Bosnia emerging as hotspot for foreign investment in renewable energy

The Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA) told the FENA agency that several renewable energy projects backed by international investors have recently been announced, with most concentrated in the energy sector.

While large-scale projects typically take several years to complete, some developments are already expected to begin this year and continue into the next.

One notable example is the Interwind Wind Farm in Hadzici, the first wind power plant in Sarajevo Canton, which began trial operations in 2025. The investment was led by the Slovenian company Interenergo, a member of the Austrian Kelag Group.

Among the major recent investors is retail giant Lidl, which continues to expand its network of stores across the country in 2024.

In the manufacturing sector, Austrian firm ASTA Energy Transmission Components GmbH established ASTA Bosnia d.o.o. in Cazin and is finalising a new production hall in the metal industry. Belgian construction materials company Temex, operating through TEMAX BH d.o.o. in Orasje, has also expanded into the Brcko District with the launch of Temax Tech d.o.o. Similarly, Slovenian firm Iskra Tela L d.o.o., which opened a facility in Laktasi, has announced the construction of another plant in Nova Topola.

FIPA also noted a sharp increase in foreign investment since 2021.

According to the Central Bank of Bosnia and Herzegovina (CBBH), FDI in 2023 reached 1.89 billion Bosnian marks (approximately €969.2 million), marking a 24.9% increase compared to 2022. This represents the highest annual FDI total since 2007.

Preliminary 2024 balance of payments data from the CBBH, including estimated retained earnings, indicate that FDI continued to grow, with net financial liabilities totalling 2.03 billion marks (an 8.8% increase year-on-year). Retained earnings accounted for 1.25 billion marks (some €610 million), or 61.5% of total FDI.

For the January–September 2024 period, preliminary data indicate FDI inflows of approximately €755.4 million (1.48 billion marks). The leading source countries were Croatia (252.5 million marks), Germany (240.2 million marks), and Slovenia (193.4 million marks), followed by Austria (178.8 million marks), the United Kingdom (135.6 million marks), Serbia (110.8 million marks), and the Netherlands (105.5 million marks).

EU member states accounted for 73.5% of total FDI in Bosnia and Herzegovina in the first nine months of 2024, totalling 1.09 billion marks (approximately €550 million).