KAIP and HEPA Sign Memorandum of Cooperation: Hungary to Support Companies Investing in Bosnia and Herzegovina
The Cantonal Agency for Investment Promotion and Privatization of Sarajevo Canton (KAIP) and the Hungarian Export Promotion Agency (HEPA) have signed a Memorandum of Cooperation in Budapest, aiming to facilitate and promote investments and strengthen economic ties between Bosnia and Herzegovina and Hungary.
The agreement was signed by Adnan Jašarević, Director of KAIP, and Jenei Gabor, Director of HEPA.
On the occasion, Director Jašarević stated:
“There is significant interest in Sarajevo Canton, particularly in tourism, the IT sector, and energy. Through this agreement, we want to accelerate the implementation of investment projects and activate new opportunities. Investors need encouragement—capital flows where the doors are open. There is no economic growth or prosperity without investment. By creating an institutional framework for cooperation with our partners from the EU, we are sending an important and positive message about our commitment to development and the economy, the business climate in Sarajevo, the opportunities for progress, and the vast potential for investment.”
In addition to signing the Memorandum, Jašarević held a series of meetings with potential investors and business representatives in Budapest, where discussions focused on concrete projects and possible investments.
“We are especially encouraged by the news that the Hungarian government will provide additional financial support to companies that choose to invest in Bosnia and Herzegovina,” Jašarević emphasized.
The Memorandum of Cooperation establishes an institutional framework to enhance bilateral relations, attract investors, and overcome challenges in economic cooperation—serving the interests of both sides. Through this partnership, Sarajevo Canton will further promote its investment potential to Hungarian companies and other EU-based businesses.
With the signing of this agreement, KAIP continues its active engagement with international partners to attract investment and present the development potential of Sarajevo Canton more effectively on the European and global stage.
Representatives of the Cantonal Agency for Attracting Investments and Privatization (KAIP) took part in the largest business event within the ViennaUP Festival in Vienna, alongside more than 1,400 entrepreneurs, investors, officials, and representatives of investment promotion agencies from around the world.
A series of business meetings were held during the festival with companies and investors from various sectors – including IT, agriculture, and finance with strong interest for investing in tourism in particular.
KAIP Director Adnan Jašarević emphasized the importance of Sarajevo Canton’s presence at such events, where not only some of the world’s most prominent companies showcase their potential, but also national and regional business communities from France, Austria, Latvia, and the Asian market.
The visit further strengthened cooperation with our partners from the Vienna Business Agency, confirming a shared interest in developing and attracting new investments.
Sarajevo Canton continues its active presence on the international business stage – because the potential we offer deserves global attention.
Today’s trading on the Sarajevo Stock Exchange saw a total turnover of 50,047,021.86 BAM. A total of 53,333 securities were traded across 27 transactions.
The 61st auction of Federation of BiH bonds was held, involving five-year bonds with a maturity date of April 16, 2030. A total of 50,000 bonds were subscribed in 10 transactions, using a multiple price method, at a weighted average accepted price of 99.9620 and an interest rate of 3.1084%. This resulted in a total of 49,981,004.58 BAM being raised for the issuer.
The value of the BIFX index increased by 0.77%, while other indices saw declines. The SASX-10 index decreased by 0.68%, SASX-30 dropped by 0.08%, and the SASE Islamic Index (in collaboration with BBI) – SASX-BBI, declined by 0.47%. The SASX-Fundamentals (SASX-FN) index also saw a drop of 0.53%.
On the Fund Listings section, a turnover of 82.40 BAM was recorded with shares of ZIF BIG INVESTICIONA GRUPA DD SARAJEVO. One transaction resulted in the trade of 103 shares at a price of 0.80 BAM each.
In the Free Market – ST1 segment, a turnover of 57,774.88 BAM was achieved across 14 transactions, with 2,848 shares traded. The largest turnover was achieved with the shares of BH TELECOM D.D. SARAJEVO, totaling 40,655.88 BAM, at a price of 15.44 BAM per share.
In the Free Market – ST2 segment, a turnover of 8,160.00 BAM was recorded, with 382 shares traded across two transactions. The largest turnover was again with the shares of RUDNIK SOLI TUZLA DD TUZLA, totaling 5,460.00 BAM, with a share price of 30.00 BAM.
The biggest daily increase in share value was recorded by ZIF BIG INVESTICIONA GRUPA DD SARAJEVO, with a 5.26% increase. On the other hand, the biggest daily drop was seen in the shares of HM CEMENT BIH DD KAKANJ, which fell by 3.33% to a price of 72.50 BAM.
Director of the Cantonal Agency for Attracting Investments and Privatization, Adnan Jašarević, Signs Cooperation Memorandum with Emir Ibrahimagić, Head of the Government of Sarajevo Canton’s Diaspora Office
Today, in Sarajevo, Adnan Jašarević, the Director of the Cantonal Agency for Attracting Investments and Privatization, signed a Memorandum of Cooperation with Emir Ibrahimagić, the Head of the Government of Sarajevo Canton’s Diaspora Office.
The signing of this Memorandum establishes a framework for effective cooperation between the two institutions, aimed at faster and more efficient connections and raising awareness within the Bosnian diaspora about the economic potentials, business climate, and investment opportunities in the Sarajevo Canton.
“This is another confirmation of our efforts to focus on development and progress, on new investments, and on connecting with our citizens living outside the borders of Bosnia and Herzegovina. Establishing this cooperation is in the interest of not only Sarajevo Canton but also the Bosnian diaspora, which will, among other things, have access to timely and accurate information, a dedicated address for investment-related inquiries, and all the assistance and support needed to carry out business operations in Sarajevo Canton,” said Jašarević.
He emphasized that the Memorandum will provide an institutional framework in which, depending on the needs, interests, and possibilities, particular attention will be given to promoting and attracting investments from the Bosnian diaspora to Sarajevo Canton. Additionally, it will offer further assistance to Bosnian citizens from the diaspora who have already made investments in the Canton.
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The Director of the Cantonal Agency for Investment Promotion and Privatization of Sarajevo Canton, Adnan Jašarević, commented on the reduction of contributions in the Federation of Bosnia and Herzegovina (FBiH).
The reduction of contributions in the Federation of Bosnia and Herzegovina and Sarajevo Canton is attracting significant interest from potential investors and contributing to a better business environment, emphasized Adnan Jašarević, Director of the Cantonal Agency for Investment Promotion and Privatization of Sarajevo Canton.
Adnan Jašarević: Potential investors we are in contact with have shown particular interest in this aspect of the regulatory framework
Jašarević highlighted that there have already been very positive reactions from potential investors following the announcement from the Government of the Federation of BiH.
“Once it comes into effect, this decision will serve as an additional incentive for investment and will represent our comparative advantage compared to other regions that, like us, are also working to attract investors,” Jašarević added.
The Government of the Federation of Bosnia and Herzegovina, at the proposal of the Federal Ministry of Finance, has determined the Draft Law on Amendments to the Law on Contributions, which will be sent to the Parliament of the Federation of BiH for further consideration and adoption under an expedited procedure.
According to Jašarević, the issue of contributions is one of the key topics in discussions with companies considering investments in Sarajevo Canton.
The proposed legal solution reduces the overall contribution rate by 13.25 percent, or by 5.5 index points, from the current 41.5 percent to 36 percent.
“Potential investors we are in contact with have shown particular interest in this aspect of the regulatory framework, and we expect this move will further encourage them. We already offer strong incentives for investors, low taxes, and numerous strategic advantages,” said Jašarević.
It is proposed that the law will enter into force the day after its publication in the Official Gazette of the Federation of BiH and will start being applied on July 1, 2025.
The Government of the Federation of Bosnia and Herzegovina, adopted the Draft Law on Amendments to the Law on Contributions, as proposed by the Federal Ministry of Finance. The draft law will now proceed to the Parliament of the Federation of BiH for further consideration and adoption under an expedited procedure.
Significant Reduction of Contribution Rates in Sarajevo Canton
The proposed legislative changes introduce a reduction in the total contribution rate by 13.25%—specifically, from 41.5% to 36%, representing a decrease of 5.5 percentage points. The reduction applies to both pension and disability insurance contributions (a decrease of 3.5 percentage points) and health insurance contributions (a decrease of 2 percentage points), both payable by employers.
This reduction will apply equally across the entire Federation of BiH, including Sarajevo Canton, which represents the economic and administrative heart of the Federation and a key hub for both domestic and foreign investment.
Strategic Importance for Investment Climate in Sarajevo Canton and Beyond
This measure is a crucial step in enhancing the overall investment climate in the Federation of BiH, and particularly in Sarajevo Canton, which serves as the primary economic engine and investment destination within the Federation. By directly lowering labor costs for employers, the government is creating a more competitive environment for both local businesses and international investors. High labor costs have long been cited as a barrier to greater foreign direct investment (FDI), and this reform directly addresses one of the most pressing financial burdens for businesses operating in the Federation and Sarajevo Canton.
Part of a Broader Fiscal Reform Package
The proposed amendments form part of a comprehensive fiscal reform agenda being pursued by the Federation’s Government. Alongside changes to the Law on Contributions, the government is also working on new laws governing income tax and broader taxation policies, all aimed at modernizing the fiscal system and fostering economic growth throughout the Federation, including in Sarajevo Canton.
Relief for Employers and Economic Growth
One of the primary goals of this legislative initiative is to ease the financial burden on businesses and reduce payroll costs, especially for employers who will face higher wage expenses in 2025 following the implementation of the new minimum wage regulation.
By reducing payroll taxes, the government is not only supporting the existing business community but also making Sarajevo Canton and the wider Federation more attractive for future investments.
Alignment with Constitutional Court Ruling
Additionally, the proposed changes ensure full compliance with the ruling of the Constitutional Court of the Federation of Bosnia and Herzegovina (U-22/21) dated March 21, 2023, further reinforcing legal certainty for businesses and investors.
Implementation Timeline
The proposed amendments will enter into force the day after publication in the Official Gazette of the Federation of BiH, with their application set to begin on July 1, 2025. This provides businesses in Sarajevo Canton and across the Federation with a clear timeline to plan and adjust their financial projections accordingly.
A Signal to Investors: Federation of BiH and Sarajevo Canton are Open for Business
By lowering labor costs and modernizing the fiscal framework, the Government of the Federation of BiH is sending a strong signal to investors—the region, including Sarajevo Canton, is actively working to improve its business environment, reduce administrative burdens, and enhance legal and fiscal predictability. These steps are vital to attracting new investments, stimulating job creation, and ultimately accelerating economic development across the Federation and in its capital region.
The Ministry of Economy of Sarajevo Canton, through the Incubator Program of the Center for Entrepreneurship Development, has launched a support initiative for startup systems aimed at young entrepreneurs. A total of 21 entities in Sarajevo Canton have received financial and expert support through this program.
“The incubation program has proven to be a strong incentive for young entrepreneurs, providing them with, in addition to financial and mentoring support, the opportunity to network and gain concrete benefits. We are particularly pleased that successful Bosnian-Herzegovinian entrepreneurs have recognized the value of this program and decided to support startups in their own way. For example, some of the incubator residents received free website creation. The Ministry of Economy of Sarajevo Canton will continue to invest in such initiatives, as they are key to the economic development and creation of opportunities for young people in Bosnia and Herzegovina. We will soon speak more about a new program we are preparing, which will be extremely valuable for young business entities,” said Zlatko Mijatović, Minister of Economy of Sarajevo Canton (NiP), in an interview with Avaz.
21 Contracts Signed Each participant of the startup program received a grant of 30,000 BAM, office space, and funds for utility costs.
“The Center for Entrepreneurship Development is a unit within the Public Institution Center for Advanced Technologies of Sarajevo Canton. This project was launched last year and falls under the jurisdiction of the Ministry of Economy of Sarajevo Canton. The first public call was announced in the middle of last year, and 25 startups were initially selected. A total of 21 contracts were signed, with four entities opting out,” said Ensar Mulaosmanović, Director of the Public Institution Center for Advanced Technologies, in an interview with Avaz.
“The goal of the Center is to promote entrepreneurial spirit among younger generations. We try to incorporate technology into the program. All startups in the technology and development sectors are important to us. In the first year, we did not manage to have purely technological startups—slightly less than half are in the IT sector, with some in fields like mechanical engineering, programming, and 3D technologies. We can say that we are satisfied because, in Bosnia and Herzegovina, the entrepreneurial spirit does not exist in institutional form, as it does with the Center for Entrepreneurship Development. This is the first state-established center of its kind. Each startup receives 30,000 BAM in grants, office space, and funds for utility costs,” Mulaosmanović added.
Significant Support for Youth “The support we received is of enormous importance because we have set up the infrastructure with which we can develop the business and bring new products to the market. We are primarily involved in the production of smart souvenirs, as well as providing engineering services and education. This will help us as we now have enough resources and equipment to create products and plan their placement on the market,” said Damir Hanić, a program participant.
Adnan Jašar, owner of a photo-video production company, said that the funds he received from the Ministry made it possible to realize complex projects.
“Given the amount the Ministry allocated and in relation to my idea connected with photo and video production, it was very helpful to me as the equipment I need is very expensive. Thanks to their support, it has eased the purchase of that equipment. That is the main and biggest reason why I applied for this competition. We are in the development stages and have passed many steps that we initially had to do manually, so now we can work on much more serious projects,” Jašar said.
Continued Investment in Key Initiatives
Minister of Economy of Sarajevo Canton, Zlatko Mijatović, emphasized that the Ministry will continue to invest in initiatives that are crucial for the economic development.
The Director of the Cantonal Agency for Attracting Investments and Privatization Sarajevo, Adnan Jašarević, met in Podgorica with Snežana Đurović, the Director of the Montenegrin Investment Agency, along with her team.
During a very productive working meeting, discussions were held on the implementation of several concrete joint initiatives aimed at attracting major investors to the region and strengthening the cooperation between the two agencies.
It was agreed to sign a Memorandum of Understanding as soon as possible, which will establish an effective framework for cooperation. It was noted that a regional approach to investment promotion and attraction yields the best results, thus creating space where new investments can become a driving force for accelerated development and economic progress. The meeting also covered the implementation of public-private partnership projects.
The delegation of the Cantonal Agency for Attracting Investments and Privatization (KAIP) recently engaged in a high-level dialogue with representatives of the BABEG organization from Carinthia, marking a significant step towards strengthening economic ties between the regions 🤝🌍. The discussions focused on attracting investments 💰 and showcasing the dynamic investment and economic potential of Sarajevo Canton, alongside fostering deeper collaboration in these areas.
Both sides agreed on concrete steps to not only connect the agencies but also establish a direct link between companies from both regions, with a strong emphasis on exploring opportunities in third markets 🌐. The conversation also highlighted the exchange of best practices in attracting investment, particularly within the IT sector 💻 and high-tech industries 🚀, where Carinthia has set a benchmark for success.
As part of the visit, the delegations also toured a highly successful technology and development park in Carinthia, which stands as an excellent example of public-private partnership in action 🏢🤝. This innovative model is a source of inspiration for future initiatives in both regions.
Additionally, the potential for collaboration in the tourism sector 🏞️ was explored, opening the door to new investment opportunities that will drive growth and innovation for both regions.
A new era of partnership and growth is on the horizon! 🌟
A series of business meetings were held during the festival with companies and investors from various sectors – including IT, agriculture, and finance with strong interest for investing in tourism in particular.
KAIP Director Adnan Jašarević emphasized the importance of Sarajevo Canton’s presence at such events, where not only some of the world’s most prominent companies showcase their potential, but also national and regional business communities from France, Austria, Latvia, and the Asian market.
The visit further strengthened cooperation with our partners from the Vienna Business Agency, confirming a shared interest in developing and attracting new investments.
Sarajevo Canton continues its active presence on the international business stage – because the potential we offer deserves global attention.
