“My return and investment in entrepreneurship in Bosnia and Herzegovina (BiH) had emotional as well as economic reasons. I recognized the extremely large business opportunities that the market of our country offers. We are a developing country, and all developing countries provide the most potential. I often like to ask at conferences and gatherings, especially those where young people gather: where do you think there is more business potential, in Germany or in BiH,” says Samir Vildic, an entrepreneur who, after 17 years of education and work in Turkey, decided to return to his native country and invest his knowledge and experience in the BiH economy.
About 2.2 million people of BiH origin live abroad
He founded two companies in BiH, where more than 30 people work. The basic business model of one of his companies, operating in 15 countries worldwide, is consulting, i.e., attracting foreign investors to BiH, whether it be BiH diaspora or foreign citizens.
There are many stories of returnees like Samir, as there are numerous examples where our people, after certain years spent in the West, decided to return to their country of origin and start businesses there, helping the development of the domestic economy by employing local people.
According to the Ministry of Human Rights and Refugees of BiH, it is estimated that around 2.2 million people of BiH origin live abroad.
Compared to the total population, the diaspora represents nearly 60 percent of the total population of BiH. Every year, based on remittances to BiH, more than three billion BAM arrive from them. It is assumed that the diaspora still brings as much money into BiH through informal channels as through their spending during the summer holidays.
Statistical data show that the BiH diaspora participates in the BiH economic life not only through financial aid to members of their immediate and extended families who remain living in BiH but also through investment in entrepreneurship, which is growing every year.
Diaspora as a direct investor or intermediary
As explained by the Foreign Investment Promotion Agency (FIPA) of BiH, it is very difficult to officially keep statistics within the framework of foreign direct investment, related to diaspora investments, given that there can be different individual approaches when establishing companies. Founders of business companies from the diaspora can register as BiH citizens or through foreign companies, without the obligation to list the founders or their connection to the diaspora.
“Foreign direct investments amounted to one billion and 442 million BAM in the period January-September 2023, representing an increase of 23.9% compared to the same period of the previous year when foreign direct investments amounted to one billion and 164 million BAM,” FIPA stated.
“BiH diaspora is huge. Our estimates are that it participates directly or indirectly with one-third in the gross national product of BiH,” states Armin Alijagic, president of the Association Nasa perspektiva (eng. Our Perspective), which has been working exclusively on involving the diaspora in the economic development of BiH for the last 15 years.
Alijagic, who himself lived abroad for 15 years in the Netherlands, where he studied economics and decided to return to BiH, emphasizes that through 164 companies in BiH, more than 2.000 jobs have been created, 71 million BAM invested, 144 million BAM of exports realized, and 191 million BAM of sales achieved, Forbes writes.
E.Dz.
