Dr. Lagumdzija at the Annual Meeting of EBRD Board of Governors: Investment opportunities presented and investors encouraged to invest in Bosnia and Herzegovina



Deputy Chairman of the Council of Ministers and Minister of Foreign Affairs of Bosnia and Herzegovina Dr. Zlatko Lagumdzija and B&H Governor with the European Bank for Reconstruction and Development (EBRD) participate at the 23^rd Annual Meeting of the EBRD Board of Governors whose theme is “Changing Economies, Changing Lives” that is taking place on May 14^th and 15^th, 2014, in Warsaw.    

In remarks at the session of the EBRD Board of Governors Dr. Lagumdzija emphasized that the EBRD is still the largest institutional investor in B&H with investments amounting to 1.7 billion Euro and 116 diverse projects, mainly in the energy sector. In the context of regional cooperation and new financial investments of the European Union, the EBRD will play an important role to attract investments in the region, in particular to B&H. He emphasized that key priorities are creating new jobs, political reforms, improving competitiveness, reforming the system of social protection and improving infrastructure.    

In the framework of the Annual EBRD Conference, for the first time, a Business Forum was held with a session dedicated exclusively to economic and investment potential of Bosnia and Herzegovina entitled “Strengthening business environment and regional ties for private sector development”. Bosnia and Herzegovina is the only country in the Western Balkans that presented its economic and investment opportunities at the EBRD`s Business Forum.  

Apart from Dr. Lagumdzija, keynote speakers were Ludo Bammens, Executive Director of the KKR Group, one of the three largest U.S. investment funds that came to B&H and the region for the first time, Ensad Karic, Director General of the Public Company Motorways of the Federation of Bosnia and Herzegovina and Edin Mehic, Director General of the web portal Posao.ba. The moderator of the session was Head of EBRD Sarajevo Office Libor Krkoska.

Dr. Lagumdzija particularly emphasized the fact that the European Commission recently, in Thessaloniki, confirmed its decision that in the next five years it will invest 1 billion Euro individually, and 10 billion through various financial institutions, including the EBRD, in regional projects intended for infrastructure development, energy sector, strengthening economic growth and the rule of law and expressed conviction that the aforementioned will be a solid basis for greater investments in the future.

Bosnia and Herzegovina already started preparing projects which are of regional importance, especially those aimed at new job creation intended for young people.    

He highlighted the importance of further development of cooperation between the Western Balkan countries and assessed that concrete infrastructure and energy projects are the best approach to integration of the region as well as regional integration to the European Union. In that regard, he pointed out that constructing the motorway at the Vc Corridor is of crucial importance for Bosnia and Herzegovina because it will offer better connections toward countries in the region and the EU and provide an additional momentum for economy strengthening and creation of new jobs while, on the other hand, the energy sector is our country`s biggest long-term investment project.   

Due to huge interest of participants, keynote speakers responded to numerous questions of investors and the time intended for holding the Business Forum went well beyond the foreseen time.     

Dr. Lagumdzija presented reasons why investors should invest in B&H. The strategic position of our country, free market involving 600 million people, including the largest economic zone (EU), stable financial sector, favourable tax and duty system, positive legislation for foreign investors, favourable trade and other agreements (CEFTA, Free Trade Agreement with the Republic of Turkey), competitive and extremely qualified workforce as well as low operational costs.

Dr. Lagumdzija invited businessmen and representatives of financial institutions, participants of the Business Forum in Warsaw to visit B&H and invest in our country, following the latest example of Qatar that is about to establish and investment fund that will enable five Qatari companies to invest in infrastructure and energy projects, banking sector and other sectors in B&H as well as the Friendship Fund for B&H to be used for financing projects aimed at youth employment.