Foreign Direct Investment
In order to encourage foreign investors and contribute to the predictable business environment, the Council of Ministers established the Foreign Investors Supports Fund as a financial incentive for investors.
The influx of FDIs to our country has been driven by privatization processes especially in the financial and telecommunication sectors. In 2007, Bosnia and Herzegovina attracted EUR 1.3 billion which is absolutely the highest amount recorded in the last 15 years mainly thanks to the privatization of certain large state-owned enterprises. In 2008, the FDI inflow was EUR 684 million characterized by investment in the production sector as well as by the high contribution of Greenfield investments. International macroeconomic determinants and the end of global bullish investors’ sentiment era have significantly affected the inflow of foreign capital to Bosnia and Herzegovina. In the years of 2009, 2010 and 2011, the global economic crisis hit the inflow of FDI.
Flow of FDI in Bosnia and Herzegovina, by years, million Euros
Source: Central Bank of Bosnia and Herzegovina
Data for 2011 confirm a slight recovery, while the announced investments and planned projects make us optimistic regarding future FDI.
Top investor countries in Bosnia and Herzegovina
May 1994 - December 2010 Million USD
Source: Central Bank of Bosnia and Herzegovina;
Note: values are expressed in USD at average exchange rate for 2010
During the previous period the European countries have invested more than 90% of total FDI in Bosnia and Herzegovina. Overall, the biggest country investor in Bosnia and Herzegovina is Austria.
FDI Stocks by Industry
May 1994 - December 2010
Due to the good reputation and long industrial tradition of Bosnia and Herzegovina, the manufacturing sector received the most amount of FDI. The biggest share of investment has been in the production sector (34%) and banking sector (22%).
Source: Central Bank of Bosnia and Herzegovina; MoFTER; FIPA