Cumbersome administration still pulls investors out of Bosnia and Herzegovina, there is a development opportunity for the energy and tourism

Cumbersome administration still pulls investors out of Bosnia and Herzegovina, there is a development opportunity for the energy and tourism

Foreign investments in BiH from year to year are in decline and foreign investors mostly complain about the cumbersome administration during startup of work. The Agency for Foreign Investment Promotion (FIPA) points out that our country is still not an attractive area for foreign investors, but there is interest in the field of energy, tourism and agriculture.

The biggest foreign investment in BiH in the past few years is the construction of thermal power plant (TPP) Stanari near Doboj, worth 560 million euros. Investor is the EFT Group from Great Britain. TE Stanari permission for trial operation was granted in May this year and until the issuance of final occupancy permit there will be a daily testing.

Regardless of these individual examples of Bosnia and Herzegovina has not yet built a reputation as a country that is of interest to foreign investors.

“There is still a large number of complaints of foreign investors operating in our country in the business environment. As a significant obstacles stand-consuming procedures for obtaining building permits, labor and temporary residence permits for foreign workers, taxes, slow courts with debt collection, excessive fiscal and the parafiscal giving, the inefficiency of public administration and etc. For instance, to obtain certain permits, for example construction permits it takes several months, but it should not be the case if we want to attract foreign capital, investments and, in the end, if we are to reduce unemployment in the country. Some progress has been made in this area, but it is not sufficient, “say from the FIPA.

Also, there are many objections to labor law legislation. Progress is there, but it is very slowly implemented. Encouraging are announcements of the competent authorities who say that they will as soon as possible improve the business climate, especially for investors.

Lately, were announced several significant projects in BiH, and most valuable, at least in financial terms is the construction of a tourist town near Trnovo Buroj Ozone. Investor from the United Arab Emirates announced a project worth several billion, which would, if realized be the largest post-war investment in BiH.

In the industry of several foreign companies has started its operations or announced the opening of registration in BiH. Thus company BOXMARK Leather in Lukavac begins production of textile and leather parts for the automotive industry, while in Konjic company Aliplast from the Poland started production of aluminum doors and windows.

Currently the project for construction of factory for processing fruits and vegetables in Ševarlije at Dobojase is being implemented. And as well are in preparation investments from Azerbaijan, Croatian and some other countries.

Foreign investment is most related to the manufacturing sector, 36 percent, followed by the banking sector 20 percent, 14 percent for telecommunications and etc.

From the FIPA headquarters say that foreign investors are interested in the investment opportunities in energy, tourism, agriculture and metal sector.

If implemented at least part of the announcement of the Sarajevo Business Forum and Summit 100 Leaders of Southeast Europe, BiH should together with the region become initiator of many development projects, primarily in the energy and tourism.

A state that has most invested in BiH is Austria with more than 2.4 billion, followed by Serbia, Croatia and Russia. In previous years, was registered a decrease of capital from France and Slovenia.

Renewable Energy Projects in Bosnia and Herzegovina

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