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Sarajevo Times > Blog > BUSINESS > Federation Employers Launch Reindustrialization Initiative to Revive BiH’s Economy
BUSINESS

Federation Employers Launch Reindustrialization Initiative to Revive BiH’s Economy

Published: April 5, 2026
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The Association of Employers of the Federation of Bosnia and Herzegovina has presented a comprehensive initiative aimed at reindustrializing Bosnia and Herzegovina, citing a continuous decline in industrial production over recent years as a key concern.

The proposal includes the establishment of industrial and business zones, stronger incentives for investors, and a package of financial and tax reforms designed to stimulate production and exports. According to the Association, the long-standing shift away from industrial production in the post-war period has proven insufficient for ensuring a sustainable economy, despite growth in other sectors.

Economist Admir Čavalić emphasized that the initiative envisions coordinated action across all levels of government, alongside local communities. Measures would include workforce development through education, the import of skilled labor where necessary, and improvements in workers’ living standards. Proposed steps also involve social housing projects and increased investment in both material and non-material compensation for employees.

A potential cornerstone of the plan is the industrial complex of Koksara Lukavac, a 100-hectare site with existing infrastructure that could be repurposed into a modern industrial zone. The closure of production at this facility poses significant economic risks for the local community, making reindustrialization efforts particularly urgent.

Mayor Edin Delić warned that time is a critical factor, noting that around 1,000 workers currently have the capacity to transition into new industrial roles. Delays, he cautioned, could result in a loss of both workforce and potential investors.

The initiative identifies Sarajevo Canton, Zenica-Doboj Canton, and Tuzla Canton as key regions for implementation, given their industrial heritage and existing infrastructure.

Trade unions have also voiced support. Ilvana Smajlović highlighted the need for the state to create conditions that would motivate workers to return to industrial jobs, noting shifting labor trends across Europe.

Meanwhile, Selmir Šljivić stressed the importance of reducing the burden on businesses and developing modern industrial models such as science and research parks. He underlined that future growth should be based on clean technologies rather than heavy, polluting industries.

A team of economists is expected to further develop the reindustrialization plan over the next six months. However, observers note that the ongoing election year could pose challenges to its timely implementation.

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