Sectors Potential for Investment
To materialize these huge potentials and resources, including strong human base, supporting infrastructure, an abundance of production facilities, Bosnia and Herzegovina seeks for increased capital investments, new technologies and access to the new markets, what could be met with strong strategic partners and large international companies, especially in following sectors:
Bosnia and Herzegovina, a land of breathtaking natural beauties and everlasting historical and cultural heritage, largely matches the new travel market trends particular requirements of the travelers who are looking for new destinations, adventure and authenticity. Investment opportunities within the tourism sector are various including: ski and mountain tourism, ecotourism, spa tourism, sea tourism, cultural heritage and religious tourism, adventure and sport tourism.
The transportation infrastructure in Bosnia and Herzegovina is underdeveloped and is in need of large investments. The most important infrastructure project, connecting Budapest with the Adriatic Sea that Bosnia and Herzegovina has participated is Corridor VC. The part of highway concerning Bosnia and Herzegovina is 330 km long. Additional highways and roads are to be built and expanded. Railways and ports on the Sava River are required to be modernized as well. These projects are considered as an opportunity to contribute to the economic development and the revival of Bosnia and Herzegovina as it connects country with its neighbors.
Based on vast potentials of coal, hydro and renewable energy sources as well as a long tradition, the energy sector is one of the most attractive sectors in the country. The electricity, currently mostly produced in hydro and thermal plants, exceeds the domestic demand and it is largely exported even though it has not developed new power plants since the mid-1980s. There is an acute need to build new and replace old power-producing facilities. The investors can benefit from foreseen investment projects including: large thermal power generation projects, large, small and mini hydropower projects or wind energy potentials. An additional incentive is the fact that Bosnia and Herzegovina is the integral part of the pan-European grid which enables electricity producers to trade and ship electricity all across Europe.
Out of all natural resources in Bosnia and Herzegovina, its timber is best known and 53% of the country is covered in forests that can serve the wood and furniture processing industries. Beech, oak, ash, pine and fir as well as more specialized woods such as walnut, apple and cherry are exported as raw material, half fabricates and finished products. The abundance of both hard and softwood, the competitive price and skilled labor force and manufacture facilities make this sector very attractive for investors.
The metal processing industry in Bosnia and Herzegovina is quite large, covering the processing of ferrous and non-ferrous metals, particularly iron, steel and aluminum, lead, zinc and copper. This sector has a permanent and high growth rate of over 10% within past years, being the largest exporter in Bosnia and Herzegovina. The metal processing in Bosnia and Herzegovina offers resources which enables sustainable development of various value-added businesses, export oriented in particular.
Numerous foreign companies that have invested in the automotive industry of Bosnia and Herzegovina (metal production and processing, tool making, plastic processing, mechanical and electrical engineering, automotive textile products) experienced dynamic development and achieved international standards, enabling export, in average 90%, of their production. With highly qualified labor force and strategic location, Bosnia and Herzegovina can be an excellent supplier base for reputable automotive producers.
Bosnia and Herzegovina companies have already acquired a good international reputation for quality and reliability in all aspects of the construction industry, ranging from design to structural engineering, building construction, civil engineering and the production of high-quality building materials. It is also expected that this sector - and thus opportunities for investment - will grow even further with the construction of the Corridor Vc highway that will connect Budapest with the Adriatic Sea.
Ample natural resources and optimal climate conditions make Bosnia and Herzegovina an ideal place for the agriculture and food processing industry. A significant part of the country's land area is agriculture land including arable land, mountain pastures, improved grazing land, orchards and vineyards. Investors can enjoy various investment opportunities: vegetable and fruit growing, wine production, field crops, medical and aromatic herbs, livestock and forage production, fish farming and food processing.
Bosnia and Herzegovina has a long tradition and an international reputation as the supplier of consumer goods of textile and footwear to the European markets. Rich experience and well skilled labor force attract foreign companies to move complete productions to Bosnia and Herzegovina. Chinese textile and footwear producers who face high transportation cost and trade barriers in order to penetrate to the European markets should explore the opportunity to move their production facilities to Bosnia and Herzegovina and enjoy the vicinity of European markets, preferential trade agreements as well as competitive cost of production.
Three main telecom operators with multiple international connectivity share the majority of the ICT infrastructure, operate fixed and mobile telephone networks as well as Internet and data transmission networks. Only one of these three operators is privatized, while privatization of the remaining two is expected in the near future. Additionally, the number of IT companies and various service providers offer an array of opportunities to potential investors wishing to exploit know-how, sophistication, and new business ideas. The Chinese ICT producers who operate at European markets should explore the opportunity to move their production facilities to Bosnia and Herzegovina and enjoy the vicinity of European markets as well as the broad base of highly competitive ICT experts in Bosnia and Herzegovina.
- Tourism
- Infrastructure
- Energy Sector
- Wood Processing Industry
- Metal Processing Industry
- Automotive Industry
- Construction Industry
- Agriculture & Food Processing
- Textile and Footwear
- ICT