Bosnia and Herzegovina 2021 by Diplomacy&Commerce magazine

Bosnia and Herzegovina - 2021 -

BOSNIA AND HERZEGOVINA & SERBIA

ECONOMIC GROWTH AND REGIONAL COOPERATION

STAŠA KOŠARAC

VJEKOSLAV PETRIČEVIĆ

AHMET EGRLIĆ

Minister of Foreign Trade and Economic Relations of B&H

Minister of Economy and Entrepreneurship of the Republic of Srpska

President of the Foreign Trade Chamber of B&H

PERO ĆORIĆ President of the Chamber of Commerce of the Republic of Srpska (CCRS)

J AHORINAOLYMPIC MOUNTAIN

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BOSNIA AND HERZEGOVINA 2021

Experts put Jahorina amongst the most beautiful mountains in Europe. The highest peak is Ogorjelica (1916m), from which one can see the mountains Maglić, Zelengora Bjelašnica, and even peak of Durmitor in Montenegro. The Jahorina ski resort hosted the women's alpine skiing events of the 1984 Winter Olympics.

Source: The Tourist Board of the City of Tuzla

UREK (BÖREK, BOUREK, BÖREĞI, 06 BBOURÉKI)

VRELO BOSNE

The natural monument, Vrelo Bosne, is spread out over 603 hectares at the foot of Mount Igman in Ilidža, about 15 kilometers from the center of Sarajevo. It is the source of the Bosna River, with lovely lakes full of fish and swans and small green islands.

Burek consists of layers of phyllo dough stuffed with various savory fillings. This dish has evolved into a proud gem of Bosnian national cuisine. Although most locals claim that only burek with ground beef can be called burek, the same dish also appears with other fillings: sirnica (cottage cheese), zeljanica (spinach), and krompiruša (potatoes).

TUZLA: EUROPEAN SALT LAKES CITY

Having significant rock salt reserves beneath the city, Tuzla is also the “cradle of salt”, and it tells us the Bosnian Salt Saga about its thousands of years old production. Pannonica – Salt Lakes Trio is situated in the heart of the municipality, making Tuzla the only city in Europe with beaches in the city center.

PLIVA WATERFALL

Pliva Waterfall has been named 1of 12 most beautiful waterfalls in the world. Set in the town of Jajce, this 22-meters-high waterfall is the only one in the world located in the city centre. This waterfall according to scientific studies of the amount of tufa in the water, have originated even 50,000 years ago.

SUTJESKA NATIONAL PARK National park established in 1962, is B&H's oldest national park. The Strict Nature Reserve "Perućica", one of the last two remaining primeval forests in Europe, is part of the park. The park is also famous as being the location of the Battle of the Sutjeska in 1943 during World War II.

SARAJEVO’S TRAM NETWORK

C HARTER OF BAN KULIN

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The Charter of Ban Kulin was a trade agreement between the Banate of Bosnia and the Republic of Ragusa, written on 29 August 1189, is one of the oldest written state documents in the region.

Sarajevo’s tram network is one of the oldest in Europe, having originally served as the test line for Vienna’s trams. It was opened on New Year’s Eve, 1885, making it the first city in Europe to have a full-time operational electric tram line.

BOSNIA AND HERZEGOVINA 2021

Bosnia and Herzegovina 2021

TANJA BANKOVIĆ Editor in Chief

tanja.bankovic@color.rs

ILIJA PETROVIĆ INDIGOCHILD Art director

indigochild.ilija@gmail.com

NATAŠA NEŠIĆ

Advertising director natasa.nesic@color.rs

JOVANA MARKOVIĆ Advertising manager

jovana.markovic@color.rs

JELENA RANDJELOVIĆ Advertising manager

jelena.randjelovic@color.rs

DRAGANA RADOVIĆ Advertising manager

dragana.radovic@color.rs

RUŽA VELJOVIĆ Magazine director

ruza.ristanovic@color.rs

NEVENA KUVELJIĆ Journalist

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BOSNIA AND HERZEGOVINA 2021

nevena.kuveljic.cpg@gmail.com

ROBERT ČOBAN Director

robert.coban@color.rs

Photos

GORAN ZLATKOVIĆ GETTY IMAGES Translation

SNEŽANA BJELOTOMIĆ Print

ZLATNA KNJIGA Jagodina, Bagrdanski put bb

OPENING NEW MARKETS IS A PRIORITY

Staša Košarac

Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina

WE CONTINUE TO ACCELERATE GROWTH AND DEVELOPMENT

Vjekoslav Petričević

Minister of Economy and Entrepreneurship of the Republic of Srpska

BOSNIA AND HERZEGOVINA IS A PART OF THE REGIONAL MARKET

Ahmet Egrlić

WE ARE BUILDING A NEW AND MODERN TREBINJE

Mirko Ćurić

Mayor of Trebinje

GOAL IS TO IMPROVE THE 26 OUR INVESTMENT CLIMATE IN B&H Branimir Muidža

President of the Foreign Investors Council in Bosnia and Herzegovina, Sarajevo

WIDE RANGE OF INVESTMENT OPPORTUNITIES IN DIFFERENT SECTORS Milica Marković

President of the Foreign Trade Chamber of Bosnia and Herzegovina

Director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA)

CCRS – HOME TO BUSINESS PEOPLE

Pero Ćorić

President of the Chamber of Commerce of the Republic of Srpska (CCRS)

FIC BOSNIA AND HERZEGOVINA – 15 YEARS OF SUCCESS

Sanja Miovčić

Executive Director of FIC Bosnia and Herzegovina

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INTERVIEW

OPENING NEW MARKETS IS A PRIORITY STAŠA KOŠARAC

Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina

Improving the economic and business environment, implementing development projects and intensifying reform processes, as well as establishing connections in the region, are the best way to attract foreign investments egional cooperation is key to overcoming unresolved issues and continuing the Western Balkans' accession into the European Union. This cooperation is also the driving force behind economic development and can certainly save the economies of our countries, especially after the COVID-19 pandemic. Serbia is one of the most important external trade partners of Bosnia and Herzegovina in terms of trade volume. In the last few years, the Republic of Srpska and Serbia have had very fruitful cooperation.

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BOSNIA AND HERZEGOVINA 2021

What position does Bosnia and Herzegovina occupy in terms of economy and relations with other Western Balkan countries? The coronavirus-induced crisis has demonstrated the importance of regional cooperation, socio-economic interdependence of regional economies, but also the need for further strengthening of ties, both in the Western Balkans and with the European Union. At the onset of the pandemic, during quarantine, the CEFTA member countries agreed to establish the so-called

green corridors, thanks to which vital products from the joint list passed the border crossings between our countries quicker. This is one of the important successes in the fight against the pandemic and the best example of regional cooperation. It is in our best interest to actively seek and create conditions for as many facets of cooperation as possible in order for our economies to recover. Further economic integration creates an opportunity for faster development of the domestic economy, not only in terms of trade but also in terms of cre-

ating prerequisites for the development of a more competitive economy and bridging the gap between our economies and the more developed economies of the EU and the world. Ultimately, the regional market is extremely important to us, because, after the EU, we export the most to the CEFTA countries. I would also like to say that, in the first six months, 16.3 percent of Bosnia and Herzegovina’s exports ended in the CEFTA countries. We exported goods worth more than a billion BAM to this market, which was a 29.6 percent growth relative to last year.

THE REPUBLIC OF SRPSKA AND SERBIA HAVE FRATERNAL RELATIONS AND SPECIAL TIES, NOT TO THE DETRIMENT OF THE OTHER TWO NATIONS IN BOSNIA AND HERZEGOVINA

Last year was challenging for all countries. This year has brought a recovery. What is the situation in Bosnia and Herzegovina in terms of economic recovery? Official data show that our country is recovering and continuing to grow economically. In the first six months of 2021, the total volume of external trade increased by 23.6%, or 3.14 billion BAM compared to the same period last year. In the observed period, exports amounted to 6.65 billion BAM

and are higher by 30.53% compared to the same period last year. The business community in the Republic of Srpska and the Federation of Bosnia and Herzegovina are still facing numerous difficulties and remediation of the consequences of the coronavirus, but we have still managed to record an increase in exports from January to June this year. It is especially encouraging to see that, in the first six months of 2021, we exported more goods than in the previous five years together. Opening of new markets and boosting regional cooperation are high on my list of priorities because we need to perpetuate the trend of export growth, contribute to the economic recovery and protect domestic production. I think that Bosnia and Herzegovina joining the Open Balkans initiative is an exceptional opportunity for the realization of that goal because regional connection means a better economic perspective for all the countries in the Western Balkans. The regional economic zone will facilitate trade in both goods and services, as well as ensure the free movement of people and capital, and contribute to greater economic growth, thus reducing unemployment and attracting investments.

portunity for the domestic economy, new investments, new jobs, and higher external trade. In this regard, I recently initiated amendments to the Law on VAT, to create prerequisites for companies to be exempt from paying VAT on their utility bills, such as electricity, water, gas and waste disposal, which are all used in the production of commercial goods in free zones. At the same time, this initiative is important because it will bring existing and future free zones in the Republic of Srpska and the Federation of Bosnia and Herzegovina on an equal footing with free zones in the region, offering equal benefits to foreign investors, which is the goal of establishing free zones.

What should Bosnia and Herzegovina do to increase FDI influx?

We recently had a successful meeting in Jahorina with representatives of the Pirot Free Zone from Serbia and arranged a visit to exchange experiences and map future steps, as certain local communities have already expressed serious interest in doing so. You recently announced Bosnia and Herzegovina's membership in the WTO. How will the membership benefit the economy, and what will it mean for the country?

In the first six months of this year, we exported goods worth 732 million BAM to the Serbian market, which is a 32% increase compared to last year. Imports from Serbia increased by 20% in this period and amounted to 1.42 billion BAM. The Republic of Srpska and Serbia have fraternal relations and special ties, not to the detriment of the other

Focus

A full-fledged membership in the World Trade Organization is an absolute priority of Bosnia and Herzegovina’s Ministry of Foreign Trade and Economic Relations during my current terms in the office, because it brings many benefits for the domestic economy, primarily from the aspect of easier access to foreign markets under equal conditions. Membership in this

How would you rate the overall cooperation between Serbia and Bosnia and Herzegovina, as well as the cooperation between the Republic of Srpska and Serbia?

BOSNIA AND HERZEGOVINA 2021

We need to act much stronger and more concretely to attract foreign investors. This is a basic task that needs to be adequately solved in the coming period. We currently have a traditional approach and we need a step forward. It is very important to define the top sectors that need investments in the Republic of Srpska and the Federation of Bosnia and Herzegovina, after which we need to invest additional efforts to create an environment for the development of these sectors. I am pleased to say that there are concrete proposals from the relevant local and federation bodies in this context, and the Ministry I head will certainly coordinate all these activities. One of the priorities is to establish and properly operate free business zones because they are a development op-

THE EU IS AN EXTREMELY IMPORTANT EXTERNAL TRADE PARTNER FOR US AND WE STRIVE TO ENTER ITS HUGE MARKET OF 500 MILLION POTENTIAL CONSUMERS

association would enable producers in Bosnia and Herzegovina to more easily enter markets where they are not present at the moment. It is also important for consumers given the fact that a significant number of products could be sold in Bosnia and Herzegovina at lower prices. Therefore, after many years of stagnation, we have managed to finalize the key steps so that we could become a member of this global association at the WTO General Assembly on November 30. In terms of multilateral negotiations on Bosnia and Herzegovina’s external trade regime, the issue of the so-called right to trade remains open, which needs to be harmonized with the USA. Since Bosnia and Herzegovina’s position, in this case, is fully harmonized with the EU, we expect that the United States will adequately treat the harmonized position of our country and the EU and that we will manage to find a compromise solution with the Americans. So far, we have concluded bilateral negotiations and signed protocols with 17 WTO member countries, and progress has been made in negotiations with the Russian Federation. In order to complete the final phase of bilateral negotiations with the Russian side, we need to pass a decree on the quality of petroleum liquid fuels in Bosnia and Herzegovina. The Ministry has already drafted the text of this decree, for which we received the support of the Energy Community. The adoption of the decree will create the possibility for us to join the WTO by the year-end.

BOSNIA AND HERZEGOVINA 2021

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two nations in Bosnia and Herzegovina. The Republic of Srpska and the Serbian people are looking forward to Serbia's progress and success in all fields. I am encouraged by the excellent relations between the Serbian member of the Bosnia and Herzegovina’s Presidency, Milorad Dodik, and the President of Serbia, Aleksandar Vučić, and the productive cooperation between the two governments. I completely agree with President Dodik's assessment that the Republic of Srpska and Serbia have had the best cooperation in the last few years. Every day, Serbian leadership validates the fact that cooperation with the Republic of Srpska is one of Serbia’s priorities. This is demonstrated by economic and infrastructural projects, such as the Buk Bijela hydroelectric power plant, the construction of the Belgrade-Banja Luka-Sarajevo motorway and the construction of Trebinje Airport. Today, the Republic of Srpska and Serbia celebrate many common holidays and are working together to preserve the Serbian identity through a joint school curriculum, the same language and culture. There is always room for improving and boosting economic cooperation because establishing stronger links with Serbia is of special interest to us. The Republic of Srpska and its officials in the Federation’s bodies are fully supportive of the Open Balkans initiative. It is an opportunity for the Western Balkans to achieve prosperity and it provides a stable basis for attracting investments, facilitates higher economic growth and reduces unemployment in the region. The fact is that Bosnia and Herzegovina has not yet joined this regional cooperation initiative due to the obstruction of some political structures from the Federation of Bosnia and Herzegovina. This is an inexplicable policy, because of which, unfortunately, the business community from the Republic of Srpska and the Federation will suffer. Regardless of the unfounded opposition from the Federation of Bosnia and Herzegovina, I welcome the readiness shown by presidents Dodik and Vučić for talks on the possibility of bringing the Republic of Srpska closer

PROTECTING DOMESTIC PRODUCTION, OPENING NEW MARKETS AND BOOSTING REGIONAL ECONOMIC TIES ARE THE FOCUS OF MY WORK DURING MY TERM IN THE OFFICE to the Open Balkans initiative, because our citizens, as well as the entire business community, will benefit from it. What areas have you been focusing on in 2021? Maybe regional cooperation and economy? Protecting domestic production, opening new markets and boosting regional economic ties are the focus of my work during my term in the office. In the previous answer, I intentionally underlined the Open Balkans initiative, because it facilitates competitiveness by moving towards EU standards,

which will reduce the structural imbalance of the Western Balkans and the EU, as well as fulfilling obligations from the EU accession process, which is the main foreign policy goal of the Western Balkan countries, including Bosnia and Herzegovina. The EU is an extremely important external trade partner for us and we strive to enter its huge market of 500 million potential consumers. However, the fact that the concentration of our exports to the EU stands at over 74 percent tells us that we must be careful because a possible market disruption could cause difficulties for our business community. To prevent such a scenario, we are continuously conducting activities on opening new markets for domestic products. I think that Russia, China, Malaysia, Israel, Kuwait, the United Arab Emirates and Saudi Arabia represent an exceptional opportunity and additional incentive for the development of domestic agricultural capacities, especially in terms of exports of red meat, as well as poultry, fish, milk and dairy products. I think that we need to ensure stability and accelerated progress of domestic export-oriented companies. 

INTERVIEW

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WE CONTINUE TO ACCELERATE GROWTH AND DEVELOPMENT VJEKOSLAV PETRIČEVIĆ

Minister of Economy and Entrepreneurship of the Republic of Srpska

Estimates say that this year we will have GDP growth of up to 4.5%, and in terms of jobs, today, there are more workers in the Republic of Srpska than in the period before the pandemic espite the global health crisis, the Republic of Srpska’s economy has successfully coped with the challenges created by the pandemic, which is validated by the latest macroeconomic indicators. There are many positive examples of investments on both sides of the Drina River, but there is always room and interest for establishing even stronger cooperation with Serbia. In the future, we will work on establishing more business connections, better product promotion, and exchange of knowhow and experiences.”

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BOSNIA AND HERZEGOVINA 2021

“D

What is the current economic environment in the Republic of Srpska like? How much does the state allocate for economic development and what kind of investments are made? Statistically speaking, the Republic of Srpska’s GDP in the first quarter of 2021, compared to the same period in 2020, recorded a 2.3% growth, while last year, we recorded a GDP decline of 2.5%, which is the lowest decline in

the region after Serbia. Our estimates show that this year we will have a GDP growth of up to 4.5%, and certain analyses predict that the Republic of Srpska’s GDP per capita will soon surpass the one in the other entity of Bosnia and Herzegovina for the first time.

REPUBLIC OF SRPSKA’S GDP PER CAPITA WILL SOON SURPASS THE ONE IN THE OTHER ENTITY OF BOSNIA AND HERZEGOVINA FOR THE FIRST TIME The average salary has been constantly growing and has exceeded 500 euros, which we consider a great success because it was achieved in a period that was not stimulating for the economy. I would also like to mention that Srpska already exceeded the

average salary paid out in the Federation of Bosnia and Herzegovina last year, which was, among other things, the result of the incentives aimed at increasing salaries, implemented by our ministry. We also have a record-breaking export to import ratio which currently stands at 80%, while exports in the first half of 2021 amounted to 2 billion KM, which is an almost 30% increase compared to the same period last year but also compared to 2019. The increase in industrial production in the period January-June 2021 was 25% relative to the same period last year, with the processing industry has recorded a 17% growth, which is extremely important because it accounts for 85% of Srpska's exports and employs more than 58,000 workers. The most important thing to perhaps highlight is the fact that jobs in Republika Srpska have not been lost, but on the contrary, we have more workers today than in the period before the outbreak of the pandemic. Which economic branches would

you single out as the driving force behind the Republic of Srpska’s economic development and which have a lot of investment potential?

How did the COVID-induced crisis affect the economy and entrepreneurship of the Republic of Srpska? What measures have been implemented

After the global pandemic was declared in March 2020, the Government of the Republic of Srpska implemented a series of measures aimed at supporting the economy. As the line ministry, we have been continuously working on mitigating the harmful consequences and we did so through various measures; firstly, through support for companies that had to shut down or operated on a reduced scale, to which we directly allocated over 70 million KM through the Compensation Fund and paid salaries to workers.

JOBS IN REPUBLIKA SRPSKA HAVE NOT BEEN LOST, BUT ON THE CONTRARY, WE HAVE MORE WORKERS TODAY THAN IN THE PERIOD BEFORE THE OUTBREAK OF THE PANDEMIC Then, we set up the Guarantee Programme, which had a budget of 238 million KM available to businesses whereby favourable loans were granted to companies that were damaged by the pandemic. The Republic of Srpska provided guarantees in the amount of up to 70 percent. To maintain the economy’s liquidity, the Banking Agency of the Republic of Srpska and the Investment and Development Bank of the Republic of Srpska have implemented a moratorium on payment of due loans and grace

period for both businesses and individuals. The Tax Administration also allowed deferred payment of due taxes for all companies and small businesses, while together with the Ministry of Finance and with the help of legal solutions, we reduced fiscal and parafiscal levies, in order to alleviate the financial burden on companies. Tax revenues grew this year too, while positive economic indicators tell us that the measures implemented by the Republic of Srpska’s Government were effective. Today, we can say that we have managed to preserve the vitality of our economy, jobs and economic activity. What projects are you currently working on and what else do you plan to do to improve the Republic of Srpska’s economy? For the economy to continue to develop, we need to invest in research, digitalization, and create our own product lines, especially for those who do LOHN deals in the wood industry and textiles, leather and footwear. In the long run, economic development must not be based on having the cheapest workforce, but on significantly improving it technologically in order to be competitive in a demanding foreign market. Among other things, the Ministry of Economy and Entrepreneurship supports companies when they make direct investments in the processing industry through the procurement of modern technologies and equipment, as well as development and innovation. Since the formation of this ministry, we have been known for salary-boosting incentives in the business sector, which benefitted 13 million KM because of these salaries so far. There are also other activities I

PARTNER

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Serbia is our most important economic partner, and the two republics nurture a relationship that goes beyond mere trade.

BOSNIA AND HERZEGOVINA 2021

The metal processing, electrical, wood processing, textile, leather and footwear industries stand out as the most prominent economic branches here, as well as the branches with the biggest share in the export of the Republic of Srpska. The IT sector, renewable energy and tourism have the biggest potential. Immediately before the coronavirus outbreak, the Ministry of Economy and Entrepreneurship launched the Srpska - Republic of Opportunities campaign, with which we presented investment opportunities. As the main reasons for investing we highlighted the favourable geostrategic position, transport connections, competitive workforce and low operating costs, given that the income tax is 10%, and the dividend tax is zero, i.e. it does not exist. The promotion of our economic potentials will be of great importance in the coming period, considering that the opportunity has been created for part of the Western European industry, which has had its plants in China so far, to transfer its production to the European continent, more precisely to the Western Balkans. Global economic trends at the time of the pandemic, including the situation with supply chains, have demonstrated how complicated things get when there is a disruption with transport, increase in prices of raw materials and shortages of certain goods and products.

to mitigate the effects of the crisis?

would like to single out like drafting the Law on Social Entrepreneurship. Once the law is adopted by the year-end, we will become one of the first countries in the region to have such a law.

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BOSNIA AND HERZEGOVINA 2021

You said that the free zone in the Republic of Srpska could be formed by the end of this year. What exactly does it mean and in what way will it contribute to economic development?

Our Ministry is the driving force behind the new Free Zone Law in the Republic of Srpska, which is more detailed than the previous one and in line with the latest trends. By working together with the rest of Bosnia and Herzegovina, our goal is to form the first free zones by the end of the year. Cities such as Gradiška, Trebinje, Bijeljina, Doboj and other municipalities that have good transport connections, infrastructure, available workforce and interested companies have great potential. The Republic of Serbia is a good example not only when it comes to attracting investors, but also the formation of a free zone. When we were drafting the aforementioned law, we had constant meetings with the management of the Pirot free zone who shared their experiences with us. Also, the study covering the formation of a duty-free business zone in Bratunac is going to be completed soon, where, following the conclusions from the joint session of the Governments of Srpska and Serbia, we will invest 10.5 million euros in infrastructure, which will kickstart the Podrinje investment project. What is the economic cooperation between the Republic of Srpska and the Republic of Serbia like? Serbia is our most important economic partner, and the two republics nurture a relationship that goes beyond mere trade. Our economic cooperation is strong, our officials meet frequently and our business people have direct contacts. I would also like to underline the cooperation of our ministry with the Ministry of Economy and

OUR MINISTRY IS THE DRIVING FORCE BEHIND THE NEW FREE ZONE LAW IN THE REPUBLIC OF SRPSKA, WHICH IS MORE DETAILED THAN THE PREVIOUS ONE AND IN LINE WITH THE LATEST TRENDS the Ministry of Defence of the Republic of Serbia. I am, first and foremost, referring to cooperation in the segment of the arms industry and the recently signed 3.7-million-euro-contract whereby the Orao Company from Bijeljina will overhaul aircraft engines for the needs of the Serbian Army. This is just one in a series of examples of a successful partnership between the military industry

of Srpska and Serbia. Recently, at the invitation of the President of Serbia, Aleksandar Vučić, I attended the opening of the Jumko paint shop in Rudna Glava. I would like to remind you that this renowned textile company has opened a production plant in Drvar, which Serbia has been supporting in order to boost the town’s economic development and the living standard. After that, I came to Vranje, where I met with the director of Jumko to discuss the possibility of opening a new plant in Herzegovina, given that Herzegovina has the experience and tradition of the textile industry and a trained workforce. Our commitment is to export more domestic products to the regional market, and especially Serbia, considering that we still import significantly more than we export to Serbia, and we certainly have something to offer. This was evident at the recent meeting with a delegation of businesspeople from Stara Pazova, at which we discussed the possibilities for product placement, especially in the processing and food industry. 

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The tobacco giant builds business operations on total transformation towards smoke-free future less harmful form of tobacco consumption. Because not all nicotine products are the same. Independent research shows that the primary cause of smoking-related disease is not nicotine, but tobacco smoke. Eliminating the deeply-rooted prejudice and misconceptions is the key factor in dismissing old habits and cigarettes forever, and only smokers who understand actual benefits of better alternatives will be permanently motivated to introduce this change. Only if they know why they have done it.

SRDJAN LAZOVIĆ General Manager of Philip Morris Bosnia and Herzegovina and Montenegro

INFORMATION

No one should ignore right to the information about a better option and understanding what is harmful in cigarettes – tobacco burning, tobacco smoke and tar

tobacco burning, tobacco smoke and tar. Smokers are largely aware of the harmful consequences and know that criticism from their environment comes with the best of intentions. But criticism, restrictions and bans will not solve the problem. Our scientists in the research centre in Switzerland have discovered that nicotine can be delivered via the heating process as well. When using IQOS, which is based on the tobacco heating technology, human body exposure to harmful substances is significantly reduced compared to cigarettes. That was also one of the key explanation of the US Food and Drugs Agency (FDA) for classifying the IQOS as a modified-risk product last year. The IQOS was launched in Bosnia and Herzegovina more than two years ago. How have local smokers reacted to the harm reduction concept? — Awareness of local consumers that there is a less harmful option represents a major progress and, in case of the BIH market, it is also available via physical sales and support channels across the country, as well as via digital platforms. The support network expands in line with the actual needs of consumers, and we must be close to them in a way they expect us to be – both offline and, increasingly, online. Despite the challenges we encountered during the pandemic, we managed to strengthen our commercial presence across BiH, even when remote working was still active. A synergy of local BIH consumers’ needs and teamwork in our organisation is creating a growing base of loyal consumers and is irreversibly paving the way towards achieving a common goal – a smoke-free Bosnia and Herzegovina in the future. 

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free product category, is designed are all those who do not quit cigarettes out of various reasons. There are currently more than a billion smokers in the world and, according to statistics, that number will not change any time soon. No one should ignore their right to the information about a better option and understanding what is harmful in cigarettes –

CLICK ON ICON

BOSNIA AND HERZEGOVINA 2021

hilip Morris International (PMI) has a clear vision of shifting from traditional tobacco business to smoke-free alternatives. It aims for about 40 million adult smokers in the world to switch completely to the less harmful products, as a better option than continued smoking, by 2025. It is already halfway there, with about 20 million IQOS users. Recent investments in the pharmaceutical industry confirm that the future is actually ‘beyond nicotine’ for PMI and Srdjan Lazović, General Manager of Philip Morris Bosnia and Herzegovina and Montenegro, explains how business moves impact the local market. We want an open dialogue about alternatives, which have proven to be a better option compared to cigarette smoking. Our strategic plans are based on transparent, scientific achievements in the tobacco heating technology development and nicotine delivery via a

However, the best solution for a smoker is to quit smoking cigarettes? — That’s right. The best solution is to dismiss nicotine products while reading this interview. No product based on nicotine and tobacco is without a risk, and adult smokers for whom the IQOS, the most popular device in the smoke-

CORPORATE

CRITICISM AND BANS DO NOT SOLVE SMOKERS' ISSUES

INTERVIEW

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BOSNIA AND HERZEGOVINA IS A PART OF THE REGIONAL MARKET AHMET EGRLIĆ

President of the Foreign Trade Chamber of Bosnia and Herzegovina

n the first six months of this year, Bosnia and Herzegovina’s external trade amounted to 8.38 billion euros, which is 1.6 billion euros or 23.62% more than in the same period in 2020. We talked with the President of the Foreign Trade Chamber of Bosnia and Herzegovina, Ahmet Egrlić, about the recovery of the Bosnian economy and the country’s cooperation with Serbia and the region.

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BOSNIA AND HERZEGOVINA 2021

The year 2020 was marked by the pandemic-induced crisis that affected the economies of all regional countries. How is Bosnia and Herzegovina’s economy recovering this year? Our economy is currently in a recovery phase and we cannot fully predict its course as it is impossible to predict whether the pandemic will contin-

ue and the global vaccination rate. In 2020, Bosnia and Herzegovina’s economy recorded a 6.5% decline. In the period from January to June

BOSNIA AND HERZEGOVINA’S EXPORT AMOUNTED TO KM 6,654,279,000, A 30.53% OR KM 1.55 BILLION INCREASE 2021, Bosnia and Herzegovina’s total foreign trade amounted to KM 16,433,225,000, which is a 23.62% or KM 3.14 billion increase compared to the same period last year. The country’s ex-

port amounted to KM 6,654,279,000, a 30.53% or KM 1.55 billion increase. Imports amounted to KM 9,778,946,000, which is 19.33% or KM 1.58 billion higher. The total external trade balance increased by 0.88% and amounts to -3,124,666,000 KM. The export to import ratio went up by 9.39% and stood at 68%. Considering that we took last year as the basis for comparison, when our industrial production began to decline, as well as the decline in exports to the EU market caused by the uncertainty of the US-China trade war, stagnation of the German economy, violation of the CEFTA agreement by Kosovo, non-implementation of free trade agreements that we had with Turkey, Bosnia and Herzegovina's external trade has still recorded an increase. Which economic sectors were most affected?

The services sector was the most affected. Last year, there were 64% fewer overnight tourist stays compared to 2019, and the transport sector, as the most connected to tourism, recorded a significant decline in all road, rail and air transport indicators. In terms of road passenger transport, kilometres travelled and the number of transported passengers, there was an over 80% decline, which shows how adverse the impact on this branch of the economy was. Given that the share of travel and tourism in the country’s GDP is about 10%, the decline in this economic sector has affected the entire Bosnia and Herzegovina’s economy. In general, the wood industry has managed to keep afloat, given last year's conditions to do business, and has recorded a surplus of nearly KM 924 million. The import of the most significant products, except for medicines, has also decreased. We imported medicines worth over KM 548 million, mainly antibiotics and insulin, due to higher demand in the domestic market given the epidemiological situation. The metal-processing sector is recovering from the restrictive period and it ranks first in terms of value in exports and imports. During the pandemic last year, this sector’s export experienced a sharp decline, especially in the automotive industry, while according to current indicators, the recovery stands at about 30%. How would you rate the overall economic cooperation between Serbia and Bosnia and Herzegovina today?

What opportunities for further development of the cooperation between the two countries are there and in which sectors? The general goal of the trade between our two countries is to boost socio-economic development in the Republic of Serbia and Bosnia and Herzegovina, through the implementation of targeted and concrete activities, and joint and efficient use of resources.

WE SEE BOSNIA AND HERZEGOVINA INTEGRATED INTO THE COMMON REGIONAL MARKET, WHICH IN THE FUTURE, WILL BE INTEGRATED INTO THE EU AS SUCH Maintaining and improving very favourable trade between Serbia and Bosnia and Herzegovina has to be nurtured because, in terms of the trade volume, Serbia is our most important partner. When we take into account that all economic sectors participate in this trade, this validates the importance of maintaining good relations between Bosnia and Herzegovina and Serbia, both in business and otherwise. What can regionalization bring to the Western Balkan countries?

What development direction will Bosnia and Herzegovina take in terms of the EU and the region? I think I answered this question in part earlier. Simply put, we see Bosnia and Herzegovina integrated into the common regional market, which in the future, will be integrated into the EU as such. 

Focus

The common regional market, which the Western Balkan leaders agreed to form at their meeting in Sofia last year and which is supported by the EU, is a springboard for closer integration between the region with the EU Single Market and is crucial for the region and its privileged relationship. Last year, we noticed that the threeyear-long implementation of MAP REA, unfortunately, resulted in less than the desired, clear and tangible bene-

fits for companies and people in the region. From a business perspective, one of the few notable benefits of this document was the mobile telephony roaming agreement that came into force recently. Therefore, the Western Balkans 6 Chamber Investment Forum was actively involved in the development of the Action Plan for the Common Regional Market. We advocated for concrete measures, fully in line with the needs and requirements of companies in the region and based on the four EU freedoms: - Free movement of goods (mutual recognition of sanitary and phytosanitary documents for fruits and vegetables and veterinary certificates, improved border crossing infrastructure (BCP), all border agencies opened 24-hours-a-day, an extension of the World Bank's green corridors to include the EU), - Free movement of services (mutual recognition of job qualifications, the introduction of a license-free system for intra-company transfer WB6, mutual recognition of qualified electronic signatures and other trusted services...), - Free movement of people (enabling the mobility of students, scientists and researchers, mutual recognition of job qualifications, abolition of visas for tourists...) and - Free movement of capital (harmonization of access to the EU regulatory framework for the financial market ...). I am confident that regionalization is the key to progress and future development of all of us, hence through the chamber system and the Chamber Investment Forum, we are trying to animate companies to accept this idea and encourage them to have more intensive cooperation.

BOSNIA AND HERZEGOVINA 2021

After the European Union, CEFTA countries are the second most important external trade partners of our country, especially Serbia, with which we traded the most out of all CEFTA countries. To date this year, the trade between Bosnia and Herzegovina and Serbia has been commendable. In the first half of this year, we exported KM 732 million worth of goods to the Serbian market (32% more than last year). Imports from Serbia amounted to KM 1.42 billion a 20% increase compared to last year. Analyzing the structure of this trade, we can notice that we traded with Serbia mostly chemical/pharmaceutical,

wood, agricultural and food products.

INTERVIEW

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CCRS – HOME TO BUSINESS PEOPLE PERO ĆORIĆ

President of the Chamber of Commerce of the Republic of Srpska (CCRS)

Taking part in creating the most important strategic and programming documents of the Republic of Srpska will continue to be among one of the Chamber’s top priorities he Chamber of Commerce of the Republic of Srpska (CCRS) is a leading institution that represents the interests of the country’s economy, establishes and improves business relations with foreign countries and is always there to support its members. We spoke with the CCRS President, Pero Ćorić, about how the Republic of Srpska’s economy is recovering and the Chamber’s contribution to that.

Focus

BOSNIA AND HERZEGOVINA 2021

What will be the priorities on your agenda at the beginning of your term as the Chamber's President? The CCRS has always been a true home to our business community and its voice, as well as the creator of solutions based on the business community's requests, initiatives and proposals. In this regard, one of the Chamber's priorities will be to continue taking part in creating the most important strategic and programming documents of the Republic of Srpska. One of those documents is certainly the Economic Reforms Programme, which the

National Assembly of the Republic of Srpska adopts every year following the government's proposal. The Chamber actively participates in the drafting of this document. In order for the adopted documents to have a full effect, we will continue to advocate for the implementation of defined measures, to

IN COOPERATION WITH VARIOUS DONORS, WE HAVE SO FAR IMPLEMENTED OVER 50 PROJECTS TO SUPPORT THE ECONOMY improve business conditions, help the economy and ensure its development. Considering that Bosnia and Herzegovina's institutions are in charge of drafting and implementing a significant number of regulations that are important for the economy, by oper-

ating within the BIH's chamber system, our chamber will especially focus on resolving issues such as customs policy, indirect taxes, external trade conditions, etc. In cooperation with various donors, we have so far implemented over 50 projects to support the economy. It is currently implementing 12 projects, which validates the fact that we have enough adequate staff to meet the strict requirements of international donors. Furthermore, we will continue to promote the economy of the Republic of Srpska in foreign markets, connecting our business people with foreign partners, providing training and carrying out a number of other activities. How would you rate the Republic of Srpska's economy and which sectors would you like to single out? The Republic of Srpska's economy is predominantly made up of micro, small and medium-sized enterprises, which need dynamic development based on the implementation of new technologies, know-how and innova-

tions, to boost their competitiveness and bridge the gap between them and the more developed European economies. On the other hand, the electricity sector, metal-processing industry, agriculture, food industry, forestry and wood processing have the greatest investment potential in the Republic. The wood-processing industry and spa tourism based on thermo-mineral waters with fantastic medicinal properties are particularly important resources. Also, we have the potential to form bauxite and alumina complexes, the construction of energy facilities, infrastructure, etc. How can the Republic of Srpska boost its economy and economic cooperation with Serbia?

How did the COVID-19-induced crisis affect the business conditions and what consequences do you expect to see this year?

improving students' work practice held under the auspices of the dual education system, which will certainly increase productivity and thus the competitiveness of our economy. How can towns in the Republic of Serbia improve their environment for doing business? Every local community should aspire to create more favourable and predictable business conditions. It is for this reason that the Chamber has been actively involved in eliminating numerous barriers that cause problems for domestic companies at the local level. Also, the Chamber is the technical secretariat for the implementation of the regional BFC SEE programme for certification of cities and municipalities with a favourable business environment, launched by the NALED. Experience so far shows that local communities that have met the conditions for obtaining this certificate have achieved more dynamic economic development and attracted a larger number of new

Which projects will the Chamber focus on in the coming period? In response to the most important needs of the economy - digitalization and quality education in accordance with the needs of our companies - the Chamber of Commerce of the Republic of Srpska opened two centres - the Centre for Digital Transformation of Economy and the Centre for Dual Education and Education Policy - last year. Our focus will be in this direction, but we must not forget other projects either. We will continue to concentrate on companies (in terms of conquering new markets), and adopting new knowledge and skills, in which the Chamber of Commerce will be their true partner. Which direction will the Republic of Srpska's development take in terms of both the region and the EU? The growth of export shows that we have the potential and opportunity to position ourselves even better in the regional market, especially in the EU, which is our largest export market. It is encouraging to see that, despite the numerous challenges our companies have been facing in the past year and longer, they did not lose any of their main business partners abroad. We have also noticed a significant increase in exports compared to last year to countries such as Poland, France and Romania. We are especially pleased that our processing sector has been accomplishing better results and meets the extremely demanding European market, in terms of quantity, delivery times and quality of products. Furthermore, by investing in new equipment and raising the technical and technological level of businesses in the Republic of Srpska, we will boost our competitiveness and improve our position in both the regional and European markets 

Focus

We have been through an extremely difficult, challenging and unpredictable period, which has negatively impacted almost all companies in the Republic of Srpska. The tourism and trans-

IN EVERY SENSE, INCLUDING THE ECONOMIC ONE, SERBIA IS THE MOST IMPORTANT PARTNER OF THE REPUBLIC OF SRPSKA

investors. I am pleased to say that the importance of this standard is recognized in other local communities and that today we have five more municipalities that have expressed interest in getting involved in this process.

BOSNIA AND HERZEGOVINA 2021

In every sense, including the economic one, Serbia is the most important partner of the Republic of Srpska. If we look at the data on the external trade between the two countries during the first six months of 2021, Serbia occupies first place. The total value of this trade was KM 752.4 million, of which the Republic of Srpska exported KM 284.5 million worth of goods, and imported KM 467.9 million. These indicators also show that there is a lot of room for exporting more of our products to Serbia. Various researches have shown that a large number of our consumers consider products from Serbia as domestic, and we want people in Serbia to feel the same about the products from the Republic of Srpska. We cannot achieve this overnight. We will cooperate with the Chamber of Commerce and Industry of Serbia, but also with all other institutions interested in increasing the presence of our products on the Serbian market.

port sectors have suffered the most. We are encouraged by the data which show that the positive results that our economy recorded late last year continued into the first half of this year. I must especially underline the recovery of our processing industry, which is mostly export-oriented. This recovery comes as a result of the economic recovery of the EU countries since they are the biggest export market for the Republic of Srpska. It is also crucial that our companies are strongly committed to investing in new technologies, new equipment, digitalization and, human resources development, including their participation in

FOCUS BOSNIA BOSNIAAND ANDHERZEGOVINA HERZEGOVINA2021 2021

Focus Focus 20

LONG TRADITION OF MINING osnia and Herzegovina has a long tradition of mining stretching back over 2000 years to Illyrian and Roman times. In particular, metals are mined from the Paleozoic-Triassic Nappe, which formed during the Caledonian orogeny, Hercynian orogeny and the Triassic. The oldest rocks exposed at or

near the surface date to the Paleozoic and the Precambrian geologic history of the region remains poorly understood. Complex assemblages of flysch, ophiolite, mélange and igneous plutons together with thick sedimentary units are a defining characteristic of the Dinaric Alps, also known as the Dinaride Mountains, which dominate much of the

country's landscape. The first widespread research in Bosnia was led by Austrian and Croatian geologists in the 1880s, with maps published in the 1910s. During the Yugoslav period after World War II, extensive mining prompted additional exploration. French geologists took a leading role in research from the late 1960s into the 1970s. 

BOSNIA BOSNIAAND ANDHERZEGOVINA HERZEGOVINA2021 2021

Focus Focus

Photo: Red ivory / Shutterstock

INTERVIEW

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WE ARE BUILDING A NEW AND MODERN TREBINJE MIRKO ĆURIĆ

Mayor of Trebinje

In the last few years, we have invested significant funds in the development of infrastructure, because this is a prerequisite for economic growth

ocated on the border with Croatia and Montenegro, Trebinje is a unique place. It is also called ‘the town of the sun and plane trees’ and is the hometown of our great poet and academic, Jovan Dučić and the miracle worker St. Vasilije Ostroški. Culture is an important segment of Trebinje’s identity, while its abundant cultural heritage makes it the cultural centre of the region of Eastern Herzegovina. Dučić's legacy – ‘Trebinje - a town of culture’ - is also well known. We spoke with Mirko Ćurić, the mayor of Trebinje, about the town’s economic development, rich cultural and historical heritage and plans.

Focus

BOSNIA AND HERZEGOVINA 2021

What are you especially proud of when it comes to Trebinje, and what

are the biggest challenges for you as the mayor of Trebinje? Cultural heritage, long history and rich tradition, as evidenced by the legacy of many greats such as the famous Serbian poet and successful diplomat

CULTURAL HERITAGE, LONG HISTORY AND RICH TRADITION EVOKE THE SENSE OF RESPONSIBILITY TO TAKE GREAT CARE OF EVERYTHING THAT OUR ANCESTORS LEFT US

Jovan Dučić, the holy and miraculous St. Vasilije Ostroški - Tvrdoški, as well as other important figures from our past such as the prominent philanthropist Luka Ćelović Trebinjac, are segments of our collective memory that embody the spirit of this place and evoke the sense of responsibility to take great care of everything that our ancestors left us. I am especially proud of that because today you will recognize the people of Trebinje by their truly caring attitude towards their hometown, ancestors and past, and especially by their efforts to preserve the authenticity of Trebinje. In this respect, bearing in mind the town's rapid modernization and the need to adapt to today's way of life, the greatest challenges are related to Trebinje's urban planning, since our town has the highest number of construction sites in the Republic of Srpska. Despite this, we work hard to ensure that modernization processes and lifestyle changes do not destroy the local spirit and purity, both physically and spiritually, as well as our past recollections and numerous cultural and historical monuments, because these components unequivocally speak of our identity, who we are, and where we belong. In other words, we seek to preserve Trebinje's authentic values while supporting modern tendencies of development.

Where does Trebinje’s economic power lie? Which economic branches are crucial here and how can you boost the town’s economy?

What is the current economic and cultural cooperation with neighbouring towns like?

WE SEEK TO PRESERVE TREBINJE'S AUTHENTIC VALUES WHILE SUPPORTING MODERN TENDENCIES OF DEVELOPMENT ka Government, we plan to build a free zone in Trebinje, to give companies an opportunity to operate under more favourable conditions. This project will certainly have other effects, i.e. a positive impact on our partnership with other cities, especially in a business sense. There has been a lot of talk about an extremely important project - the construction of the airport in Trebinje. How far along is the project and are Serbia and the Republic of Srpska cooperating on some other projects too?

The governments of the Republic of Serbia and the Republic of Srpska have given their support to an important project for Trebinje, that is the construction of an airport. In addition to better transport connections, the airport will inevitably accelerate economic development and create new opportunities. In the last three years, the Republic of Serbia has supported other important projects in Trebinje, such as multimillion investments in the revitalization of the Old Town, the construction of a modern kindergarten in Trebinje, as well as the construction of a monumental Serbian Orthodox stronghold – the Mrkonjići Spiritual Centre. We are grateful to both governments for supporting development projects in Trebinje, as well as the support that we receive from the citizens. How much have you been investing in preserving Trebinje’s cultural heritage and cultural development? Preservation of the centuries-old Herzegovinian tradition, culture and our entire heritage has made it possible for us today to proudly carry the epithet of the town of culture, but also to warrant Dučić's long-standing legacy to his descendants. Bearing in mind that, for centuries, our ancestors had resisted and survived very turbulent times, caused by various historical circumstances, and built this town with a lot of love for future generations, today, we have a moral obligation to follow in their footsteps. While we fully understand that life and interests change with time, and that newer generations may have different interests and priorities than the previous ones, we remain committed to creating and improving cultural content while, of course, preserving the essence of Tre-

PROGRAMMES

Focus

We regularly run social care programmes for young people, women, young married couples as well as war veterans and their families.

BOSNIA AND HERZEGOVINA 2021

In the last few years, we have invested significant funds in the development of infrastructure, because this is a prerequisite for economic growth. We have built numerous roads – both in town and suburbs - improved the water supply, irrigation and sewerage system, and built several other facilities. Energy is the strongest economic branch in Trebinje, with agriculture also strongly developing mainly thanks to private farms which we have helped to market their produce. We do not have large polluters in the town, and due to the attractive geographical position of Trebinje, its rich cultural and historical heritage, an abundance of attractive locations, proximity to the Adriatic coast and ecologically preserved environment, we see great economic potential in the development of the tourism industry. In recent years, we have recorded growth in the number of tourists who come from many countries in Europe and the rest of the world. We are constantly improving the current tourist offer and facilities in order to make your stay in Trebinje an unforgettable experience, but also ensure that you will come back. The city centre, centuries-old plane trees, Dučićeva Street or, as we call it, the Promenade, the Old Town, numerous monasteries, as well as entertainment facilities such as Grad Sunca, the water park and the adrenaline park, are just some of the parts of Trebinje’s tourist offer, which we expand every year.

Maintaining and building relations with the countries in our immediate vicinity, as well as having general regional stability, are development and progress factors in any community. In that sense, we tried to establish economic and cultural ties with cities and municipalities in the immediate vicinity, and our cooperation mainly rests on various development projects financed from the European Union funds, pre-accession funds, as well as local budgets. The projects we implement together are mainly related to economic development, with a special emphasis on tourism. With the support of the Republic of Srps-

BOSNIA AND HERZEGOVINA 2021

Focus 24

binje's cultural life. Consequently, we have many cultural events, especially those that take place during the summer, which give Trebinje an irresistible charm. Here are just a few of them - the Saint Sava festivities, Dučić's Day, Museum Night, Kolo International Art Colony, Vidovdan festivities, Amateur Drama Festival, Music & More Summerfest International Festival of Classical Music, Mediterranean and European Film Festival, Transfiguration Celebrations – the celebration of the town’s Patron Saint Day, International Dance Festival, International Children Entertainers’ Festival, Trebinje Guitar Festival and Dučić Poetry Evenings. You have been the mayor of Trebinje since February 2019. Which results, achieved during your terms in the office, would you like to single out? What are your plans for the next period? Since 2019, we have continued with the development and investment activities and we have launched, continued and completed numerous projects. The most important projects are the infrastructural ones, like construction of a new irrigation sys-

ENERGY IS THE STRONGEST ECONOMIC BRANCH IN TREBINJE tem, water supply system, overhaul of wastewater treatment plants, developing the left bank of the Trebišnjica River and coastal segments, construction of a new fire station, the Palace of Justice, the War Memorial Room, construction of a modern indoor marketplace, the indoor pool, the Mrkonjići Spiritual Centre, participation in the construction of an apartment building for young married couples and one for refugees and displaced persons, reconstruction of the Trebinje-Ljubinje motorway segment, construction and reconstruction of streets, pedestrian zones, access roads, children's playgrounds and other areas in urban and suburban settlements, revitalization of the Old Town, construction of a running track at the stadium in Police, installation of video surveillance systems throughout the town and replacing lighting fixtures with the latest LED technology in the town centre and

its outskirts. In addition to infrastructural investments, we have been working on improving the operations of the Agrarian Fund, through the project titled "The Herzegovinian House", as well as making various investments in improving Trebinje’s tourist offer. We have run social care programs for high school students, university students, young people, women, young married couples, and war veterans and their families on a regular basis. All these programmes were implemented independently or in cooperation with the institutions of the Republic of Srpska. The Serbian government lent its helping hand and supported us in several projects. A new and more modern Trebinje, which welcomes everyone, is the result of these good relations and working in synergy with state institutions. Our commitment and responsibility for doing what we had promised have marked this period, so we are continuing in that direction in the future. Our objective is for Trebinje to develop into a unique contemporary environment with good living conditions that meet today's standards. We also want Trebinje to continue to be a town where all our guests and friends will always be happy to come. 

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Although our company had subsidiaries in seven European countries and the USA and various investment opportunities, my wish was to invest in my country as much as possible

CORPORATE

INVEST IN B&H AS MUCH AS POSSIBLE

CLICK ON ICON

wherever a person may be in the world, they are drawn to their roots.

MUAMER JAROVIĆ Eco Energy, Director and Founder

e gained his work ethic and adopted life principles in Bosnia and Herzegovina while he achieved business success in Germany. We have talked with the renowned businessman Muamer Jarović about his selfless investments in B&H, as well as the country needs to change in order for people from the diaspora to invest more in it.

POTENTIAL

The diaspora carries a great potential for the country, which is quite untapped

What Bosnia and Herzegovina needs to change and improve in order for people from the diaspora to invest more in it? — First of all, it needs to provide legal security and protection for investors, followed by efficient administration and less corruption. The diaspora carries a great potential for the country, which is quite untapped. We, in the diaspora, have a large number of potential investors, who are highly respected managers and experts in all fields and ready to do something for Bosnia and Herzegovina. This, unfortunately, has not yet been recognized by the authorities in the country. An active continuous relationship with the diaspora (and not only on election-to-election basis) with specific projects, but also guarantees for invested capital, would certainly significantly increase interest and investments in the country. 

Focus

In addition to this basic investment through the company Ecoenergy, of which I am the majority co-owner, together with my long-term business partner from Germany, the HLV Company, we invested in the construction of a small hydropower plant in Goražde, and in recent years, in the construction of solar power plants in Stolac (near Mostar). Also, my company - Agile Capital Management - employs a group of IT experts in Tuzla who provide support and development programmes for our partners in Germany. They have real-

You have invested a lot in Bosnia and Herzegovina and boosted employment here. What has the country given back to you and in what way has it influenced you as a person? — You will always be identified in the world by your country, even though you have been living abroad for so many years. This is what motivates me to do something for Bosnia and Herzegovina, without expecting much back. Our people always land on their feet in every situation and always find a new perspective with a dose of humour. "No problem" is a saying that our foreign partners will never understand.

BOSNIA AND HERZEGOVINA 2021

What moves and inspires you so much to invest in Bosnia and Herzegovina? — I was born in Višegrad in Bosnia and Herzegovina, but spent most of my childhood, schooling and working life in Gračanica, which has always been known for its business initiatives. After completing my studies in Sarajevo and gaining some work experience in the country, I decided accepted a partnership in the German company, Elatec. This partnership with two other German co-owners lasted for a full 30 years. Although our company had subsidiaries in seven European countries and the USA and various investment opportunities, my wish was to invest in my country as much as possible. That’s so simple and

You have been an investor for a long time. Where have you invested and done business in Bosnia and Herzegovina so far? — From the very beginning of the co-ownership with the German company, we formed a subsidiary in Bosnia and Herzegovina, and to date, we have invested in the production capacity of personalization and production of SIM cards and packages as well as payment cards (Mastercard and Visa) in Gračanica which is certified by the GSM Association, is unique in this part of Europe and is one of 12 such centres worldwide. It employs more than 60 young experts in the production and development of smart cards.

ly good jobs here, with fair conditions and wages, and feel no need to work abroad.

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OUR GOAL IS TO IMPROVE THE INVESTMENT CLIMATE IN B&H BRANIMIR MUIDŽA

President of the Foreign Investors Council in Bosnia and Herzegovina, Sarajevo

The Council will continue to work and insist on the implementation of regulatory reforms that are necessary to create an optimal investment climate in Bosnia and Herzegovina this year too

Focus

BOSNIA AND HERZEGOVINA 2021

You have been the President of the Foreign Investors Council in Bosnia and Herzegovina since 2011. What has changed in the country in the last ten years in terms of the business environment?

e are aware of the fact that the governments of Bosnia and Herzegovina's entities have been additionally burdened by the challenges created by the pandemic, our focus in 2021 will be on boosting cooperation with local communities, especially those from which our member companies come,“ says the President of the Foreign Investors Council in Bosnia and Herzegovina, Branimir Muidža, with whom we talked about the business climate in the country, its potential and the pandemic's impact on foreign investments.

”W

THE SKILLED WORKFORCE, PROXIMITY TO THE EUROPEAN UNION AND LOW LABOUR COSTS ARE THE MOST IMPORTANT COMPETITIVE ADVANTAGES OF BOSNIA AND HERZEGOVINA

Since its establishment in 2006, the Foreign Investors Councils (FIC) has launched an initiative to establish a normative and institutional framework with the view of improving the investment climate in the country. We have also established dialogue and cooperation with Bosnia and Herzegovina's authorities, in all areas of common interest, through the process of drafting and adopting the recommendations contained in our White Book. The value of the White Book lies in the fact that it provides very specific recommendations and answers to the questions of how, who, when and what should be done to have a much more favourable business environment. About 100 experts from our member companies have been working on the White Book, who have a cumulative age of 3,000 years and cumulative work experience of 1,500 years, both in Bosnia and Herzegovina and abroad, and who have worked and are working in domestic and foreign companies. In terms of the business environment, the past period was marked by

the Reform Agenda, as well as its inconsistent implementation. Unburdening businesses, increasing efficiency in the public sector, conducting structural reforms in labour legislation, improving the fiscal system, public administration reform, public sector employment policies, improving the business climate and boosting competitiveness, social benefits reforms, public enterprise restructuring, health sector reforms and the rule of law were the goals stated in the Reform Agenda, which coincide with the platform and concept of development that our Council has been representing for many years. Some important decisions were made during this process, but unfortunately, they were not fully implemented. We believe that the implementation of these policies has no alternative and that decision-makers should start applying them as soon as possible, with the aim of achieving higher competitiveness and economic growth in the country. To what extent and how did the COVID-19-induced crisis 19 affect the decline in foreign investment in Bosnia and Herzegovina?

THE DECLINE IN GLOBAL FOREIGN INVESTMENTS IN 2020 WAS ESTIMATED AT 30-40%, ALSO AS A RESULT OF THE PANDEMIC

On the other hand, can Serbia be a good external trade partner when it comes to relations between the two countries? Apart from the European Union, the Republic of Serbia remains the most important external trade partner of Bosnia and Herzegovina. Given that our country and Serbia are geographically and historically naturally dependent on each other, these two countries have great interest in economic cooperation, because according to the Foreign Trade Chamber of Bosnia and Herzegovina, Serbia is the most important partner of Bosnia and Herzegovina in terms of external trade. Last year, Bosnia and Herzegovina exported goods worth just over 450 million euros to Serbia and imported just under 970 million-euro-worth of goods from Serbia. Very good cooperation between the two countries is also reflected in investments. Serbia occupies third place on the list of the biggest foreign investors in Bosnia and Herzegovina. Also, the two countries have concluded a number of interstate agreements related to the economy. In your opinion, is the key to Bosnia and Herzegovina's further development?

Looking at a cross-section of the current situation, we can say that the challenges have remained more or less the same as in previous years. The biggest challenge in companies' operations is still the excessive red tape which is also complex and expensive, which leads to its inefficiency and failure to provide adequate quality of service. Therefore, the complex organization and the way the state functions are the biggest obstacles. Due to its constitutional organization, Bosnia and Herzegovina also has a complex business environment, in addition to the already known challenges. The country's economy is currently facing the coronavirus pandemic, which requires the government to be agile and to take appropriate economic measures to minimize the negative effects of the pandemic on the economy.

Stability and predictability are some of the key criteria for investors. The more stable the political situation, the greater the predictability, the greater the chance of attracting investors and creation of new jobs, both in the country and everywhere in the world. Bosnia and Herzegovina has a complex business environment, so investors are more cautious. Billions of euros are circulating every day in the world's financial bloodstream, looking for a favourable place to fertilize. There are certainly opportunities and we will use them only if economic issues are an unquestionable political priority. First of all, there is an urgent need to increase the competitiveness of the private sector, starting with the much-needed reduction of the payroll tax. Furthermore, there is a need to im-

Focus

How do you assess the general economic situation in the country and what should and what could be changed?

BOSNIA AND HERZEGOVINA 2021

The onset of the pandemic coincided with a time when the global economy was already facing difficult times. Therefore, in a given situation, business people had to take prudent financial actions, both preventive and corrective, to ensure overall financial liquidity. It also means that many potential investors will align their investment decisions with the changed reality. In order to keep their business liquid, many companies will focus on short-term goals and will realize longterm ones more boldly once greater stability and certainty of economic opportunities and other circumstances affecting the business are in place. As fears grow that the global economy will move toward recession, there will be a drop in liquidity, along with high inflationary pressures. In this situation, setting short-term financial goals becomes very important. This means that investments in sectors directly affected by the pandemic will be delayed for some time until financial

stability is established. Unfortunately, the COVID-19 pandemic will affect investments worldwide and expectations related to the trend of foreign direct investments in Bosnia and Herzegovina too. According to the data collated by Bosnia and Herzegovina's Central Bank referring to the first half of 2020, investments dropped by 46.7% compared to the same period in 2019. Foreign direct investments in less developed countries such as Bosnia and Herzegovina have been further hit both 2020 and 2021, due to the impact of the COVID-19 pandemic. The decline in global foreign investments in 2020 was estimated at 30-40%, also as a result of the pandemic.

prove the quality of public services and reform the cumbersome and inefficient public sector, which is a constant burden on the private sector. Then, the country has to ensure a level playing field, increase transparency and eliminate the system of favouritism. Bosnia and Herzegovina needs to become more determined in supporting the private sector and must reap the benefits of technologies that are now readily available, including digitization, automation and greater use of e-government and e-services.

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BOSNIA AND HERZEGOVINA 2021

The Council will continue to work and insist on the implementation of regulatory reforms that are necessary to create an optimal investment climate in Bosnia and Herzegovina this year too. First of all, I am referring to the implementation of our recommendations contained in the new White Book, which we will publish this year, and launching new activities together with the relevant government institutions. Also, at the beginning of next year, we plan to publish and present to the public the results of our Business Barometer survey, which we periodically conduct among our members. The survey results will be consolidated and presented to the relevant authorities in Bosnia and Herzegovina and will be used to improve our position and requirements towards the state institutions, with the aim of improving the regulatory framework, increasing the efficiency of public administration and policy decisions in order to improve the position of existing investors and encourage new investments. The new survey covers the 2019/2020 period. In addition to the standard chapters, it also contains a new one that deals with business conditions during the COVID-19 pandemic. We hope that the survey results will show governments what challenges companies have been facing in this difficult period and what are some of our recommendations to remedy them. We are aware of the fact that the

Photo: Jirapong Manustrong / Shutterstock

What will the Foreign Investors Council work on in the coming period and what challenges do you expect to face given the ongoing pandemic?

THE NEXT MOST IMPORTANT ADVANTAGE, COMPARED TO OTHER COUNTRIES, IS THE LOW PROFIT TAX RATE AND VAT AND LOW PRICES OF ELECTRICITY AND ENERGY governments of Bosnia and Herzegovina's entities have been additionally burdened by the challenges created by the pandemic, our focus in 2021 will be on boosting cooperation with local communities, especially those from which our member companies come What are Bosnia and Herzegovina's greatest values - its natural resources, geographical position or people?

According to the results of the Business Barometer, our members said that skilled workforce, proximity to the European Union and low labour costs are the most important competitive advantages of Bosnia and Herzegovina in terms of attracting investors. The next most important advantage, compared to other countries, is the low profit tax rate and VAT and low prices of electricity and energy, followed by good suppliers and local business support services, solid transport connections and reliable energy supply. Local incentives for foreign investors, as a competitive advantage for investing in Bosnia and Herzegovina, are an issue where, according to our survey participants, a lot of progress has been made. In addition to the aforementioned, investors believe that natural resources, the potential for business expansion and the availability of raw materials are additional competitive advantages of Bosnia and Herzegovina in attracting foreign investments. 

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TRB, a company with a decades-long history and tradition in the national defence and security segment, has demonstrated exceptional stability but also flexibility when it comes to quick response in crisis situations, as well as adapting to changes

SLAVEN RISTIĆ General Manager TRB Bratunac

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just the realization of the short-term goal of making a profit and running a clean business. "The future depends on us, but when I say ‘us’, I mean individuals who will assume a clear role in the function of improving the community in which they live,

DECISIVE FACTOR

Abundant experience in managing complex systems and companies, as a testing ground for understanding the needs, problems and desires of people, has proven to be a decisive factor in success

Focus

like bees in a hive. I have always been asking myself and the people around me the following question: what can we do today to make our children live in a better world tomorrow? As a logical answer and sequence of activities, there was a need to become politically active, which I see as a form of civic re-

sponsibility in which we all, through our own engagement, should contribute towards creating a better ecosystem for all our compatriots. Bosnia and Herzegovina is facing widespread emigration as one of the biggest problems in the country - people simply do not want to be held hostage to the current politics, which is the policy of pointing the finger and finding the culprits on the other side without a clearly defined vision and system that will lead both the citizens and state to prosperity. It is time to take responsibility for our town and community. Very few people understand is that life depends on us, our choices and that we build our future on our own… But in order to bring about significant changes, we need support and that we all rally around this goal. If we do not start dealing with politics, it will, unfortunately, deal with us. New times need to bring both new people and a new approach to politics. Politics should be practised by people who are successful, accomplished, who have results to show and know how to achieve what they set out to do, not those who use politics to grab what they need and advance on the social ladder." 

BOSNIA AND HERZEGOVINA 2021

n the time of uncertainty and turbulent changes brought by the modern age, which was additionally exacerbated by the outbreak of the COVID-19 pandemic, Tehnički Remont Bratunac (TRB) stands out as a good example of business practice in the Republic of Srpska, Bosnia and Herzegovina. TRB, a company with a decades-long history and tradition in the national defence and security segment, has demonstrated exceptional stability but also flexibility when it comes to quick response in crisis situations, as well as adapting to changes. Abundant experience in managing complex systems and companies, as a testing ground for understanding the needs, problems and desires of people, has proven to be a decisive factor in success. Since the company’s inception, its General Manager, Slaven Ristić, has been guided by the vision of creating a better and more promising future for residents in this area and not

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CHALLENGES AS MOTIVATION

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THE QUALITY OF SERVICE ABOVE ALL For me, the main priority is to keep the quality at the highest level, and I think we are on the right track. Not only do I run the office, but I also educate my colleagues to work the way I did in my time. And that, in my opinion, is the key to securing some kind of continuity. I have been a successful lawyer for 50 years and I think that it is important for the tradition to continue now

BRANKO MARIĆ Managing partner, Marić & Co

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BOSNIA AND HERZEGOVINA 2021

or me, being a lawyer is not an occupation, it is a vocation that still has a grip over me. Everyone keeps asking me how long I am planning to work. I have been a lawyer for 51 years now and the reason for that is that I still love to work, instead of spending my retirement years sitting at home and doing crossword puzzles. Being a lawyer has always been a challenge for me. It’s definitely a job where you can’t get out of the office, close the door and say I’m going home - there’s no such thing in this business. Work goes wherever you go,” says Branko Marić, managing partner at Marić Law, with whom we spoke about his long career, law practice and the legal system in Bosnia and Herzegovina. Marić & Co Law was founded in 1959. How have you lasted so long? — In my opinion, constantly insisting on the quality of services is essential. It is also important to notice changes in our profession, because there are huge differences between being a lawyer when the office first opened and today. In the past, law practice meant court appearances and doing a criminal or civil procedure. Now the situation has completely changed. Today, being a lawyer

means being engaged in prevention, i.e. instructing the client what is the correct way to act to avoid them becoming a party in a dispute. One of the key elements of success and longevity is adapting to changes in society on time, as well as registering the change that is happening not only in society but also in our business. Again, the quality of service is the key, the most important thing. If you provide a quality service, you will have a returning client in a year, two or twenty. Good service sticks in one’s mind as much as a bad one does.

CHANGES

It is also important to notice changes in our profession, and adapt to new requirements What is the main focus of Marić & Co Law? Which area of law do you specialize in? — We provide services in various areas of law, including commercial law. We help companies that want to open a subsidiary in Bosnia and Herzegovina. The key to success lies in having a really good team. We work as a team and have experts for every area of law. This is also our main advantage, i.e. having

a large number of lawyers who specialize in various fields of law. For example, there is a corporate department that deals with the establishment, internal structure and management of companies and we have colleagues who deal with labour relations because this is an issue that every company is bound to face. Then, we have experts in finance and taxes, real estate, intellectual property, etc. In essence, we specialize in everything that may appear as a problem to the client. However, no one must do everything, but for each such segment there is a lawyer who specializes in it. We approach problem-solving as a team, as well as in a multidisciplinary way, because only then the problem can be solved to client’s satisfaction. Bosnia and Herzegovina has a very complex legal system. What are the biggest challenges that lawyers face and how do they overcome them? — You know, I have always had a personal dilemma. I would like to be a lawyer in Germany, in an organized society where everything is in its place and

works wonderfully. But, on the other hand, I did work there, I wouldn't have had as much work as I have now. Very often, the wrong approach that the state authorities, state bodies and courts have generates a large amount of work for us. Calling Bosnia and Herzegovina’s legal system complex and complicated is putting it very mildly because the system is much more than that. The biggest problem is that the law is interpreted in different ways. To illustrate this, a judge who is involved in registering a company in, in let’s say, Sarajevo reads the same law completely differently to a judge in Zenica. Based on this same legal provision, I can finish certain things in Zenica that I can't in Sarajevo. So, not only are there inconsistencies, but for each canton, we have several laws that regulate an area, each in a similar and slightly different way. That is why our office has the most advanced business affairs department, because lawyers must know not only the law but be acquainted with the views of each judge in every court in Bosnia and Herzegovina. That is why there you must be a top professional to succeed.

ADAPTATION

If you are an EU candidate country, than you should closely follow the changes in the EU and adapt your legal regulation to those changes When we were introducing VAT to the country, the government copied the VAT Law that is valid in the EU. However, the EU has changed a lot of things since then, but we haven’t, so instead of our law being harmonized with the EU’s, we have completely different regulations on the matter where they should have been 100% harmonized. How did you organize your office during the COVID pandemic? What did your clients requested the most during that period? — As far as I am concerned and far as our profession as a whole is concerned, the COVID pandemic has changed some standard, meaning that we don’t have days off anymore. As a result, it became normal for me, for example, to receive an inquiry from a lawyer from England on Saturday and for them to ask me to do it by Sunday evening, that is, to give them the information they had asked

for. This is what COVID has done in my life. As for the business sector, the issue of lending and securing financial resources, the volume of our work has increased, since we work for the EBRD and the EIB. We can see by the amount of funds they provide to domestic banks that new credit lines are being opened to try to mitigate some of the consequences that COVID has had on the economy. Is it easier to work with domestic or foreign clients? — It is easier to work with foreign clients, because they have a tradition that when they do a big job, they go to a lawyer to structure that job. That is still not the case in Bosnia and Herzegovina. Here, a client does all the work and uses a lawyer if or when they need him. And by default, it is quite difficult to explain to the client that if they hired a lawyer at the very beginning everything could have been set up much better and cost less, and that the client could have saved a lot of tax money. Financially speaking, it is also much better to work with foreign clients because our fees are far lower than the fees of lawyers in their respective countries. You are also a member of the SEE Legal Group. How does that benefit your company and your clients? — SEE Legal was formed as an idea coming from the three strongest law firms in Serbia, Bulgaria and Romania, which were looking for market leaders in other countries to join them. The bottom line is that when a client from Bosnia needs to get a job done abroad, in Slovenia or Turkey, for instance, they can get the best lawyer in Turkey following our referral, who will pay utmost attention to the client and solve their problem in the best possible way. In every country, we have a law firm that is a market leader. We also exchange information on market trends and discuss problems in the region which is quite important. 

GREATEST SUCCESS loans indexed in the Swiss Franc, or, for example, the issue of banks charging excessive loan processing costs. Following my appeal, the Constitutional Court has begun to deal with tax issues for the first time. So, I am proud that I have managed to remove that barrier of inviolability of institutions.

Focus

What do you consider your greatest success? — Creating a law firm like ours is my greatest success, because we are pioneers in that field in Bosnia and Herzegovina. It gives me great satisfaction when I manage to change certain legal positions with which I do not agree, such as disputes over

BOSNIA AND HERZEGOVINA 2021

Generally speaking, to what extent is the legal system in Bosnia and Herzegovina harmonized with the European one and what still needs to be harmonized? — Making such an evaluation for Bosnia and Herzegovina is impossible because it is not a question of how much we need to prepare, adopt and apply, but rather when is this country going to start functioning properly. Ever since it was founded, this country has been, more or less, suffering from some kind of blockade regarding decision-making. For example, a donor called me to give an opinion on the law on civil procedure, and I agreed to do it. I tried to explain to them that they are trying to replace the principle of substantive law with the principle of formal law. Of

course, the donor was not too happy that I made such a conclusion, and even when I made 50 remarks to the law, of which they adopted over 40, they immediately realized that they had done something wrong. When they asked me if that was all, I told them that if I had at least 15 days to do that and my team with me, every single world of their law would be changed. After that, they stopped calling me for consultations. This is just an example of how our legal system was created.

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WIDE RANGE OF INVESTMENT OPPORTUNITIES IN DIFFERENT SECTORS MILICA MARKOVIĆ

Director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA)

In the article she wrote for InFocus Bosnia and Herzegovina, Milica Marković, the director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA), highlighted the most important activities of the agency, the potential of Bosnia and Herzegovina as an investment location, as well as most important economic sectors in the country. She also spoke about FIPA's readiness to help every investor he Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA) is the main address that foreign investors who want to invest in Bosnia and Herzegovina turn to. I would first like to highlight the Agency’s most important activities, which include: - Attracting and increasing the influx of foreign investments in Bosnia and Herzegovina and promoting existing investors in the country to make more investments and expand their business - Improving the cooperation between the private and public sector, proposing measures to improve the business environment, and thus facilitate economic development - Presenting Bosnia and Herzegovina as a country attractive to foreign investors. Also, FIPA provides information,

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BOSNIA AND HERZEGOVINA 2021

analyses and advice to potential investors on the business and investment environment, legislation relating to foreign direct investments, available investment projects, economic and business developments in the country, etc. When promoting the opportunities and potential of Bosnia and Herzegovi-

BOSNIA AND HERZEGOVINA OFFERS A WIDE RANGE OF INVESTMENT OPPORTUNITIES IN VARIOUS ECONOMIC SECTORS

na as an investment location, we first highlight its good geographical location, availability of natural resources and attractions, a long tradition of industrial production, a large number of available industrial zones, attractive locations and production facilities, favourable legislation for foreign investors, the currency tied to the euro, regional and bilateral trade agreements, and the prospect of joining the European Union. Bosnia and Herzegovina offers a wide range of investment opportunities in various economic sectors. The country is quite a favourable destination for all export-oriented production companies, given its excellent geo-economic position, easy and fast access to large markets, and duty-free trade agreements or having preferential status with almost all major countries which allows duty-free export of

everything produced in Bosnia and Herzegovina to anywhere in the world. At the same time, we have a substantial offer of very affordable production and business spaces, adequate operating costs, availability of an affordable workforce, and existing incentives related to foreign investment and exports. Bosnia and Herzegovina has great potential in the segment of energy production, both renewable (water, wind, solar, biomass) and thermal energy based on its coal reserves. The country could easily attract investments worth up to 10 billion euros in the coming period.

Today, automotive companies from Bosnia and Herzegovina produce a wide range of parts and components, such as engines, gears and their parts, metal precision parts, drive axles, braking systems, couplings, control systems, pumps, filters, electric auto parts, textile and leather products, aluminium rims, batteries and various small parts such as springs, screws, pipes and components made of metal, rubber or plastic. Domestic companies produce for brands such as MERCEDES, AUDI, BMW, VOLKSWAGEN, TOYOTA, MAZDA, OPEL, FORD and FERRARI.

ing branches of Bosnia and Herzegovina's overall tourism. I would also like to single out the metal processing sector in Bosnia and Herzegovina as a sector appealing to foreign investors, due to its long tradition, great potential, having a natural competitive advantage mainly due to the existing resources of raw materials, labour, and the like. I also have to mention the wood processing sector. Wood is a natural resource that Bosnia and Herzegovina is famous for. 53% of the land is covered with forest which is used for wood processing and furniture production.

Bosnia and Herzegovina's agricultural sector provides great opportunities for potential investors, including a lot of uncultivated land, a good climate conducive to the cultivation of various crops - from fruits and vegetables to cereals, medicinal and aromatic plants, as well as livestock, meat and meat products, milk and dairy products. In terms of growing berries, our country is becoming renowned with international raspberry producers. According to the USDA's National Agricultural Statistics Service Report, Bosnia and Herzegovina ranks 10th in the world in terms of raspberry production and export and 16th in the world in plum production. The great natural potential and attractions in our country are untapped, so the tourism segment is still developing. Winter and mountain tourism, eco-tourism, spa tourism, cultural and religious tourism and partly coastal tourism are the most promis-

The information technology (IT) sector has grown in the past few years. Given that the IT sector is one of the most attractive and profitable branches globally, hence, it has huge potential and good prospects for stronger development in Bosnia and Herzegovina. This economic branch has been growing daily and has all the prerequisites to become a driving force behind economic development, as well as to contribute to the development of Bosnia and Herzegovina's economy and reduction of currently the biggest weakness of our economy, which is youth unemployment. For all those who are interested in investing in Bosnia and Herzegovina, FIPA will help find a suitable investment project in our country and implement it as soon as possible. Our services are free! 

FOR DECADES, THE WORLD'S LEADING VEHICLE MANUFACTURERS HAVE RELIED ON SKILLED LABOUR IN BOSNIA AND HERZEGOVINA IN TERMS OF ASSEMBLING CARS FOR WESTERN MARKETS

Focus

6, Dubrovačka Street, 71000 Sarajevo, tel: +387 33 278 080, fax: +387 33 278 081, website www.fipa.gov.ba

BOSNIA AND HERZEGOVINA 2021

Bosnia and Herzegovina also has a long tradition and abundant experience in the automotive industry. For decades, the world's leading vehicle manufacturers have relied on skilled labour in Bosnia and Herzegovina in terms of assembling cars for Western markets. Thanks to the existing process of assembly of vehicles and production of auto parts, a strong, diverse supply chain of auto parts and supporting infrastructure has been established, which also includes an accompanying training system, development and research institutions, as well as specialized and skilled workforce with experience in the metal processing industry, and electrical and automotive engineering. In the last ten years, this industry has experienced dynamic development and has become very export-oriented, exporting an average of 90% of the total products to 30 countries around the world.

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THE MOST TECHNOLOGICALLY ADVANCED MINING FACILITY Bosnia and Herzegovina has a long history of mining, including the Vares area, and I am glad that we can witness and be part of the tradition that is continuing

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to have our vision of the Vares Project fulfilled: a fully operational mine, applying the highest standards of operations, with firm roots in the community, respecting the biodiversity and other environmental factors.

ADNAN TELETOVIĆ

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BOSNIA AND HERZEGOVINA 2021

General Manager, Eastern Mining d.o.o.

astern Mining holds exploration and exploitation concessions in Bosnia and Herzegovina. We talked with the company’s General Manager, Adnan Teletović, about the mining sector of Bosnia and Herzegovina, as well as about a very important Vares project. You have abundant experience in managing large capital projects in the Australian mining industry. If we were to compare today’s B&H, what would be the similarities and differences in terms of mining? — Although we are talking about two totally different countries, I think that economic viability, sustainability and environmental and work safety are the common denominators here. B&H has a long history of mining, including the Vares area, and I am glad that we can

witness and be part of the tradition that is continuing. As for the differences, the Australian mining industry is, quite understandably, more technology savvy, applying modern production and safety techniques, economic and social principles and

HIRING

We will be hiring approximately 350 people at the peak (during construction) standards. We, in Adriatic Metals - Eastern Mining, intend to do the same with our Vares Project, i.e. to make it the most technologically advanced mining facility not only in B&H but in the region too, with the highest standards of environmental protection and work safety in place. We consider those to be paramount in order

How would you rate the current situation in Bosnia and Herzegovina’s mining sector concerning the region and Europe, and where do you see the development opportunities? — Well, to start with, for obvious reasons there was a lack of serious exploration throughout this region, which prevented many serious efforts and investments in this area. When we started our exploration, we did so with the archived Yugoslavian state documents. As for the already existing mining industry here, we can see that, unfortunately, things are not as they should be and, more importantly, as the miners deserve. Despite all the technological advancements, this is still one of the most hazardous professions in the world. As B&H was a part of ExYugoslavia, it has good infrastructure, with road networks and railway which leads to the harbour Ploce in Croatia and European rail network; it has highvoltage power grid and main water supply systems. I must emphasize, this is only the second exploitation permit for metals issued by the B&H authorities in the last 30 years. So, not only is this important

for us but also B&H. The permit will enable Adriatic Metals – Eastern Mining to perform detailed engineering works for the Rupice underground mine, processing and tailings management plant, and construction should begin in the third quarter of 2021. In five years, our ambition is for Adriatic Metals plc. to be a mining company with more world-class mining operations throughout the Balkan region. Achieving this vision requires finding and developing mineral resources that have positive economic potential, in multiple locations. We recognized this potential in the Raska project (Serbia), which is why we reached an agreement in May last year on the acquisition of a Canadian company Tethyan Resource Corp.

— We have just published our Definitive Feasibility Study that outlines the more technical detail of the project and the development of the next phase. This study, written following the highest global standards, establishes the economic viability and long-term sustainability of the Vares Project, taking into account the interest and benefits for the Vares area.

What are the most significant Adriatic Metals - Eastern Mining’s projects? — Veovaca and Rupice are early polymetallic deposits that form part of the Vares Project, which the company took over in 2017. Just recently, we have obtained Rupice Exploitation Permit, which is the final permitting requirement for construction of the Vares Project. The Vares Project has gone from discovery to fully permitted for exploitation in just over 4 years. I have to say that so many important milestones to be accomplished in such a relatively short period is amazing, and we, at Adriatic Metals - Eastern Mining, could not have done it without the strong community and government support at every step of the permitting process.

Work will commence on the construction on the mine in Q4 2021, taking about a year and a half to fully construct the mine and processing plant, and additionally a few more months for the plant to start operating, beginning production in early 2023. This is a very aggressive timeline, but we have the people and the necessary skills to do it.

All of our activities are planned according to not only our needs but to those of our community

Adriatic Metals - Eastern Mining is committed to investing and supporting the local community in the areas in which you do business. Which assistance projects would you like to single out? — Over the past four years, we have been constantly present through sponsorships and donations, such as the sponsorship of Football Club Vares and Zenica Rugby Club, where we have enabled 150 children to play rugby in a country that is not exactly known for this game.

How much will you contribute to the development of Vares in terms of higher employment, infrastructure development, etc? — I have to say that we aim to have all employees from the area surrounding the project, and we will be hiring approximately 350 people at the peak (during construction) which will have a further indirect, yet positive, impact on the local, regional and national economy. But the employment rate will not be higher solely in mining, since our activities and work here affect the area, attracting maybe new investments, and there is a whole network of local businesses that will benefit. As for the infrastructure development, we have already started reconstruction of local roads in Vares Municipality and are working with the Federation Railway Company on the regeneration of railway that goes to Ploce harbour. All of our activities are planned according to not only our needs but to those of our community, and together I am sure we will find the best and optimal solutions for everyone. 

BOSNIA AND HERZEGOVINA 2021

How far have you come with the research and feasibility study and to which locations will you expand?

ACTIVITIES

We are very proud of our community presence either by sponsoring young people to attend sporting events across Europe, by sponsoring the art festivals in our village of Borovica, or simply helping a local school or hospital with the circumstances the covid 19 pandemic brought to our local community. We have also established The Adriatic Foundation, which aims to support and promote local sustainable socioeconomic development, with a particular focus on the communities associated with Adriatic’s operations.

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INTERVIEW

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FIC BOSNIA AND HERZEGOVINA – 15 YEARS OF SUCCESS Thanks to FIC's effort, Bosnia and Herzegovina's authorities have recognized the benefit whereby business associations, such as ours, can make a significant contribution to the decision-making process at all levels of government by providing independent expertise

SANJA MIOVČIĆ

Focus

BOSNIA AND HERZEGOVINA 2021

Executive Director of FIC Bosnia and Herzegovina

he Foreign Investors Council in Bosnia and Herzegovina was formed in 2006 and their focus is on improving the investment climate in the country in order to create better business conditions for foreign and domestic investors. We talked about the current events, cooperation between Serbia and Bosnia and Herzegovina, as well as the successes achieved during 15 years of FIC's operations, with the director of the Foreign Investors Council in Bosnia and Herzegovina, Sanja Miovčić. The first FIC conference called 'Global Business Executive Retreat 2021' was recently held. What are the most important conclusions of the conference? — The first 'Global Business Executive Retreat 2021' was held from 1st to 4th July

2021, on the Olympic Mountain Jahorina, Bosnia and Herzegovina. It was organized by the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA) and the Foreign Investors Council in Bosnia and Herzegovina, and under the auspices of the Ministry of External Trade and Economic Relations of Bosnia and Herzegovina. The three-day conference is a new format for bringing together managers, government agen-

TRADE

None of the countries in the region has a faster growth of trade than Serbia and Bosnia and Herzegovina, which mutual trade has been growing in worth by about 200 million euros every year

cies, business people, decision makers, development agencies and representatives of private and public institutions. We are proud to say that we have managed to connect companies from Bosnia and Herzegovina and the Western Balkans with companies from West Africa, GCC countries, the European Union, Turkey and China by holding this prestigious business meeting. The general impression of all participants is that this conference format, which was conceived exclusively at face-to-face meetings, business meetings and gatherings, is excellent and necessary after more than 18 months of isolation. The gathering also made a significant contribution in the best possible way to the promotion of Bosnia and Herzegovina and the region as attractive investment destinations with huge potential. The intention of the organizers is for the conference to grow into a regular event and facilitate further networking at the local, regional and global levels.

How can the doing business environment in Bosnia and Herzegovina further improve and what are FIC's key messages? — More than 15 years after FIC's inception, we can say all institutions and government bodies have opened their doors to us and we welcome all the opportunities provided so far to be consulted on making important changes to existing and adopting new regulations and strategic documents. Therefore, as before, we will insist that the improvement of the business environment for the purpose of economic growth and development remain the priority of public policies.

INVESTMENTS

Our members have made 70% of the total foreign investments in Bosnia and Herzegovina First of all, it is necessary to solve the problems that existed and were an obstacle to the real sector even before the COVID-induced crisis. I am, first and foremost, referring to all those unresolved issues that are contained in our publication 'The White Book', and the solution of which would encourage foreign and domestic investors to invest as much as possible. Perhaps in the COVID-induced crisis lies a great opportunity because a large number of foreign companies want to move their production facilities as close as possible to their homes. Bosnia and Herzegovina is geographically close to that, it has good and educated workforce, sol-

id road infrastructure and low income tax and VAT rates. What are FIC’s plans for the rest of this year and what projects will you be working on? — The Foreign Investors Council members are usually at the forefront of efforts to create a better business environment and advocate for the simplification of existing legal solutions and the adoption of new ones. We will certainly continue with regular activities through our working groups, as well as continue implementing recommendations from our White Book. These steps and our recommendations for economic reforms in the country and especially measures to boost the competitiveness and private sector development are highly valued by both government institutions and the international community and also help the overall economy and business community. We will continue to promote the 3rd edition of our publication 'Business Barometer', which is a unique source of information about the attitudes of investors (our members), the advantages and weaknesses of the domestic business environment, as well as their plans for reinvesting and creating new jobs in Bosnia and Herzegovina. Our members have made 70% of the total foreign investments in the country. We hope that the results of the Business Barometer survey will be used as a basis, roadmap and benchmark for future decisions and economic policies, including payroll tax and contribution policies, improve the rule of law and encourage investments in Bosnia and Herzegovina, which would ultimately result in faster and higher growth of gross domestic product, higher employment and higher living standard of Bosnia and Herzegovina's citizens. Our goal is certainly to have as many members as possible who are willing to join FIC and actively engage in working groups thus contributing to Bosnia and Herzegovina becoming a better place to do business. This year, we started with the formalization of cooperation with local governments in the country under the auspices of Local Business Alliance project, which aims to improve the public-private dialogue and cooperation between investors and decision-makers at the local level. 

Focus

How would you rate the overall economic cooperation between Serbia and Bosnia and Herzegovina today? — The fact is that Serbia is one of the most important external trade partners of Bosnia and Herzegovina and vice versa. None of the countries in the region has a faster growth of trade than Serbia and Bosnia and Herzegovina, which mutual trade has been growing in worth by about 200 million euros every year. Economic cooperation between our two

countries improves stability in the entire region, and there is certainly still a lot of room for boosting this cooperation. This implies the free movement of goods, services, capital and people, as well as the fortifying the regional investment area, which contributes to the development of the common market of the Western Balkans and sends out a positive message to investors to invest in the region. We are aware of each other and the success of one economy is directly reflected onto the other.

BOSNIA AND HERZEGOVINA 2021

You have been operating in Bosnia and Herzegovina since 2006. What would you highlight as FIC's greatest achievements in the past 15 years? — Since its inception, FIC has launched an initiative to establish a normative and institutional framework to improve the investment climate in Bosnia and Herzegovina and established dialogue and cooperation with the authorities in the country, in all areas of common interest, through the process of drafting and adopting recommendations contained in our publication called 'The White Book'. This initiative is part of a broader mission that the FIC has been realizing for 15 years, together with numerous other partners, to build an institutional dialogue between the non-governmental and governmental sectors in Bosnia and Herzegovina. As a result of these activities in the past ten years, a memorandum of understanding has been concluded between FIC and the entity governments, and close cooperation has been established with the Bosnia and Herzegovina Council of Ministers, the Parliament of the Bosnia and Herzegovina Federation and other state and entity agencies and institutions. We are especially proud of the perpetual growth of the FIC network which, in addition to state and entity institutions and international organizations, includes foreign embassies in Bosnia and Herzegovina, chambers of commerce, regional FIC offices and other non-governmental organizations and associations. Thanks to FIC's effort, Bosnia and Herzegovina's authorities have recognized the benefit whereby business associations, such as ours, can make a significant contribution to the decision-making process at all levels of government – local, entity and state - by providing independent expertise.

CORPORATE

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Application of Building Information Modeling Technology

THE FUTURE OF ENERGY BELONGS TO THE BRAVEST

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BOSNIA AND HERZEGOVINA 2021

Elnos BL is one of the leading and most important companies in the power engineering segment in Bosnia and Herzegovina

oday, Elnos Group is a synonym for an audacious company that keeps accomplishing more impressive results in the power engineering segment year-onyear in both the regional and European markets. However, the first, largest and thirteenth member of Elnos Group was founded a little over two and a half decades ago in Banja Luka. Today, Elnos BL is one of the leading and most important companies in the power engineering segment in Bosnia and Herzegovina. This company is the initiator and implementer of development ideas in Bosnia and Herzegovina's energy sector, to which betterment

it contributes every day, with its knowhow, technologies and top-notch operative professionals. At the same time, Elnos BL, as the biggest subsidiary of Elnos Group, is much more than that. As one of the Group's

GLOBAL

Although we are a domestic company, we have become competitive on the European and global market too

four resource centres, Elnos Banja Luka is a pillar of the Group's international development. "Although we are today an international company known for its great successes in foreign markets, the domestic market has always had and will hold a special significance for us. This is validated by a large number of projects and investments that we have implemented that didn't stop even during the pandemic," said Branko Torbica, Vice Chairman of Elnos Group's Managing Board. Elnos BL very successfully responded to all challenges in 2020 and 2021, making large-scale investments despite extremely complex market circumstances.

MHE Bočac 2

CHALLENGES

Elnos BL very successfully responded to all challenges in 2020 and 2021, making large-scale investments despite extremely complex market circumstances kV voltage level. The company has implemented projects in huge corporations such as Elektroprivreda RS, which include the Ugljevik and Gacko mines and thermo-electric power plants and the Bočac hydro-elec-

tric power plant, the construction of Bočac 2 small hydro-electric power plant, as well as other large-scale projects in private and public sectors such as the construction of the Banja Luka-Doboj motorway segment, the projects implemented at the Stanari thermo-electric power plant and many others. All these ventures occupy an important place on the map of important energy and infrastructure projects in Bosnia and Herzegovina. The company is ready to engage in a new large-scale investment cycle launched by Elektroprenos BiH, as well as be part of the business momentum of Elektroprivreda RS in terms of constructing a new-1,000 MW renewable energy facilities in the Republic of Srpska. 

ELNOS GROUP TODAY

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Elnos Group Management Building in Banja Luka

"Thanks to great effort and dedication to realizing our vision of development, we have grown into a business group with over 600 employees and we operate in 14 countries. In addition to the republics of the former Yugoslavia, we also operate in Sweden, Iceland, Norway, Germany and the Netherlands. Recently, we have founded subsidiaries in Spain, Portugal and Great Britain, hence we expect to start implementing our first projects there by the end of 2021 or in early 2022", Mr. Torbica pointed out and added that the Group has realized more than 130 international projects to date. Elnos Group is an active and successful international concern that is a desirable partner in the European knowledge and technology market. The company has positioned itself among the leaders in power engineering and today cooperates with a wide network of renowned international corporations and companies.

BOSNIA AND HERZEGOVINA 2021

The construction of a small hydroelectric power plant called Jablanica (1MW) near Višegrad, which will soon become operational, is of the company's biggest investments in Bosnia and Herzegovina in that period. For the first time ever, the Elnos team was also engaged in the construction phase, in addition to doing electromechanical and hydromechanical works on the project. And that's not all. During the implementation of this very demanding engineering project, the employees engaged in it became pioneers in the use of Building Information Modeling technology for the digital presentation of the project, which raised the quality of work to a very high technical level. "Apart from energy stability and economic growth, the new investments have facilitated the application of the latest technologies and know-how. With their implementation, we, as a domestic company, have become competitive on the European and global market", Marko Mijić, member of Elnos Group's Managing Board in charge of technical works. In 2020 and 2021, the company realized a large retail investment, where it has been the leader in Bosnia and Herzegovina for a number of years, by building a new sales centre spanning 1,000 square meters. Elnos BL has developed the image of one of the leading power engineering companies through the implementation of key projects stemming from the cooperation with Elektroprivreda RS and Elektroprenos BiH and thus made a huge contribution to the construction of new and modernization of existing energy facilities up to 400

In the first six months of 2021, the trade between Serbia and Bosnia and Herzegovina amounted to 1.02 billion euros, a 25.6% increase (or 207.5 million euros), relative to the observed period of the previous year n the first half of 2021, Serbia exported goods to Bosnia and Herzegovina worth 698.3 million euros, an increase of 126.7 million euros (by 22.1%), while the value of goods Serbia imported from Bosnia and Herzegovina amounted to 319.7 million euros, an 80 million euro (21.2%) increase compared to the first six months of 2020.

THE MARKETS OF BOSNIA AND HERZEGOVINA AND SERBIA ARE VERY CONNECTED AND DEPENDENT

The external trade balance in the first six months of 2021 was positive for Serbia, which recorded a surplus of 378.6 million euros in trading with Bosnia and Herzegovina, or 45.9 million higher compared to the same period last year. In 2020, the value of trace between Serbia and Bosnia and Herzegovina amounted to 1.74 billion euros, which

Photo: PopTika / Shutterstock

COOPERATION BOSNIA AND HERZEGOVINA 2021

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SIGNIFICANT GROWTH OF EXTERNAL TRADE RECORDED

treated lengthwise; concrete steel; gratings; nets; wire fences; electricity; coal, brown; frozen raspberries. In 2019, Bosnia and Herzegovina ranked 3rd on the list of countries that Serbia exported mostly to (with a 7.7% share), while, in terms of import, Bosnia and Herzegovina ranked 12th on the list of countries that Serbia mostly imported from with a 2.6% share in total Serbian imports. Bosnia and Herzegovina had the same ranking in 2020 too. In 2019, 7,538 Serbian companies did business with companies in Bosnia and Herzegovina, of which 5,191 exported goods, 1,320 imported goods and 1,027 engaged in both exports and imports. In 2020, 7,193 Serbian companies established trade cooperation with Bosnia and Herzegovina. 4,729 exported

PROMISING SECTORS FOR COOPERATION WITH BOSNIA AND HERZEGOVINA ARE THE FOOD INDUSTRY, IRON AND STEEL PRODUCTION AND CHEMICAL INDUSTRY

their own products, 1,388 imported products from Bosnia and Herzegovina, while 1,076 companies did both export and import. In 2019, trade in services between Serbia and Bosnia and Herzegovina amounted to 581 million euros, with Serbia recording a surplus of almost 199 million euros. During the pandemic-induced crisis in 2020, Serbia exported more services to Bosnia than Bosnia to Serbia and hence generated a trade surplus of 137 million euros, which is 62 million euros less than in the previous year (2019) or a 31% decrease. In 2019, there were 687 active companies operating in Serbia, which were majority-owned by legal and/or natural persons from Bosnia and Herzegovina. By the beginning of May 2021, 658 companies registered in Serbia were majority-owned by either Bosnia and Herzegovina's citizens or legal entities. Promising sectors for cooperation with Bosnia and Herzegovina are the food industry, iron and steel production and chemical industry. A promising group of products that could boost Serbian exports to Bosnia and Herzegovina include food residue and waste, rubber and rubber products, plastics and plastic products, boilers, machinery and mechanical appliances, cocoa and cocoa preparations. 

BOSNIA AND HERZEGOVINA 2021

Focus

is about 217 million less, or an 11% decrease compared to 2019, when the trade stood at 1.96 billion euros. The value of imports decreased by EUR 75.7 million (by about 12.4%), while exports were lower by EUR 141.5 million (or 10.5% less). The surplus in trade between Serbia and Bosnia and Herzegovina in 2020, amounted to 677.1 million euros, which is about 66 million euros or 8.8% less than in 2019. The 2020 decline in the trade between the two countries is the result of the coronavirus-induced crisis which was declared in early March 2020, and from mid-March, emergency measures were introduced to prevent the spread of the infection, which negatively affected trade between the two countries. The stagnation of trade in 2020 was due to lower total domestic demand and consumption, as well as the reduction of the prices of crude oil and oil derivatives. The markets of Bosnia and Herzegovina and Serbia are very connected and dependent, and there is no market in the region where Serbia has been recording such good results in terms of exports and has a bigger trade than Bosnia and Herzegovina's. The total trade between Serbia and Bosnia and Herzegovina in 2019 amounted to 1.96 billion euros, which was a 4.8% increase compared to 2018. Serbia's exports to Bosnia and Herzegovina amounted to 1.35 billion euros, which is 4.8% more than the previous year. Imports from Bosnia and Herzegovina increased by 27.7 million euros, which is about 4.7% more than imports recorded last year and amounted to 608.2 million euros. The trade surplus amounted to 743.1 million euros and was higher by 34.1 million euros (4.8%) than in 2018. • The most important products that Serbia exported to Bosnia and Herzegovina in 2019 were - gas oils for other purposes; raw sunflower oil, petrol; maize; sunflower seed; cigarettes; plates, sheets, strips of brass; malt beer; animal feed products; washing and cleaning products. • The most important products that Serbia imported from Bosnia and Herzegovina in 2019 were: coke and semi-coke; TV rods; circular reels (<14mm, C> 0.06 <0.25%); wood

Photo: Phongphan / Shutterstock

INTERVIEW

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by Vanja Kovačev

BOSNIAN PYRAMIDS AND THE TUNNELS OF LONGEVITY IN VISOKO SEMIR OSMANAGICH

founder of the Foundation “Bosnian valley of pyramids”

“I don't lead, I serve”

osnia is a land of wonders! It has always been that in many aspects – natural wonders, the amazing people diversity, charming and famous pan-Jugoslav humour, a multifaceted warm hart for everybody, a unique multi-ethnic whirl and best model of “Brotherhood and Unity”-slogan of the League of Communists of Yugoslavia that was coined during the Yugoslav People's Liberation War (1941–45) which evolved into a guiding principle of Yugoslavia's post-war inter-ethnic policy. Bosnia is a birth place of many extraordinary people, beautiful mixed marriages and romances… but also is, according to Semir Osmanagich, the cradle of ancient civilisation that has built Bosnian pyramids. Many have already visited Sam’s Valley of pyramids and many plan to do it soon; The best tennis player in the world Novak Djoković visited Visoko three times and is a good friend of our today’s in-

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terlocutor dr Sam Osmanagich. Who would in their wildest dreams though that a little town of Visoko situated 35 km north of Bosnian capital Sarajevo would ever become an archaeological tourism focal point? Dr

IN VISOKO BOSNIA, VISITORS CAN SEE THE LARGEST AND OLDEST PYRAMID ON THE PLANET, 29.200 +/- 400 YEARS OLD Sam is sure that these pyramids are man-made and that they date to cc:a 30 000 years BC. Our classic schooling and everything we grew up with is telling us that previously mentioned

is hard to believe but the idea seems imaginable when the story teller is dr Semir Osmanagić or Sam Osmanagich - a Bosnian businessman and author. Since 2005 people know him as the person who discovered "Bosnian pyramids". Osmanagić claims that a cluster of natural hills in central Bosnia and Herzegovina are the largest human-made ancient pyramids on Earth. It has been 16 years since Semir discovered what he calls the Bosnian valley of pyramids Thousands of people gather in Visoko. Up to 120 000 visitors in 2021 - according to predictions. Diplomacy&Commerce team too. All people we saw there want eagerly to take photo with a Bosnian Indiana Jones; people from all around the world; mostly Bosnian diaspora but also many, many other. There are also many volunteers from all four corners of the globe who work in Visoko. When we walk together, Semir stops whenever someone asks for a photo, smiles, asks where the people are from; speaks gently to small kids and babies, jokes with guys, compliments ladies. Semir has a unique charisma and nice, people friendly approach. Good energy, soft, warm voice, kind words, smile and time for everyone. He is 60 but looks younger, is vital, charismatic and radiant. He goes around like a humble people leader, wiseman and sort of all-knowing guru or one might say a new age prophet. People like him, almost worship him. Many watch his you tube channel and listen to his telling about life, health, global tendences, corona etc. Local authorities do not fund this project: It is self-financed through tourism with Semir as the biggest donor.

The site has definitely become a tourist destination. DC was there in august and had an exclusive opportunity to meet Mr. Osmanagic and to witness the size, power and uniqueness of this site in Bosnia. Dear Sem, what can people experience in Visoko now 16 years after your discovery of the Bosnian pyramids? Bosnian Pyramids is a unique archaeological and scientific project. Visitors can see the largest and oldest pyramid on the Planet, 29.200 +/- 400 years old. They can walk on the best quality concrete blocks that cover pyramid sides. They will enjoy elements of sacred geometry in pyramid lay out: perfect triangle among Bosnian Pyramids of the Sun, Moon and Dragon. They will experience walk in prehistorical underground tunnel network with the healing properties. They can meet some of our archaeologists, engineers or volunteers at work. Walk in our most beautiful park 'Ravne 2' is special treat for everyone with its artistic, energy, recreational or children installations. Cultural programs are most diverse and all for free. This project is more than archaeology. It's open

for everyone, bringing spiritual peace, stress-free zone and different view of our ancient past. How and why did you decide to move back to Bosnia from Huston USA and start the excavations and research in Visoko? Was it a moment of sudden and great revelation or realization or a decision you made after long consideration? Discovery of the Bosnian Pyramids, first in Europe and oldest on the Planet, is globally important. My decision to move from the USA to Bosnia was very logical move. It was challenge I couldn't avoid.

THIS PROJECT IS MORE THAN ARCHAEOLOGY. IT'S OPEN FOR EVERYONE, BRINGING SPIRITUAL PEACE, STRESS-FREE ZONE AND DIFFERENT VIEW OF OUR ANCIENT PAST

Common people admire almost adore you and follow you like their guru and spiritual leader; how do you feel about it and what do you think is the reason for that? People feel good intentions and devotion to noble goals. Their visit to our sites is more than tourism. It's new understanding, sincerity, good vibrations between us. I don't lead, I serve. How do you see the future of this amazing Bosnian Pyramids project in a small country like Bosnia? How will Ravne area look like when this project reaches its 20th centenary We're the island of freedom, peace, critical and inter-disciplinary scientific thinking of our past, place where clean and free energy is considered and Tesla's scalar waves as communication device is understood. Yoga and meditations, healthy life style and nutricionism, detox and regeneration by pyramid energies, balance of physical and spiritual, harmony with the nature and among us humans.... comes in a logical way. We don't want to be extension of technology; we want to remain natural people where technology serves us. Our ideas and reach are global. 

BOSNIA AND HERZEGOVINA 2021

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CULTURE

by Nevena Kuveljić

A HUMBLE NOBEL PRIZE LAUREATE Ivo Andrić was a writer, doctor of science and diplomat of the Kingdom of Yugoslavia world-famous writer, academic, diplomat, Nobel Prize laureate, and the Serbian Tolstoy, as some call him, was always measured, calm, dignified, and occasionally having a halfsmile on his face. With his unobtrusive energy and restrained demeanour, Ivo Andrić never flaunted his great talent, strong intellect and noble wisdom. He only expressed those in his books and diplomatic work. Andrić reached world heights, but always tenderly spoke about his homeland. He was born in Travnik, but grew up in Višegrad and Sarajevo. This is what he wrote about them: “At the beginning of all roads and paths, at the very thought of them, there is a sharply and indelibly incised trail on which I walked freely for the

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first time. That was in Višegrad. This is where I formed my thoughts about the wealth and beauty of the world. Here, ignorant, weak and empty-handed, I was happy with intoxicating happiness

IN VIŠEGRAD, I FORMED MY THOUGHTS ABOUT THE WEALTH AND BEAUTY OF THE WORLD to the point of unconsciousness, happy with everything that is not there, cannot be and never will be. Down all the roads and paths that I treaded on later in life, I lived only off of that scanty

happiness, of my thoughts about the wealth and beauty of the created world when I lived in Višegrad. Under every road in the country, the sharp Višegrad trail was constantly unwinding, visible only to me, from the day I left it until today. In fact, I used it to measure my step and adjust my gait. This trail was forever with me." Andrić began his literary career as a poet, when he published his first work, the poem "U sumrak" (“At Dusk”), in 1911 in "Bosanska Vila" - one of the oldest culture magazines in Bosnia and Herzegovina. He was an extraordinary connoisseur of the circumstances of old Bosnia, and the plot of his novels takes place mainly on Bosnian territory as a place of eternal clash between East and West. He received the Nobel Prize for Literature in 1961, for his life-

time work, with “The Bridge on the Drina” (“Na Drini Ćuprija”) being his most prominent book. The threads of his childhood are depicted in this book, as well as in many others in which he wrote about bridges and stone buildings. Looking at the strong pillars of the Drina Bridge every day, Višegrad exerted a very strong influence on his life and work, more than any other place.

AT THE BEGINNING OF ALL ROADS AND PATHS, AT THE VERY THOUGHT OF THEM, THERE IS A SHARPLY AND INDELIBLY INCISED TRAIL ON WHICH I WALKED FREELY FOR THE FIRST TIME. THAT WAS IN VIŠEGRAD As a reward, Andrić received a cheque from the Scandinavian Bank for 250,000 Swedish kronor. He donated the entire award proceedings in two parts to the library fund of Bosnia and Herzegovina. He also very often participated in campaigns to help libraries and donated money for humanitarian purposes.

A HUMBLE NOBEL PRIZE LAUREATE, APPROACHABLE DIPLOMAT Apart from being a successful writer, Andrić was also a respected diplomat. Between the two world wars, he was a high official of the Foreign Ministry of the Kingdom of Yugoslavia. He served in Belgrade, Rome, Trieste, Brussels, Madrid, Geneva, Graz and Bucha-

rest. His diplomatic career reached its peak in 1939, when he was appointed Plenipotentiary Minister and Ambassador Extraordinary of the Kingdom of Yugoslavia to Berlin. Due to disagreement with the government's policy, in the early spring of 1941, Andrić resigned as ambassador, but his proposal was not accepted so he had to attend the signing of the Tripartite Pact on March 25 in Vienna, as the official representative of Yugoslavia. The day after the bombing of Belgrade, on April 7, Andrić left Berlin with the Embassy staff. He rejected the offer of the German authorities to move to Switzerland, which was safer, and chose to return to the occupied Belgrade. According to the website of the Ivo Andrić Endowment, after arriving in Belgrade, he lived in seclusion in Prizrenska Street, in a flat which he shared with the lawyer Brane Milenković. In the quiet of his rented room, he first wrote „The Travnik Chronicle“, and at the end of 1944, he finished „The bridge on the Drina“. Both novels were published in Belgrade a few months after the end of the WWII. In late 1945, the novel „Gospodjica“ was published in Sarajevo. Thanks to these books, but also to the books like „Prokleta Avlija“ and „Jelena, žena koje nema“, Ivo Andrić's work became a part of world literature. Even today, almost half a century since his death, Andrić, originally from the Bosnian habitat, lives among us, as a humble Nobel laureate, approchable diplomat and glorious writer. His quotes like – „There were so many things in life that we feared and we shouldn't have. We should have lived“ or „As long as there is night, there is also dawn“ - enrich our lives and make us wiser and braver, as we continue to seek peace, strength and comfort in them. 

NOBEL PRIZE

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Andrić is the first, and for now, the only winner of the Nobel Prize for literature in our region.

BOSNIA AND HERZEGOVINA 2021

GLOBAL CULTURE'S MOST IMPORTANT AWARD In our literature, we can single out a number of writers who enriched our literary heritage with their exceptional works and occupied a significant place in the history of Serbian literature, but only Ivo Andrić managed to reach such a high position in European and world literature. He is the first, and for now, the only winner of the Nobel Prize for literature in our region, which he received "for the epic power with which he shaped the themes and presented the destinies of people throughout the history of his country". Apart from him, British writers Lawrence Durrell and Graham Green, American John Steinbeck and Italian Alberto Moravia were also shortlisted. The Secretary of the Royal Swedish Academy, Dr Anders Esterling, introduced Andrić at the award ceremony with the following words: "Andrić possesses a lot of tenderness for people, but he does not shy away from horrors or violence, which, in his eyes, validates the reality of evil. He is a writer who is a master of a completely personal, original circle of motives. He opens a hitherto unknown page of the world chronicle and addresses us from the depths of the tormented soul of the South Slavs". According to the Ivo Andrić Endowment website, the award ceremony was followed by a glamorous banquet

at the City Hall, which was accompanied by the sounds of a sevdalinka from Andrić's native Bosnia – „Kad ja pođoh na Bembašu“, while the Stockholm University Madrigal Choir sang a composition by Josip Slavenski „Oj, jesenske duge noći“ in the Serbian language.

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BOSNIANS HAVE SEVDAH IN THEIR VEINS

and Bosnian ćevapčići and sudžukice will take you on an express journey to 7th Food heaven arajevo is just cc:a 300 km away from Belgrade … get in your car and pamper your soul with sevdah music that means passion&love and seek solace in Bosnian food by visiting Ferhatovic, Željo, Mrkva … Before you travel to Bosnia lets learn the basics; Sevdalinka is a traditional genre of folk music from Bosnia and Herzegovina. It is an integral part of the Bosnian culture but is also spread across the ex-Yugoslavia region, including Croatia, Montenegro, North Macedonia, Kosovo and Serbia. The actual

composers of many Sevdalinka songs are largely unknown because these are traditional folk songs. In a musical sense, Sevdalinka is characterized

BOSNIAN FOOD WILL SURPRISE YOUR TASTE BUDS AND YOU WILL CRAVE FOR MORE OF THAT BOSNIAN TASTE FOR SURE

by a slow or moderate tempo and intense, emotional melodies. Sevdalinka songs are very elaborate, emotionally charged and are traditionally sung with passion and fervour. The combination of Oriental, European and Sephardic elements make this type of music stand out among other types of folk music from the Balkans. The melodies are noted for leaving a strong melancholic feeling with the listener. Traditionally, Sevdalinka’s are women's songs, most addressing the issue of love and longing, unfulfilled and unfortunate love, some touch on a woman's

Photo: Chris Spencer-Payne / Pixabay

TRADITION

by Vanja Kovačev

ima” or “Lijepi li su mostarski dućani”, “Snijeg pade na behar na voće”, “Jutros mi je ruža procvetala”, “Kad ja pođoh na Bembašu just to mention few. Amira Medunjanin is also famous Bosnian singer and interpreter of sevdalinka and all her concerts are usually sold out in the whole Balkan region. Make sure you get a ticket when she sings next time in Belgrade. You will not regret it.

“DESET U POLA” IS A COMEDY SET IN SARAJEVO IN MAY 2021, AS THE CITY'S FAMOUS OLD TOWN BAŠČARŠIJA TRIES TO RECOVER AFTER A DIFFICULT PANDEMIC YEAR And last but not the least in your “sevdah knowledge chest” - The most well-known sevdalinka songs of all time covered by many prominent singers from Bosnia and Herzegovina and other parts of former Yugoslavia is "Emina" poem by the poet Aleksa Šantić. The poem was first published in 1902 in the literary journal Kolo. The subject of the poem is Šantić's neighbor, girl named Emina Sefić. Ok- now that you have listened to the songs and have been “infected” by sevdah and you start your plan for the trip to Bosnia, let's also learn something about the meaning of the word Sevdah which has several interpretations. The most accurate explanation is that it is an Arabic word "Sevdah", which means love, desire or ecstasy. Arabic word "Sevdah" was used by

physicians to describe black gall, a substance which circulates through human organism that control feelings and emotions. And before we live you to pack your Bosnia trip bags, let me teach you the survival phrase #1 and 2, in the part of food planet called Bosnia; namely “Deset u pola s'lukom” and “Napari mi somun” – the holy words you should use “as cool&relaxed as possible” as any Bosnian when you enter a “ći - ći” and “ce -ce” i.e. ćavapćići&sudžukice temple like Ferhatović, Željo or Mrkva. Translation is: “Ten (ćevapćići) in half (somun/flatbread) with onion” and “Steam my flatbread”. Did you also know that “Deset u pola” is the title of Mouth-Watering Foodie Movie for Meat Eaters - comedy from one of Bosnia's best-known directors Danis Tanović. That movie was this year’s Sarajevo Fest's opener - English title is “Not So Friendly Neighborhood Affair”. “Deset u pola” is a comedy set in Sarajevo in May 2021, as the city's famous Old Town Baščaršija tries to recover after a difficult pandemic year. When a visitor from Zagreb comes looking for the best kebabs in town, a harmless gesture causes the disintegration of the business and private lives of several people. Danis is a Bosnian film director and screenwriter best known for having directed and written the script for the 2001 Bosnian movie “No Man's Land” which won him many awards, including the one&only so far Bosnian Oscar - Academy Award for Best Foreign Language Film and a Golden Globe Award for Best Foreign Language Film among many others. He is regarded as one of the best Bosnian directors and screenwriters of all time and also, one of the best from Southeast Europe. 

EMINA

Focus

The most well-known sevdalinka songs of all time covered by many prominent singers from Bosnia and Herzegovina and other parts of former Yugoslavia is "Emina" by Aleksa Šantić.

BOSNIA AND HERZEGOVINA 2021

physical desire for her loved one, and some have various comic elements. There are Sevdah songs written and sung by men as well. Traditionally, they were performed without any instrument, hence their elaborate melody. Modern interpretations are followed by a small orchestra featuring the accordion as the most prominent instrument the violin, nylon-string guitars and/or other string instruments, occasionally - such as oud, saz or šargija, the flute or clarinet - occasionally, upright bass and the snare drum. In modern interpretations, between the verses, an accordion or violin solo can almost always be heard. So, tell me- Have you ever listened to Mostar Sevdah Reunion – the band born in the divided city of Mostar, determined to sing their songs regardless of anyone's race or religion. Grab you phone and find them on You tube or Spotify and I am sure you will love them – this band is a true master of revival of sevdah that was once sang in Bosnia by the famous singers like Himzo Polovina with his interpretation of “Lijepili su mostarski dućani/ Prošetala Suljagina Fata” or Safet Isović with “Mujo kuje konja po mjesecu”, Nedžad Salković, famous for the interpretation of “Ne klepeći nanulama” sevdalinka or Nada Mamula with her “Oj Safete, Sajo Sarajlijo”. I look forward to hear your comments also about the songs like “Čudna jada od Mostara grada”, “Moj dilbere”, “Jutros mi je ruža procvijetala” … While your fingers are still warm of search find also the most famous sevdah singer in Balkans Božo Vrećo - Bosnian Conchita or my families favourite sevdah bend Divan Hana with their performances of “Ko se ono brijegom šeće”, “Vino piju nane age Sarajlije”, “Aj mene majka jednu ima pa

FESTIVAL

27 SARAJEVO FILM FESTIVAL th

In the eight festival days, the audience could see the screenings of over 250 films from almost 60 countries

con of culture of great importance, not only for filmmakers, but also for the audience for whom we make films and for whom festivals exist. "

he 27th Sarajevo Film Festival began on August 13th, with the Honorary Heart of Sarajevo Award ceremony given to Wim Wenders and the premieres of Danis Tanović’s film "Deset u Pola" and the omnibus "Pisma s Krajeva Sveta". In the eight festival days, the audience could see the screenings of over 250 films from almost 60 countries. In the competitive selection of the festival, a total of 48 feature films were shown, as well as documentaries, short films and student films that were competing for the Heart of Sarajevo Award. Of the selected titles, 18 had a world premiere, one a European premiere, 25 a regional premier and one had a Bosnian premiere.

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BOSNIA AND HERZEGOVINA 2021

COMPETITION PROGRAMME JURY The jury of the feature film program, which included directors and screenwriters Mike Cahill and Lili Horvat, artistic director of the Vienna International Film Festival, Eva Sangiorgi and executive director of the Austrian Film Com-

mission, Martin Schweighofer, was chaired by actress Jasna Djuričić. This celebrated actress has won numerous awards, the most recent being for the role of Aida in the film "Quo Vadis, Aida?", directed by Jasmila Žbanić nominated for an Oscar. On that occasion, Ms Djuričić stated: “The Sarajevo Film Festival has always had a very special place in my heart. It has been special since the day it was

"GREAT FREEDOM", DIRECTED BY SEBASTIAN MEISE, IS THE BEST FEATURE FILM OF THE SARAJEVO FILM FESTIVAL founded, the way it was created and what it brought, not only to Sarajevo but to all of us, the whole region. The festival is the place where the whole world gathers while it lasts. It is a bea-

THE 27th SARAJEVO FILM FESTIVAL AWARDS "Great Freedom", directed by Sebastian Meise, is the best feature film of the Sarajevo Film Festival, while "Pejzaž Otpora", directed by Marta Popivoda, was declared the best documentary. The Heart of Sarajevo Award for the best director went to Milica Tomović for the film "Kelti". Georg Friedrich won the same award for the best actor for his role in the film "Great Freedom". The ensemble of actresses from the film "The Hill Where Lionesses Roar", consisting of Flaka Latifi, Era Balaj and Urate Shabani, won the best actress award. The special award of the Competition Programme jury for documentary film went to the films "Isti San", directed by Vlado Petri, as well as "Looking for Horses", directed by Stefan Pavlović. The Human Rights Award for a documentary film went to Ahmet Necdet Cupur for his film "Les Enfants Terribles". The Heart of Sarajevo Award for the best student film was awarded to "Summer Planning" by Alexandru Mironescu. A special jury award in the short film category was given to Samir Karahoda's "Displaced". "Sve Što Dolazi", directed by Mate Ugrin, was declared the best short film. The award for promoting gender equality went to Norika Sefa for "Looking for Venera". After eight days, on Friday, August 20, the 27th Sarajevo Film Festival officially closed with the world premiere of the film "Toma" by Dragan Bjelogrlić, about the life of the singer Toma Zdravković. 

by Vanja Kovačev

HISTORY

FROM THE CRADLE TO THE GRAVE, SCHOOL TIME IS THE BEST TIME First Gymnasium in Sarajevo - the oldest high school in Bosnia and Herzegovina and the school of the Nobel laureate Ivo Andrić

Photo: Dženan Kriještorac / Radiosarajevo.ba

ney about the school which is in focus of this story - First Sarajevo Gymnasium.

Sarajevo which was the longest siege of a capital city in the history of modern warfare; from 5 April 1992 to 29 February 1996 (1,425 days) during the civil war in Bosnia. Every of mentioned three events made big impact on people’s lives – the last mentioned affected the student’s generation 1988- 1992 of the First Sarajevo Gymnasium to which I belong, that were supposed to graduate in May/June that year but that never happened since school bells were silenced by the war.

THE OLDEST SECONDARY SCHOOL IN BOSNIA AND HERZEGOVINA WAS FOUNDED IN 1879

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Putting the sad memories on side for a while and looking at the glorious history of the school, at least until the 30 years graduation party in 2022 – marking at the same time 30 years since the civil war in Sarajevo startedlet me take you to a short history jour-

BOSNIA AND HERZEGOVINA 2021

ooking through the window of my hotel room in Sweden where I find myself in the moment of writing these lines, I remember high school days and the beautiful city of Sarajevo, hidden like a precious gem between the Bosnian mountains in Sarajevo valley. When I speak to my expat friends in Belgrade everybody knows about Sarajevo – it is famous for its warm and friendly people and yummy food – ćevapćići. Sarajevo was the place of many events during history of this town, out of which three events “made sure” - some in god some in bad waythat this small Bosnian city is forever on the “mental map” of Europa’s citizens attention i.e The assassination of Archduke Franz Ferdinand of Austria, heir presumptive to the Austro-Hungarian throne, and his wife, Sophie, Duchess of Hohenberg that occurred on 28 June 1914 in Sarajevo when they were mortally wounded by Gavrilo Princip – resulting in World War I, also known as the Great War, which began in 1914 after this assassination. 2nd event is 1984 Winter Olympicswinter multi-sport event held between 8 and 19 February 1984 in Sarajevo and the third most recent one - The siege of

FIRST SARAJEVO GYMNASIUM THE SCHOOL WHERE SARAJEVO'S ELITE GOT ITS EDUCATION The oldest secondary school in Bosnia and Herzegovina was founded in 1879 by a decree of the Provincial Government, and by a decision of the Austrian Emperor and Hungarian King Francis Joseph. School Day is celebrated on April 6. In the 142 years of its existence, more than 40,000 students have passed through the school. The most famous students are: writers: Safvet-beg Bašagić, Isak Samokovlija, Tugomir Alaupović and Petar Kočić as well as painters: Vojo Dimitrijević , Branko Šotra , Jovan Bijelić and Mario Mikulić, Nobel laureates Ivo Andrić and Vladimir Prelog, 2nd WW heroe Slobodan Princip Seljo, politicians Vojislav Šešelj, musicians Saša Lošić and the singer Contra. This school had several names: Imperial-Royal Real High School Classical (humanistic) grammar school (1883– 1884), Great Gymnasium (1884–1922), First Gymnasium (1922–1925), The first men's real grammar school (1925–1953), State Classical Gymnasium - First Men's Gymnasium (1953–1954) , State Classical Gymnasium (1954–1960), First Classical Gymnasium (1960–1961), First Gymnasium (1961–1982), Revolutionaries and national heroes of the First Gymnasium (1982–1991) and now it is called “Public institution Prva gimnazija (1991). If you want to “hear the whispers” of some of the prominent students of First Sarajevo Gymnasium like the literature Nobel prize laureate Ivo Andrić, next time you are in Sarajevo, go to the street called Gimnazijska Street. 

Photo: Pe3k/Shutterstock

TOURISM BOSNIA AND HERZEGOVINA 2021

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PRODJOH BOSNOM KROZ GRADOVE* *“Through the cities in Bosnia” is name of a Bosnian traditional song-sevdalinka) ourism is becoming a great contributor to the economy. As a result, Bosnia-Herzegovina now has a wide tourist industry and a fast expanding service sector thanks to the strong annual growth in tourist arrivals. The country also benefits from being both a summer and winter destination with continuity in its tourism throughout the year.

The wealth of cultural and historical heritage, natural beauty and attractive places including cities, mountains, lakes, beautiful villages, small towns with great soul, will determine your travel to this beautiful country. We will present you some of the most beautiful places you can visit.

SARAJEVO Sarajevo is a political, social and cul-

tural center of Bosnia and Herzegovina. Ottoman and Austro-Hungarian architecture have left huge marks on the city. Also there is a story about Sarajevo as a starting point of the of the WORLD WAR I (assassination of Archduke Franz Ferdinand of Austria and his wife Sophie). The main tourist attraction of Sarajevo is Baščaršija-historical and cultural centre of the city, built in the 15th century. Located in

the very heart of the city, this bazaar is one of Sarajevo’s oldest wards as well as a well-preserved example of oriental architecture in the Balkans. It is is an oriental bazaar, a maze of narrow streets with small shops where craftsmen make and sell their products. Baščaršija's famous mosque was built by Havedža Durak in 1528. Gazi Husrev-beg Mosque, built in 1530, is the main architectural monument in the town. It is the largest historical mosque in BIH and one of the most representative Ottoman structures in the Balkans. Gazi Husrev-beg raised a madrassa, a library, a haniqah, the Gazi Husrev-beg Hamam, the Gazi Husrev-beg bezistan, the Morića Han, Sahat-kula and other tourist attractions in Baščaršija.

BANJA LUKA Banja Luka is the second largest city of Bosnia and Herzegovina and the de facto capital of the Republika Srpska entity. Traditionally, it has been the centre of the Bosanska Krajina region, located in the north-western part of the country. The city lies on the river Vrbas and is well known for being full of tree-lined avenues, boulevards, gardens and parks. Cathedral of Christ the Saviour is an architectural icon. It is situated at the centre of the city, in a small but pretty square surrounded by neat grass lawns. The cathedral is built in a classic eastern Orthodox style, and was first constructed in the 1920s; it suffered damage during the Second World War, and has been refurbished.

The internal decorations are exquisite, full of gold detailing and intricate painted decorations, while the outer tower is grand and imposing. Banski Dvor Cultural Centre was built in the 1920s as a palace for the local governor. Now, it is used as a cultural centre that hosts exhibitions, concerts, lectures and performances, as well as other cultural events. The building itself is sophisticated and grand, with many of the large rooms embracing classic 1920s neo-renaissance style, such as chandeliers and high ceilings.

OTTOMAN AND AUSTRO-HUNGARIAN ARCHITECTURE HAVE LEFT HUGE MARKS ON THE SARAJEVO MOSTAR The historic town of Mostar, spanning a deep valley of the Neretva River, developed in the 15th and 16th centuries as an Ottoman frontier town and during the Austro-Hungarian period in the 19th and 20th centuries. It’s known for the iconic Stari Most (Old Bridge), a reconstructed medieval arched bridge. The nearby alleys are full of shops and market stalls, and the Old Bridge Museum explores the

bridge’s long history. A narrow staircase leads up to the Koski Mehmed-Pasha Mosque’s minaret for panoramic city views. The Old Bridge area, with its pre-Ottoman, eastern Ottoman, Mediterranean and western European architectural features, is an outstanding example of a multicultural urban settlement. The reconstructed Old Bridge and Old City of Mostar is a symbol of reconciliation, international co-operation and of the coexistence of diverse cultural, ethnic and religious communities.

TREBINJE Trebinje is a town and municipality located in the Republika Srpska entity, situated in the region of East Herzegovina. The city's old town quarter dates to the 18th-century Ottoman period, and includes the Arslanagić Bridge. Trebinje attracts visitors with its rich cultural heritage, cuisine, specific climate and being only half an hour car ride away from Adriatic coast. Many people call it “the City of the Sun”. The most charming part is the old town, called “Kastel”, dating back to the Ottoman era. Its old, original architecture is still untouched, and this is the most visited part of the city, not only by tourists but also by locals. Owing to its rich history, the main attractions here are architectural works, bridges, churches, monasteries, mosques, etc. The town is surrounded by karstic plains and hills, and it is settled on crystal clear water of the Trebišnjica River

BOSNIA AND HERZEGOVINA 2021

Banja Luka, Cathedral of Christ the Saviour

Photo: Botond Horvath/Shutterstock

Photo: Saša Knežić

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Sarajevo

Photo: Slavenko/Shutterstock

Photo: Lightman/Pixabay

Mostar, Old Bridge

– known as one of the longest of subterranean rivers in the world (116 miles above and under the ground).

in the UNESCO World Heritage Site list. Drina river cruise tours are the best way for resting and enjoying a completely natural environment. The canyon itself is the second largest in Europe. By the end of the 1960s the dam of the hydroelectric power plant at Bajina Bašta was constructed in Perućac, which turned this section of the Drina river into a peaceful lake, 52 km in length.

TRAVNIK Travnik is the administrative center of Central Bosnia Canton of the Federation of Bosnia and Herzegovina. Travnik, the Ottoman Viziers (Governors) capital of Bosnia for 150 years (1697 to 1850), was once called the European Istanbul. Today, located 90 kilometres (56 miles) to the northeast of Sarajevo, the town attracts visitors

to its historical centre, an open museum of Ottoman architecture. Stari Grad (Old Town), a city’s heart and soul where streets and buildings resist change, has an Ottoman centre with mosques, centuries-old buildings, and Bosnia’s only sundial. Walking through gives a sense of what life is like in the 18th century when Ottoman governors used the area as their official seat of government. Stari Grad Castle, or Travnik Castle, dates back to pre-Ottoman Bosnia when the former Christian Kingdom ruled the region. The conquering Ottomans later developed and expanded the 14th- or 15th-century castle, transforming it into a fortress with watchtowers. Today, the castle is the best preserved in Bosnia and a national monument, making it a must-do in Travnik for all tourists. 

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BOSNIA AND HERZEGOVINA 2021

VIŠEGRAD Višegrad, a town and municipality located in eastern part of Republika Srpska, rests at the confluence of the Drina and the Rzav river. The town includes the Ottoman-era Mehmed Paša Sokolović Bridge, which was popularized by Ivo Andrić in his novel The Bridge on the Drina. A tourist site called Andrićgrad (Andrić Town), dedicated to Andrić, is located near the bridge. The Mehmed Paša Sokolović Bridge was built by the Ottoman architect and engineer Mimar Sinan, for Grand Vizier Sokollu Mehmed Pasha. Construction of the bridge took place between 1571 and 1577. It still stands, and it is now a tourist attraction, after being inscribed

Trebinje

Visegrad bridge

Travnik

Photo: Branevgd

Photo: Boris Stroujko/Shutterstock

FOCUS

Colorado and the Tara River Canyon. It spreads along 54 km, and its steep sides on the both sides are rich in flora and fauna and provides magnificent scenery, that nobody leaves indifferent. In the past it was famous for its wild nature and rafters who were taming its waves. Because of its winding course there is the saying “do not straight crooked Drina.” Often in the past Dri-

na spill out of its banks and destroys everything in its path. The Drina Regatta is the annual tourist and recreational event since 1994. The regatta is the most visited and central summer event on the water in the region. Glosa The Drina is part of the rafting route, which includes the Tara river. There are various rafting routes, depending on the length, including 18 kilometres (11 mi) miles long one.  Photo: Nenad Nedomacki / Shutterstock

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he Drina is a 346 km long Balkans river, which forms a large portion of the border between Bosnia and Herzegovina and Serbia. It is the longest tributary of the Sava River and the longest karst river in the Dinaric Alps which belongs to the Danube river watershed. The Canyon of Drina River is third largest canyon in the world, after the

BOSNIA AND HERZEGOVINA 2021

DRINA RIVER CANYON

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BOSNIA AND HERZEGOVINA 2021

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Bosnia and Herzegovina 2021

Articles inside

WIDE RANGE OF INVESTMENT OPPORTUNITIES IN DIFFERENT SECTORS

OUR GOAL IS TO IMPROVE THE INVESTMENT CLIMATE IN B&H

WE ARE BUILDING A NEW AND MODERN TREBINJE

CCRS – HOME TO BUSINESS PEOPLE

OPENING NEW MARKETS IS A PRIORITY

BOSNIA AND HERZEGOVINA IS A PART OF THE REGIONAL MARKET

WE CONTINUE TO ACCELERATE GROWTH AND DEVELOPMENT