While noting that the preliminary data are subject to subsequent revisions, foreign investments in the period from January to September 2024 are 3.4 percent lower compared to the same period a year earlier (according to the revised data in the period I – IX 2023, direct foreign investments amounted to are 1,528.9 million KM), said Feni from the Agency for the Promotion of Foreign Investments – FIPA, adding that with a slight decrease, and after a more detailed analysis, it can also be concluded that the amount in the first three quarter of 2024, close to the amount from the previous year.
In the first nine months of 2024, the countries with the largest registered amounts of capital in Bosnia and Herzegovina are: Croatia (252.5 million KM), Germany (240.2) and Slovenia (193.4 million KM), FIPA confirmed.
Austria (178.8 million KM), Great Britain (135.6), Serbia (110.8) and the Netherlands (105.5 million KM) also registered significant capital increases (over 100 million KM).
In which sectors do foreigners invest the most?
The activities in which the most foreign direct investments were registered in BiH, for the first nine months of 2024, are: “Financial service activities, except for insurance and pension funds” (388.7 million KM), then “Retail trade, except for trade in motor vehicles and motorcycles ” (218.9), “Production and supply of electricity, gas, steam and air conditioning” (139.5) and “Wholesale trade, except trade in motor vehicles and motorcycles” (132.6 million KM).
The Agency for the Promotion of Foreign Investments believes that BiH enjoys the trust of foreign investors and that the vast majority of those who already do business in BiH are planning reinvestments in expansion or new projects.
According to the data from the questionnaire of the Aftercare program (post-investment support for foreign companies in BiH), 30 foreign companies operating in BiH, which were visited by FIPA representatives during 2023, show that 83.3 percent (or 25 out of 30 companies) answered to plan reinvestments in expansion, business improvement or new projects. Five companies or 16.7 percent declared that they do not plan reinvestments, while 86.7 percent (or 26 companies) plan to increase employment in the next three years (four companies or 13.3 percent do not plan new jobs).
Foreign investors mostly complain about the slowness of the administration, the lack of state support for regulating green energy issues, and the mismatch of the education system with the needs of the labor market.
In addition, they are also bothered by high rates of contribution to salaries, complicated customs procedures (export/import), lengthy procedures for issuing work and residence permits, and the like.
(Vijesti.ba / FENA)
