Bosnia and Herzegovina (BiH) has recently been becoming increasingly attractive to foreign investors for investment in renewable energy sources, and financial service activities still dominate the structure of foreign investments.
The Foreign Investment Promotion Agency of BiH (FIPA) stated that several projects of foreign investors in the energy sector have been announced, especially in renewable energy sources.
As they say, considering that larger projects are realized over several years, they expect part of the activities already in the current, as well as in the next year.
One example is Vjetropark Interwind d.o.o. Hadzici, the first wind power plant in the area of Canton Sarajevo (CS), which was put into trial operation in 2025. The investment was realized by the company Interenergo from Slovenia, a member of the Austrian Kelag group.
In previous years, they state, one of the most significant investors was Lidl, and the activities of that company and the construction of retail outlets continue this year as well.
When it comes to production facilities, they singled out the Austrian company ASTA Energy Transmission Components GmbH, which established the company ASTA Bosnia d.o.o. Cazin and is building a new production hall (metal industry), with works in the final phase, then the Belgian company Temex, which, in addition to many years of production of construction material within the company TEMAX BH d.o.o. Orasje, also started production in the Brcko District and founded the company Temax Tech d.o.o. Brcko District, and the Slovenian company Iskra Tela L d.o.o., which after the new plant in Laktasi, announced the opening of a new plant in Nova Topola.
They also point out that, according to last year’s data, a significant increase in foreign investments in Bosnia and Herzegovina (BiH) has been confirmed since 2021.
According to the first official data of the Central Bank of BiH (CBBiH), direct foreign investments in BiH in 2023 amounted to 1.895.6 million BAM or 969.2 million euros and were higher by 24.9 percent compared to the previous year. The amount of FDI in 2023 was again (after 2022) the highest since 2007 or in the previous sixteen years.
According to the first available annual data of the CBBiH within the balance of payments (with estimated retained earnings), FDI continued to grow in 2024 as well. Net financial liabilities (or net created financial obligations) in 2024 amounted to 2.036.8 million BAM and are higher by 8.8 percent compared to 2023. Of that amount, reinvested earnings are 1.251.7 million BAM and make up 61.5 percent of total FDI.
Another available source on direct foreign investments refers to CBBiH data for the period January – September 2024 within FDI flows.
According to preliminary data of the CBBiH within FDI flows, with estimated retained earnings, for the period January – September 2024, direct foreign investments amounted to 1.477.4 million BAM or 755.4 million euros.
FIPA also notes that preliminary data are subject to subsequent revisions, foreign investments in the period I – IX 2024 were lower by -3.4 percent compared to the same period of the previous year, but also higher by 32.5 percent compared to the average amount of the same period for the previous five years.
In the first nine months of 2024, the countries with the largest registered amounts of capital in BiH are: Croatia (252.5 million BAM), Germany (240.2 million BAM), and Slovenia (193.4 million BAM).
Significant capital increases (over 100 million BAM) were also registered by: Austria (178.8 million BAM), the United Kingdom (135.6 million BAM), Serbia (110.8 million BAM), and the Netherlands (105.5 million BAM).
In the first nine months of 2024, European Union (EU) countries invested 73.5 percent of the amount of FDI for the mentioned period in BiH or 1.086.5 million BAM.
Furthermore, the activities (NACE Rev.2) within which the most FDI were registered in BiH, for the first nine months of 2024 are: “Financial service activities, except insurance and pension funds” (388.7 million BAM), “Retail trade, except trade in motor vehicles and motorcycles” (218.9), “Production and supply of electricity, gas, steam, and air conditioning” (139.5) and “Wholesale trade, except trade in motor vehicles and motorcycles” (132.6 million BAM).
Significant increases were also registered for the activities: “Production of chemicals and chemical products” (92.2 million BAM), then “Mining of metal ores” (64.2 million BAM), “Production of food products” (59.4 million BAM), “Telecommunications” (50.0 million BAM), “Production of coke and refined petroleum products” (49.7 million BAM), “Production of motor vehicles, trailers, and semi-trailers” (38.7 million BAM), “Gambling and betting activities” (33.5 million BAM), “Food and beverage service activities” (32.6 million BAM) and “Office, administrative and support activities…” (31.8 million BAM).
