There is a large number of economic subjects in the metal and electrical sector of the FB&H, and when we take a look at the small and large enterprises, private and public ones, we are coming to conclusion that the situation varies from case to case. Large number of companies are positively operating, they are developing, expanding their capacities and even increasing the number of employees.
“These companies are mostly exporters and with the constant investment in human resources and technology, they are ensuring competitiveness and survival on demanding foreign markets. On the other hand, there is a significant number of companies that are operating with difficulties and that are on the border of liquidity. Large number of employees who are working on obsolete equipment are employed in these companies, however it should be noted that with a little help from the competent ministries, these companies could start making a profit,” said Almin Malisevic, director of the Sector for Industry and Services and Secretary of the Association for the metal and electrical industry P/G KFB&H.
Customers from EU, Africa, Turkey etc.
When it comes to the electrical sector, we produce low-voltage cabinets, medium voltage switchgears, compact transformer stations, isolated wires and cables etc. All of the above mentioned products have their customers on the international markets which speaks in favor of a large number of our companies that are able to fight the competition and place their products on foreign markets. Products from B&H found their customers on the markets of EU, CEFTA countries, Turkey, Africa etc.
According to all these data, we can say that the metal and electrical sector is certainly a sector with great potential for development and companies can certainly survive on the market with competent employees and equipment. There are many examples of domestic and foreign investment that is very successful and where companies are operating successfully, and even expanding their production.
However, we need new investments for the further development of this sector, whether in the form of direct investment by domestic or foreign investors, or long-term investment loans or some other adequate funding sources.
New investments to happen?
Malisevic said that the Chamber of Commerce of FB&H had few contacts with foreign and domestic investors who are planning to open factories in B&H, which, in case of actual realization of these investments, will lead to employment of significant number of employees.
Metal and electrical sector as well as many others is meeting with certain issues, and the most important ones are certainly Laws and subordinate legislation which are prescribing high rates of taxes and contributions on salaries of employees, which are ranging from 72 %, and when we add para-fiscal levies in some cantons and municipalities, we come to the overall figure of 90 % that must be allocated for salaries of workers. Then there is the Law on Corporate Income Tax which may affect the attraction of investments, the Law on Borrowing, Debt and Guarantees which should regulate the way of borrowing and issuing guarantees, than the Law on Bankruptcy Proceedings and others.
“Taking into account that the Government of FB&H is strongly committed to ensure a better business environment, and in this regard, and adopted a new Labor law and other laws that are in the process of preparation, some changes in the law regulation are expected in the coming period, which will encourage local and foreign investors to invest in B&H and thus maintain macroeconomic stability, enhance growth and competitiveness,” said director of the Sector for Industry and Services and Secretary of the Association for the metal and electrical industry P/G KFB&H, Almin Malisevic.
(Source: akta.ba)
