FIC - Foreign Investors Council

The newly elected President of the Foreign Investors Council of BIH, Mr. Branimir Muidža, Country Manager of Heidelberg Cement Group, last week attended a reception at the Office of the President of Republic of Croatia, Mr. Ivo Josipović.
As a respectable businessman and a representative of a large and significant company present in Croatia and BIH, Mr. Muidža had the opportunity to discuss with President Josipović about the Heidelberg Cement Group achievements, which have been made so far.
To see the pictures click here.

News

February 4, 2012

Meeting of representatives of FIC BIH with the representatives of Foreign Investors Council of RS, on behalf of RS Government

The second meeting of the Foreign Investors Council of RS will be held on Friday, February 10, 2012, at 11.00 hrs, at the ceremony hall on the floor 1 of the RS Government building.

Members of this Council are various representatives of RS Government, and the President of the Council is Mr. Zoran Tegeltija, Minister of Finance of RS.

This meeting will also be attended by members of the Foreign Investors Council – FIC, of BIH, which consists of representatives of foreign investors present in Bosnia and Herzegovina. Through the annual publication of the White Book, members of the FIC indicate the key obstacles to investment in BIH and propose the program of priority reforms for their removal.

On this meeting will be discussed about White Book 2010/11 recommendations, analysis of key barriers to investment in RS, but also the future work and cooperation of the Foreign Investors Council of RS and the Foreign Investors Council of BIH.

February 1, 2012

Moving the licensed production from the Croatia to BIH

Croatian companies from the food sector are increasingly announcing the possibility of relocating their production in BIH, because of fear they will lose a large part of the regional market when Croatia joins the EU.

It will mean Croatia going out from a CEFTA countries. As the estimates indicate, by joining the EU export will decrease even 30 percent, as well as production capacity and number of workers.

Foreign Trade Chamber of BIH and the Ministry of Foreign Trade and Economic Relations of BIH are preparing an analysis of the impact this could possibly have to the economy of BIH.

This analysis should be completed by June 2012.

January 30, 2012

The British Embassy in BIH: The Chevening-EFT scholarship presented

On January 26th 2012 in Sarajevo, the British Embassy in BIH, the British Council BIH and EFT organized a presentation of the Chevening-EFT scholarships for post-graduate studies in the UK.

At a reception held in the premises of the Armed Forces of BIH Ambassador Nigel Casey and EFT Manager James Nye signed a Memorandum of Understanding between the British Embassy and EFT.

Ambassador Casey pointed out that the Chevening scholarships have been awarded in Bosnia and Herzegovina since 1996 and to date 130 BIH students have benefited from this program.

"Many of them have returned to Bosnia and made great contributions to the development of the country performing on fairly high positions in the public life," said Ambassador Casey.

Chevening is a British scholarship system for talented individuals who are recognized as potential future leaders in many fields.

The program is largely funded by the Ministry of Foreign Affairs of Great Britain with financial contribution from individual higher education institutions and other partners in that country.

In addition to regular Chevening scholarships, the British Embassy and the Energy Financing Team (EFT) will award a Chevening-EFT scholarship in 2012 to a student from Bosnia and Herzegovina.

Call for applications for scholarship is open until 6 February, more detailed information about the program can be found on the website of the British Council BIH http://www.britishcouncil.org/bih.htm.

January 24, 2012

EBRD is financing Doboj – Prnjavor highway section

Prime Minister of the RS has today confirmed that 50 million Euros for the construction of the highway Doboj - Prnjavor will be provided by the European Bank for Reconstruction and Development.

Mr. Aleksandar Džombić also said that the RS received preliminary decision of the European Investment Bank, willing to fund Banja Luka – Prnjavor highway section.

Read more on www.ekapija.ba

January 20, 2012

Improving energy efficiency in Bosnia and Herzegovina’s retail industry
€5.4 million to implement energy saving measures in Bingo chain
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The EBRD is further promoting energy efficiency in Bosnia and Herzegovina with a €5.4 million loan to finance implementation of advanced energy saving measures in one of the leading retail chains in the country – Bingo.

Bingo is the second largest retailer in Bosnia and Herzegovina, operating 43 supermarkets and 24 hypermarkets, with a total trading area of more than 150,000 square meters.

The EBRD loan, part of the Bank’s Western Balkans Sustainable Energy Direct Financing Facility (WeBSEDFF), is extended to Bingo’s subsidiary - Hekom, which manages the company’s energy efficiency programmes.

The proceeds of the loan will be used to implement such energy efficiency measures as water-to-water heat pumps, LED lighting, chillers, high performing refrigeration with heat recovery, as well as to install insulation panels in Bingo’s outlets. It is estimated that the implementation of this project will lead to CO2 emission reductions of approximately 4,700 tons, which is equivalent to a saving of 51 kg of CO2 per square meter of retail space per year.

The project will transform Bingo’s retail network into a showcase of advanced sustainable energy solutions in the retail industry and will enable the company to minimise operating costs and strengthen its competitiveness.

“We are pleased to continue our cooperation with Bingo and help the company implement latest energy efficiency technologies throughout its retail chain. This project will serve as an excellent example of the benefits brought by such technologies and we expect other companies to follow suit,” said Libor Krkoska, Head of the EBRD office in Bosnia and Herzegovina.

“Our successful cooperation with the EBRD shows that Bingo d.o.o. can at any moment meets all requirements and fulfil all conditions of such an important international financial institution. This energy efficiency project is of great importance for us. Through the implementation of this project we will stand side by side with international companies that are using the newest energy efficiency technologies. We hope that other companies in the country will follow our lead. This project also shows our awareness of environmental protection and air emissions. We are glad that we can improve the business environment in Bosnia and Herzegovina in this way as well”, said Mr Senad Dzambic, owner of Bingo.

In 2010 the EBRD provided a 6.5 million loan to Bingo to support the retailer’s expansion in Bosnia and Herzegovina and help it achieve nationwide coverage.

Part of an EBRD programme to address the sustainable energy financing needs in Western Balkans, WeBSEDFF is dedicated to finance medium-sized renewable energy projects and energy efficiency projects. To date, the WeBSEDFF has financed 8 projects in the region for a total loan volume of €29.4 million. These projects alone are estimated to save 76,000 tons of carbon dioxide emissions per year.

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed over €1.3 billion in various sectors of the country’s economy, of which over €500 million was in the private sector.

In the agribusiness sector alone, the EBRD has directly committed more than €7 billion in over 440 projects across central and Eastern Europe and the Commonwealth of Independent States since 1991.

January 19, 2012

The total value of foreign investments in BIH amounted to 470.1 million KM

The total value of foreign investments in BIH in the first nine months of last year (2011), amounted to 470.1 million KM, which is 240 million KM higher, compared to the same period in 2010, according to data of the Central Bank of BIH.

Major investments in the first nine months of 2011 came from Russia, 141.4 million marks, followed by 105.9 million KM from Serbia and 67.6 million KM from Austria.

January 18, 2012

Meeting at the Ministry of Finance of FBiH

Ministry of Finance of FBIH, yesterday held the first session in 2012, of the working group for a consultation regarding amendments to existing regulations and improving the business climate in the FBiH.
In addition to numerous representatives of BIH institutions (Association of Banks, Securities exchange Commission of FBiH, Association of Employers of FBiH, Department for Inspection of FBiH, Employment Agency of FBiH, Ministry of Justice of FBiH, and numerous other institutions of importance for economic development in BIH), representatives of the Foreign Investors Council were formally included on the list of members of this working group. On yesterday's session, which was introductory to further work, the following was discussed:

• A proposal of amendments of the Ministry of Refugees and Displaced Persons, to the Law and on Amendments to the Law on Income Tax;
• Analysis of the Regulation referring on conditions that company or legal person must fulfil, in terms of the number of employed workers;
• Implementation of the Law on Vocational Rehabilitation, Training and Employment of Persons with Disabilities;

One of the conclusions of this meeting was that the White Book 2012/13 will also be discussed in one of the following sessions, and the next one is already scheduled for 24.01.2012.

More on work and conclusions, you will be able to find on our web site.

January 17, 2012

Abreu: 2012 a challenging year for BIH

The World Bank Head of the Office in BIH, Anabela Abreu has warned the government and citizens that 2012 will be full of challenges, and invited for reforms, so that BIH could face better with the consequences of the economic crisis.

Speaking of projects funded by the World Bank in Bosnia and Herzegovina, Abreu said there are several projects in preparation, such as irrigation projects, land administration and reconstruction of the navigability of the Sava river.

January 13, 2012

FIPA receives support of Norway for stronger promotion of the BIH potentials

The FIPA Director, Jelica Grujic, received on 12th January 2012 the Ambassador of the Kingdom of Norway in B&H, H.E. Vibeke Lilloe, at the FIPA residence in Sarajevo.

It was discussed on business environment and possibilities for investing in B&H.

The FIPA Director made H.E. Vibeke Lilloe familiarized with the Agency's activities and future plans regarding promotion of Bosnia and Herzegovina as an attractive destination for investing.

The Ambassador Lilloe expressed willingness to implement in close cooperation with FIPA a series of projects in order to promote B&H opportunities.

According to data of the B&H Ministry of Foreign Trade and Economic Relations, the value of the total Norway investments in B&H from 1994 to 2010 amounts to 6.1 million BAM.
In the first nine months of 2011, foreign trade of B&H with Norway was increased. According to data of the B&H Agency for Statistics, from January to October 2011, the B&H trade export with Norway amounted to 13.7 million BAM.

In the first nine months of 2011, the B&H companies’ export to Norway amounted to 9.5 million BAM, which represented increase of 41,5% compared to the same period in 2010.

From January to October 2011, import from Norway amounted to 4.2 million BAM, which represented increase of 87,7% compared to same period in 2010.

January 9, 2012

Vjekoslav Bevanda appointed as a Chairman of the Council of Ministers of BIH

By unanimous decision of the Presidency of Bosnia and Herzegovina Vjekoslav Bevanda was appointed as a Chairman of the Council of Ministers of BIH.
In the further procedure a decision will be submitted to the Commission for the preparation of the election on behalf of House of Representatives of the Parliamentary Assembly of BIH.

The decision shall enter into force upon its adoption.

The State Investigation and Protection Agency (SIPA) today completed screening of the proposed Chairman of the Council of Ministers of BIH and submitted results to the Presidency.

December 28, 2011

Head of Office of the EBRD: Growth of GDP in BIH could exceed two percent

Head of Office of the European Bank for Reconstruction and Development /EBRD / in BIH, Libor Krkoška, believes that growth in gross domestic product / GDP /in BIH in the upcoming year could even exceed two percent, which is a more optimistic forecast than of the International Monetary Fund.

He said that economic growth could be significantly higher if there will be more progress in the implementation of major infrastructure projects, such as Corridor C5 or projects in the energy sector.
Krkoška announced that the EBRD will focus on providing more funding for the private sector than in previous years, a key priority will be to support domestic enterprises and to improve energy efficiency and enhancing export competitiveness.

December 22, 2011

Supporting expansion of cable TV and broadband Internet services
in Bosnia and Herzegovina
€25 million syndicated loan to Telemach

The EBRD is supporting the knowledge economy and the development of the information and communication technology sector in Bosnia and Herzegovina with a €25 million loan to Telemach, one of the leading cable TV operators in the country.

The cable TV market in Bosnia and Herzegovina is currently very fragmented, with around 40 licensed operators servicing various regions of the country. Telemach, part of the leading platform of PayTV businesses in the Adria region, majority owned by Mid Europa Partners, currently operates in Sarajevo and Mostar, cities in the central and southern part of the country, as well as in their surroundings.

The proceeds of the EBRD loan will enable Telemach to continue to acquire cable TV operators in the country, as well as to invest in further upgrades of its network.

The project will support Telemach’s drive to bring modern, high quality services and to become a leading national player in the cable TV and broadband Internet sector.

The financing extended to Telemach is structured under the EBRD’s A/B loan scheme, with €12.5 million for the Bank’s account and the remaining €12.5 million syndicated to Raiffeisen Bank International.

“Supporting local private companies is one of the EBRD’s strategic priorities in Bosnia and Herzegovina. Through this investment in Telemach we are contributing to the development of the information and communication technology sector in the country and helping to bring high quality cable TV and broadband Internet services to people across the country,” said Libor Krkoska, Head of the EBRD office in Bosnia and Herzegovina.

“This financing will further increase Telemach’s ability to further develop the company and continue the roll-out of the latest technologies and products to our subscribers in Bosnia and Herzegovina,” said Dragan Solak, Chairman of the Board of Telemach.

“Through Telemach’s entry into Bosnia in 2010, we have brought cutting edge cable television entertainment, Internet and telephony services to its subscribers. This facility allows Telemach to build on these milestones, and make its services even more broadly available to consumers across Bosnia and Herzegovina,” said Andrej Babache, Associate Director of Mid Europa Partners.

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed over €1.3 billion in various sectors of the country’s economy, of which over €500 million in the private sector.

Overall the Bank has invested directly over €2.8 billion in approximately 135 projects in the information and communication technology sector in countries across central and eastern Europe and the Commonwealth of Independent States.

Mid Europa Partners is a leading independent private equity investment firm focused on central and eastern Europe, with approximately €3.2 billion of funds raised and managed since inception.

December 21, 2011

Microcredits to support small and medium enterprises in BIH: EBRD approved EUR 5 million to Prizma

EBRD (European Bank for Reconstruction and Development) approved to Prizma Microcredit Foundation, one of the most successful microfinance institutions in Bosnia and Herzegovina, a credit loan in the amount of EUR 5 million.

These funds were approved within the "financial framework for countries of the Western Balkans and Croatia," in order to support micro, small and medium enterprises in Bosnia and Herzegovina, by providing access to quality financial services, the newly appointed Head of the EBRD Resident Office in BIH Libor Krkoška said.

Kenan Crnkić, CEO of Prizma Microcredit Foundation said that Prizma, on the basis of continuity of its successful business and a significant number of national and international awards and recognitions, has the confidence of many local and international investors.

"The fact that such a reputable investor, such as the EBRD, showed their confidence and gave support to Prizma, recognizing in it a safe and reliable long-term partner represents a special privilege and honour for us. We appreciate that this is the culmination of our past achievements, but also a strong motivation to, with the ceremony next year when we celebrate 15 years of existence, more decisively start implementing our new strategic goals, further strengthen our existing position, and thus contribute to the necessary consolidation of the microcredit sector in Bosnia and Herzegovina and the region," said Crnkić.

The EBRD is one of the largest international institutional investors, and the single largest institutional investor in BIH, which is owned by 61 countries, the European Union and the European Investment Bank. Through its projects it is present in 29 countries of Central Europe and Central Asia. Since the beginning of its work in BIH, the EBRD has invested close to EUR 1.4 billion in various economic sectors in the country, and has mobilized additional investments worth EUR 1.5 billion in more than 90 projects.

The Prizma microcredit foundation is a market leader and a leading microcredit organization in Bosnia and Herzegovina and the region. Prizma has 50 registered branches, from which more than 250 young and highly skilled staff serves to over 70.000 active clients in 100 municipalities in the area of the entire country. In its previous work Prizma has distributed 330.000 loans totalling to over KM 530 million.

This loan is a continuation of co-operation which dates from 2007 when Prizma was approved the initial loan of EUR 4 (four) million, followed by technical assistance in the amount of USD 400.000, which was successfully implemented.

December 16, 2011

Cement Factory Kakanj marked a ceremony of 33 years of successful existence

On December 15, 2011. The cement Factory Kakanj, arranged a ceremony marking 33 years of successful existence and operation of this collective. Traditional gathering was attended by a large number of workers, retirees and family members of deceased and deceased workers.

On this occasion, the Board of the collective decided to donate IT equipment to Kakanj Secondary Technical School "Kemal Kapetanović", in order to improve education in Kakanj community. Computer lab of the school today is richer for fourteen modern computers and the same seventeen-inch LCD monitor, in which students will be able to effectively learn and improve work on computers. The donation was officially handed by CEO, Mr. Izudin Neimarlija.

Mr. Neimarlija emphasized that „Heidelberg Group is social responsible company which is dedicated not only to business and profit, but also care about community development.“

December 5, 2011

FBiH: The Law on classification of activities comes into force next week

Law on Amendments to Law on classification of activities of the Federation should come into force next week. From the Federal Bureau for Statistics they have previously told us that it was waited for longer than a year for it to pass.

Apropos, the purpose of this law is to ensure compatibility and comparability of statistical standards of the Federation with the European Union, which is contributing to the development of a unique economic space in BiH as one of the prerequisites for our country coming closer to European integration.

For this reason, in the Federation, and in Republika Srpska, the decision to make change of classification activity that is consistent with that of the EU is effective. Apropos, since January 1, 2011 in the whole of BiH the new classification of activities has been applied – which is the so-called KDBiH which should be completed by the end of this year.

November 23, 2011

Foreign investors, cautious in BIH but not giving up

As the Director of the Foreign Investment Promotion Agency of BIH, Ms. Jelica Grujić stated, in Bosnia, as of 2007 has been noted a constant decrease of direct foreign investment. The first six months of this year's inflow, according to the Ministry of Foreign Trade and Economic Relations, was 154 million KM, out of which about 96 million KM have been registered in the Republic of Srpska, mostly invested in banking, manufacturing and trading sector.

Speaking of the number of people employed in BIH due to direct foreign investment, Ms. Grujić pointed out that the Foreign Investors Council of BIH (FIC), which brings together a large number of foreign companies, estimates it to about 12 000 persons.

Grujić says that investors, when they analyze their potential issues and the existing natural qualities, express the greatest interest for the energy, agriculture, timber and metal industries and tourism.

November 18, 2011

Government of FBiH in cooperation with the International Finance Corporation, IFC, within the World Bank, have launched new project. More precisely, it is a presentation of an electronic registry of administrative procedures, which created the Government of FBiH.

This project is currently at the initial stage and can be treated as a test, and any updates and upgrades will be following. See more at this link

November 17, 2011

Conference in Rome
FOREIGN INVESTORS INVITED to invest in BIH

The “Bosnia and Herzegovina: Opportunities for Investments and Industrial Cooperation" Conference, organised by Italian Institute for Export (ICE) and FIPA, was held in Rome on 15th November 2011.
This conference aimed to present investment opportunities of BIH to Italian companies and to strengthen bilateral cooperation and future partnership between Bosnian and Italian companies.

Director and Representative of the Foreign Investment Promotion Agency of BIH (FIPA), Ms. Jelica Grujić and Ms. Adrijana Marić have presented main activities of the Agency.
Participants were addressed by the former Director of the European Bank for Reconstruction and Development (EBRD) in BIH, Mr. Giulio Moreno, representatives of ICE, Mr. Massimo Di Giandomenico and Ms. Rossella Difrancesco,as well as political adviser to the EU Delegation in BIH, Mr. Orlando Fusco.

The role of the EBRD, which has supported 47 projects in the last four years, was particularly emphasized, with total amount exceeding 716 million Euros.

The Conference was attended by 85 representatives of various companies interested in investing in BIH.

November 16, 2011

Delegation of the Government of Tuzla Canton have visited XELLA BH company

''Government of Tuzla Canton is open for all possible suggestions, because our common task is to actively participate in solving problems and obstacles of economic subjects in Tuzla Canton area'' , it was pointed out during today's meeting between representatives of the Government and XELLA BH d.o.o.

XELLA BH is a member of a multinational group Xella International, which normally owns 110 factories in 40 countries worldwide. With 23 million Euros invested, this factory is the biggest foreign investment of this kind in Bosnia and Herzegovina, so far.

"We produce around 155 000 m3 YTONG blocks per year which is about 75% of our current capacity, and thereby we are the only manufacturer who, by the European, owns all of Bosnia - Herzegovina quality certificates," said Emir Kadrić, Executive Director of XELLA BH.

Future plans, with a prominent tendency to start with the production of mortars, armoured blocks, as well as other products in the construction field, have been discussed as well.

November 16, 2011

Global crisis significantly shifted support for democracy and markets, EBRD report shows

Support falls away in the most advanced economies

The EBRD’s report – “Crisis and Transition: The People’s Perspective” -- explores the reasons behind an especially sharp drop in commitment to the principles of democracy and markets in the new member states of the European Union and a surprising upswing in some other countries.

This Transition Report 2011 analyses a wealth of data contained in a survey of some 39,000 people, primarily from emerging Europe.

The third in a trilogy of annual Transition Reports assessing the impact of the crisis on the region where the EBRD invests, the TR 2011 also explores why the crisis affected ordinary households far more than in Western countries (Chapter 2) and analyses the factors that support the development of a successful entrepreneurship in the transition region (Chapter 4).

Click here to read all.

November 15, 2011

On November 14, 2011 Hotel "Holiday Inn" Sarajevo has been awarded by HACCP and ISO 9001 quality certificate.

Hotel "Holiday Inn" Sarajevo is one of the first hotels in Bosnia and Herzegovina to be certified by HACCP and ISO 9001: 2008.

As stated from Holiday Inn hotel management, intensive preparations for getting certificate lasted for a year, including training, workshops and the preparation of rules and procedures.

November 14, 2011

PRESENTATION OF INVESTMENT OPPORTUNITIES TO ITALIAN INVESTORS AND BUSINESS PEOPLE

The “Bosnia and Herzegovina: Opportunities for Investments and Industrial Cooperation" Conference, organised by Italian Institute for Export (ICE) and FIPA, will be held in Rome on 15th November 2011.

This conference aims to present investment opportunities of BIH to Italian companies and strengthen bilateral cooperation and future partnership between Bosnian and Italian companies.

In addition, bilateral meetings with Italian companies will be held at the same day.

November 9, 2011

FIPA- Foreign Investment Promotion Agency of BIH, in cooperation with the International Finance Corporation- IFC , will officially launch the online interactive Business Map of Bosnia and Herzegovina. At this occasion the press conference will be held on Friday, November 11, 2011, from 9:30 to 10:15, at the Building of BIH Parliamentary Assembly.To see the map and read more, click here

November 8, 2011

President of the Foreign Investors Council in BIH, Mr. Branimir Muidža, General Manager of Heidelberg Cement Group in BIH and Croatia, last Thursday met with President of the Republic of Croatia, Mr. Ivo Josipović. Among other interesting and related topics, the further strengthening of regional business cooperation and the creation of favourable environment for foreign investors have been discussed.

November 3, 2011

FIC Serbia

Belgrade, on November 3, 2011 – The Foreign Investors Council presented the White Book 2011 to the Government of Republic of Serbia . This year's edition, ninth in a row, serves as basis for active dialogue between foreign investors and the Government on ways to improve overall business climate.
To read more, click here.

November 1, 2011

SUCCESSFUL FOREIGN INVESTMENTS IN BIH
MESSER BH GAS/MESSER TEHNOPLIN

Messer BH Gas was founded in 2007. The company’s headquarters are in Sarajevo, with a branch in Zenica with a facilities for air dissolution built by the most modern international methods.

Messer Tehnoplin started with business on 10.02.1998, and was created with the merger of Messer Group GmbH and Plina Sarajevo d.d., a company with a 45 year tradition in the manufacturing and distribution of technical gas in Bosnia and Herzegovina.

Messer Tehnoplin in BH is doing business in Sarajevo, Lukavac and Bihac.

Messer Mostar Plin started with business in 1.07.1997, with the merger of Messer Group GmbH i Tehnoplina d.d. Mostar.

Industrial gas in BH is the same quality as products from western Europe that are being sold in Bosnia- but are also exported to Croatia, Slovenia, Hungary and Austria.

At the beginning of this year the Messer Sarajevo Plin company was awarded the ISO 22000:2005 by the renown certificate house DQSBH - BHcert d.o.o Sarajevo.

October 27, 2011

EBRD is financing roads in Sarajevo
€16.5 million loan is the first phase of investment into the urban road infrastructure

The EBRD is lending Bosnia and Herzegovina 16.5 million Euros, which will finance the widening of two key road sections running through Sarajevo city.

The sovereign loan will help the Sarajevo Canton Roads Directorate finance the works on sections of the 12th Transversal Road (0.9 km) and Southern Longitudinal Road (2.4 km).

The road development project will help relieve traffic congestion, reduce emissions and noise, thus improving the living conditions in the area, and improve the accessibility of Sarajevo.

"The EBRD has a lot of experience in important infrastructure projects in the Western Balkans, including Bosnia and Herzegovina, and we have always done our best to ensure that the much-needed road construction is conducted according to the EBRD's environmental and social standards", said Giulio Moreno, the EBRD’s Head of Office for Bosnia and Herzegovina.

The preparation for the road works will be conducted within the EBRD's Resettlement and Compensation Framework designed to bridge the gaps between the local law and the EBRD's rules.

The EBRD has also committed €850,000 in technical cooperation projects connected with Sarajevo roads, which range from traffic demand modelling to transforming the Roads Directorate into a public agency. These funds have been made available on a grant basis, with funding coming from the European Union and the government of Austria.
Since the beginning of its operations in Bosnia and Herzegovina, the Bank has committed over €1.3 billion in various sectors of the country’s economy, mobilising additional investment of over €1.5 billion.

October 26, 2011

Mr. Branimir Muidža, General Manager at Heidelberg Cement Group is elected as a new FIC President

On October 25, 2011 in Sarajevo, FIC held a regular BoD meeting, with an Agenda of the most important topics at the moment.
BoD members have elected, unanimously, a new FIC President, for the period until the next General Assembly, on the beginning of 2012.
Our special honour is to inform all FIC members, that Mr. Branimir Muidža, General Manager at Heidelberg Cement Group, was appointed as a President of FIC.

After BoD meeting, FIC have organized a Forum and Cocktail for our members, as well as Cooperation Council members (representatives of the foreign embassies present in BIH).
It was a great opportunity for all members to meet each other, and to discuss on Cooperation Council activities for the future period. FIC Executive Director, Ms. Bojana Škrobić Omerović, has presented the idea of production of the FIC Guide/ Investor.

October 25, 2011

Doing Business 2012: Bosnia and Herzegovina Improves its Doing Business Ranking

Bosnia and Herzegovina slightly improved its ranking and is currently ranked at 125th place versus 127th last year.
Released today, Doing Business 2012: Doing Business in a More Transparent World assesses regulations affecting domestic firms in 183 economies. The report ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, and trading across borders.
Bosnia and Herzegovina ranked 125th among 183 economies on the ease of Doing Business 2012. Bosnia and Herzegovina made dealing with construction permits easier by fully digitizing and revamping its land registry and cadastre. In addition, it made starting a business easier by replacing the required utilization permit with a simple notification of commencement of activities and by streamlining the process for obtaining a tax identification number.

„Authorities in Bosnia and Herzegovina recognize the need to improve business environment in order to improve the overall competitiveness of the country’s economy“ stated Anabela Abreu, World Bank Country Manager for Bosnia and Herzegovina. „We in the World Bank are ready to assist the reform efforts to improve business environment and investment climate in Bosnia and Herzegovina“.

October 12, 2011

BOSNIA AND HERZEGOVINA HAS MADE PROGRESS ON FORBES LIST THE BEST COUNTRIES FOR BUSINESS 2011

According to the analyze of business climates for 134 national economies, made and published by famous American magazine Forbes, in the list The best countries for business 2011, Bosnia and Herzegovina is ranked in 84th place, better than e.g. Serbia. Last year BIH was ranked in 100th place.

In 2011, Forbes determined the Best Countries for Business by looking at 11 different factors for all 134 countries. They considered property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance. The first ranked, on the list, is Canada and the last one is Chad.

October 11, 2011

October 19, 2011, FIC representatives meeting with FBiH Parliamentarians, time: 10:00 hrs, FBiH Parliament, Hamdije Kreševljakovića 3, Sarajevo

On October 19, 2011 , House of Representatives of FBiH Parliament , will hold a thematic session which should result by bringing out the measures for removing administrative barriers to business development in the Federation of BIH.

In the working part of session will also participate the representatives of the Federation of Independent Trade Unions of BIH, FBiH Chamber of Commerce, the Association of Employers, Foreign Investors Council, as well as international organizations like USAID, World Bank etc. Some of them will have their own presentations during a session, that will focus on specific problems in the implementation of laws regulating the business environment and wider.

October 7, 2011

Signed a joint statement between FBiH Government and FIC of BIH, aimed at eliminating barriers to investment

On October 7, 2011, Prime Minister of FBiH, Mr. Nermin Niksic and board member of the Foreign Investors Council in BIH, Mr. Giulio Moreno, signed a joint statement in Sarajevo, in order to remove legal and all other barriers to investment. "By signing this agreement our main intention was to make the FBiH a place of better business conditions and environment ",said Mr. Niksic.

Mr. Moreno highlighted that the Foreign Investors Council since the beginning of its work, in different ways and through the publication of "White Book" is trying to point out the problems and priorities for foreign investment in BIH.

If you wish to see a signing ceremony, please click here.

October 4, 2011

Meeting of representatives of the Foreign Investors Council and the relevant ministries of the Government of FBiH, together with Prime Minister of FBiH, will take place on October 7, 2011.

Main topic will be future cooperation between the institutions of the FBiH Government and the Foreign Investors Council, in order to improve the business environment in BIH.

This is the unique opportunity for FIC members to discuss implementation process of White Book recommendations, including future activities aimed at improving cooperation in the sense of eliminating all barriers faced by foreign investors in BIH, but also other relations between investors and institutions.

It is very important to highlight that Memorandum of Understanding will be signed between the FIC and Government of FBiH, in which both parties express their commitment to establish a better business climate for existing and potential investors.

October 3, 2011

FIPA INTRODUCES A NEW BUSINESS MAP

As a part of the second congress about cadastre in BH with international participation which is being held in Sarajevo, the director of Foreign investment promotion agency of Bosnia and Herzegovina, Jelica Grujic, has introduced a business map which was developed by FIPA in cooperation with the International Finance Corporation.

A need for simpler access to information about property and data about property in BH arose in contact with investors, which the business map provides.

The map represents a center for information about properties which are of interest to investors and the business community, it is open for adding new digital data, and allows interested institutions and municipalities to make their data public through this system and promote investment potentials of BH.

The map as shown in layers with different available information, basic cards (orthophoto, topography, hydrology...), infrastructures, political maps, social-economical characteristics, etc.

October 1, 2011

INFORMATION AND RECOMMENDATIONS REGARDING CDM
(CLEAN DEVELOPMENT MECHANISM)

The Designated National Authority (DNA) of BIH was created on 26th September 2011 and will be responsible for implementation of the CDM projects within the Kyoto Protocol.

For more information, click here

September 28, 2011

FIC MEMBERS ATTENDED INVESTMENT CONFERENCE IN BANJA LUKA

Representants of different companies, members of the Foreign Investors Council, attended the Investment Conference held in Banja Luka from 22nd to 23rd September 2011.

The Conference gathered around 450 participants from 20 countries from all continents.

A large number of investment projects in the food processing sector, energy, tourism, metal processing industry, automotive industry, military industry and other, were presented to potential investors.

The Municipalities of Banja Luka, Prijedor, Mrkonjić Grad, Kozarska Dubica, Trebinje and Višegrad presented their investment projects, while the total offers of the RS' Municipalities were unified on CD materials and distributed to all participants at the Conference.

September 27, 2011

Session of the Economic and Social Council today in Sarajevo

Within the Government of FBiH, today in Sarajevo will take place a regular session of the Economic - Social Council, for the FBiH. Members of the ESC will discuss the initiative of the Government of FBiH, related to White Book, official document of the Foreign Investors Council.

Read more on www.heidelbergcement.ba

June 23, 2011

The Foreign Investors Council held a White Book 2010/11
presentation in Banja Luka yesterday

Minister for Economic Affairs and Regional Cooperation of the Republic of Srpska, Ms. Zeljka Cvijanovic pointed out that the White Book represents " a good opportunity to review some important issues related to creating a better business climate and better environment for foreign investments in BIH“.

Ms. Cvijanovic greeted the FIC representatives and thank them for the efforts they made in order to improve business environment in RS and BIH. „ The FIC has made a considerable effort from our perspective of investors, refer to the specific barriers that hinder business operations and also came out with specific recommendations for overcoming the identified problems.

"We see that in the previous edition of the` White Book ', this new document, among other things, on our initiative, devoted more attention to the business environment in the Republic of Srpska, than was previously the case, ", was released from the Ministry of Economic Affairs and Regional Cooperation of RS.
"We expect that this process of removing business barriers and improving the economic laws should be completely encircled by the end of the year," said Cvijanovic.
Member of the FIC BoD Mr. Sead Miljkovic said that foreign investments require a stable political environment which is not case currently in BIH, since we still do not have a National government formed.

"Not having a National Government formed will have a far reaching consequence for BIH. Negative global economic situation, combined with the negative political situation affected the flow of foreign investments in BIH. If this trend continues, the BIH will become a more unattractive for foreign but even a domestic investments”.

June 20, 2011

Plata.ba conducted research on the potential profits that bring some university degrees in BIH

Universities in our country launched the applications for enrolment of students in the new academic year and there will be more than 100 000 young people this year, to go to the BIH universities in order to gain expertise. Certainly the most common question for future students and their parents,
is how much they will be paid.

Best paid university graduates are: Economics, Law, Pharmacy and Electrical Engineering, while the lower-paid are Architecture and Construction.

(download PDF in B/H/S)

June 16, 2011

Foreign Investors Council (FIC) presented the White Book 2010/11

Today the Foreign Investors Council (FIC) presented the White Book 2010/11 outlining the key impediments to investments in Bosnia and Herzegovina while providing a set of recommendations on how to remove administrative barriers that are hindering companies operations. The FIC is primarily concerned with improving the legal and regulatory framework in BIH, but the practical steps that government officials can take in order to improve the work process within the institutions are equally important.

The White Book 2010/11 tackles nine areas: registering a business, obtaining work and residence permits for foreign employees, taxes, Law on securities market, Law on enforcement procedure, obtaining construction permits and Law on company liquidation in FBiH and bankruptcy in BIH , exports. FIC Members identified a short list of priority reforms that can be implemented within the next 12 months.

"It is important that the entity and state authorities to take into account our recommendations, particularly in view of the present consequences of the economic and financial crisis.
In the last year, precisely defined, and foreign direct investment was almost negligible - between 200 and 300 million Euros, although BIH can easily attract 1.5 to two billion Euros a year, especially in sectors such as energy.
Therefore, the government must focus on attracting foreign direct investment and eliminate the obvious barriers to investment, "stated Mr. Giulio Moreno, chief of the EBRD Mission in BIH and FIC BoD Member.

Beside BoD members, who presented the views of the FIC, audience has been addressed by. Mr. Renzo Daviddi , Acting Head of the EU Delegation to BIH and Mr. Ramiz Mehakovic on behalf of the FBiH Prime Minister Office.
Mr. Daviddi stated: „ The Government needs to create a conditions for investors to come and to have easy entry into economy. Obstacles in doing business, obstacles in creating new company are the most significant problems for the both, foreign and domestic investors. „

June 13, 2011

M:tel: Planned income exceeds half million KM

Company ''M:tel'' in this year has an ambitious plan to achieve income that exceeds half million KM, said the general director of the company Predrag Ćulibrk.
He emphasized that four years after privatization of the company, since its major shareholders became 'Telecom Srbija', he sees that this acquisition despite many doubts because of pre-payed high price is ''score point''.

June 10, 2011

Meggle builds the largest distribution centre and factory in the Balkans

Germany's largest dairy industry, Meggle , plans to open a distribution centre for the Western Balkans and a factory for the production of milk and dairy products, located in Posušje ( Herzegovina ). Meggle wants to increase production capacity in BIH and the region, which, according to official data, is around 100,000 litters of milk per day and about 3500 employees.

June 6, 2011

In a developing business environment, the need for precise, effective, and clear communication is vital for any business, whether long present on the market or just starting out. Creating the right awareness and perception of your company depends on many factors, and finding the link which bridges your company with your stakeholders is step one. Step two is using it.

The MACH IV Consulting group was set up for this precise purpose. With nearly ten years experience in communications, public relations, and media relations in the Balkans, MACH IV Consulting works directly with you to ensure that your communication strategy is precisely aligned with your business objectives, that the right people are receiving your messages, and that the perception of your company is exactly what you need it to be.

Our consultants have worked with more than 100 of the most important level foreign investors in the region, bringing our skills and experience to the service of multinational, international, and domestic business and corporations. Aside from traditional PR, we can also work for you in areas including government relations, crisis communications, social media and internet development, event management, and business skills training.

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June 1, 2011

Mitsubishi interested in actively participating at the BIH market

The Director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA), Jelica Grujic, together with her associates, met today 1st June 2011 with marketing manager of c Heavy Industries Europe, Mr. Jiri Michaelek, who presented on this occasion the company’s activities and was interested in conditions for investing in Bosnia and Herzegovina.

The Mitsubishi company has a long tradition in manufacturing automobiles, generators, ships, industrial machines and air conditioners. It is interested in actively participating at the BIH market and in possible investments in production.

We have to admit that in BIH there are not significant Japanese investments however in recent years Japanese investors are increasingly interested in BIH and in the region.

It should be mentioned that Japanese Mitsui expressed interest in investing in the BIH energy sector.

May 24, 2011

CHANGES AND AMENDMENTS TO THE LAW ON FOREIGN INVESTMENT OF RS

National Assembly of the Republic of Srpska / RS / adopted the Law on Amendments to Law on Foreign Investment of RS, which ismade in the field of further liberalization of certain sectors, restrictive and defence industry, but with special permission given by the RS Government. This law provides the establishment of the Council for foreign investors as an advisory board of the RS Government,and the composition of the Council predicted the participation of foreign investors and major institutions of local and republic levels.

May 23, 2011

A new "Raiffeisen Macroeconomic Analysis" has been published.
Macroeconomic overview of Raiffeisen Bank analysts on trends in Q1 2011th

- Raiffeisen BANK d.d. Bosnia and Herzegovina has continued to publish Raiffeisen macroeconomic analysis, prepared by a team of analysts of Raiffeisen Bank. The second edition of "Raiffeisen macroeconomic analysis"provide an overview of major trends of economic indicators such as imports and exports, inflation, unemployment, etc. for the first quarter (Q1) 2011th , and forecasts of market trends by the end of year. Very positive public attitude towards the first analysis, indicates the feasibility of our activities, "said Michael Mueller, CEO of Raiffeisen Bank.
The second edition of Analysis, which includes detailed review of these indicators can be viewed www.raiffeisenbank.ba

May 23, 2011

First CEO Meeting of IPAs from Eastern Europe

The FIPA Director, Jelica Grujic, participated at the First CEO Meeting of IPAs from Eastern Europe which was held on 19th May 2011 in Ljubljana, Slovenia.

On this occasion, it was pointed out the importance of presenting the competitive advantages of the Region and within WAIPA it will be taken concrete steps for joint activities of the Region promotion as an interesting destination for foreign investments.

It should be mentioned that the markets of neighbouring countries are not attractive for multinational companies. Those markets don’t provide possibilities for locating major production facilities that would have a regional or wider dimension and for this reason, it is going to promote the entire Region.

Bringing offers and potentials and presenting the Region as an entire, could help in increasing its attractiveness. In addition, on this way, it sends message on political stability of the Region, on absence of administrative barriers and on mobility of ideas and capital.

May 19, 2011

Austria will continue to invest in BIH

Since 1995. by 2010. Austria has supported BIH with a total of 465 million Euros, of which, through the Office of ADA invested 14 percent or 66 million Euros

Austrian Ambassador to BIH Donatus Köck, has announced that his country will continue to support BIH on its path towards European integration, and recalled that Austria is in the last 15 years invested in Bosnia for almost half a billion Euros.

May 17, 2011

On the initiative of the Carmeuse Integral from Doboj, the FIC members, had/organized a meeting with the RS Ministry of Finances in Banja Luka, on May 11th 2011. The subject of the meeting was:

Problems with the application of double tax treaties in Republic of Srpska.

Beside the representatives of the RS Ministry of Finances, represented by Assistant Minister, Mr. Jovo Radukić, FIC members, companies from RS were also present:

Ms. Edina Hadžikadunić - Carmeuse Integral Doboj
Ms. Ilinka Gavrilović – m:tel
Ms. Mubera Brković – PricewaterhouseCoopers
Ms. Predrag Zgonjanin – SHP Celex a.d.
Ms. Bojana Škrobić Omerović – FIC Office

The problem occurred due to the fact that RS, in its Ordinance on income tax, defined the Document 10 which needs to be signed by all the companies that have completed ino requirements together with tax authorities of those countries.

Unfortunately, tax authorities of other countries do not agree to endorse the documents from other countries stating that they have a form of their own. Despite of this fact, RS tax authorities insist on Document 10.

FIC representatives stressed that Regulation on the double taxation should be amended in a way that it would emphasize the importance of changing the Paragraph on Document 10, replacing it by the certificate of residence, that should be sufficient for the issue of double taxation.

Mr. Radukić has been very supportive, emphasizing importance of alignment with foreign investors in BIH and entity Institutions. He also, committed to: harmonize Regulations on withholding tax with the law, solve the problem regarding issuing of Document 10 and make it possible for the certificate of residence to be sufficient for the issue of double taxation, and all international agreements on avoidance of double taxation to make more accessible.

In cooperation with departments and TA these problems hopefully will be resolved and harmonised with the needs of investors – especially when it comes to harmonising Regulations with the Act.

May 4, 2011

EBRD: 70 million Euros for Prnjavor - Doboj highway

The European Bank for Reconstruction and Development (EBRD) remains committed to the project of Banja Luka – Doboj highway and has provided 70 million Euros to build the first section from Prnjavor to Doboj, said the RS Prime Minister Aleksandar Dzombic after the meeting with representatives of this financial institution.

„The EBRD also supports funding private partners who would like to take the concession on section from Banja Luka to Prnjavor and the section from Doboj to Jakes. We expect the decision about approval of funds and implementation of the loan very quickly," said Dzombic to the reporters in Banja Luka.

The idea of the EBRD is to establish a regional fund of 150 million Euros, which would be used to finance municipal infrastructure projects in local communities. Executive director of the EBRD for Infrastructure Tomas Mayer confirmed that the internal process of approving funds for the financing of the Banjaluka – Doboj highway is progressing well.

April 20, 2011

Foreign Investors Council of Bosnia and Herzegovina (FIC) held the 4 Th General Assembly of the Association.

On Wednesday, April 20 th 2011, the Foreign Investors Council (FIC) convened for the forth general assembly in 2011.

Members of the FIC, adopted the internal reports for 2010, discussed future activities for the current year, and elected a President / Spokesperson for the FIC as well as new Board of Directors.
The following members were elected to the Board:

Ms. Aida Soko, PricewaterhouseCoopers
Mr. Branimir Muidža, Heidelberg Cement Group/ Cement Factory Kakanj
Mr. Giulio Moreno – European Bank for Reconstruction and Development (EBRD)
Ms. Jasmina Lopičić - M:tel
Mr. Mukund V. Kulkarni – ArcelorMittal Zenica
Mr. Sead Miljković – Wolf Theiss ( in local cooperation)
Mr. Stevan Dimitrijević – Karanović & Nikolić
Mr. Vojislav Puškarević – Raiffeisen bank

Established in 2006 as a non-profit association, the Foreign Investors Council aims to act as a single voice for all foreign investors in Bosnia and Herzegovina, and seeks to promote business-oriented initiatives and provide practical support to all investors in order to improve the business environment in the country. Members of FIC have so far invested over 4 billion Euros in BIH and employed more than ten thousand citizens.

April 19 , 2011

Raiffeisen Bank has started to publish its analyses on Bloomberg and Reuters

Sarajevo, Raiffeisen BANK dd Bosna i Hercegovina started to publish its analyses on Bloomberg and Reuters, the two leading servers in the global investment world. By establishing cooperation with Bloomberg and Reuters in several segments, Raiffeisen Bank has become the first bank in Bosnia and Herzegovina to make its analyses and other publications available to the leading global investors using these services.

Within this cooperation, the Bank will publish daily, weekly and monthly reports, quarterly analyses of key political and macroeconomic trends in Bosnia and Herzegovina, business analyses of companies listed on the BIH stock exchanges, as well as many other publications on related topics.

April 19, 2011

Agenda of priority reforms adopted

“The FBiH government on Thursday in Sarajevo adopted an Agenda of priority reforms for a period of 100 days in which priorities are focused on intensifying economicdevelopment projects and strengthening of internal social stability of the Federation”, said FBiH  Minister of Education and Science, Damir Masic.

At the press conference held after the meeting  he stressed  that the priorities in the 100-day work program are based on the definition of National Development Strategyfor the period 2010 - 2013. , the Social Inclusion Strategy of BIH, FBiH Development Strategy of 2010.- 2020. , and the document "Bases for the formation of governments in the Federation and the Platform of joint action in BIH institutions in the mandate period from 2010 to 2014. ".

"Under this program, among other reform, creation of the  Competitiveness Council will be in focus. Also, our intention is to create a working group that will coordinateactivities and set the measures to improve BIH position  in  Doing Business World Bank Report 2011 and  will also consult the White Book of the Foreign Investors Council", Masic said.

April 18, 2011

Hypo- Alpe -Adria Group- Hypo macroeconomic research announces SEE quarterly economic outlook for region countries. Bosnia and Herzegovina focus:

Bosnia and Herzegovina: Political instability impedes recovery
● Further support from exports
● Monetary condition loosened
● Inflation outlook revised higher
● The renewed C/A deficits expansion
To see whole report click here.

April 15, 2011

New web site launched by the Government of RS

In order to provide better and easier information to the public, the Government of the
RS and the Ministry of Economic Affairs and Regional Cooperation, has recently been established and launched a new website. On www.regodobrenja.net
is now possible to obtain allnecessary information from the domain of registry
permits and inspection procedures of the RS and control subjects.

April 13, 2011

EBRD is open for project financing from the private sector

EBRD will this year continue to support the infrastructure projects in Bosnia, announced Giulio Moreno, Head of the European Bank for Reconstruction and Development (EBRD) in BIH.

It is believed that the construction of traffic infrastructure and those in the energy sector is extremely important for BIH and for the whole region. Emphasizes that the development of energy, which is one of the major potential of BIH, it is necessary to develop new transport capacity. The governments must work together to build long-term strategy for energy production.

EBRD is otherwise, the largest institutional investor in BIH and over the past three years invested about 7, 3 million Euros in 27 projects. Moreno said that in the next period will be open for project financing from both government and private sectors.

April 12, 2011

Foreign investment main trigger for economic growth in the region

Forecasts show that the 2011 be a year of recovery from the crisis for all countries in the region. Milan Cuc, Resident Representative of the International Monetary Fund (IMF) in BIH, says that some countries are taking measures of stabilization, but you can already tell that the region as a whole came out from the crisis and that in all countries ,with the exception of Croatia ,can be expected economic growth.

He believes that investors should keep in mind that all Balkan countries, including Bosnia, advancing towards the EU. The fact that the income per capita in BIH 1 / 3 of the European also shows that there is much of space for further growth.

April 8, 2011

The investor of the year in BIH

The Agency for the promotion of foreign investments in Bosnia and Herzegovina (FIPA) every year organizes the allocation of the most successful foreign investor in BIH.

FIPA launched these activities in 2003 when it first assigned the award for the best foreign investors in the previous year, with investments in four categories: privatization, banking, manufacturing and 'greenfield'.

FIPA each year organizes an awards ceremony and a presentation of the most successful amongst the successful examples of foreign investments.

Honors are awarded in four categories, namely: Greenfield, privatization / acquisition, joint venture and investments which created the largest number of new jobs.

A public invitation for the selection of foreign investors is published on the website of the Agency and in the daily newspapers in BIH.

All activities are performed by a committee composed of representatives of the Council of Foreign Investors in BIH (FIC), the Ministry of Foreign Trade and Economic Relations (MoFTER) and the Agency for the promotion of foreign investments in BIH.
Among the applications received, by the interested foreign investors, the commission sets aside three nominations for each category. The best of them get the recognition of a foreign investor for the year of elections.

This award is a confirmation of competence and public recognition and appreciation towards the most determined investors for their dedication and perseverance in achieving their plans.

The manifestation of the most successful foreign investment contributes to a positive business image of BIH.

Success and satisfaction with a foreign investor is the best promoter for new foreign investments.

April 7, 2011

Political instability is the main objection to investors

The main obstacle to the arrival of major foreign investment is an unstable political environment in BIH, and the failure of reforms that will allow a more stimulating conditions, was evaluated at today's panel, titled "International perspectives of investment in Southeastern Europe" held in Sarajevo under the Business Forum.

Special Representative of the United States Government Harinton Lorraine said that the delay in forming government in BIHinfluenced on investment and that many of them because it are now on hold. She stressed that there is interest of U.S. investorsto invest in BIH, but that government should create such an environment that will attract even more.

Nermin Niksic, Prime Minister of the Federation, said that the new cabinet will strive to work on reforms that will attractinvestors and invited them to voice their objections in order to solve them together.

On this panel could be heard and that the Western Balkan countries to attract investments must work on strengthening mutualcooperation and networking and creating regional economic platform.

Giulio Moreno, Head of the European Bank for Reconstruction and Development (EBRD), considers it important that localauthorities do everything to encourage the arrival of foreign investment since last year in this segment was very poor for ourcountry.

April 6, 2011

Stanari unique logistical feat: The construction of the second half of the year

Not an easy endeavor will be switching stator which weighs 270 tons from Shanghai to Stanari.

Works on the preparation of future power plants plateau residents near Doboj largely over, and the construction of the building is planned for the second half of the year, said yesterday the group EFT, investors of the project.

To this end, the last ten days in BIH delegation visiting one of the world's largest manufacturers of power equipment, "Dongfang Electric Corporation of China, in order to accurately determine the route that will haul the equipment for future power plant with capacity of 300 megawatts.

"Construction of power plants tenants, among other things, a unique logistical task with what is in these areas we have not met. In addition to vast amounts of standard freight, it is necessary to determine and prepare the logistics for the delivery of what we call non-standard load - very heavy equipment or large dimensions", Predrag Cvetkovic points "from" EFT Group.

In addition, states that only one component - generator stator weighs 270 tons.

"Translate this item from Shanghai to Stanari is not an easy undertaking," said Cvetkovic.

Dongfang representatives in cooperation with a Chinese logistics company COSCO and Sinotrans, and logisticians from Bosnia, Croatia and Romania, a detailed looked at the capacity and capability in the port of Ploce, Rijeka, Split and Constanta, and the respective rail and road routes from these destinations.

Project construction Stanari agreed in May last year between the EFT and Dongfang Electric Corporation. Chinese manufacturer for these needs will build a modern power plant on a "turnkey".

The new plant operations should start in 2014 and the total investment in the project exceed 500 million Euros.

The EFT notes that in Coal Stanari and preparation of the construction of power plants so far invested more than 50 million.

April 5, 2011

Program of post-investment support for foreign investors

A program of post-investment support for foreign investors (Aftercare Program) was initiated in 2006; however it has been implemented, according to established standards, since 2007.

The Agency for the promotion of foreign investments in BIH (FIPA) implements activities with the aim of post-investment support for foreign investors and establishing closer cooperation with companies in the field. In direct contact with foreign investors, information is exchanged which is related to work issues, employment, information about problems in the firm or business and the intention of further investment.

The objective of FIPA is to transfer information, suggestions and recommendations, which are received from the direct contact with investors, to governments and in this way to improve the business environment and stimulate additional investment.

Within four years of experience, it was observed that companies are very interested in talking and that they are pleased with the fact that the Agency has shown interest in their problems and in the conditions in which they operate.

From 2007 to today, representatives of FIPA, in all three offices Sarajevo, Banja Luka and Mostar, have carried out 190 visits to companies. During their visits, firms filled in questionnaires, which are the basis for the preparation of reports and analysis.

A large number of companies, or 75% of the companies that FIPA visited, intend to continue to invest in expanding their capacities and creating jobs.

The main reasons for investing in BIH are said to be: favorable geographic position, rich natural resources, skilled and cheaper labor forces and the ability to expand the market not only locally but also in countries with which BIH has developed economic cooperation. More than 90% of productive foreign companies are export-oriented companies.

Most investors are in contact with FIPA even in the phase of "market research" and planning for the implementation of projects. In order to acquaint foreign investors with business opportunities, meetings with relevant institutions or with existing companies have been organized.

Post-investment support includes assistance for investors in solving their specific problems, because their positive experience is the best promoter of BIH investment environment. The reality of business in BIH, unfortunately, involves a series of obstacles that foreign investors must face.

The analysis of the business environment, based on the Aftercare Program, will be elaborated on in tomorrow's article.

April 4, 2011

Main foreign investors in BIH

Countries that invested most in BIH are: Austria with a registered 1.621 million Euros or 26.3% share of the total amount of foreign direct investment (FDI), followed by Serbia with 901 million or 14.6% share and Croatia with an estimated investment of 706 million Euros or a share of 11.5%.

According to the records of the Agency for the promotion of foreign investments in BIH (FIPA), the leading investors in the country overall, have retained their primacy in the previous year.

According to a preliminary assessment of FIPA, in 2010, most of the investments come from Austria (estimated share of 27.0% in the total amount for 2010) Serbia (share of 14.2%) and Croatia (10.9% share for 2010).

The largest share of foreign investments from Austria is realized in the banking sector (more than 50%), and then in productions (more than 30%).

Serbia, Croatia and Slovenia are the countries that have the largest number of registered investments and established business organizations in BIH.

More than 90% of direct foreign investments in Bosnia and Herzegovina have been received from European countries, including Russia and Turkey.

Switzerland and the Netherlands, as the headquarters of multinational companies, will certainly continue to play an important role in the investment environment of Bosnia and Herzegovina.

At the same time the importance of Germany and Italy, confirmed by the trade links, is in the field of realized investments in the manufacturing sector and the creation of new jobs.

In the past year, according to the FIPA records, Saudi Arabia was in fourth place when judging by the total amount of investments (with an estimated share of 10.4% in the total amount for 2010), ahead of Slovenia, Turkey and Russia.

Corporations from America, China, Korea and the Islamic countries have declared an interest towards large investment projects in BIH, this opens up the possibility of significant participation of non-European investor in Bosnia and Herzegovina.

April 1, 2011

RS: SHP Celex most successful business organization in 2010

RS Prime Minister Alexander Džombić declared the company "SHP Celex" from Banja Luka for the most successful company in the RS in 2010.

The director of this company Predrag Zgonjanin said that his company exported more than 80 percent of the product and that the value of exports annually about 65 million.

Prime Džombić stressed that the RS has a very successful companies that have impressive results.

March 30, 2011

Foreign investment in 2010 in the world and the region

Foreign direct investments (FDI), around the world, stagnated in 2010 in comparison to the previous year, this information was release earlier this year by UNCTAD.

A report on the global investment trends, drawn from the available data from 153 countries, indicates a slight increase in FDI of 0.7% on a global scale.

For the first time, developing countries and transitional economies have attracted more than half of the total value of world investments.

Investments in developed countries fell by 6.9%, in Japan even 83.3%. However, the U.S. recorded a jump of investments by 43.3%.

In Europe, the value of direct investment was reduced by 21.9% (in the EU 19.9%).

Although in recent years, the global crisis was the biggest culprit of reduced flow of direct investments, BIH has lost the reputation of being a country of confidence when it comes to foreign investments, partly because of its own political instability and failure to implement key reforms.

Inflow of foreign investments in BIH in 2010, according to data incurred by FIPA, amounted to 359 million Euros; this is a reduction of 21% compared to 2009.

In Croatia, foreign investments amounted to 1.17 billion Euros for nine months of last year (30% less than in the same period in 2009.).

In Montenegro, the FDI reached almost 47% less in 11 months of 2010 than in the comparative period.

Macedonia finished the previous year with an influx of foreign investment amounting to 221.4 million Euros.

Serbia, in eleven months of 2010, recorded a net inflow of FDI amounting to 762 million Euros, which is far less than in 2009.

March 30, 2011

The effect of the economic crisis on the inflow of foreign investments

Autumn of 2008 will be remembered by the economic crisis, which started as a credit crisis in America and with great speed spread to most developed countries.

In BIH the first negative effects were felt by the capital market and the trade on the stock exchanges at the end of 2008. The turnover on the Sarajevo and Banja Luka Stock Exchanges was down by 63% compared to the previous year. Export-oriented companies, at the end of 2008, marked a downfall in requirements for delivery, which effected production and employment.

Early in 2009, credit funds were less accessible and announcements of layoffs occurred more frequently. The recession in developed countries affected the commodity market, which negatively affected the operations of companies in BIH.

A significant reduction in inflow of foreign direct investments (FDI) was registered. The positive trend of growth in real gross domestic product (GDP), industrial production and employment, stopped in 2009. Just as in the world, the most successful year for the inflow of direct foreign investments in BIH was 2007.

In 2008, the amount of investments was significantly lower than in 2007, amounting to 701 million Euros. In 2009, the impact of the global economic crisis on FDI inflow was expected. The total amount of foreign direct investment was 452 million Euros, which represented a decrease of 35% over the previous year.

Unfortunately, the negative trend in foreign direct investment continued into 2010. According to a preliminary assessment of FIPA, in Bosnia and Herzegovina, 359 million Euros were invested, which is 21% less than in 2009.

OECFD and UNCTAD announced that from 2010 there will be a slight recovery in foreign investment inflow.

Preliminary results for BH point out the necessity of improving business conditions and the investment environment. The encouraging fact is that foreign companies have expressed interest for potential projects in BIH and with the rapid extension of the reform process we can expect a growth in foreign direct investments in the future.

March 25, 2011

XELLA BH: Exceeded sales plan for 2010 in all market segments

Tuzla factory XELLA BH, which is 2009 began producing and selling YTONG building blocks, has been a very successful business results in the past year. Revenues from sales recorded a growth of 10%, while manufacturing capacity utilization rose to 60% compared to 2009. In 2011, Xella’s plan is to utilize production capacities up to 80%.

"We are very pleased with the results achieved, particularly with the fact that Xella BH in such a short time managed an excellent position in the market of construction materials in BIH. I would like to point out that last year we started to export our YTONG UNITS in Croatia and the share of exports in total production was 30%, and this year we plan to increase the share of exports to 50%, "said Sales and Marketing Director Nihad Begić.

At BIH market of building materials for construction, he added, have made significant progress, and now cover 13% of the market and thus have become the most powerful single manufacturer of building materials in BIH.

The positive business trend is already showing in the first months of 2011, so that the realization in the same period last year increased by 41%.

March 23, 2011

Business registration in Bosnia:
60 days, 12 separate procedures and 540 Euros

"It's not just a problem to get to registration, the problem is that the burden on employees is so great that these initial steps are a big problem to maintain this business," said Director of the Association of Small and Medium Enterprises BIH
The World Bank study which referred to the administrative barriers and procedures, the necessary time to run a business, and the total cost, BH is ranked 160th unenviable place.
"In Bosnia it takes 60 days to register. This process requires 12 separate procedures and the cost is somewhere around 17 to 18 percent of GDP. I think it's about 540 Euros," said Harry Mešinović the World Bank. The biggest problem in registration of companies is a complex administration, but also a great burdens when the company just opened.

Therefore, it is doubtful the very survival of the firm, says the director of the Association of Small and Medium Enterprises BH Zdenko Humphreys.

"People when they go to collect the very securities that are required as a basic precondition for registration of businesses, are facing various problems, from lack of efficiency of administration, which is one of the worst problems, and very complex administrative procedures, in order to effectuate the registration of a business. I not just a problem to get to registration, the problem is that the burden on employees is so great that the first steps in business are a big problem to maintain this business, "said Humphreys, writes BBC News.

"However, the conditions for starting a business are more favorable than a few years ago, but it is not enough because the market and foreign investors are looking for simpler procedures for business registration," said Goran Racic from the Association of Economists RS SWOT.

March 21, 2011

Despite difficulties: BIH have resources for fertilization capital

FIPA, by current estimates, the expected positive developments in terms of inward FDI
Bosnia and Herzegovina in general, despite certain difficulties faced, and still has considerable resources and capabilities for the fertilization of capital, said Srna Director of the Agency for Foreign Investment Promotion BH / FIPA / Jelica Grujic.
Grujic added that she sincerely hopes that investors recognize their chance in Bosnia.

"FIPA, according to current estimates, the expected positive trends in terms of inflow of foreign investments. The general economic recovery and increasing demand, especially in EU countries, it is realistic to suppose an increase in investment," Grujic said, adding that they have already announced significant investment and privatization of certain strategic companies.

Last year there was an inflow of foreign investment of 358.7 million Euros, which is 21 percent less than in 2009, and most investors were Austria, Serbia, Croatia, Saudi Arabia and Slovenia.

FIPA Director points out that the largest investment in the manufacturing sector - 40 percent of total foreign investment in the retail sector 22 percent and 19 percent of banking. The tourism is directed five percent of foreign investment, other financial services to five percent, three percent in real estate, one percent in telecommunications and transportation.

FIPA has no information about the inflow of foreign investment for the first two months of this year, because no investment is not realized for 30 days.

Commenting on the constant decline in foreign investments in BIH, Grujic said that one reason the global economic crisis, which affects the automatic reduction of demand, refrain from investing and the decline of investment.

"Of course, we can always look for an excuse to outside influence. The reasons are the general picture of BIH, and our image as a location for investment," said Director of FIPA, adding that the past year and general elections and the activities of decision decisions were focused mainly in this direction.

As for the activities of FIPA to change this state, Grujic said that they are aimed at providing information on investment opportunities in BIH and to create the image of BIH as a modern state and a serious, competitive and reliable partner for investment capital.

"The regular activities include the provision of regular information to potential investors, tracking and analyzing the environment, identifying` `bottlenecks that hamper the inflow of investments and propose solutions," she stressed.

According Grujic, FIPA inform potential investors about the business environment of BIH, resources, potentials, chances and opportunities in the country, but also assists in establishing contacts between foreign investors and local authorities at all levels.

FIPA Director stressed that continuously working on improving and updating of promotional material to be submitted in person or through other institutions, and added that the important part is the cooperation with other foreign similar institutions with which they are about investment opportunities in BIH.

March 16, 2011

Success story: 100 mil KM invested in Brcko District in the process of privatization

It took nine years for the Brcko District to finalize the privatization process, which according to early indicators, has yielded positive results. Although in other parts of the country, sale of state capital often means destruction of economic giants, in Brcko not a single privatized company has been closed after the sale.

On the list for privatization in Brcko District, there were a total of 27 companies, and to-date 26 have been privatized, while the last company on the list would be privatized if it had not been instituted.

Most of the companies were privatized by selling a 67 percent of capital owned by the state, explains Zijad Lugusic, Counselor for Economic Affairs and Privatization at the Office of the Public Property of the District.

"According to this model, the owner buys 67 percent of total capital, while the remaining 33 percent is taken by the minority shareholders. In this way, we sold a total of 25 companies, "said Lugusic.

The main advantage that has attracted investors to invest is a business and political environment. Namely, Brcko, eleven years ago, was declared a district controlled by the international community, which later created a climate for safe investment.

Also, new regulations were made to provide numerous benefits to investors. A lot of the laws have been aligned with the ones in the entities (RS and the Federation), subsequently leading to a more stable economic environment.

March 15, 2011

BH economy last year grew 0.9 percent

"Gross domestic product, according to our data, was 24.7 billion, which is a sign that Bosnia-Herzegovina after sinking back into recession in the positive zone," said Kemal Kozaric

Economic growth in Bosnia and Herzegovina in 2010. amounted to 0.9 percent, preliminary data of the Central Bank.

"Gross domestic product, according to our data, amounted to 24.7 billion, a real increase of 0.9 percent compared to 2009. And a sign that Bosnia-Herzegovina after the sinking back into recession in the positive zone," said Kemal Kozaric, Central Bank governor.

He added that this data is 99 percent accurate, but will publish official statistics agency for statistics.

Gross domestic product (GDP), which was preliminarily published by the Central Bank, is somewhat higher than estimates by international financial institutions in BIH, according to them in 2010. year expected growth of 0.5 percent.

GDP in BIH, according to the Agency for Statistics, 2009. years had a real decline of 2.9 percent and amounted to 23.9 billion, or 4,436 dollars per capita. The Central Bank estimated that the economic growth in BIH in 2011. year will be three percent under the assumption that the government is formed by the end of March, but it is not excluded that after the first quarter, adjusted its estimates.

The International Monetary Fund (IMF) lowered his growth forecast of BIH for 2011. year to 2.2 percent, with similar estimates put forward by other international financial institutions.

March 10, 2011

Network Agency for Foreign Investment Promotion of SE Europe

Network Agency for Foreign Investment Promotion Southeast Europe was established in June 2009 through the Memorandum of Understanding that was signed in Vienna by representatives of six agencies for the promotion of foreign investment in Southeast Europe (Albania, Montenegro, Bosnia and Herzegovina, Croatia, Macedonia and Serbia).

Through this memorandum the cooperation between the Agencies, which was previously realized through the exchange of information and experiences as well as participation in joint promotional events, has been strengthened.
The network of agencies is an excellent platform for the promoting of the entire region as a single economic space.
The main aims of the network are to better inform of potential investors, to establish a common information database, to prepare and issue joint promotional materials, to launch promotional campaigns, to organize investment conferences, forums, round tables ...
One of the upcoming events which will be attended by members of the network agencies for investment promotion is the first US-Balkan Business Summit on Trade and Investment, which will be held on the 23rd and 24th of March in the U.S. city of Baltimore.
U.S. investments in the region are currently very small and one of the reasons for this may be the general weakness of available information about business conditions.
At the summit, besides the representatives of companies from the United States and Western Balkan countries, the senior political officials of the countries will participate and the focus will be on energy, military industry and defense, information technology, tourism, infrastructure and transport.

March 9, 2011

'Support to the small and medium sized enterprises sectors
in Bosnia and Herzegovina’, TAM and BAS Programs

The Delegation of the European Union to Bosnia and Herzegovina and the European Bank for Reconstruction and Development (EBRD) will organize event to cover the launch of the program funded by the EU ‘Support to the small and medium sized enterprises sectors in Bosnia and Herzegovina’, TurnAround (TAM) and Business Advisory Service (BAS) Programs, on Thursday, 10 March 2011, from 11:00 to 12:30 hrs., at Hotel Holiday Inn, Herzegovina conference room.

TAM and BAS are donor-funded programs, implemented by the EBRD and aimed at fostering the development of small and medium sized private business in Bosnia and Herzegovina. Under the current EU funding, the programs will support at least 20 companies through TAM projects and 100 companies through BAS projects over a period of 30 months

March 9, 2011

The trend of foreign direct investment in the world

The United Nations Commission on Trade and Development (UNCTAD), in its new report on global investment trends estimated that in 2010 the inflow of foreign direct investment in 153 countries around the world amounted to 1122 billion dollars, which is only 0.7 percent more than in 2009 when that value amounted to 1114 billion dollars.

In the past year, developing countries and transitional economies for the first time attracted more than half (about 53 per cent) of the total value of investments in the world.
The value of investments in developing countries amounted to 524.8 billion dollars, or 9.7 percent higher than in 2009.

In the transition economies of Southeastern Europe and the territory of the Community of Independent States, foreign direct investment rose by 0.8 percent to 70.5 billion, after falling by more than 40 percent in 2009 when their value dropped to 69.9 billion dollars.
For the region of Southeast Europe it is estimated that a decline in value of investments will once again occur and will drop by 31 per cent, while the Russian Federation is forecasting growth of 2.5 percent, to $ 40 billion.
Investments in developed countries last year fell by 6.9 percent to 526.6 billion dollars.

In the European Union direct investment declined by as much as 19.9 percent to 289.8 billion dollars.
For the current year, the UN agency predicts foreign direct investment in the range of 1300-1500 billion, due to improved macroeconomic conditions.

March 7, 2011

Bad parking can stop investors from opening a company in BH

No matter how much money an investor wants to put in Bosnian economy, if he has a parking ticket that is not paid, he cannot open a company in the Federation or make an investment of any kind.

Tickets unpaid
Although the regulations clearly stipulate the documents one has to have when founding a company, BH notaries warn of the Federation Law on Misdemeanors that stipulates otherwise, saying that the competent court shall not permit the registration or changes to the information about the startup if the applicant has outstanding misdemeanor penalties or tax liability. And while in the case of tax liabilities and economic offenses the imposition of such prohibition is logical, it remains unclear whether multimillion-dollar investments in the country should be stopped only because of unpaid fines of 30 KM for wrong parking or seat belts .

According to some interpretations, the legislature here is primarily meant for economic offenses, but the courts consistently apply it and block the registration of companies with outstanding fines for traffic violations.

All previous attempts by Bosnian authorities to change the regulations to facilitate business to foreigners and thus attract more foreign investment into the country, have proven unsuccessful. Because of the global crisis and adverse business conditions, foreign investment has been recording a significant decline compared to the previous year.

On several occasions the state and entity authorities announced legal adjustments that would facilitate business operations to domestic and foreign investors. But instead of working to improve the business climate, cut public spending and imposable benefits , in one word various quasi-fiscal charges, legislators insist on absurd regulations and clip the wings to the even most persistent investors.

The law
Bosnia has still a lot of work ahead when it comes to amending the legislation, one of them being the amendment to the legislation on registration of startups.

Until then, potential investors have to watch where they park.

March 2, 2011

EBRD supports pulp and paper mill in Bosnia and Herzegovina

€11 million loan to Natron Hayat

For more information click here

February 28, 2011

Austrian companies in BIH have invested 1.8 billion Euros

"Our company continues to want to invest in BiH. No company that is said here that the poor performance of our common goal is to increase the presence of Austrian companies in BiH ", said the economic advisor to the Austrian Embassy in BiH

February 28, 2011

The importance of the fund of support to foreign investors

The fund of support for foreign investors in Bosnia and Herzegovina was established in 2007. Its establishment was intended to provide financial support to foreign investors who are already operating in our country with the aim of launching new projects.
In previous years the budget managed by the Board of the Fund amounted to two million KM.

In order for existing investors to realize their rights through the Fund's financial resources they are required to meet basic conditions which include business expansion through the launching of new projects, increasing the number of employees, the introduction of new environmentally sound technologies and developing an export strategy of its products (the participation of exports in total sales).

Fund resources may be available to companies that are exclusively engaged in production activities, research activities and development and other activities with the exception of the catering sector, trade, banking and insurance.

Bosnia and Herzegovina has established a fund to support foreign investors and by doing so has joined the countries in the region that are, under the same principle, encouraging foreign investors with the aim of attracting more investments.

So far, funds have been allocated for the Fund's most successful investors in 2008 and 2009; this practice will be continued in the future.

Such an approach to the promotion of foreign investments is yet another positive step made by the BiH authorities and the agency FIPA.
These positive reforms will move Bosnia-Herzegovina towards the European Union, bearing in mind the significance of foreign investment for economic prosperity and economic development of the country.
(www.fipa.gov.ba)

February 21, 2011

Leading foreign investors which are present in BiH

Some of the foreign companies present in Bosnia and Herzegovina are:

February 17, 2011

EBRD sees Bosnia and Herzegovina return to growth in 2011

Bank urges renewed reform drive

The EBRD sees the economy of Bosnia and Herzegovina return to growth in 2011 with an expected increase in output of 2.2 per cent. The expected more robust growth in 2011 follows a challenging period for the country with a GDP contraction of 2.8 per cent in 2009 at the height of the global financial crisis and a modest increase, provisionally estimated at 0.8 per cent, last year.

According to the EBRD’s latest regional economic outlook, published in late January, stronger growth this year is largely due to higher foreign demand. Continued implementation of public sector reform and adherence to the IMF agreement remains key for economic recovery and future sustainable growth.

The EBRD Transition Report meanwhile stresses that major domestic challenges to sustainable growth remain. As the main concern the report identifies constitutional reform, without which further progress towards a more efficient state, implementation of a comprehensive reform and growth agenda and EU approximation will be difficult to achieve.

“Political will to implement the difficult fiscal consolidation measures and to further liberalise the economy and improve business environment will help Bosnia and Herzegovina to return to a sustainable model of economic growth”, said EBRD Lead Economist, Peter Sanfey.

One of the key priorities facing Bosnia and Herzegovina is the continuation of the privatisation process and the advancement of reforms aimed at improving the investment and business climate in the country. Further strengthening of roads and railways regulators and unbundling in the power sector is needed to facilitate modernisation of all infrastructure sectors.

While the banking sector has remained sound despite the global financial turmoil, it is important to establish a unified system of banking supervision in Bosnia and Herzegovina and to promote the development of non-bank financial markets.
In the EBRD Transition Report 2010 the Bank’s Chief Economist Erik Berglöf warns that governments would be putting long-term growth in emerging Europe at risk if they shied away from implementing crucial reforms just because the region was now pulling out of the global economic crisis.

“Complacency would threaten not only recovery, but also long-term growth,” Dr Berglöf says in the foreword to the report. There could be “no return to the region’s pre-crisis dynamism without new reform.”
This year’s Transition Report illustrates that the EBRD region is recovering from the crisis more hesitantly than other emerging markets and with sharp variations among individual countries. Overall growth of 4.2 and of 4.1 percent is predicted for this year and next, compared with a contraction of 5.5 percent in 2009.

In response to this mixed outlook, the Transition Report 2010 outlines a series of recommendations to policy-makers on how to return the region to stronger, more sustainable, growth, including the need to develop local currency and capital markets, to reinvigorate export growth and trade integration and improve the business climate.
The aim of these recommendations is to make growth less volatile and also to rebalance the drivers of long-term expansion. As capital inflows are expected to remain below pre-crisis levels, “the region will need to seek alternative sources of growth,” the report says.

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed €1.3 billion in 83 projects in various sectors of the economy. The EBRD’s funding helped mobilised additional investments worth €1.5 million from other sources.

February 16, 2011

EBRD Transition Report 2010, for Bosnia and Herzegovina

Click here to download the PDF document

February 8, 2011

EBRD Transition Report 2010 presentation in Banja Luka and Sarajevo

Peter Sanfey, Lead Economist and an editor of the Report, and Giulio Moreno, Head of Office EBRD Bosnia and Herzegovina, will discuss the findings of the latest Report and the implications for Bosnia and Herzegovina and the wider transition region as well as give an overview of current EBRD activities in Bosnia and Herzegovina.

February 7, 2011

Disgruntled Austrian investors rank BH business climate as poor

One of the biggest problems faced by Austrian companies in Bosnia is a poor legal framework as shown in an online survey recently conducted by Advantage Austria BIH in cooperation with the Economy Faculty of Sarajevo, which polled 89 Austrian companies operating in our country.

Austria is the largest foreign investor in BiH, which to date invested 1.7 billion EUR in the country. Our country currently has around 200 companies with the Austrian capital.

"The business climate in BiH has been ranked as poor, which is a warning to the national institutions but also leaves plenty of room for improvement," said Peter Hasslacher, director of Advantage Austria BiH.

He noted that the survey showed that last year was a bad one for Austrian investors in BiH. "However, it is behind us and Austrian investors have high expectations and plans for 2011," said Hasslacher.

The results of the survey are a real headache for local authorities as more than 50 percent of Austrian investors ranked the current bureaucratic and legal system as negative or very negative.

Also this is the first online survey showing that investors take into serious considerations categories such as legal system of a country, lack of legal security, corruption rate, political and economic stability, economy and infrastructure.

Not a single of the surveyed Austrian companies described the current economic situation as very good. More than half of respondents rated the economic situation satisfying, while nearly 20 percent gave it bad and very bad review.

Asked whether they think that the state of BH economy will improve in 2011, only 30.2 percent of surveyed enterprises believes that it indeed will get better, while half of the respondents believe that nothing will change. About 20 percent of them think that the situation will get worse.

Optimism of Austrian investors

Drazen Maloca, deputy director of Advantage Austria Bosnia and Herzegovina, who presented the results of the survey, said that Austrian investors have shown a fair dose of optimism when it comes to how they see the situation in the industry of their preference. About 40 percent of them believe that the situation will be better this year, while 11 percent expressed pessimism in their line of work for the next year.

He stressed that the survey results show that Austrian companies headquartered in Bosnia, have not reduced the number of labor and investment, despite 2010 shortcomings.

The response of investors also shows a gap between expectations and what is being delivered. Namely, there is a huge discrepancy between the wishes of investors and the reality, notably in terms of legislation, legal security, corruption, political and economic stability, payment moral and the overall development of the economy.

Expectations of investors are only met when it comes to BH geographical position, land register, the cost of labor and local suppliers.

Better business climate

Austrian investors this year, expect the BiH authorities to do something about law enforcement, social policy above all the job creation, reducing nepotism, improving the quality of welfare policy and the standard of living. Also, they expect a reduction of crime and corruption rates, improved tax legislation, government stability, improved business climate and infrastructure.

"Hopefully, those issues will be addressed and worked on, in order to make Bosnia and Herzegovina an attractive destination for foreign investors," said Hasslacher. He added that they were particularly pleased with the fact that almost every other Austrian company present in BiH participated in the survey, so that the results are more than viable.

"Our goal is to repeat the survey every year, in order to present Austrian investors progress being made, or the lack thereof ," said our interlocutor today.

The survey was conducted from December 2010 until January 2011 polling directors of Austrian subsidiaries in Bosnia and Herzegovina and directors of their Austrian counterparts.

Danijela Kozina

February 3, 2011

SARAJEVO WAS RANKED AMONG THE 100 TOP DESTINATIONS FOR INVESTING

The publication City Leaders for 2011 issued by the organizations Property EU and MIPIM World dealing at the global level for development of the real estate market and the main data base for investors worldwide, ranked the city of Sarajevo among the 100 European cities which represent a part of joint market for international investors.

Exceptional geographic position, climate, geological, demographic and microeconomic characteristics make Sarajevo the centre of public administration and business. Besides, Sarajevo is currently undergoing major infrastructure renewal.

January 31, 2011

Raiffeisen Bank began to publish "Raiffeisen macroeconomic analysis" Published projections and analysis of major economic indicators for 2011. year

Raiffeisen BANK d.d. Bosnia and Herzegovina started its official publication analyzes and forecasts economic trends, prepared by a team of analysts of Raiffeisen Bank. Raiffeisen macroeconomic analysis, which until now were available only to customers - users of investment banking, will now be available to the general public. Analysts Raiffeisen Bank will publish a quarterly basis of this analysis, in accordance with market needs. The first "Raiffeisen macroeconomic analysis "provide an overview of trends and forecasts of major economic indicators for 2011. Year, such as gross domestic product, imports and exports, inflation, unemployment, balance of payments, etc. The primary objective was to customers and all decision-makers give the information needed for planning that will help them in decision-making, said Michael Mueller, Director of Raiffeisen Bank.

Click here to download the document

January 28, 2011

Incentives for foreign investors in BiH

There are numerous benefits and incentives available to foreign investors in Bosnia and Herzegovina. Thus, according to the Law on Foreign Direct Investment, foreign investors enjoy the following benefits: * Foreign investors have the same rights and obligations as the residents of Bosnia and Herzegovina;

* Have the unlimited right to open and keep accounts in all commercial banks in the entire territory of BiH, in domestic or any other convertible foreign currency;

* Have the right to free and unrestricted transfer abroad of all revenues;

* Have the same rights of ownership of real estate as domestic investors;

* Protection from nationalization, expropriation, requisition or measures having similar effects;

* The right to employ foreign citizens in accordance with the labor laws of Bosnia and Herzegovina

Foreign investors are exempt from the obligation to pay customs duties on imports of equipment that have the status of investment capital (equipment may not be older than 10 years and must comply with technical standards).

There are also benefits offered to foreign investors if they decide to do business in one of the existing free zones by not paying VAT and import duties on equipment that will be used for production.

The Council of Ministers in 2007 established a fund to support foreign investors as one of the financial incentives for foreign investors, whose assets amount to two million a year.

Taxation of foreign investors is done in accordance with the laws of the entity with the following benefits (the Federation):

* A company that within five years invests in productions at least 20 million KM (BAM), shall be exempt from income tax for a period of five years commencing from the first year of investment, in which it must have invested at least four million KM.

* The company which derives 30% of its total annual income from exports is exempted from paying tax for that year. Also, an employer who employs more than 50% of disabled persons or persons with special needs for more than a year is exempted from income taxes.

Foreign investors can be insured against a variety of risks by the European Union Investment Guarantee Trust Fund for BiH and MIGA agency (which is part of the World Bank).

BiH has signed agreements on the promotion and protection of investments with a total of 36 countries and has 36 signed agreements on avoiding double taxation.

Bosnia and Herzegovina in 2006 signed the Free Trade Agreement of Central Europe (CEFTA) with the following countries: Albania, Croatia, Serbia, Macedonia, Moldova, UNMIK / Kosovo and Montenegro.

Bosnia and Herzegovina has also signed a free trade agreement with Turkey, and special preferential export regimes with the USA, Australia, New Zealand, Switzerland, Norway, Russia, Japan, Canada and Iran.

January 24, 2011

TRADE UNION INVITED HIGH REPRESENTATIVE TO SET THE DEADLINE OF FORMING  GOVERNMENT IN BOSNIA AND HERZEGOVINA

Trade Union  of BiH (SSSBiH) sent a letter to the High Representative and EU Special Representative Valentin Inzko which invites him to use his authority to set deadlines for the formation of the authorities in Bosnia and Herzegovina.

January 19, 2011

Coca-Cola HBC BH highly evaluated Messer in 2010.

Coca-Cola HBC B-H d.o.o. Sarajevo as part of its Quality Management System in September each year evaluates its suppliers. Since the cooperation between Messer and Coca-Cola has been ongoing since 1997. year, we are pleased to announce that this year Messer rated very highgrade of 4.36 (out of a possible 5) .

Coca-Cola HBC BH doo Sarajevo assess the quality of our services and products, expertise in the application of international standards for qualityand food safety, competitiveness, delivery speed, and making deadlines, communication and technical support.

"These results show that Messer as a supplier possesses the highest level of professionalism, competence and capability.  Messer, initiatedactivities to introduce new standards in the coming years, in order to further improve the already excellent cooperation between the twocompanies.

January 14, 2011

Council of Ministers optimistic about 2011

The Council of Ministers of BH adopted the Economic and Fiscal Programme 2011-2013, according to which this year should see the beginning of BH’s economic recovery.
The document which is going to be forwarded to the EC projects a GDP growth rate of 3.2 per cent in 2011, and an increase in foreign investments after a two-year slowdown. These indicators are further expected to boost employment and spending.
Another decision adopted yesterday is that foreign nationals visiting BH need to have minimum BAM 150 on them.

January 11, 2011

GDi Gisdata hired to create IT spatial planning system for Republika Srpska

GDI Gisdata, one of the leading technology companies in the region and the largest company for geoinformatics in Central and South-eastern Europe, signed a contract in December with the RS Ministry of Physical Planning, Construction and Ecology on delivery of the IT system for spatial planning.

This is the second phase of the project to consolidate all relevant spatial data and ultimately enable the full implementation of spatial information system of Republika Srpska. The system is based on the world-leading ESRI ArcGIS Server technology and the standard GDI Gisdata Web GIS application adapted to the needs of users. The new system is quick to start, easy to handle and allows all users easy access and work.

CEO of GDI Gisdata Group, Boran Loncaric, talked about the company's expertise and numerous successful projects over the years spent in Croatia and abroad.

"In each of the similar projects - like the Geoportal for the National Geodetic Administration of the Republic of Croatia or the Real Estate Agency of Montenegro - we rely on internal solutions that we have developed using our own resources. Other than satisfying client’s needs, that way we are sure to export the knowledge of our experts. We are especially pleased about this job that we have won in a tough international competition, where our quality and experience in many GIS implementations in Croatia and the region came to the fore, "says Loncaric.

The project is worth more than 190 thousand EUR, and financed by the World Bank. This and similar activities by the GDI Gisdata recently concluded in the region, to a large extent determine the general mood that will be felt in 2011 -the company's diminishing participation in the investment market if Croatian and the record increase in revenues from exports and projects won in international competitions.

GDI Gisdata this year could have its figures changed. Instead of 40 percent sales in the Croatian market, it could replace that number with 60 percent of exports.

January 11, 2011
The transport sector in Bosnia and Herzegovina
Transport infrastructure is a key factor for the free movement of goods and people. Since 1996 the support of the European Union to Bosnia and Herzegovina has mainly focused on physical reconstruction of infrastructure.

The support program CARDS 2005-2006 focused on institutional development and facilitated access to international lending institutions.

During reconstruction, the EU has invested over 100 million Euros in this sector in BiH, of which a quarter of these funds go towards the restoration of traffic and railway bridges, while another 8 million was provided for road rehabilitation.
This financial support has included over 12 million Euros which is aimed at the restore of the continuing electrification of the railways in the Pan-European Corridor Vc.
An additional 11 million euros has been invested to rebuild the airports in Sarajevo, Banja Luka and Mostar, including the renovation and purchase of equipment for the terminal building and reconstruction of the runway.

When it comes to the civil aviation sector in BiH, in June 2006 BiH signed an agreement titled the European Common Aviation Area (ECAA).
Also, the European Union provided technical assistance in addition to the EBRD loan that will support the implementation of the Strategy for the air traffic management in BiH, so that BiH could control the high air space from 2013.
The EU has subsidized a fixed interest rate of 2% for loans that were provide for BiH by the European Investment Bank (EIB): 40 million euros for the reconstruction of railways and 60 million for infrastructure.
This support has enabled reconstruction of the bridge in Capljina, ongoing construction of the highway Banjaluka-Gradiska and future construction of the Sarajevo Bypass.

The repairs of railway lines in sections of the road Banjaluka-Josavka and Bradina-Konjic have been complete and in the future the reconstruction of roads throughout Bosnia and Herzegovina should begin, as well as the construction of a freeway which is one of the priority conditions for joining the European Union.

January 6, 2011

The possibilities that BiHs metal sector offers to foreign investors

BiH has a significant production capacity of iron, steel, alumina and aluminium.
Given the fact that small and medium-sized firms exist in the sector of metal processing, the industry is looking for integrator companies that could bring about rapid development, new technologies and promote a higher level of specialization.
These facts open up many opportunities for reliable strategic partnerships and investments.

Some of the main reasons for investing in the metal and metal-processing sector in Bosnia and Herzegovina are as follows:
- Natural resources / low cost production
- A qualified, trained, motivated and cost-competitive workforce
- Available infrastructure
- Good export opportunities, including geographic location and the number of incentives
- A number of universities, research and development institutions and engineering firms in this field

Foreign investors which are already present in BiH have shown considerable success and results. The largest investor is ArcelorMittal, the world's leading producer of steel and the majority owner of the largest producers of iron and steel in BiH, ArcelorMittal Zenica, as well as the Ljubija iron ore mine which is part of ArcelorMittal Prijedor. The other big foreign investor in the metal industry is the company Birac Zvornik.
Most of the foreign direct investments in this sector relate to the privatization of state enterprises, but at the same time the metal industry has excellent results when it comes to Greenfield investments.
The company Bekto International Gorazde and Mostar Fe-Al are just some examples of successful Greenfield investments.

A great example for the improvement of the operations of foreign investors through cooperation with local communities and scientific institutions is the company Cimos Group which has a foundry in Zenica and manufacturing facilities in Gradacac, Srebrenica, Tuzla and Travnik and which is developing a joint project with the University of Zenica.

January 6, 2011

Central Bank reduces reserve requirement

The Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH) made the decision to reduce the required reserves rate on deposits, included in the base for calculation of required reserves and with the maturity up to one year, from 14% to 10%.

Required reserves rate on term deposits for the period longer than one year remains 7%.

By this decision, the additional liquid funds for commercial banks should amount to around KM 300 million, which should have indirect effect on the liquidity of real sector.

The Decision eneters in force by day of its publishment in Official Gazette of BH and shall be implemented from February 1, 2011.

Facts & Figures:

Country Profile

Macroeconomic Overview

Attractive Sectors

White Book
	The 2010/11 White Book is the fourth publication of the FIC. Its purpose is to provide BiH authorities with a prioritized agenda for reforms to address key obstacles to investment that can be accomplished in the upcoming period. (download .pdf)

FIC Recommends
	Investment Development Bank of Republic of Srpska, has published a sixth edition of the IRBRS Economic Monitor. In this document you can find analytical presentation and overview of economic trends in the Republic of Srpska, essential for decision making on investments. (To download the document, click here)

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