Bosnia & Herzegovina

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fDi Editor | 05/01/2004 12:00 am

Why invest in Bosnia and Herzegovina? Located in the heart of south-east Europe, close to the EU, eastern Europe, North Africa and the Middle East, the country has undergone the most rapid improvement in business climate of any country in the region. This is part of a broader economic reform process that has, among other achievements, modernised the tax and customs administration.

Key features include financial stability and favourable legislation. Pegged to the euro, Bosnia and Herzegovina’s currency is the most stable in south-east Europe. Inflation is low, foreign exchange reserves continue to grow and foreign banks are entering the market.

Bosnia and Herzegovina benefits from its close relationship with the EU, exporting goods to all 15 member nations without restriction. It also has preferential trade deals with the US, Russia, Japan, Canada, Australia, New Zealand, Norway and all the other south-east European states.

Priority sectors include the wood industry; food and beverages; tobacco; hydro-energy; metal processing; construction and construction materials; textiles; and tourism. Investors benefit from favourable investment laws and tax benefits, such as a five-year tax holiday.

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