EU and Germany Secure Nine Million Euros to Boost Competitiveness of BiH Companies

(Patria) - Companies in Bosnia and Herzegovina will have the opportunity to become more competitive, innovative, and resilient thanks to the new three-year project 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 help micro, small, and medium-sized enterprises adopt digital and green solutions, opening new opportunities in the EU market.

At today's Kick-off event at Europe House in Sarajevo, the implementing organizations GIZ and OECD presented the project's objectives and formalized their cooperation with partners.

Representatives of companies, relevant institutions, and chambers of commerce discussed the challenges and the need for digital and green solutions in the private sector, which is crucial for the economic future of BiH.

- I am pleased that the EU is financing this three-year project to support micro, small, and medium-sized enterprises as part of our continuous commitment to businesses in Bosnia and Herzegovina.

Through technical support and grants, we are helping companies 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 BiH closer to the EU's 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 companies, startups, innovative firms, and businesses led by women and youth.

The results of these grants will help improve policies and strategies, strengthening the digital and green ecosystem.

- Bosnia and Herzegovina faces complex challenges in its green and digital transformation, requiring improved infrastructure, education, and policy alignment with the EU.

To access international markets, companies must modernize their operations and align with EU standards. Germany and the European Union will help bridge this gap through this project - said Jens Elsner, Head of Program at GIZ.

Despite strong economic potential, Bosnia and Herzegovina faces significant challenges in creating an environment where businesses can thrive.

Chambers of commerce play a crucial role in helping businesses access funding, training, and expert advice, thereby facilitating the implementation of digital and green solutions.

- Within this project, the Chamber's task is to establish a Center for Responsible Business, and we thank GIZ for the trust placed in us.

This will be a local support center 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.

Therefore, this Center will be the first line of support for the industry in raising industry-wide awareness of current and upcoming European legislation and the obligations of companies exporting to the EU - said Vjekoslav Vuković, Vice President of the Foreign Trade Chamber of BiH.

He added that the Center's services will position the Foreign Trade Chamber of BiH as a leader in promoting responsible business, building on the Chamber's existing profile in the Green Economy and on the website https://zelenaekonomija.komorabih.ba/, which was also established with GIZ support.

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, OECD will lead macro-level efforts, focusing on building the capacity of key actors for long-term economic recovery planning and policy development.

The Ministry of Economy of Tuzla Canton, as part of the innovation hub in Tuzla and one of the partners, will expand its support services to companies in the green and digital transition process through the EU4PSD project.

According to Edin Duraković, Minister of the Ministry of Economy of TK, this project has strategic dimensions for the development of Tuzla Canton, and in addition to direct support to companies, it contributes to strengthening the innovation and entrepreneurial ecosystem, improving the capacity of the Digital Innovation HUB in Tuzla, and connecting actors from the public, private, and civil sectors.

This creates prerequisites for inclusive, sustainable, and long-term resilient regional development.

- The TwinTransition project we will implement represents a significant step forward in the strategic direction of Tuzla Canton's development, as it directly contributes to strengthening the competitiveness of small and medium-sized enterprises - especially those that are export-oriented or have the potential to enter international markets.

The Ministry stands by this initiative and we will continue to actively work on creating a favorable 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 of Bosnia and Herzegovina. The EU is financing the EU4PSD project with eight million euros, along with the German government, which is providing one million euros.

EU4PSD is part of GIZ's program "Sustainable Economic Development and Employment Promotion (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 in BiH (EU4PSD) project can be found on the website https://digigreen.ba/eu4psd/.