FDI Position and Performance

According to the Central Bank of B&H (CBBH) official data from August 2015, total amount of Foreign Direct Investment (FDI) in Bosnia and Herzegovina till December 2014 was 11,643 million BAM or 11 billion BAM (5,953 million EUR or 6 billion EUR).
Flow of FDI in Bosnia and Herzegovina, by years, million EUR
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Source: Central Bank of B&H

In 2007 B&H attracted 1.3 billion EUR which is absolutely the highest amount recorded in the last 20 years mainly thanks to the privatization of certain large state-owned enterprises. In 2008 FDI inflow (684 million EUR), without the expected privatization, can be considered as satisfied, especially if we take into account its positive structure (investment in production sector and high contribution of Greenfield investments). In 2009 the global economic crisis hit the inflow of FDI. Slight progress was achieved in 2010 and 2011. Unfortunately, despite promising expectations, foreign direct investment in 2012 and 2013 did not have a positive trend (in 2012 FDI was 14.0% less compared with 2011). Foreign direct investments in 2013, amounted to 228 million EUR, which is 25.7% less than the previous year. According to the official data of Central bank of B&H, FDI inflow in 2014, was 378 million EUR, which is 65.8% higher than in 2013. However, taking into account the ongoing projects, even with lower values of FDI in previous two years, we can be optimistic regarding future FDI growth.

Foreign Investment in B&H in 2014

The FDI inflow in 2014 was 740 million BAM or 378 million EUR, which is 65.8% higher than the previous year. In the structure of foreign direct investment in 2014 (378 million EUR), 127.9 million EUR was equity, reinvested earnings were 42.9 million EUR, while the other capital was 207.2 million EUR.

The biggest investor’s country in 2014 was Russia (100 million EUR), followed by Austria (88 million EUR), Croatia (45 million EUR), Great Britain (36 million EUR), Luxembourg (19 million EUR), Kuwait (14 million EUR), Serbia (13 million EUR) and the Netherlands (13 million EUR).

The biggest share of investment in 2014 has been in the production sector (30.8%), real estate sector (22.8%), banking (20.3%), trade (13.0%), service (6.9%), tourism (2.6%), telecommunication (1.5%), transport (0.1%) and other sectors (2.0%).

FDI Stock till December 2014

According to the Central Bank of B&H (CBBH) annual data, total amount of Foreign Direct Investment (FDI) in Bosnia and Herzegovina, till December 2014, was 6 billion EUR (5,953 million EUR). In the structure of FDI, for the period May 1994 till December 2014, equity and reinvested earnings were 4 billion EUR (4,109 million EUR) and other capital was 1.8 billion EUR (1,844 million EUR).

Total balance of direct investments till December 2014 was 6 billion EUR, and the largest share still refers to Austria (1.3 billion EUR), Serbia (1 billion EUR), Croatia (780 million EUR) and Russia (518 million EUR).

Top investor countries in B&H

May 1994 – December 2014 – Total amount 6 billion EUR

Million EUR

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Source: Central Bank of B&H

Due to the good reputation and long industrial tradition of Bosnia and Herzegovina, the manufacturing sector received the largest amount of FDI (36%). A significant share of investment has been in banking sector (20%).

FDI Stocks by Industry

May 1994 – December 2014

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Source: Central Bank of B&H

Success stories of foreign investors confirm that Bosnia and Herzegovina is favorable destination for foreign investment, and that we can be optimistic concerning the FDI inflows in the coming period. Our expectation that FDI levels will be increased in Bosnia and Herzegovina, are based on ongoing projects, our investment opportunities, intention of privatization many strategic companies and interest of foreign investors for potential projects.

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