Three-year Covid-19 Investment Response/EU4BusinessRecovery project has been completed: perspectives for the development of the Bosnian-Herzegovinian economy are improving

The three-year Covid-19 Investment Response/EU4BusinessRecovery project, which was funded by the European Union and the Government of the Federal Republic of Germany, concluded with a final event "Development Perspectives of the Bosnian-Herzegovinian Economy". The goal of the project was to ensure the survival of micro, small, and medium-sized enterprises (MSMEs) in crucial economic sectors of Bosnia and Herzegovina, aiming to reduce the negative effects caused by the Covid-19 pandemic. The project has made economic and social contributions in the areas of occupational safety, tourism, product innovation, and digitalization, which was demonstrated during today's event through numerous positive business stories from end-users and beneficiaries of the project who have improved their business. The project provided technical and financial support to MSMEs with a focus on women, youth, and individuals belonging to vulnerable groups.

The event was marked by a meeting of donors, project implementers, and end-users who engaged in discussions about the achievements, concluding that Bosnia and Herzegovina has significant untapped potential evident in its natural resources, vast human potential, and proximity to the European market. The meeting initiated a conversation about major accomplishments in the tourism sector, with five tourist destinations from Bosnia and Herzegovina securing a place on the list of the Top 100 tourist destinations worldwide thanks to this project.

“Today, we are discussing a project that I consider one of the best projects funded by the EU that I have seen in Bosnia and Herzegovina -   Covid-19 Investment Response/EU4BusinessRecovery. We wanted to support businesses in Bosnia and Herzegovina during the crisis and focused on sectors and companies facing various challenges. Today, we celebrate significant results achieved through this project. We supported 160 startups, created new jobs, and above all, helped retain over 8,000 jobs,” said Johann Sattler, Head of the Delegation of the European Union to Bosnia and Herzegovina and the EU Special Representative in Bosnia and Herzegovina.

He also emphasized that, for the improvement of the business environment, Bosnia and Herzegovina needs to focus on energy investments and sustainable tourism, highlighting the necessity for better collaboration between the private and public sectors.

“When the pandemic halted everything, it was only natural for Germany to join forces with our partners within this project, considering the strong and historical ties between Germany and Bosnia and Herzegovina. As a committed partner, Germany continues to support Bosnia and Herzegovina. The Covid-19 Investment Response/EU4BusinessRecovery initially focused on sectors most severely affected by the pandemic, including the export sector. Throughout the project implementation, the quality of the private sector in Bosnia and Herzegovina and promising potential were observed due to the strategic geographical location and human capacity,” said Thomas Fitschen, PhD, Ambassador of Germany in Bosnia and Herzegovina.

He added that the main thing that fascinates him when it comes to Bosnia and Herzegovina is the beautiful nature, which is potential for the future. He emphasizes that the secret ingredient for the development of the Bosnian-Herzegovinian economy is the development of eco-tourism, which can make it a unique tourist destination.

“In the agri-food sector, we have invested together with 54 companies and over 410 small farmers. Our focus is on building a better future after the crisis. The supported companies have not only recovered their businesses but have also adopted new business models and digital transformation, increasing their production, income, and creating new jobs,” emphasized Sylvain Merlen, the Resident Representative of UNDP in Bosnia and Herzegovina.

He added that the main thing that fascinates him when it comes to Bosnia and Herzegovina is the beautiful nature, which is potential for the future. He emphasizes that the secret ingredient for the development of the Bosnian-Herzegovinian economy is the development of eco-tourism, which can make it a unique tourist destination.

“In the agri-food sector, we have invested together with 54 companies and over 410 small farmers. Our focus is on building a better future after the crisis. The supported companies have not only recovered their businesses but have also adopted new business models and digital transformation, increasing their production, income, and creating new jobs,” emphasized Sylvain Merlen, the Resident Representative of UNDP in Bosnia and Herzegovina.

“Unfortunately, after the crisis caused by the pandemic, other crises are occurring globally that affect economic trends. We also face challenges related to the availability of qualified labour, and in all of this, the most vulnerable sector is the textile, leather, and footwear sector. In Bosnia and Herzegovina, this sector heavily depends on global trends, and if there are changes in the value chain, this sector suffers the most. A significant number of women are employed in this sector, and the decline of the sector implies fewer job opportunities for women. Therefore, we provided an integrated assistance package consisting of a financial component, and we offered technical support to enhance business processes, support economic growth, and particularly focused on the relationship between management and workers and their position within the company,” said Lejla Tanović, Coordinator of the International Labour Organization in Bosnia and Herzegovina.

In addition to the tourism sector, as mentioned at the beginning of the conference by the GIZ project manager, Danija Krieg, the Covid-19 Investment Response/EU4BusinessRecovery project, implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, the United Nations Development Programme (UNDP), and the International Labour Organization (ILO), has also made a significant contribution to the metal processing, wood processing, agriculture, and food industry sectors, as well as the textile and footwear manufacturing sector.

“With the financial support of the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ), through a project totalling 13.7 million euros, new businesses have been launched, new and sustainable business models introduced, over 550 new jobs have been created, ten HelpDesk systems have been established, and the project has supported 343 micro, small, and medium-sized enterprises in Bosnia and Herzegovina,” stated Krieg.

UNDP, with the financial support of the European Union, crafted an assistance package for the private sector after the Covid-19 pandemic, and the entrepreneurs themselves were also willing to invest to recover their businesses post-pandemic. A large number of people were involved in the project realization; including many partner institutions, professional associations, private sector, and the media, highlighted Željka Vidović, UNDP Project Manager.

Ivan Pavković, the director of Farma Tomislavgrad d.o.o., is one of the beneficiaries of the Covid-19 Investment Response/EU4BusinessRecovery project. He emphasizes that thanks to the project, the farm has been modernized and digitalized, leading to increased production and reduced losses.

Despite its tradition, the textile sector suffered the most significant blow during the Covid-19 pandemic. Every fifth job loss occurred in this sector. However, thanks to continuous support through the Covid-19 Investment Response/EU4BusinessRecovery project, this sector has been recognized, which is particularly important considering that it is predominantly women who work in this sector, said Katarina Crnjanski Vlajčić, Project Manager of the International Labour Organization.

Ema Burdžović, the owner of Catwalk d.o.o. Sarajevo, is also a beneficiary of the project. She emphasizes that, thanks to this project, they have undergone a transformation of the company, leading to brand development and, through digitization, expansion of exports to the EU.