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Investment Policy Review - Bosnia and Herzegovina

image of Investment Policy Review - Bosnia and Herzegovina

Bosnia and Herzegovina is a transitional economy striving towards European integration. Soon after independence from the Socialist Federal Republic of Yugoslavia in 1992, Bosnia and Herzegovina plunged into a conflict which came to an end with the signing of the Dayton Peace Accords in 1995. Since then, Bosnia and Herzegovina has been committed to democracy and the transition to a market economy.

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Towards more effective investment promotion

Bosnia and Herzegovina has a tradition of industrialization to build on. As part of the former Socialist Federal Republic of Yugoslavia, Bosnia and Herzegovina had developed an industrial base, principally in primary and manufacturing industries, owing largely to the establishment of SOEs. Much of it was severely damaged in the conflict of the 1990s and a great deal of expertise was consequently lost. However, as indicated in the context, mining and mining-related activities, steel production, vehicle components and assembly, textiles, tobacco products, wooden furniture and domestic appliances are still among the principal industries and contribute significantly to exports and employment generation. The potential of Bosnia and Herzegovina in terms of FDI attraction is strong – based, among other positive factors, on its industrial heritage, skills base and labour quality/value.

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