Businesses in Bosnia and Herzegovina (BiH) will have the opportunity to become more competitive, innovative, and resilient thanks to a new three-year project for Private Sector Development in BiH (EU4PSD).
This project, funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ), will support micro, small, and medium-sized enterprises in adopting digital and green solutions, opening new market opportunities within the EU.
"I am pleased that the EU is financing this three-year project to support micro, small, and medium-sized enterprises as part of our continued commitment to businesses in Bosnia and Herzegovina. Through technical support and grants, we are helping them engage in digital and green transformation, innovate, and become more competitive. A stronger, more resilient private sector is key to unlocking economic opportunities and bringing Bosnia and Herzegovina closer to the EU single market,” said Stefano Ellero, Head of Cooperation at the EU Delegation to BiH.
Local partners will implement digital and green solutions for target groups, including export-oriented businesses, start-ups, innovative firms, and businesses led by women and young people. The results of these grants will contribute to improving policies and strategies, strengthening the digital and green ecosystem.
"Bosnia and Herzegovina faces complex challenges in its green and digital transformation, which require improved infrastructure, education, and alignment of policies with the EU. To access international markets, businesses must modernise their operations and comply with EU standards. Germany and the European Union will help bridge this gap through this project," said Jens Elsner, Programme Manager at GIZ.
Despite its strong economic potential, Bosnia and Herzegovina faces significant challenges in creating an environment where businesses can thrive. Chambers of commerce play a key role in helping businesses access financing, training, and expert advice, thereby facilitating the implementation of digital and green solutions.
"As part of this project, the Chamber's task is to establish a Centre for Responsible Business, and we thank GIZ for their trust. This will be a local support centre that informs, raises awareness, and advises BiH companies on standards and requirements related to EU legislation, Green Agenda regulations and standards, and connects them with local experts and service providers. This Centre will be the first line of support for the industry, helping to raise awareness across the sector about current and upcoming European legislation and the obligations of companies exporting to the EU," said Vjekoslav Vuković, Vice President of the External Trade Chamber of BiH. With support from GIZ, a dedicated website on the green economy has also been launched.
Through this project, GIZ will work directly with companies to adopt green and digital practices, improve access to finance, and provide technical assistance for digital transformation and eco-innovation.
Meanwhile, the OECD will lead efforts at the macro level, focusing on building the capacity of key stakeholders to plan for long-term economic recovery and policy development.
The Ministry of Economy of the Tuzla Canton, as part of the innovation hub in Tuzla and one of the project partners, will expand its support services to businesses undergoing green and digital transition through the EU4PSD project.
According to Edin Duraković, Minister of the Ministry of Economy of Tuzla Canton, this project holds strategic significance for the development of Tuzla Canton. In addition to directly supporting companies, it contributes to strengthening the innovation and entrepreneurial ecosystem, enhancing the capacity of the Digital Innovation HUB in Tuzla, and connecting actors from the public, private, and civil sectors. This creates the foundation for inclusive, sustainable, and long-term resilient regional development.
"The TwinTransition project that we are set to implement represents a significant step forward in the strategic development of Tuzla Canton, as it directly contributes to enhancing the competitiveness of small and medium-sized enterprises – especially those that are export-oriented or have the potential to enter international markets. The Ministry supports this initiative and we will continue to actively work on creating a favourable environment for innovation, investment, and the growth of our economy," said Duraković.
The European Union and the German government remain committed to supporting the private sector in Bosnia and Herzegovina. The EU is funding the EU4PSD project with 8 million euros, alongside the German government, which is contributing an additional 1 million euros.
EU4PSD is part of GIZ’s programme “Sustainable Economic Development and Promotion of Employment (SEDEP)” in BiH, which also includes a component for strengthening vocational education and training (SVET), co-financed by the Swiss government.
More information about the Private Sector Development project in BiH (EU4PSD) can be found on the website.
(EUpravo zato/EU u BiH)