Transcript Slide 1
Investment Opportunities in Bosnia and Herzegovina
Oct 27 th , 2009
Eldin Kajevic
Consul General Consulate General of Bosnia and Herzegovina in Chicago
Agenda • Introduction to Bosnia and Herzegovina • General economic indicators • Top investor countries • Why invest in Bosnia and Herzegovina • Attractive Economic Sectors
Introduction to Language Hello Zdravo Welcome Good Evening Dobro doshli Dobro veche
Did You Know?
• The first tram in Europe ran in Sarajevo in 1885 • The first power plant was built in 1895 • Europe’s largest livestock producer prior to WWI • Capital Sarajevo hosted Winter Olympic games in 1984 • The oldest pyramids in the world?
• Fastest growing GDP in South East Europe
Small Country, Huge Potential!
Population <4 million Possibility to export to about 600 mill.
people market without customs and duties Strategic location The fastest GDP growth Competitively priced labor force The most stable currency in South East Europe
General Economic Indicators 2 0 6 4 14 12 10 8
5,5 5,9 Nominal GDP, billion € 9,8 11,1 12,5 7,4 8,1 8,7 6,6
2000 2001 2002 2003 2004 2005 2006 2007 2008
General Economic Indicators
Real GDP growth rate, %
8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00
5,5 4,5 5,5 3,0 6,3 3,9 6,7 6,8 7,1
2000 2001 2002 2003 2004 2005 2006 2007 2008
General Economic Indicators
Industrial production growth rate, %
14 12 10 8 6 4 2 0 2000
8.8
2001
12.2
2002
9.2
2003
4.8
2004
9.0
10.0
11.0
10.0
9.2
2005 2006 2007 2008
25,0 20,0 General Economic Indicators
Annual inflation rate, % 23,7 23,1 19,7
BiH CEE
14,9
15,0 10,0 5,0 0,0
4,8 3,1 0,4 8,3 0,6 6,1 4,8 3,7 0,4 6,1 5,0
1999
-0,9
2000 2001 2002 2003 2004 2005 2006 2007 2008
6,5
-5,0
General Economic Indicators
Annual unemployment rate, %
15 10 5 0 50 45 40 35 30 25 20
39.7
2000
40.3
40.9
2001 2002
42.0
43.2
2003 2004 2005
43.0
2006
31.0
29.0
23.4
2007 2008
General Economic Indicators
Total FDI inflow, mill €
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0
159
2000
133
2001
282 338 567 478
2002 2003 2004 2005
564
2006
1,628
2007
701
2008
General Economic Indicators
FDI by Sectors - 1994 - 2008 Other Financial Service 7% Real estate 2% Service 7% Tourism 1% Transport 1% Manufacturing 35% Trade 11% Telecomm.
14% Banking 22%
Top Investor Countries in B&H
1994 - 2008 – Total amount 5.3 billion €
Austria Serbia Croatia Slovenia Switzerland Germany Russia The Netherlands Italy USA Turkey All other Countries
832 1.446
0
134 114 99 68 364 294 268 487 626 610
200 400 600 800 1.000
1.200
1.400
1.600
Why Invest in B&H?
• Stable financial sector • Favourable trade and other agreements • Favourable legislation • Favourable tax and customs system • Competitively priced labour force • Foreign Investors Support Fund
Stable Financial Factor • The lowest inflation in SEE • The most stable currency in SEE (EURO, 1KM =0.51 EUR) • Large inflow of foreign banks – currently, foreign ownership in private banking sector in BiH is 86% • “B2” credit rating with the stable outlook by Moody’s Agency, “B+” rating by Standard and Poor
• Trade Agreements Central European Free Trade Agreement (CEFTA) - 30 mill • Free Trade Agreement with Turkey - 70 mill • Preferential Trade Agreement with EU, 27 countries - 500 mill • Preferential export regimes with USA, Australia, New Zealand, Switzerland, Norway, Russia, Japan, Canada • Agreements on avoidance of double taxation • Agreements on promotion and protection of investments
Favorable Legislation FDI Law • National treatment of foreign investors • Repatriation of profits • Protection against nationalization, expropriation or similar measures • Right to freely employ foreign nationals, subject to the labour and immigration laws in BiH Corporation organization • There are no citizenship/nationality limitations for partners or the members of the management and supervisory boards
Favorable Tax and Customs System
Tax system 17 Bosnia and Herzegovina 18 Serbia 19 Czech Republic 19 Slovakia 19 Romania 20 Poland 22 Croatia
– – – Unique VAT rate of 17% Profit tax is 10% Favorable incentives and tax exemptions
Customs system
– Exemption from payment of customs duties for foreign investors – Customs rates 0-15%
Competitively Priced Labor Force Bosnia and Herzegovina Montenegro Serbia Hungary Slovakia Croatia Slovenia
Average net wages (2008), € 388 395 422 509 674 693
0 200 400 600 800 • Creative, skilled and educated workforce
874
1000
Attractive Economic Sectors • Energy Sector • Agriculture and Food Processing Industry • Construction Industry and Infrastructure • Tourism • Auto-components Industry • Wood and Metal Industry • ICT
Free and Confidential Service
www.fipa.gov.ba
Consulate General of Bosnia and Herzegovina 737 N. Michigan Ave, Suite 820 Chicago, IL 60611 Ph: 312-951-1245
www.cgbhchicago.com
Thank you! Hvala!