FIPA Activities

The Director of FIPA initiated the visit of the Hungarian business delegation in BiH

12/3/2021

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-Cooperation with the Committee for the Western Balkans at the Hungarian Chamber of Commerce and Industry

The FIPA Director Milica Marković had a meeting with representatives of the Western Balkans Committee at the Hungarian Chamber of Industry and Commerce, led by businessman Attila Galambos. The committee has about 86 member companies.

At the initiative of the Director, a visit of a business delegation from Hungary and the organization of a business forum in Banja Luka in the spring of next year was agreed, in cooperation with the relevant chambers of commerce and ministries.

It was pointed out at the meeting that Hungary has so far invested around 32 million EUR in BiH, and that there are opportunities for the growth of Hungarian investments in our country. Hungarian businessmen point out that they don’t know much about Bosnia and Herzegovina, and that it is necessary to work on promoting the country in order that the Hungarian public have a true picture of BiH, its investment and tourist potentials.

Director Marković emphasized that BiH is open to all types of economic cooperation, and that the volume of investments and trade exchange between BiH and Hungary is modest and that there is great potential for its growth. She pointed out several sectors that would be interesting for Hungarian businessmen, such as renewable energy sources, the metal processing and automotive industries, the pharmaceutical, chemical and wood industries, and IT and tourism.

Mrs. Marković also met with the Ambassador of Bosnia and Herzegovina to Hungary, H.E. Biljana Gutić-Bjelica. During the meeting, several arguments were presented in favour of reasons for investing in BiH, such as economic stability, preferential export regimes, favourable legal treatment of foreign investors, availability of trained and price-competitive workforce, and good bilateral relations between the two countries.

The Government of Hungary has formed the Investment Program of the Western Balkans, which includes the allocation of non-refundable financial resources to Hungarian companies wishing to invest in the Western Balkans, and it is planned to extend similar incentive measures.

Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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