure and cheap labor force.
EDIN DACIĆ, Council of Foreign Investors of the Chamber of Commerce of the RS
“Let’s say education, as one example where much more can be done, in terms of increasing attractiveness through education reform in the direction of dual education, according to some scheme like Switzerland, Germany, Austria or as Serbia is already quite successfully introducing.”
We use part of the potential. The analyst’s opinion is that it is necessary to reduce political, legal and economic risk. Eliminate unnecessary barriers to business.
ALEKSANDAR LjUBOJA, economic analyst
“We are not ready for rapid changes in legislation. We are not even ready to accept that these changes have happened. I will take just one example, the Law on the threshold for VAT.”
Since 1995, more than 16 billion marks in direct foreign investments have arrived in Bosnia and Herzegovina. The number is high if we forget that it is a period of 28 years.
