AGP Executive Report

Healthcare & Technology: Bosnia and Turkey discussed closer healthcare cooperation and technology ties at the Turkish Medical World Congress, which brought together health officials, scientists and industry leaders. EU Integration: The European Commission’s latest enlargement report says Bosnia and Herzegovina’s accession process is stagnating, while urging continued reforms—a signal for businesses watching the country’s path toward EU standards and investment. Banking: Raiffeisen has dropped plans to sell Addiko’s Serbian, Bosnian and Montenegrin operations after its Serbian partner’s banking arm was placed under administration; RBI expects to retain all Addiko subsidiaries if its takeover proceeds. Manufacturing: The EBRD is providing a €15 million loan to expand automotive production in Bosnia and Herzegovina. Industry & Food: Industrial product sales in the Federation of BiH reached 14.8 billion BAM, while a separate report says imports cover 80% of the country’s food needs, underscoring the gap in domestic production. Energy: Mines and power utilities face mounting financial strain, as Bosnia also works to strengthen energy security through the proposed Southern Interconnection gas pipeline.

Automotive Manufacturing: The EBRD is providing a €15 million loan to expand automotive production in Bosnia and Herzegovina. Industrial Output: Industrial product sales in the Federation of BiH reached 14.8 billion BAM, according to newly reported figures. Food Production: BiH imports nearly 80% of its food. Domestic production meets only about one-fifth of demand, while high costs and low purchase prices are pushing farmers out of the sector; food imports topped 720 million BAM in the first half of the year. Energy Costs: An energy consultant warned that oil, gas and electricity prices could rise further from January, with BiH’s import dependence leaving households exposed to global market shocks and winter demand. Green Investment: EBRD and the Green Climate Fund are expanding support for greener cities, including in BiH, with financing for infrastructure, climate resilience and access to green finance. Mining and Utilities: Mines are reported to be nearing collapse as power utilities run losses, adding pressure to the country’s energy sector.

Banking: Raiffeisen has revised its proposed Addiko Bank takeover, dropping plans to transfer its Bosnia and Herzegovina, Serbia and Montenegro operations after Serbian authorities placed its partner’s banking arm under administration. Automotive Manufacturing: The EBRD is lending Selzer Automotive Bosnia €15 million to expand production, including electric-motor and hybrid-vehicle parts. The project is expected to create at least 100 jobs. Food and Agriculture: Bosnia and Herzegovina imports nearly 80% of its food. More than 720 million BAM was spent on imports of meat, produce, dairy and live animals in the first half of the year, while high costs and low farm-gate prices are squeezing local producers. Industry and Energy: Industrial product sales in the Federation of BiH reached 14.8 billion BAM, while reports warn that mines are nearing collapse and power utilities are running losses. The country’s reliance on imported oil and gas also leaves households exposed to further price rises this winter. Green Investment: An expanded EBRD–Green Climate Fund programme doubles concessional financing to €174 million for greener cities, with Bosnia and Herzegovina among the eligible countries.

Hospitality: Rotana showcased growth plans at WTM London, saying it operates 10 properties with 2,107 rooms across Bosnia and Herzegovina, Türkiye and Russia. Energy Costs: An expert warned that oil, gas and electricity prices could rise from January, with BiH’s import dependence leaving households exposed to global shocks. Automotive Manufacturing: The EBRD is lending Selzer Automotive Bosnia €15 million to expand production of components for electric and hybrid vehicles; the project is expected to create at least 100 jobs. Food Security: Domestic farms meet only about 20% of BiH’s food needs, while imports cover nearly 80%; more than BAM 720 million was spent on food and live-animal imports in the first half of the year. Industrial Output: Industrial product sales in the Federation rose 3.3% in 2025 to BAM 14.8 billion, with manufacturing accounting for BAM 11.6 billion. Power Sector: Experts warn that low coal output, aging plants and mounting losses are weakening utilities, as electricity imports increasingly exceed exports.

Green City Investment: The EBRD and Green Climate Fund doubled concessional financing for the Green Cities programme to €174 million. Bosnia and Herzegovina is among 15 eligible countries, with support for cleaner transport, energy, water and waste infrastructure. Automotive Manufacturing: The EBRD is lending €15 million to Selzer Automotive Bosnia to expand production of components for electric and hybrid vehicles. The investment is expected to create at least 100 jobs and training opportunities. Industrial Sales: FBiH industrial product sales rose 3.3% in 2025 to 14.8 billion BAM. Exports accounted for 49% of sales; manufacturing led with 11.6 billion BAM. Energy Pressure: Experts warn that BiH’s mines and power utilities face severe strain, with coal output at a low and utilities reporting large losses as electricity imports overtake exports. Road Infrastructure: A 20-kilometre section of the Zenica North–Golubinja highway on Corridor Vc has opened, including a technically challenging stretch built by Azvirt and local partner Hering. Water Security: Sarajevo faces the risk of water shortages, with reporting pointing to a lack of a clear government plan.

Automotive Manufacturing: The EBRD is lending Selzer Automotive Bosnia €15 million to expand production of electric- and hybrid-vehicle components. The project is expected to create at least 100 jobs and fund worker training. Industrial Sales: FBiH sold BAM 14.816 billion in industrial products in 2025, up 3.3% year on year. Foreign markets accounted for 49% of sales; manufacturing led with BAM 11.641 billion. Energy: Experts warn that BiH’s coal mines and power utilities face mounting losses, with low extraction, aging plants and electricity imports outpacing exports. Transport Infrastructure: A 20-kilometre section of the Zenica North–Golubinja highway on Corridor Vc has opened. The project was built by Azvirt and BiH’s Hering, with the most technically demanding stretch featuring bridges, a tunnel and high viaducts. Digital Services: A Sarajevo workshop examined how BiH can align its telecom laws with EU roaming rules and prepare to join the “Roam Like at Home” area.

Industrial Sales: FBiH industrial product sales reached 14.816 billion BAM in 2025, up 3.3% year on year. Foreign markets accounted for 7.26 billion BAM, led by manufacturing, food products and fabricated metals. Energy Strain: BiH coal mines face record-low output, while power utilities report heavy losses and rising reliance on electricity imports. Experts warn that the gap between market prices and household tariffs is putting the sector’s finances under pressure. Transport Costs: Companies and drivers continue to leave BiH, Minister Edin Forto warned. A prolonged exodus could raise freight and everyday costs; proposed support measures are still awaiting implementation. Road Construction: A 20-kilometre section of the Zenica North–Golubinja highway has opened on Corridor Vc. BiH contractor Hering worked with Azvirt on the project, including a technically demanding stretch with bridges, viaducts and a tunnel. Water Infrastructure: Sarajevo’s utility is reducing water pressure overnight, but local authorities have yet to outline a contingency plan if supplies worsen.

Transport: Bosnia and Herzegovina is losing transport firms and drivers, Minister Edin Forto warned, raising the risk of higher freight and living costs. A Croatian visa scheme could ease pressure on carriers by 10–15%, but a measure allowing a third licence plate is still awaiting approval. Infrastructure: A 20-kilometre section of the Zenica North–Golubinja highway has opened on Corridor Vc. BiH firm Hering and Azerbaijan’s Azvirt built the challenging Vranduk–Ponirak stretch, featuring bridges, a tunnel and high viaducts. Water Supply: Sarajevo continues overnight water-pressure cuts, while the government has yet to outline a public contingency plan if drought worsens—a concern for residents and businesses. Digital Services: A Sarajevo workshop is helping officials prepare to align BiH’s telecom rules with EU roaming standards, a step toward joining the “Roam Like at Home” area. Trade and Growth: The World Bank projects Western Balkans growth of 3.1% in 2026, up from 2.6% in 2025, but says regulatory costs and complex procedures continue to hinder exports and job creation.

Transport Infrastructure: A 20-kilometre section of the Zenica North–Golubinja highway has opened on Corridor Vc. BiH’s Hering built part of the route with Azerbaijan’s Azvirt, including a technically demanding stretch with tunnels, bridges and viaducts. Telecoms and EU Alignment: A Sarajevo workshop brought regulators and ministry officials together to work on aligning BiH’s roaming rules with EU requirements, a step toward joining the “Roam Like at Home” area. Logistics: Transport companies warn that drivers and firms are leaving BiH, putting pressure on freight capacity and potentially raising transport and living costs. Growth and Trade: The World Bank forecasts BiH growth of 2.4% in 2026, while costly border procedures and regulatory barriers continue to weigh on regional exports and jobs. Water Supply: Sarajevo is reducing water pressure overnight, but residents and businesses still lack clarity on contingency plans if drought worsens. Energy: Electricity production in the Federation of BiH rose in September, according to a recent report.

Transport Infrastructure: A 20-kilometre section of the Zenica North–Golubinja highway has opened, taking completed Corridor Vc motorway to 125 kilometres. Bosnia and Herzegovina’s Hering partnered with Azerbaijan’s Azvirt on the technically demanding route. Digital Services: A Sarajevo workshop on 29–30 October focused on aligning BiH’s roaming rules with EU requirements, a step toward joining the “Roam Like at Home” area. Water Supply: Sarajevo is already reducing water pressure overnight, while the city and canton have yet to publicly outline a contingency plan if drought worsens. Logistics: Transport firms and drivers continue to leave BiH, Communications Minister Edin Forto warned. If the outflow continues, higher transport costs could feed into prices across the economy. Trade and Growth: The World Bank forecasts 2.4% growth for BiH in 2026, below the Western Balkans average, and says costly regulations and border procedures are holding back exports, jobs and business competitiveness.

Transport: Minister Edin Forto warned that companies and drivers are leaving Bosnia and Herzegovina, risking higher freight costs and living expenses. A Croatian visa programme could ease pressure on carriers, but its full impact is still uncertain. Trade and Growth: The World Bank forecasts 3.1% growth across the Western Balkans this year, but puts BiH at 2.4%. It says costly regulations and border procedures are holding back firms’ ability to compete and create jobs. Energy: Federation electricity production rose to 534 GWh in September from 463 GWh a year earlier, while coal output fell. Separately, scrutiny of the Buk Bijela hydropower project has focused on public spending, ownership changes and the lack of an obligation to supply the domestic market. Infrastructure: A 20-kilometre motorway section between Zenica North and Golubinja is complete, bringing the built length of Corridor Vc to 125 kilometres. The route includes the 3.6-kilometre Bosna tunnel and several bridges and viaducts.

Transport: Minister Edin Forto warned that companies and drivers leaving Bosnia and Herzegovina could drive up freight and living costs. A Croatia visa scheme may ease pressure, but only partially. Infrastructure: A 20-kilometre section of Corridor Vc between Zenica North and Golubinja is complete, bringing the motorway’s constructed length to 125 kilometres. Energy: Federation electricity production rose to 534 GWh in September, up from 463 GWh a year earlier, while coal output fell. Gas prices in the Federation have also risen 12%. Trade and growth: The World Bank forecasts BiH growth of 2.4% in 2026, below the Western Balkans average. It says high regulatory costs and cross-border barriers are holding back exports, business competitiveness and job creation. Labour: Slovenia’s special work-permit arrangements give BiH citizens a streamlined route to employment, including seasonal farm work.

Trade and Growth: The World Bank expects Western Balkans growth to reach 3.1% in 2026, but says costly regulations and border delays are holding back exports and better-paying jobs. Bosnia and Herzegovina’s forecast is 2.4%. Transport Infrastructure: A 20-kilometre stretch of Corridor Vc between Zenica North and Golubinja is complete, bringing the motorway’s total built length to 125 kilometres. The route includes major tunnels, bridges and viaducts. Energy: FBiH gross electricity production rose to 534 GWh in September, up from 463 GWh a year earlier; thermal plants supplied 59.9%. The Southern Gas Interconnection was also discussed with US officials as a step toward supply diversification and energy security. Hydropower: A report on the Buk Bijela project questions the use of public funds and the concession structure, while noting the plants could generate electricity worth BAM 110 million annually. Business: Bosnia approved a three-year capital increase worth about BAM 12.8 million to support development projects in roads and energy. TempraMed also signed an exclusive distribution deal covering Bosnia, Croatia and Serbia, with estimated minimum purchases of US$550,000 over three years.

Transport Infrastructure: A 20-kilometre section of Corridor Vc between Zenica North and Golubinja is complete, bringing the motorway’s constructed length to 125 kilometres. The route includes major tunnels, bridges and viaducts. Development Funding: Bosnia’s Council of Ministers approved a capital increase worth BAM 12.8 million over three years, with support for road infrastructure and energy projects. Energy: September electricity production in the Federation of BiH rose to 534 GWh from 463 GWh a year earlier, while brown coal and lignite output fell. Thermal plants supplied 59.9% of power. Business Outlook: The World Bank forecasts BiH growth of 2.4% in 2026 and says high trade and regulatory costs hold back regional firms and jobs. Power Projects: A report on the Buk Bijela hydropower scheme questions the use of public funds and the project’s concession arrangements; the three plants could generate electricity worth a projected BAM 110 million annually. Household Costs: Gas prices in the Federation have risen 12%, adding to pressure on energy users.

Development Finance: Bosnia and Herzegovina’s Council of Ministers approved a salary base and an increase in the country’s EBRD capital contribution worth BAM 12.819 million over three years, including an initial BAM 500,000 payment. The move is intended to support development projects in road infrastructure and energy. Hydropower Scrutiny: A new report questions the public costs and ownership changes surrounding Republika Srpska’s Buk Bijela project. Its concession covers three plants for 50 years, with projected annual electricity sales worth BAM 110 million, but the company is not required to supply the domestic market. Power Production: Federation electricity output rose to 534 GWh in September, from 463 GWh a year earlier. Thermal plants supplied 59.9% of production, hydropower 31.5% and wind 8.6%; coal output fell. Regional Business: The World Bank forecasts Western Balkans growth of 3.1% in 2026, but says reducing regulatory costs and trade barriers is key to stronger exports and job creation. Market Expansion: TempraMed signed an exclusive distribution deal covering Bosnia and Herzegovina, Croatia and Serbia, with indicative minimum purchases of about US$550,000 over three years.

Regional Growth: The World Bank forecasts Western Balkans growth of 3.1% in 2026, rising to 3.4% in 2027 and 2028. It says better jobs depend on helping businesses compete, including by cutting costly rules and delays in domestic markets and at borders. Energy Security: Bosnia and Herzegovina and the United States discussed advancing the Southern Gas Interconnection, a project aimed at diversifying supply and strengthening energy security. Gas prices in the Federation have also risen 12%, adding pressure on businesses and households. Tourism: Sarajevo is promoting a record tourism year in 2025 with a new winter campaign, as the canton seeks to attract visitors year-round.