A business forum gathering companies from Bosnia and Herzegovina was organised at the end of last year in Zurich. How is its success assessed or what are the results of the forum?

- The goal of the first Business Forum focusing on the housing sector, which was attended by representatives of 15 companies from Bosnia and Herzegovina, was to link and establish initial contacts between producers from Bosnia and Herzegovina and business partners and potential buyers from Switzerland. We are currently still accompanying the process of establishing contacts between producers and potential buyers. A total of 4 companies from Bosnia and Herzegovina entered into contact with companies from Switzerland, followed by a visit by Swiss companies, which resulted in provision of additional information and offers. It certainly has to be considered that the establishment of cooperation is a long-term process that requires a certain period of time.

Have any specific business agreements for investments in Bosnia and Herzegovina and sale of products from Bosnia and Herzegovina in Switzerland been made?

- The process of negotiation between companies from Bosnia and Herzegovina and Switzerland is still ongoing. As part of our follow-up activities after the Business Forum, we are certainly in contact with companies from Bosnia and Herzegovina and Switzerland that participated in the forum in Zurich and we are monitoring the results of the forum.

What projects are you working on after the forum?

- In the field of economy, we are currently preparing the Economic Trade Fair that will be held in September 2018 in Zurich. The main purpose of this event is to link and establish the initial contact between producers from Bosnia and Herzegovina and buyers from Switzerland.

In addition to this, we are organising the next Business Forum in Zurich in November, and this year the focus will be on tourism. Both events aim to connect participants through B2B meetings and thus also strengthen the economic cooperation between Bosnia and Herzegovina and Switzerland.

Are you satisfied with the results of building bridges between the two countries, two years after the establishment?

- i-platform aims to support and give impetus to the development of Bosnia and Herzegovina by connecting the diaspora of Bosnia and Herzegovina in Switzerland. The diaspora constitutes an enormous resource when it comes to promoting economic development, transfer of know-how and cultural exchange. The key task of i-platform is to connect and coordinate potentials and resources of the diaspora. The Business Forum is an excellent example that illustrates the results that can be achieved through linkage and coordination. The forum was initiated by i-platform. During the preparations, we were also joined by other key partners that have recognised the importance of this event, such as the Swiss Import Promotion Programme (SIPPO), Foreign Trade Chamber of Bosnia and Herzegovina, Chamber of Commerce and Industry of RS and the project Diaspora for Development, which is supported by the Swiss Agency for Development and Cooperation and implemented in partnership with the Ministry of Human Rights and Refugees of Bosnia and Herzegovina and the United Nations Development Programme. We gathered the key actors from both countries and implemented the Business Forum as a joint project. We are very satisfied with the results. We are planning to continue applying such a form of cooperation in future on new projects.

It is well-known that the business environment in Bosnia and Herzegovina is quite complicated. However, there are many positive examples. What is the primary factor attracting foreign investors to invest in Bosnia and Herzegovina? 

- Unfortunately, Bosnia and Herzegovina is still a country in the process of transition from one system to another. This means that many factors that investors consider important do not meet the criteria. As a result, Bosnia and Herzegovina usually ranks among the last countries in Europe when it comes to attractiveness for investments. However, this fact can also be seen as positive. The reforms that have been announced for a long time cannot be avoided and have to be implemented sooner or later, because there will be no progress otherwise. Those that invest now, will profit once such reforms are implemented.

The most attractive elements are the still relatively low costs of salaries and energy. What is also attractive is the relative proximity to the Western European market and a relatively good infrastructure.

Is there scepticism and fear?

- Of course there is scepticism. The low investment rate cannot be explained otherwise. The key factor preventing investments is political instability. Also, when it comes to reforms that would improve business conditions, very little is happening. Bosnia and Herzegovina is additionally also burdened by the tax wedge. This means that the difference between gross salaries paid by employers and net amount received by employees, once taxes and contributions are paid, is unrealistically high. This fact is the main driver of shadow economy, which is extremely high.

In addition to the above, foreign investors are particularly afraid of weak of rule of law.

However, from the perspective of diaspora, the mentioned activities can again be seen as an advantage. Given the fact that in the current circumstances, investments by large international companies cannot be expected, there are higher chances for the diaspora to potentially develop a good investment project.

Is the fact that Bosnia and Herzegovina still has no comprehensive, and even more importantly, effective diaspora strategy a problem? 

- It is not realistic to expect Bosnia and Herzegovina to have a comprehensive diaspora strategy, given the fact that it has no such strategy even in case of citizens living in Bosnia and Herzegovina. Almost every political party is trying to meet its goals, so that it is difficult to have a coherent approach in order for the country to progress, instead of facing a status quo. Given the situation, we rather have the impression that Bosnia and Herzegovina has made many good steps to use the potential of the diaspora. The Swiss Government would probably not even support such a project as ours if they had not been informed by the authorities of Bosnia and Herzegovina that something like this should be initiated. Our project is now regarded as a good example, and the authorities of Bosnia and Herzegovina are trying to initiate something similar in other countries, too, such as in Germany.

At the very end, how can the potential of the diaspora of Bosnia and Herzegovina be unlocked? 

- The remittances transferred by the diaspora from abroad currently constitute 13-15% of GDP. If we also add the cash being transferred, then the amount is estimated at some 25-30% of GDP. It would be extremely important to motivate the diaspora to invest at least a small part in a project. Although remittances themselves constitute a huge potential, maybe an even greater chance for development would be to motivate the diaspora to invest not only their capital, but also their knowledge and use their contacts. The chances of Bosnia and Herzegovina would multiply in such a case.

However, even the diaspora wishes stability in order to decide to invest, although maybe to a lesser extent than an international company. I primarily mean political, but also economic stability. This is followed by all other factors, such as skilled workforce, rule of law, competitiveness in terms of costs, etc.

The interview has been published on Akta.ba.